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Beekay Steel Industries Ltd.

BSE: 539018 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE213D01015
BSE 00:00 | 12 Aug 420.90 0.80
(0.19%)
OPEN

419.80

HIGH

430.00

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419.80

NSE 05:30 | 01 Jan Beekay Steel Industries Ltd
OPEN 419.80
PREVIOUS CLOSE 420.10
VOLUME 3797
52-Week high 545.00
52-Week low 301.30
P/E 5.10
Mkt Cap.(Rs cr) 803
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 419.80
CLOSE 420.10
VOLUME 3797
52-Week high 545.00
52-Week low 301.30
P/E 5.10
Mkt Cap.(Rs cr) 803
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Beekay Steel Industries Ltd. (BEEKAYSTEELIND) - Auditors Report

Company auditors report

To the Members of

Beekay Steel Industries Limited.

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying Standalone Ind AS Financial Statementof BEEKAY STEEL INDUSTRIES LIMITED which comprise the Balance Sheet as at March 31 2021the Statement of Profit and Loss(including other comprehensive income) the Statement ofChanges in Equity the Statement of Cash Flows for the year ended on that date and asummary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone financial statements give theinformation required by the Companies Act 2013 (the "Act") in the manner sorequired and give a true and fair view in conformity with Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the Standalone state of affairs of the Company as at March31 2021 the Standalone profit Standalone total comprehensive income Standalone changesin equity and its Standalone cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theindependence requirements that are relevant to our audit of the Standalone financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the Standalonefinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the Standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Business Responsibility Report Corporate Governance andShareholder's Information but does not include the Standalone financial statementsand our auditor's report thereon.

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

In connection with our audit of the Standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also :

Identify and assess the risks of material misstatement of theStandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal financial controls relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company and its subsidiary companies which are companies incorporated inIndia has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theability of the Company to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report.

Evaluate the overall presentation structure and content of theStandalone financial statements including the disclosures and whether the Standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the Standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the Standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

ReportonOtherLegalandRegulatoryRequirements

1. As required by Section 143 (3) of the Act based on our audit wereport that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;

c) The Balance Sheet the Statement of Profit and Loss including othercomprehensive income Statement of Changes in Equity and the Statement of the Cash flowsdealt with by this Report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act.

f) "With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in ‘Annexure A'. Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company'sinternal financial controls over financial reporting.

g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended : In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i) The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone financial statements.

ii) The Company has made provision as required under the applicablelaw or accounting standards for material forseeable losses if any on long-termcontracts including derivative contracts.

iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016(‘the order') issued by the Central Government of India in terms of section143(11) of the Act we give in the Annexure B a statement on the matters specified in theparagraph 3 and 4 of the Order.

Annexure - A to the Independent Auditor's Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (‘the Act')

1. We have audited the internal financial controls over financialreporting of BEEKAY STEEL INDUSTRIES LIMITED as of March 31 2021 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

2. Management's Responsibility for Internal FinancialControls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

3. Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (‘the Guidance Note') and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of internal financial controls and both issued by the ICAI. 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 controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

4. Our audit involves performing procedures to obtain auditevidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the Standalone financialstatements whether due to fraud or error.

5. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the Company'sinternal financial controls system over financial reporting.

6. Meaning of Internal Financial Controls Over FinancialReporting

A Company's internal financial control over financial reporting isa process 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 controlover financial reporting includes those policies and procedures that:

(i) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany.

(ii) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and

(iii) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assetsthat could have a material effect on the financial statements.

7. Inherent Limitations of Internal Financial Controls OverFinancial Reporting

Because of the inherent limitations of internal financial controls overfinancial reporting 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 of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

8. Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2021 basedon 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 Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Annexure - B to Independent Auditor's Report

The Annexure referred to in Independent Auditors' Report to themembers of BEEKAY STEEL INDUSTRIES LIMITED on the Standalone financial statements for theyear ended March 31 2021 we report that :

(i) a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

b) The Company has a regular programme of physical verification of itsfixed assets by which fixed assets are verified in a phased manner over a period of threeyears. In accordance with this program certain fixed assets were verified during the yearand no material discrepancies were noticed on such verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

c) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

(ii) The physical verification of inventory has been conducted atreasonable intervals by the management during the year.The discrepancies noticed onphysical verification of inventory as compared to book records were not material and havebeen appropriately dealt with in the books of accounts.

(iii) There are Companiesfirms LLPs or other parties covered in theregister to be maintained under section 189 of the Companies Act 2013. However theCompany has not granted loan to such Companies firms LLPs or other parties.

(iv) According to the information and explanations given to us theCompany has complied with the provisions of section 185 and section 186 of the CompaniesAct2013 in respect making investments as applicable.

(v) The Company has not accepted any deposits from public within themeaning of sections 73 74 75 and 76 of the Act and the rules framed there under to theextent notified.

(vi) Pursuant to the rules made by the Central Government of India theCompany is required to maintain Cost records as specified under section 148(1) of the Actin respect of its products. We have broadly reviewed the same and are of the opinion thatprima facie the prescribed accounts and records have been made and maintained. we havehowever not made a detailed examination of the records with a view to determine whetherthey are accurate or complete.

(vii) a) According to the information and explanations given to us andthe records of the company examined by us in our opinion the company is generallyregular in depositing undisputed statutory dues including Provident Fund Employees'State Insurance Income Tax Service Tax Goods and Service Tax Value Added Tax CustomsDuty Excise Duty Cess and other material statutory dues as applicable with theappropriate authorities.

b) According to the information and explanations given to us therewere disputed amount payable in respect of Income Tax relating to FY2010-11 amounting H1156430/- and H 267322/- relating to FY2013-14 which have remained outstandingas at March 31 2021 for a period of more than six months from the date they becomepayable.However no undisputed dues is payable in respect of wealth-tax sales-tax valueadded tax service tax customs duty and excise duty which have remained outstanding as atMarch 31 2021 for a period of more than six months from the date they became payable.

c) According to the records of the Company there are dues of salestax income tax customs tax/wealth tax value added tax service tax excise duty / cesswhich have not been deposited on account of dispute.

Nature of Dues Period to which the matter pertains Forum where disputes is pending Amount Involved Rs.( )
Excise Duty 1998-1999 Hon'ble High Court Kolkata 831204
-- Do -- 1997-1998 Customs Excise & Service Tax Appeallate Tribunal Kolkata. 106707795
-- Do -- 2009-2013 Customs Excise & Service Tax Appeallate Tribunal Kolkata. 45651910
-- Do -- 2015-2017 Customs Excise & Service Tax Appeallate Tribunal Hyderabad. 1023322
-- Do -- 2009-2014 Customs Excise & Service Tax Appeallate Tribunal Hyderabad. 8978682
-- Do -- 2012-2015 Customs Excise & Service Tax Appeallate Tribunal Hyderabad. 1727151
-- Do -- 2012-2016 Customs Excise & Service Tax Appeallate Tribunal Chennai 1568208
-- Do -- 2013-2017 The Appellate Deputy Commissioner Vijayawada 168573
Sales Tax 2010-2011 West Bengal Taxation Tribunal & Appellate Board 1061100
-- Do -- 2015-2018 Andhra Pradesh Value Added Tax Appellate Tribunal Visakhapatnam 6129531
-- Do -- 2011-2017 The Appellate Deputy Commissioner(CT) South Chennai 683450
Income Tax 2011-2012 The Commissioner of Income Tax(Appeal-11) Kolkata 40705382
-- Do -- 2014-2015 The Commissioner of Income Tax(Appeal-1) Kolkata 633508
-- Do -- 2015-2016 The Commissioner of Income Tax(Appeal-1) Kolkata 2603773
-- Do -- 2016-2017 The Commissioner of Income Tax(Appeal-1) Kolkata 276079

(viii) According to the records of the Company examined by us and theinformation and explanation given to us the Company has not defaulted in repayment ofloans or borrowings to any financial institution or bank or Government as at the balancesheet date.

(ix) In our opinion and according to the information and explanationsgiven to us the term loans have been applied for the purposes for which they wereobtained.

(x) During the course of our examination of the books and records ofthe Company Carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officiers oremployees noticed or reported during the year nor we have been informed of any suchcases by the Management.

(xi) The Company has paid/ provided for managerial remuneration inaccordance with the requiste approvals mandated by the provisions of section 197 read withSchedule V to the Act.

(xii) As the Company is not a Nidhi Company and the Nidhi Rules 2014are not applicable to it. Accordingly paragraph 3(xii) of the order are not applicable tothe Company.

(xiii) The Company has entered into transactions with related partiesin compliance with the provisions of sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the Standalone financial statements asrequired under Indian Accounting Standards (Ind AS) 24 Related Party Disclosures.

(xiv) The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly paragraph 3(xiv) of the order are not applicable to the Company.

(xv) The Company has not entered into any non cash transactions withits directors or persons connected with them. Accordingly paragraph 3(xv) of the orderare not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Accordinglyparagraph 3(xvi) of the order are notapplicable to the company.

For LIHALA & CO

Chartered Accountants

Firm's Registration Number.315052E
sd/-
Rajesh Lihala
Place: 11 Crooked Lane

Partner

Kolkata - 700 069 Membership No. 052138
Date: 29th day of June 2021 UDIN No.: 21052138AAAAFT9656

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