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Ashirwad Steels & Industries Ltd.

BSE: 526847 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE338C01012
BSE 00:00 | 23 May 10.29 0
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10.29

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10.29

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10.29

NSE 05:30 | 01 Jan Ashirwad Steels & Industries Ltd
OPEN 10.29
PREVIOUS CLOSE 10.29
VOLUME 1
52-Week high 16.05
52-Week low 6.58
P/E 114.33
Mkt Cap.(Rs cr) 13
Buy Price 10.50
Buy Qty 208.00
Sell Price 10.29
Sell Qty 2354.00
OPEN 10.29
CLOSE 10.29
VOLUME 1
52-Week high 16.05
52-Week low 6.58
P/E 114.33
Mkt Cap.(Rs cr) 13
Buy Price 10.50
Buy Qty 208.00
Sell Price 10.29
Sell Qty 2354.00

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

Company auditors report

INDEPENDENT AUDITOR’S REPORT

To

The Members of

Ashirwad Steels & Industries Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of AshirwadSteels & Industries Limited ("the Company") which comprises of the BalanceSheet as at 31st March 2018 and the statement of Profit and Loss (including otherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "Standalone Ind AS FinancialStatements").

Management’s Responsibility for the Standalone Ind AS Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 (hereinafter referred to as the "ACT") withrespect to the preparation of these standalone IND AS financial statements that give atrue and fair view of the financial position financial performance including othercomprehensive Income cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act read with Rules issuedthereunder. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding 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 Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company’s preparation of the standalone Ind AS financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the standaloneInd AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our informations and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view

in the conformity with the accounting principles generally accepted in India includingthe Ind AS of the financial position of the Company as at 31stMarch 2018 and itsfinancial performance including other comprehensive Income it’s cash flows and thechanges in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure-A a statement on thematters specified in paragraphs 3 and 4 of the Order 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 the Cash Flow Statement andthe Statement of the changes in equity dealt with by the Report are in agreement with thebooks of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with relevant ruleissued thereunder;

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B"; and

(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 the best of our information and according to the explanations given to us :

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements- Refer Note 31(1)(B) 31(1)(C) and 31(2) of thestandalone Ind AS financial statements;

(ii) The Company did not have any long- term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There has been no delay in transferring amounts required to be transferred andif any to the Investor Education and Protection Fund by the Company.

FOR M. R. SINGHWI & CO Chartered Accountants

Firm Registration No: 312121E

CA M.R. Singhwi Partner

Membership No: 050650

Place: Kolkata

Date: 29th May 2018

Annexure ‘A’

To the Independent Auditors’ Report of even date on the Standalone IND ASFinancial Statement of ASHIRWAD STEELS & INDUSTRIES LIMITED.

Referred to in paragraph 1 under the heading ‘Report on Other Legal &Regulatory Requirement’ of our report of even date to the financial statements of theCompany for the year ended March 312018:

We report that:

1) In respect of its Property Plant and Equipments:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its Property Plant and Equipments.

b) The company has physically verified all the major Property Plant and Equipments asper a phased program of verification. In our opinion the frequency of verification isreasonable having regard to the size of the Company and the nature of its assets. Thediscrepancies reported on such verification were not material and have been properly dealtwith in the books of accounts.

c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed/ transfer deed/ conveyancedeed provided to us we report that the title deeds of all the immovable properties otherthan self constructed immovable Properties (Building and Factory Sheds etc.) are held inthe name of Ashirwad Steels & Industries Ltd.

2) 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 ofaccounts.

3) The requirement of clause (iii) a (iii)b and (iii)c of the order are not applicablesince no loans have been given during the year to companies firms limited liabilitypartnerships or other parties covered under Section 189 of the Companies Act 2013.

4) In respect of loans given and long term investments made in shares (quoted andun-quoted) of companies; the provisions of section 185 and 186 of the Companies Act 2013have been complied with. No loan has been given to any director of the company.

5) In our opinion and according to the informations and explanations given to us; theCompany has not accepted any deposit from public within the meaning of sections 73 to 76or any other relevant provisions of the Companies Act 2013 and the rules framedthereunder and hence no reporting on this account is required.

6) 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 therequirement of maintenance of cost records is not necessary as per relevant provisions ofthe companies Act 2013.

7) (a) The company is generally regular in depositing undisputed statutory duesincluding Staff Provident Fund

Employees’ State Insurance Income Tax VAT CST Service Tax Excise Duty CessGoods and service tax duty of customs and other material statutory dues as applicable toit.

(b) According to the informations and explanations given to us the following taxes werenot deposited as the same are disputed and under adjudication of Hon’ble High Courtat Hyderabad

Particulars Disputed/ demanded Amount (Rs.) Forum where dispute is pending in appeal As on 31.03.2018
i) CENVAT on Capital Goods (Net of payment) 1214662 The Central Excise and Service Tax Appellate Tribunal Bangalore (CESTAT) decided this matter in favour of the company but the Excise Department has preferred an appeal with the Hon’ble High Court of Hyderabad and the matter is subjudice.

(c) In our opinion there is no amount required to be transferred to Investor educationand protection fund in accordance with the relevant provisions of the Companies Act 2013and rules framed thereunder.

8) According to the informations and explanations given to us and the records examinedby us the Company has not defaulted in repayment of dues to banks any financialinstitutions government or dues to debenture holders . The company has not accepted anyfund on account of issue of debentures.

9) During the year no amount was raised by way of initial public offer or furtherpublic offer (including debt instruments) and term loans.

10) According to the informations and explanations given to us no fraud on or by theCompany or by its officers or employees has been noticed or reported during the year.

11) The managerial remuneration paid during the year to the Managing Director of thecompany is in accordance with the requisite approval mandated by the provisions of section197 read with schedule V to the Companies Act 2013 and applicable rules.

12) The company is not a Nidhi Company and therefore clause (xii) of the order is notapplicable to the company.

13) There were some transactions with the related parties during the year which are incompliance with sections 177 and 188 of the Companies Act 2013 and disclosure of the samehas been made in the financial statements etc as required by the applicable accountingstandards.

14) During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence no reporting onthis account is required.

15) During the year company has not entered into any non-cash transaction withdirectors or person connected with them.

16) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

FOR M. R. SINGHWI & CO Chartered Accountants

Firm Registration No: 312121E

CA M.R. Singhwi

Partner

Membership No: 050650

Place: Kolkata

Date: 29th May 2018

"Annexure B"

To the Independent Auditor’s Report of even date on the Financial Statements ofAshirwad Steels & Industries Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AshirwadSteels & Industries Limited as of March 312018 in conjunction with our audit of theIND AS financial statements of the Company for the year ended on that date. Management’sResponsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on "the internal control over financial reporting 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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting 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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of 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 Ind AS 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that

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

(2) 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

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312018 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

FOR M. R. SINGHWI & CO

Chartered Accountants Firm Registration No: 312121E

CA M.R. Singhwi

Partner

Membership No: 050650

Place: Kolkata

Date: 29th May 2018