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Beekay Steel Industries Ltd.

BSE: 539018 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE213D01015
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NSE 05:30 | 01 Jan Beekay Steel Industries Ltd
OPEN 263.00
PREVIOUS CLOSE 265.00
VOLUME 5494
52-Week high 555.55
52-Week low 125.00
P/E 7.14
Mkt Cap.(Rs cr) 505
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 263.00
CLOSE 265.00
VOLUME 5494
52-Week high 555.55
52-Week low 125.00
P/E 7.14
Mkt Cap.(Rs cr) 505
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 FinancialStatements

We have audited the accompanying Standalone financial statement of BEEKAY STEELINDUSTRIES LIMITED which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss the Statement of Cash Flows for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the 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 financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone financial statementsbased 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 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 financial statements are free from material misstatement.

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 material misstatement ofthe Standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Standalone 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 financial position of theCompany as at 31st March 2017 and its financial performance and its cash flows for theyear ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (‘the order')issued by the Central Government of India in terms of section 143(11) of the Act we givein the Annexure A a statement on the matters specified in the paragraph 3 and 4 of theOrder.

2. As required by Section 143 (3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c) The balance sheet the statement of profit and loss and theStatement of the Cash flows dealt with by this Report are in agreement with the books ofaccount; d) In our opinion the aforesaid Standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014; e) On the basis of the written representations receivedfrom the directors as on 31 March 2017 taken on record by the Board of Directors none ofthe directors is disqualified as on 31 March 2017 from being appointed as a director interms of Section 164 (2) of the Act. f) With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate Report in ‘Annexure B' ; and g) With respectto the other matters to be included in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i) The Company has disclosedthe impact of pending litigations on its financial position in its Standalone financialstatements. Refer to Note 38 to the Standalone financial Statements. ii) The Company hasmade provision as required under the applicable law or accounting standards for materialforseeable losses if any on long-term contracts including derivative contracts. iii)There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company; and iv) The Company has providedrequisite disclosures in its Standalone financial Statements as to holdings as well asdealings in Specified Bank notes during the period from 8 November 2016 to 30 December2016 and these are in accordance with the books of accounts maintained by the Company.Refer to Note 37 to the Standalone financial Statements.

For RUSTAGI & ASSOCIATES

Chartered Accountants Place : 59 Bentinck Street Firm Regd. No.314194E Kolkata - 700069. Sd/-Dated : 30th day of May 2017 (S.K. RUSTAGI) Partner Mem. No.051860

ANNEXURE - B 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 2017 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions 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 of unauthorisedacquisition use or disposition of the Company's assets that could have a material effecton 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 2017 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 RUSTAGI & ASSOCIATES

Place : 59 Bentinck Street

Chartered Accountants Kolkata - 700 069.

Firm Regd. No.314194E Dated : 30th day of May 2017 Sd/-

(S.K. RUSTAGI)

Partner

Annexure - A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the Standalone financial statements for the year ended 31st March 2017 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 programmeof physical verification of its fixed assets by which fixed assets are verified in aphased manner over a period of three years. In accordance with this program certain fixedassets were verified during the year and no material discrepancies were noticed on suchverification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets. c) According to theinformation and explanations given to us and on the basis of our examination of therecords of the Company the title deeds of immovable properties are held in the name ofthe 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 firms covered in the register to be maintained under section 189 of theCompanies Act 2013. However the Company have not granted loan to such Company as suchthe Clause does not have any application.

(iv) In our opinion and according to the information and explanations given to us theCompany has compiled with the provisions of Section 185 and 186 of the Companies Act 2013in respect of loans and investments made and guarantees and security provided by it.

(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 nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete. (vii) a) According to the information and explanations given tous and the records of the company examined by us in our opinion the company isgenerally regular in depositing the undisputed statutory dues in respect of sales taxincluding value added tax though there has been a slight delay in few cases and isregular in depositing undisputed statutory dues including provident fund employees' stateinsurance income tax service tax duty of customs duty of excise cess and othermaterial statutory dues as applicable with the appropriate authorities. b) According tothe information and explanations given to us there were undisputed amount payable inrespect 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 March 2017for 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 31.03.2017 for aperiod of more than six months from the date they became payable. c) According to therecords of the Company there are dues of sales tax income tax customs tax/wealth taxvalue added tax service tax excise duty / cess which have not been deposited on accountof dispute.

Particulars Financial year to which the matter pertains Forum where matter is pending Amount Involved (`)
Excise Duty 1998-1999 Hon'ble High Court Kolkata 831204
— Do — 2010-2011 Commissioner of Central Excise(Appeals) Visakhapatnam 590078
— Do — 2014-2016 Commissioner of Central Excise(Appeals) Visakhapatnam 1219562
— Do — 2005-2008 CustomsExcise & Service Tax Appeallate Tribunal Kolkata. 3150000
— Do — 2009-2013 CustomsExcise & Service Tax Appeallate Tribunal Kolkata. 45651910
— Do — 2014-2015 Commissioner of Central Excise(Appeals) Ranchi 5054647
— Do — 2009-2013 CustomsExcise & Service Tax Appeallate Tribunal Kolkata. 2379213
— Do — 2012-2014 Comm. Central Excise (Appeal)Visakhapatnam 788884
— Do — 2012-2014 Comm. Central Excise (Appeal) Chennai 902623
Sales Tax 2010-2011 Senior Joint Commissioner of Sales Tax (kolkata) 1906567
Income Tax 2004-05 Income Tax Appellate Tribunal Kolkata 4128981
— Do — 2011-12 The Commissioner of Income Tax(Appeal-11) Kolkata 64721074

(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 or dues to debenture holders as at thebalance 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 accordancewith the requiste approvals mandated by the provisions of section 197 read with Schedule vto the Act.

(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 underAccounting Standard (AS) 18 Related Party Disclosures specified under Section 133 of theAct read with rule 7 of the Companies (Accounts) Rules 2014.

(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 him. 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 RUSTAGI & ASSOCIATES

Chartered Accountants Firm Regd. No.314194E

Place : 59 Bentinck Street Sd/- Kolkata - 700 069. (S.K. RUSTAGI) Dated : 30thday of May 2017 Partner Mem. No.051860