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Bengal Steel Industries Ltd.

BSE: 512404 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE523W01017
BSE 05:30 | 01 Jan Bengal Steel Industries Ltd
NSE 05:30 | 01 Jan Bengal Steel Industries Ltd

Bengal Steel Industries Ltd. (BENGALSTEEL) - Auditors Report

Company auditors report

To the Members of

Bengal Steel Industries Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Bengal Steel Industries Limited("the Company") which comprise the balance sheet as at 31st March2022 the statement of Profit and Loss statement of changes in equity and statement ofcash flows for the year then ended and notes to the financial statements including asummary of significant 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 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 March 31 2022 and profit/loss changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matters:

Without qualifying our opinion we draw attention to the following :

1. Charge of depreciation on the composite cost of Land & Building and in absenceof useful life of assets depreciation is being charged by reducing balance method - Refernote 26

Key Audit Matters

There are no serious Audit observations and no Key Audit Matters to communicate in ourreport.

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 Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity 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. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(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 received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in termsof Section 164 (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".

(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 Rs296790/ -on its financial position inrespect of its pending litigation - Refer Note 1 8 to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. (1) The management has represented that to the best of its knowledge and beliefother than as disclosed in the notes to the accounts no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person(s) or entity(ies)("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(2) The management has represented that to the best of its knowledge and belief otherthan as disclosed in the notes to the accounts no funds have been received by the Companyfrom any person(s) or entity(ies) ("Funding Parties") with the understandingwhether recorded in writing or otherwise that the Company shall whether directly orindirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries; and

(3) Based on such audit procedures that we have considered reasonable and appropriatein the circumstances nothing has come to our notice that lias caused us to believe thatthe representations under sub-clause (1) and (2) contain any material mis-statement.

v. The Company has not declared or paid any dividend during the year under review.

Annexure - A to the Independent Auditors' Report

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

We have audited the internal financial controls over financial reporting of BengalSteel Industries Ltd as of 31 March 2022 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

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 (TCAF). 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

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

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

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 (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2022 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 Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of Tndia.

Annexure-B to the Independent Auditor's Report (Referred to in our report of even dateattached)

Referred to in paragraph 1 under the heading ‘Report on Other Legal &Regulatory Requirement' of our report of even date:

1) (a) (A) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(B) The Company has no intangible assets during the period of Audit.

(b) According to the information and explanations given to us Fixed Assets have beenphysically verified by the management at reasonable intervals and no materialdiscrepancies have been noticed on such verification.

(c) The title deeds of immovable properties are held in the name of the company.

(d) As stated by the management no Revaluation of Assets has been done during the AuditPeriod.

(e) As Stated by the management the Company has no benami property.

2) The company does not have inventory.

3) As per information and explanations given to us the Company has not made anyInvestments in provided any guarantee or security or granted any loans or advances in thenature of loans secured or unsecured to Companies Firm Limited Liability Partnershipsor any other parties.

4) According to the information and explanations given to us the company has not givenloans guarantees made investments and / or purchased securities in respect of whichprovisions of section 185 and 186 of the Companies Act 2013 are applicable.

5) According to the information and explanations given to us the Company has notaccepted any deposits from the public and hence the directives issued by the Reserve Bankof India and the provisions of Sections 73 to 76 or any other relevant provisions of theAct and the Companies (Acceptance of Deposit) Rules 2015 with regard to the depositsaccepted from the public are not applicable.

6) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.

7) (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Income-Tax GST and any other statutorydues with the appropriate authorities. According to information and explanations given tous no undisputed amount payable which were outstanding at the year end for a period ofmore than six months from the date they became payable.

b) According to the information and explanation given to us there are no dues ofservice tax Sales Tax duty of customs and duty of excise on account of any dispute.

8) No transaction was surrendered of disclosed as income in the income tax assessmentunder the Income Tax Act. 1961 (43 of 1961) during the year under audit which was notrecorded in the books of Accounts.

9) According to the information and explanations given to us and based on theexamination of the books and records of the company the company has not taken any loaneither from financial institutions or from the government and has not issued anydebentures.

10) Based upon the information and explanations given by the management the companyhas not raised any money by way of initial public offer or further public offer includingdebt instruments and term Loans. Accordingly the provisions of clause 3 (ix) of CARO arenot applicable to the Company.

11) During the course of our examination of the books and record of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we report that no fraud on orby the Company or no fraud by the officers and employees of the company has been noticedor reported during the year nor have we been informed of any such case by the management.

12) As per information and explanations given to us the Company is not a NidhiCompany. Therefore the provisions of clause 4 (xii) of the Order are not applicable tothe Company.

13) As per information and explanations given to us transactions with the relatedparties are in compliance with section 177 and 188 of Companies Act 2013 and the detailshave been disclosed in the Note No 23 of Financial Statements as required by theapplicable accounting standards.

14) As Stated by the Management the Company had an internal audit system commensuratewith it's the size and nature of its business during the year under review.

15) Based upon the audit procedures performed and according to the information andexplanations given by the management the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly the provisions ofclause 3 (xv) of CARO are not applicable to the Company and hence not commented upon.

16) (a) In our opinion and according to the information and explanations given to usthe company is not required to be registered under section 45 IA of the Reserve Bank ofIndia Act 1934 and accordingly the provisions of clause 3 (xvi) of the Order is notapplicable to the Company.

(b) The company did not conduct any Non-Banking Financial or Housing Finane activitiesduring the period under review.

( c ) The Company is not a Core Investments Company (CIC).

(d) The company did not conduct any activity as defined in regulations made by theReserve Bank Of India.

17) The company did not incur cash losses in the financial year under review and in theimmediately preceding financial year.

18) There is no resignation of the Statutory Audit in the year under review.

19) On the basis of financial ratios ageing and expected dated of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements my knowledge of the Board of Directors and management plans We areof the opinion that no material uncertainty exists as on the date of this Audit Reportthat the Company is capable of meeting its liabilities existing at the date of thisBalance Sheet as and when they fall due within a period of one year from the date of thisBalance Sheet.

20) In the year under review the company did not cross any of threshold limitsprescribed for the applicability of Section 135 of the Companies Act.

21) Our report is on the Standalone Financial Statements of the Company for theFinancial Year 2021-22.

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