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Beekay Steel Industries Ltd.

BSE: 539018 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE213D01015
BSE 00:00 | 26 Mar 328.65 13.65
(4.33%)
OPEN

310.05

HIGH

329.75

LOW

310.05

NSE 05:30 | 01 Jan Beekay Steel Industries Ltd
OPEN 310.05
PREVIOUS CLOSE 315.00
VOLUME 512
52-Week high 440.00
52-Week low 252.00
P/E 6.26
Mkt Cap.(Rs cr) 627
Buy Price 328.65
Buy Qty 151.00
Sell Price 330.00
Sell Qty 33.00
OPEN 310.05
CLOSE 315.00
VOLUME 512
52-Week high 440.00
52-Week low 252.00
P/E 6.26
Mkt Cap.(Rs cr) 627
Buy Price 328.65
Buy Qty 151.00
Sell Price 330.00
Sell Qty 33.00

Beekay Steel Industries Ltd. (BEEKAYSTEELIND) - Auditors Report

Company auditors report

To the Members of

BEEKAY STEEL INDUSTRIES LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS Financial Statement of BEEKAY STEELINDUSTRIES LIMITED which comprise the Balance Sheet as at 31st March 2018 the Statementof Profit and Loss(including other comprehensive income) the Statement of Changes inEquity the Statement of Cash Flows for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

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 ("the Act") with respect to the preparationand presentation of these Standalone Ind AS Financial Statements that give a true and fairview of the financial position financial performance including other comprehensiveincomecash flows and changes in equity of the Company in accordance with the IndianAccounting Standards (Ind AS) prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules2015 as amended and other accountingprinciples generally accepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing 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 Standalone IndAS Financial Statements that give a true and fair view and are free from materialmisstatement 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 the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on

Auditing specified under Section 143(10) of the Act.Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the Standalone Ind AS Financial Statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone financial statements. The procedures selected depend onthe auditor’s judgment including the assessment of the risks of materialmisstatement of the Standalone financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company’s preparation of the Standalone financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2018 and its profit total comprehensive income the changes in equityand its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 Sheetthe Statement of Profit and Loss including other comprehensive income Statement ofChanges in Equity and the Statement of the Cash flows dealt with by this Report are inagreement with the books of account;

d) In our opinion the aforesaid Standalone financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 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 A' ; 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 Standalone financial statements-refer to Note 32 to the Standalonefinancial Statements.

ii) The Company has made provision as required under the applicable law or accountingstandards for material forseeable losses if any on long-term contracts includingderivative contracts.

iii) There has been no delay in transferring amounts required to be transferred tothe 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 section 143(11) of the Act we givein the Annexure B a statement on the matters specified in the paragraph 3 and 4 of theOrder.

For LIHALA & CO
Chartered Accountants
Firm's Registration Number.315052E
Rajesh Lihala
Place: 11 Crooked Lane Kol - 69 Partner
Date: 30th May 2018 Membership No. 052138

ANNEXURE - A TO INDEPENDENT AUDITOR'S REPORT

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

1. We have audited the internal financial controls over financial reporting of BEEKAYSTEEL INDUSTRIES LIMITED as of March 31 2018 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. 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 ('ICAI'). 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 assets theprevention 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.

Auditors' Responsibility

3. 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 deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of internal financialcontrols and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 judgement including the assessment of the risks ofmaterial misstatement of the Standalone financial statements whether due to fraud orerror.

5. 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 systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. 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:

(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 authorisations of management and directors of the Company; and

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

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. 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

8. 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 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For LIHALA & CO
Chartered Accountants
Firm's Registration Number.315052E
Rajesh Lihala
Place: 11 Crooked Lane Kol - 69 Partner
Date: 30th May 2018 Membership No. 052138

ANNEXURE - B TO INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in Independent Auditors' Report to the members of BEEKAY STEELINDUSTRIES LIMITED on the Standalone financial statements for the year ended 31st March2018 we report that :

(i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this program certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The physical verification of inventory has been conducted at reasonable intervalsby the management during the year.The discrepancies noticed on physical verification ofinventory as compared to book records were not material and have been appropriately dealtwith in the books of accounts.

(iii) There are Companiesfirms LLPs or other parties covered in the register to bemaintained under section 189 of the Companies Act 2013. However the Company has notgranted loan to such Companies firms LLPs or other parties.

(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loans investments guarantees and security during the yearthat would attract provisions of Section 185 & 186 of the Act.

(v) The Company has not accepted any deposits from public within the meaning ofsections 73 74 75 and 76 of the Act and the rules framed there under to the extentnotified.

(vi) Pursuant to the rules made by the Central Government of India the Company isrequired to maintain Cost records as specified under section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. we have howevernot made a detailed examination of the records with a view to determine whether they areaccurate or complete.

(vii) a) According to the information and explanations given to us and the records ofthe company examined by us in our opinion the company is generally regular indepositing undisputed statutory dues including Provident Fund Employees' State InsuranceIncome Tax Service Tax Goods and Service Tax Value Added Tax Customs Duty ExciseDuty Cess and other material statutory dues as applicable with the appropriateauthorities.

b) According to the information and explanations given to us there were disputedamount payable in respect of Income Tax relating to F.Y. 2010-11 amounting RS 1156430/-and

RS 267322/- relating to F.Y 2013-14 which have remained outstanding as at 31st March2018 for a period of more than six months from the date they become payable. However noundisputed dues is payable in respect of wealth-tax sales-tax value added tax servicetax customs duty and excise duty which have remained outstanding as at 31.03.2018 for aperiod of more than six months from the date they became payable.

c) According to the records of the Company there are dues of sales tax income taxcustoms tax/wealth tax value added tax service tax excise duty / cess which have notbeen 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 -- 2014-2016 Commissioner of Central Excise(Appeals) Visakhapatnam 169501
-- Do -- 2005-2008 Customs Excise & Service Tax Appeallate Tribunal Kolkata. 3150000
-- Do -- 2009-2013 Customs Excise & Service Tax Appeallate Tribunal Kolkata. 45651910

 

Nature of Dues Period to which the matter pertains Forum where disputes is pending Amount Involved (Rs)
-- Do -- 2015-2016 Commissioner of Central Excise(Appeals) Ranchi 1872227
-- Do -- 2015-2016 Customs Excise & Service Tax Appeallate Tribunal Kolkata. 122043
-- Do -- 2016-2017 Commissioner of Central Excise(Appeals) Ranchi 154566
-- Do -- 2009-2014 Customs Excise & Service Tax Appeallate Tribunal Hyderabad. 8978682
-- Do -- 2012-2015 Customs Excise & Service Tax Appeallate Tribunal Hyderabad. 729718
-- Do -- 2012-2014 Customs Excise & Service Tax Appeallate Tribunal Chennai 881095
Sales Tax 2010-2011 West Bengal Taxation Tribunal & Appellate Board 1906567
-- Do -- 2013-2014 The Appellate Deputy Commissioner Vijayawada 950466
-- Do -- 2013-2015 The Appellate Deputy Commissioner Vijayawada 12371775
Income Tax 2011-2012 The Commissioner of Income Tax(Appeal-11) Kolkata 97648084
-- Do -- 2014-2015 The Commissioner of Income Tax(Appeal-1) Kolkata 633508
-- Do -- 2015-2016 The Commissioner of Income Tax(Appeal-1) Kolkata 2603773

(viii) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government as at the balance sheet date.

(ix) In our opinion and according to the information and explanations given to us theterm loans have been applied for the purposes for which they were obtained.

(x) During the course of our examination of the books and records of the CompanyCarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officiers or employeesnoticed or reported during the year nor have we been informed of any such cases by theManagement.

(xi) The Company has paid/ provided for managerial remuneration in accordance with therequiste approvals mandated by the provisions of section 197 read with Schedule v to theAct.

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

(xiii) The Company has entered into transactions with related parties in compliancewith the provisions of sections 177 and 188 of the Act.The details of such related partytransactions have been disclosed in the Standalone financial statements as required underIndian Accounting Standards (Ind AS) 24 Related Party Disclosures.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly paragraph 3(xiv) of the order are not applicable to the Company.

(xv) The Company has not entered into any non cash transactions with its directors orpersons connected with them. Accordingly paragraph 3(xv) of the order are not applicableto the Company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordinglyparagraph 3(xvi) of the order are not applicable tothe company.

For LIHALA & CO
Chartered Accountants
Firm's Registration Number.315052E Rajesh Lihala
Place: 11 Crooked Lane Kol - 69 Partner
Date: 30th May 2018 Membership No. 052138