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Ensa Steel Industries Ltd.

BSE: 512135 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE322C01016
BSE 00:00 | 11 Jun Ensa Steel Industries Ltd
NSE 05:30 | 01 Jan Ensa Steel Industries Ltd
OPEN 2.38
PREVIOUS CLOSE 2.50
VOLUME 2766
52-Week high 5.61
52-Week low 2.38
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.38
CLOSE 2.50
VOLUME 2766
52-Week high 5.61
52-Week low 2.38
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ensa Steel Industries Ltd. (ENSASTEELINDS) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

ENSA STEEL INDUSTRIES LIMITED

1. Report on the financial statements

I have audited the accompanying financial statements of ENSA STEEL INDUSTRIESLIMITED (the "Company") which comprise the Balance Sheet as at March 312017 the Statement of Profit & Loss the Cash Flow Statement for the year ended onthat date and a summary of significant accounting policies and other explanatoryinformation.

2. 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 preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and Cash Flow of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the

Company and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

3. Auditor's Responsibility

My responsibility is to express an opinion on these financial statements based on myaudit.

I 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 there under.

I conducted my audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act.

Those Standards require that I comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements. I believe that the audit evidence I have obtained is sufficientand appropriate to provide a basis for my audit opinion on the financial statements.

4. Opinion

In my opinion and to the best of my information and according to the explanations givento me the aforesaid financial statements give the information required by the CompaniesAct 2013 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 2017 and its loss and its Cash Flows for the year ended on that date.

5. Report on other Legal and Regulatory Requirements

1. As required by the companies (Auditor's Report) Order 2016 ("theorder") issued by the Central Government of India in terms of sub Section (11) ofsection 143 of the Companies Act 2013 I give in the Annexure 'A' a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act I report that :

a) I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purposes of my audit.

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

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

d) In my opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of written representations received from the Directors as on March 312017 taken on record by the Board of Directors none of the Directors is disqualified ason March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.

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 myseparate Report in Annexure 'B';

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit & Auditors) Rules 2014 in my opinionand to the best of my information and according to the explanations given to me:

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The company did not have any material foreseeable losses on long term contractsincluding derivative contracts.

iii. There were no amounts required to be transferred to the Investor Education andProtection Fund by the Company.

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from November 82016 to December 30

2016 and these are in accordance with the books of account maintained by the Company.Refer note no. 10 to the Financial Statements.

Place: Mumbai FOR H.S. HATHI & CO.
Date : May 27 2017 FIRM REGN. No.103596W
CHARTERED ACCOUNTANTS
HEMANT S. HATHI
MEMBERSHIP No. 037109
PROPRIETOR

Annexure 'A' to the Independent Auditor's Report

Report on Companies (Auditor's Report) Order 2016 ('the Order') issued by the CentralGovernment in terms of

Section 143(11) of the Companies Act 2013 ('the Act') of ENSA STEEL INDUSTRIES LIMITED('the Company').

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

(b) The Company has regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. In myopinion this periodicity of physical verification is reasonable having regard to the sizeof the company and the nature of its assets. In accordance with this programme certainfixed assets were verified during the period and no material discrepancies were noticed onsuch verification.

(c) According to the information and explanations given to me and on thebasis of my examination of the records of the Company title deeds of immovable propertiesare held in the name of the Company.

(ii) As explained to me the inventories were physically verified during the period bythe Management at reasonable intervals and no material discrepancies were noticed onphysical verification.

(iii) In my opinion and according to information and explanations given to me theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Act. Therefore the provisions of Clause 3(iii) (a) (iii) (b) and (iii)(c) ofthe said Order are not applicable.

(iv) In my opinion and according to information and explanations given to me theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

(v) The Company has not accepted any deposits from the public.

(vi) The provisions of clause 3(vi) of the order are not applicable to the company asthe company is not covered by the companies (Cost Record and Audit) Rules 2014.

(vii) According to the information and explanations given to me in respect ofstatutory dues.

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident

Fund Employees' State Insurance Income Tax Sales Tax Service Tax Value Added Taxduty of Customs duty of Excise Cess and other material statutory dues applicable to itwith the appropriate authorities.

There were no undisputed amounts payable in respect of Provident Fund Employees' StateInsurance Income Tax Sales Tax Service Tax Value Added Tax duty of Customs duty ofExcise Cess and other material statutory dues in arrears as at March 31 2017 for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to me the following dues ofIncome Tax Sales Tax Service Tax and Value Added Tax have not been deposited by theCompany on account of disputes.

Name of the Statue Nature of the Dues Amount Unpaid Period to which the amount Forum where dispute is pending
The Income Tax Act 1961 Income Tax and Interest 4508 A.Y. 2004-05 A.O.
The Income Tax Act 1961 Income Tax and Interest 1832 A.Y. 2008-09 A.O.

(viii) As the company does not have any loans or borrowings from any financialinstitution or bank or Government nor has it issued any debentures as at the balancesheet date the provisions of clause 3(viii) of the Order are not applicable to theCompany.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including Debt Instruments) and term loans during the period. Accordinglythe provisions of clause 3(ix) of the Order are not applicable to the Company.

(x) According to the information and explanations given to me no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of my audit.

(xi) According to the information and explanations given to me and based on myexamination of the records the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) In my opinion and according to the information and explanations given to me theCompany is not a Nidhi

Company and hence provisions of Clause 3(xii) of the Order are not applicable to theCompany.

(xiii) According to the information and explanations given by the management there areno transactions with the related parties during the period.

(xiv) According to the information and explanations given to me and based on myexaminations of the records the Company has not made any preferential allotment orprivate placement of share or fully or partly convertible debentures during the period.

(xv) According to the information and explanations given to me during the period theCompany has not entered into any non-cash transactions with its Directors or personsconnected with him and hence provisions of clause 3(xv) of the Order are not applicable tothe Company.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

Place: Mumbai FOR H.S. HATHI & CO.
Date : May 27 2017 FIRM REGN. No.103596W
CHARTERED ACCOUNTANTS
HEMANT S. HATHI
MEMBERSHIP No. 037109
PROPRIETOR

Annexure 'B' to the 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")

I have audited the internal financial controls over financial reporting of ENSASTEEL INDUSTRIES LIMITED ("the Company") as of March 31 2017 in conjunctionwith my audit of the 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 ('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.

Auditor's Responsibility

My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance 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 Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that I comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My 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.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) 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

(3) 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

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 my 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 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 Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Place: Mumbai FOR H.S HATHI & CO.
Date : May 27 2017 FIRM REGN. No.103596W
CHARTERED ACCOUNTANTS
HEMANT S. HATHI
MEMBERSHIP No. 037109
PROPRIETOR