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Beekay Steel Industries Ltd.

BSE: 539018 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE213D01015
BSE 00:00 | 06 Jul 191.20 -0.40
(-0.21%)
OPEN

194.95

HIGH

194.95

LOW

184.20

NSE 05:30 | 01 Jan Beekay Steel Industries Ltd
OPEN 194.95
PREVIOUS CLOSE 191.60
VOLUME 512
52-Week high 364.95
52-Week low 142.00
P/E 4.67
Mkt Cap.(Rs cr) 365
Buy Price 191.15
Buy Qty 99.00
Sell Price 193.75
Sell Qty 80.00
OPEN 194.95
CLOSE 191.60
VOLUME 512
52-Week high 364.95
52-Week low 142.00
P/E 4.67
Mkt Cap.(Rs cr) 365
Buy Price 191.15
Buy Qty 99.00
Sell Price 193.75
Sell Qty 80.00

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 Statement of BEEKAY STEELINDUSTRIES LIMITED which comprise the Balance Sheet as at 31st March 2019 the Statementof Profit and Loss(including other comprehensive income) the Statement of Changes inEquity the Statement of Cash Flows for the year ended on that date and a summary of thesignificant accounting policies and other explanatory information.

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 Companies Act 2013 (the "Act") in the manner so required and give a trueand fair view in conformity with 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 theStandalone state of affairs of the Company as at March 31 2019 the Standalone profitStandalone total comprehensive income Standalone changes in equity and its Standalonecash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the Standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone financial statements of the current period.These matters were addressed in the context of our audit of the Standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the Standalone financial statements and our auditor's report thereon

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

In connection with our audit of the Standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information we are required to report that fact. We have nothing to reportin this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error."

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone 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 Standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany and its subsidiary companies which are companies incorporated in India hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe Company to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the Standalone financial statements or if such disclosures are inadequateto modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the Standalonefinancial statements including the disclosures and whether the Standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

• Materiality is the magnitude of misstatements in the Standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions 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 among othermatters 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 we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

• From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the Standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act based on our audit 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 Statement of Changes in Equity and the Statement of the Cash flows dealt with bythis Report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified 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 the directors as on 31March 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2019 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'. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended : In ouropinion and to the best of our information and according to the explanations given to usthe remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act.

h) 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.

ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable 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 bythe Central Government of India in terms of section 143(11) of the Act we give in theAnnexure B a statement on the matters specified in the paragraph 3 and 4 of the Order.

For LIHALA & CO
Chartered Accountants
Firm's Registration Number. 315052E
Rajesh Lihala
Place: 11 Crooked Lane Kolkata - 700 069 (Partner)
Date: 29th May 2019 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 2019 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.

2. Management's Responsibility 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 ('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.

3. Auditors' 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 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.

6. Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting 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.

7. 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.

8. 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 31 2019 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 Kolkata - 700 069 (Partner)
Date: 29th May 2019 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 March2019 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 31stMarch 2019 for a period of more than six months from the date they become payable.However no undisputed dues is payable in respect of wealth-tax sales-tax value addedtax service tax customs duty and excise duty which have remained outstanding as at31.03.2019 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 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 CustomsExcise & Service Tax Appeallate Tribunal Kolkata. 106707795
- Do - 2009-2013 CustomsExcise & Service Tax Appeallate Tribunal Kolkata. 45651910
- Do - 2015-2017 Commissioner of Central Excise(Appeals) Visakhaapatnam 1091158
- Do - 2009-2014 CustomsExcise & Service Tax Appeallate Tribunal Hyderabad. 8978682

 

Nature of Dues Period to which the matter pertains Forum where disputes is pending Amount Involved (Rs)
- Do - 2012-2015 CustomsExcise & Service Tax Appeallate Tribunal Hyderabad. 1727151
- Do - 2012-2014 CustomsExcise & Service Tax Appeallate Tribunal Chennai 881095
Sales Tax 2010-2011 West Bengal Taxation Tribunal & Appellate Board 1061100
- 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 officers 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 therequisite 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 Kolkata - 700 069 (Partner)
Date: 29th May 2019 Membership No. 052138