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Ashirwad Steels & Industries Ltd.

BSE: 526847 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE338C01012
BSE 12:04 | 23 Sep 10.00 0.21
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NSE 05:30 | 01 Jan Ashirwad Steels & Industries Ltd
OPEN 9.79
PREVIOUS CLOSE 9.79
VOLUME 1662
52-Week high 16.81
52-Week low 6.78
P/E
Mkt Cap.(Rs cr) 13
Buy Price 9.71
Buy Qty 13.00
Sell Price 10.00
Sell Qty 1486.00
OPEN 9.79
CLOSE 9.79
VOLUME 1662
52-Week high 16.81
52-Week low 6.78
P/E
Mkt Cap.(Rs cr) 13
Buy Price 9.71
Buy Qty 13.00
Sell Price 10.00
Sell Qty 1486.00

Ashirwad Steels & Industries Ltd. (ASHIRWADSTEELS) - Auditors Report

Company auditors report

TO THE MEMBERS OF ASHIRWAD STEELS & INDUSTRIES LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Ashirwad Steels & Industries Limited("the Company") which comprise the Balance Sheet as at March 31 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes tothe financial statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "the Financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 and total comprehensive income(comprising loss and other comprehensive income) changes in equity and its cash flows forthe year then ended.

Basis for Opinion

We conducted our auditin accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ("the ICAI") together with the ethical requirements that are relevant toour audit of the financial statements under the provisions of the Act and the Rules madethere under and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI s Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw your attention to Note 3(a) to the financial statements which explain theuncertainties and management s assessment of the financial impact due to the lock-down /restrictions related to the Covid-19 pandemic imposed by the Governments for which adefinitive assessment of the impact is dependent upon future economic conditions.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Description of Key Audit Matter

Evaluation of key tax matters

Key Audit Matter How the matter was addressed in our audit
Our audit procedures included the following substantive procedure;
1. The Company operates in multiple jurisdictions and is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including indirect tax matters and other litigation(s). These involve significant judgment by the company to determine the possible outcome of the uncertain tax positions consequently having an impact on related accounting and disclosures in the financial statements. 1. Obtain an understanding of key tax matters
2. The audit team along with our internal tax experts read and analysed select key correspondences external legal opinions/ consultation obtained by Company for key tax matters
3. Evaluated the key assumptions made by the company in estimating the current and deferred tax balances
4. Assessed the company s estimate of the possible outcome of the disputed cases and pending litigations by considering legal precedence and other judicial rulings and;
5. Assessed and tested the presentation and disclosures relating to taxes and litigations if any.

Evaluation of Contingent liabilities (Refer note 31 (1) to the financial statements)

Sr. No. Key Audit Matter How the matter was addressed in our audit
Our audit procedures include;
2. Claims against the Company not acknowledged as debts is disclosed in the financial statements. In this regard the Bank Guarantee issued by the HDFC Bank in favour of Central Coal fields Ltd dated 11- 12.2013 for Rs 46.00 Lacs/- and renewed on 22.02.2021 for a period of upto 31-03-2022 against which the Company has pledged /created lien on its fixed deposits with the HDFC Bank Ltd. The existence of the payments against these claims requires management s judgement to ensure disclosure of most appropriate values of contingent liabilities. 1. Among others assessing the appropriateness of the management s judgement in estimating the value of claims against the Company not acknowledged as debts as given in the Note 31 (1) to the financial statements.
Our audit procedures included:
Design / controls
3. Classification and measurement of financial assets Business model assessment Assessment of carrying value of equity investments in quoted and unquoted shares and securities. (Refer to Note 2.3 to the financial statements "Use of estimates and critical accounting assumptions and Judgments" Note no 2.3.3 "Estimated fair value of unlisted securities" Note no 5 "Investments in equity instruments" and Note no 31(7)(A) to the financial statements and Note no 31(7)(B) to the financial statements "Fair value hierarchy" ? Assessing the design implementation and operating effectiveness of key internal controls over management s intent of purchasing a financial assets and classification of such financial assets on the basis of management s intent (business model).
? For financial assets classified at Amortized cost we tested controls over the classification of such assets and subsequent measurement of assets at Amortized cost
? For financial assets classified at FVOCI we tested controls over the classification of such assets and subsequent measurement of assets at fair value.
Substantive tests.
The Company has equity investments in various quoted shares as well as unquoted shares. ? Test of details over classification and measurement of financial assets in accordance with management s intent. (Business model).
It has also made investments in preference shares which are unquoted.
The Company accounts for equity investments both in quoted and unquoted shares at fair value subject to the carrying value of unquoted equity shares and preference shares which are carried at cost being tde transaction value as recorded at the time of acquisitions. ? We selected a sample of financial assets to test whether their classification as at the balance sheet date is in accordance with management s intent.
For investments carried at fair values a fair valuation is done at the year end as required by Ind AS 109. In case of certain investments cost is considered as an appropriate estimate of fair value since there is a wide range of possible fair value measurements and costs represents the best estimate of fair value within that range as permitted under Ind AS 109. ? We selected a sample (based on quantitative thresholds) of financial assets sold during the year to check whether there have been any sales of financial assets classified at amortized cost FVOCI or FVTPL.
? We have also checked that there have been no reclassifications of assets in the current period.
? We had discussions with management to obtain understanding of the relevant factors in respect of certain investments carried at fair value where a wide range of fair value were possible due to various factors such as absence of of recent observable transactions restrictions on transfer of shares existence of multiple valuation techniques investee s varied nature of portfolio of investments for which significant estimates/ Judgements are required to arrive at fair value.
? We have discussed the key assumptions and sensitivities for certain investments with those charge with Governance.
? We evaluated the adequacy of the disclosures made in the financial statements.
The accounting for investments is a Key Audit Matter as the determination of recoverable value for impairment assessment/ fair valuation involves significant management judgement and estimates. Based on the above procedures performed we did not identify any significant exceptions in the management s assessment in relation to the carrying value of the investments in equity and preference shares.
In case of loans made the general approach has been followed to determine the expected credit loss in line with the management s assessment of determining the Exposure of default (EAD) Probability of default (PD) and loss given default (LGD) and accordingly impairment assessment and fair valuation for such loans have been carried out as per the applicable Ind AS.

Information other than the Financial Statements and Auditor s Report thereon

The Company s Board of Directors are responsible for the other information. The otherinformation comprises the information included in the Management s Discussion andAnalysis Board s Report including Annexure to Board s Report Corporate Governance Reportincluded in the Company s annual report but does not include the financial statements andour auditor s report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed; we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management s Responsibility and those charged with governance for the FinancialStatements

The Company s Board of Directors are responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fairview of the financial position financial performance changes in equityand cash flows of the Company in accordance with the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safe guarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the financial statements Management is responsible for assessing theCompany s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company s financialreporting process.

Auditor s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor s report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial control system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor s report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually origin aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor s report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor s Report) Order 2016 ("the Order")issued by the Central Government in terms of Section143(11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraph 3 and 4 of theorder to the extent applicable.

2) As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of profit and loss (including other comprehensiveincome) the Statement of Changes in Equity and the Statement of cash flow dealt with bythis Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors taken onrecord by the Board of Directors none of the directors is disqualified as on March 312021 from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference tofinancials statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditor s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to best of our information and according to the explanations given to us:

i) The Company did not have any pending litigations as at March 31 2021 which mayeffect on its financial position.

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses during the year ended March 31 2021.

iii) During the year no amounts were required to be transferred to the InvestorEducation and Protection Fund by the Company so the question of delay in transferringsuch sums does not arise.

3) With respect to the matter to be included in the Auditor s Report under Section197(16) of the Act:

In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act read with Schedule V to the Act.

For and on behalf of
M.R. SINGHWI& CO
Chartered Accountants
Firm Registration Number: 312121E
CA Mahesh Raj Singhwi
Partner
Membership Number: 050650
UDIN: 21050650AAAABA6194
Place: Kolkata
Date: 21.06.2021

Annexure - B to the Independent Auditors Report

With reference to the Annexure B referred to paragraph 2 (f) underReport on Other Legaland Regulatory Requirements of the Independent Audit Report of even date to the members ofthe Company on the financial statements as on and for the year ended March 31 2021 wereport the following:

Report on the Internal Financial Controls with reference to Financial Statements underClause (i) of Subsection 3 of Section 143 of the Companies Act 2013 (the "Act")

We have audited the internal financial controls with reference to financial statementsof ASHIRWAD STEELS & INDUSTRIES LIMITED ("the Company") as of March31 2021 in conjunction with our audit of the financial statements of the Company for theyear ended on that date.

Management s Responsibility for Internal Financial Controls

The Company s Management and the Board of Directors of the Company are responsible forestablishing and maintaining internal financial controls based on the internal financialcontrols with reference to financial statements criteria established by the Companyconsidering the essential component of stated in the Guidance Note issued by the Instituteof Chartered Accountants of India. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company s policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act2013.

Auditor s Responsibility

Our responsibility is to express an opinion on the internal financial controls withreference to financial statements based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over

Financial Reporting (the "Guidance Note") issued by the Institute ofChartered Accountants of India and the Standards on Auditing prescribed underSection143(10) of the Companies Act2013 to the extent applicable to an audit of internalfinancial controls with reference to financial statements. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to standalone financial statements were established and maintained andwhether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of such internal financial controlsassessing the risk that a material weakness exists and testing and evaluating the designand operating effective internal control based on the assessed risk. The proceduresselected depend on the auditor s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company s internal financial controls withreference to financial statement.

Meaning of Internal Financial Controls with reference to Financial Statements.

A company s internal financial control with reference to financial statement is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company s internal financial control withreference to financial statement includes those policies and procedures that:-

(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(iii) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company s assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls with Reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls with reference to financial statements and such internal financialcontrols with reference to financial statements were operating effectively as at March 312021 based on the internal control with reference to financial statements criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (the Guidance Note ).

For and on behalf of
M.R.SINGHWI& CO
Chartered Accountants
Firm Registration Number: 312121E
CA Mahesh Raj Singhwi
Partner
Membership Number: 050650
UDIN:21050650AAAABA6194
Place: Kolkata
Date: 21.06.2021

Annexure - A to the Independent Auditors Report

With reference to the Annexure A referred to in the Independent Auditor s Report to themembers of the Company on the financial statements for the year ended March 31 2021 wereport the following:

i. In respect of the Company s Property plant and equipment:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment. (b) The Company hasphysically verified all the major property plant and equipment as per a phased program ofverification. In our opinion the periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets. The discrepanciesreported on such verification were not material and have been properly dealt in the booksof accounts. (c) According to the information and explanations given to us and therecords examined by us and based on the examination of the records/deeds provided to uswe report that the title deeds of all the immovable properties other than self-constructedimmovable properties (Building and Factory sheds etc.) are held in the name of theCompany.

ii. As per the information furnished to us the management has conducted physicalverification of inventory at reasonable intervals during the year wherever possible andrequired and the discrepancies noticed have been properly dealt with in the books.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to Companies Firms Limited Liability Partnershipor other parties covered in the register maintained under section 189 of the CompaniesAct 2013. Accordingly paragraphs 3(iii) (a) (b) and (c) of the Order are notapplicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections186 of the Act in respect of grant ofloans making investments and providing guarantees and securities as applicable. No loanhas been given to any director of the Company. v. In our opinion and according to theinformation and explanations given to us the Company has not accepted any deposits frompublic within the meaning of sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules framed there under and hence no reporting on thisaccount is required.

vi. Since the net worth of the Company is less than Rupees one hundred and fifty croresand the turnover in respect of

Sponge iron is less than Rupees thirty-five crores the requirement of maintenance ofcost records is not necessary as per relevant provisions of the Companies Act 2013. vii.The Company is generally regular in depositing undisputed statutory dues including staffprovident fund

Employees State Insurance Income Tax Excise Duty Cess Goods and Services Tax andother material statutory dues as applicable to it. viii. In our opinion there is no amountrequired to be transferred to Investor Education and Protection Fund in accordance withthe relevant provisions of the Companies Act 2013 and rules framed there under.

ix. The Company has not taken any loans or borrowings from financial institutionsbanks and government or has not issued any debentures. Hence reporting under clause 3(viii) of the Order is not applicable to the Company.

x. In our opinion and according to the information and explanations given to us theCompany has not raised moneys by way of initial public offer or further public offer(including debt instruments) or term loans and hence reporting under clause 3 (ix) of theOrder is not applicable to the Company.

xi. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or no material fraud on the Company by its officersor employees has been noticed or reported during the year.

xii. In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xiii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) ofthe Order is not applicable to the Company. xiv. In our opinion and according to theinformation and explanations given to us the Company is in compliance with Section 177and 188 of the Companies Act 2013 where applicable for all transactions with the relatedparties and the details of related party transactions have been disclosed in the financialstatements as required by the applicable accounting standards.

xv. According to the information and explanations give us and based on our examinationof the records of the Company the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.

xvi. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with them.

xvii. In our Opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly paragraph 3 (xvi) of the Order is not applicable to the Company.

For and on behalf of
M.R.SINGHWI& CO
Chartered Accountants
Firm Registration Number: 312121E
CA Mahesh Raj Singhwi
Partner
Membership Number: 050650
UDIN : 21050650AAAABA6194
Place: Kolkata
Date: 21.06.2021

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