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Ess Dee Aluminium Ltd.

BSE: 532787 Sector: Metals & Mining
NSE: ESSDEE ISIN Code: INE825H01017
BSE 00:00 | 20 Jan Ess Dee Aluminium Ltd
NSE 05:30 | 01 Jan Ess Dee Aluminium Ltd
OPEN 1.79
PREVIOUS CLOSE 1.79
VOLUME 1325
52-Week high 1.79
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 6
Buy Price 2.07
Buy Qty 109.00
Sell Price 1.79
Sell Qty 50392.00
OPEN 1.79
CLOSE 1.79
VOLUME 1325
52-Week high 1.79
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 6
Buy Price 2.07
Buy Qty 109.00
Sell Price 1.79
Sell Qty 50392.00

Ess Dee Aluminium Ltd. (ESSDEE) - Auditors Report

Company auditors report

To The Members of ESS DEE ALUMINIUM LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of ESS DEE AluminiumLimited ("the Company") which comprise the Balance Sheet as at March 31 2019the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "the standalone financial statements").

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 givea true and fair view in conformity with the Indian Accounting Standards prescribed undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generallyaccepted in India of the state of affairs of the Company as at March 31 2019 the lossand total comprehensive income changes in equity and its cash flows for the year ended onthat date.

Basis for opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing 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.

Material Uncertainty Related to Going Concern

We draw attention to Note no 2.1 in the financial statements regarding preparation offinancial results on a Going Concern basis for the reasons stated therein. The Company hasincurred a loss of Rs. 776.31 crores during the year ended 31 March 2019. During the yearthe Company has made provision for Impairment of Property Plant and Equipment Impairmentof Investments Bad and Doubtful Debts and other balances to the extent of Rs 583.12crores (Refer note no 31). These events and conditions among others as explained in Noteno 2.1 indicate that a material uncertainty exists that may cast significant doubt on theCompany's ability to continue as a going concern. Our conclusion is not modified inrespect of this matter.

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. We have determined the matters described below to bethe key audit matters to be communicated in our report.

SR NO KEY AUDIT MATTERS AUDITOR'S RESPONSE
Principal Audit Procedures
1 Disclosures of contingent liabilities claims litigations and tax dues. Our audit procedures included among others:
The Company is exposed to different laws regulations and interpretations thereof. The company is also subject to significant claims and litigations. The assessment of the likelihood and quantum of any liability in respect of these matters can be judgmental due to the uncertainty inherent in their nature. As at 31st March 2019 the Company has material contingent liabilities in respect of claims and litigations and dues pertaining to direct and indirect taxes [Refer Note 35 to the financial statements]. We considered this to be a key audit matter since the accounting and disclosure of these contingent liabilities is complex and judgmental and the amounts involved are or can be material to the financial statements. I. Understanding and assessing the internal control environment relating to the identification recognition and measurement of provisions for disputes potential claims and litigation and contingent liabilities;
II. Analyzed significant changes/ update from previous periods and obtained a detailed understanding of such items. Assessed recent judgments passed by the court authorities affecting such change;
III. Discussed the status of significant known actual and potential litigations with the management & noted that information placed before the board for such cases and
IV. Assessment of the management's assumptions and estimates related to the recognized provisions for disputes and disclosures of contingent liabilities in the financial statements.

Information Other than the Standalone Financial Statements and Auditor’s ReportThereon

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 ReportBusiness Responsibility Report Corporate Governance and Shareholder’s Informationbut does not include the standalone financial statements and our auditor’s reportthereon.These reports are expected to be made available to us after the date of thisauditor’s report.

Our opinion on the standalone financial statements does not cover the other informationand we will 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 identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated.

When we read the above reports if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance andreport that fact.

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 asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company’s financialreporting process.

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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financial statements. As part of an auditin accordance with SAs we exercise professional judgment and maintain professionalskepticism 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 internalcontrols.

• 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 has adequate internal financial controls system in place and the operatingeffectiveness of such 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 concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s However future events or conditions maycause the Company to 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 other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the standalone financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor’s reportunless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the order.

2. 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 Cash Flow dealt with by thisReport are in agreement with the relevant 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)All the directors of the Company are disqualified as on March 31 2019 from beingappointed as a director in terms of Section 164(2) of the Act due to failure by theCompany to redeem debentures due on 31st July 2015.

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 B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial

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 during theyear no remuneration has been paid by the Company to any of its Directors.

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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial (Refer Note No 35)

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

iii. There has been delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the company.

For SHAH & TAPARIA

Chartered Accountants

(Firm Regn No 109463W)

BHARAT JOSHI

Partner

M. No. 130863

Place: Mumbai

Date: May 30 2019

Annexure ‘A’ to the Independent Auditor’s Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report to the Members of ESS DEE Aluminium Limited ofeven date)

i) a) The Company has maintained unit wise fixed assets records and / or compiled itemwise lists showing particulars of all its fixed assets. The aggregate value shown by theserecords agrees with the gross values of fixed assets as per the books of account of theCompany. However these are not proper records showing full particulars includingquantitative details and situation of fixed assets.

b) Based on the information and explanations furnished to us the Company has notphysically verified the fixed assets during the year. Accordingly we are unable to statewhether material discrepancies were noticed.

c) According to the information and explanations given to us title deeds of immovableproperties classified as fixed assets are in the name of the company.

ii) According to the information and explanations given to us due to the situation offinancial stress inventories have not been physically verified by the Management duringthe year as per its process of verification. Accordingly we are unable to state whethermaterial discrepancies were noted.

iii) a) Based on the information and explanations furnished to us we are of theopinion that the terms and conditions of unsecured loans granted to its overseassubsidiary Ess Dee Aluminium Pte Ltd. Singapore a party covered in the registermaintained u/s 189 of the Companies Act 2013 is prima facie not prejudicial to theinterest of the Company.

b) In case of the above interest free loan to the overseas subsidiary there is nostipulation regarding repayment of principal.

c) In view of the above the question of the loan and the advances being overdue doesnot arise.

iv) According to the information and explanations given to us and on the basis ofrepresentations of the management which we have relied upon the loan to the overseassubsidiary is not covered by Section 185 or Section 186 of The Companies Act 2013 andhence this clause is not applicable.

v) According to the information and explanations given to us the Company has notaccepted deposits from the public in terms of provisions of sections 73 to 76 of theCompanies Act 2013.

vi) According to the information and explanations given to us pursuant to the rulesprescribed by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 we are of the opinion that the requirement of CostAudit is not applicable to the Company.

vii) a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion undisputed statutory dues including providentfund employees' state insurance income tax sales tax service tax duty of custom dutyof excise value added tax cess have not been regularly deposited with the appropriateauthorities and there have been serious delays in a large number of cases. The extent ofthe arrears of outstanding statutory dues as on the last day of the financial yearconcerned for a period of more than six months from the date they became payable is asunder:-

Statement of Arrears of Statutory Dues Outstanding for More than Six Months

Name of the Statute Nature of the Dues Amount (Rs. In Lakhs.) Period to Which Amount relates Due Date Pymt Date
EPFO PF 5.36 February-16 15/03/2016 Nil
18.93 March-16 15/04/2016 Nil
18.02 April-16 15/05/2016 Nil
17.60 May-16 15/06/2016 Nil
16.90 June-16 15/07/2016 Nil
6.64 July-16 15/08/2016 Nil
1.99 August-16 15/09/2016 Nil
8.01 September-16 15/10/2016 Nil
2.54 October-16 15/11/2016 Nil
1.65 November-16 15/12/2016 Nil
33.78 December-16 15/01/2017 Nil
16.10 January-17 15/02/2017 Nil
2.65 February-17 15/03/2017 Nil
13.93 March-17 15/04/2017 Nil
17.53 Various Sates 17-18 Various Due Dates Nil
0.78 Various Dates 18-19 Various Due Dates Nil
ESIC

ESIC

0.23 November-15 21/12/2015 Nil
0.46 December-15 21/01/2016 Nil
0.47 January-16 21/02/2016 Nil
0.44 February-16 21/03/2016 Nil
0.59 March-16 21/04/2016 Nil
0.15 April-16 21/05/2016 Nil
0.16 May-16 21/06/2016 Nil
0.15 June-16 21/07/2016 Nil
0.03 July-16 21/08/2016 Nil
0.04 August-16 21/09/2016 Nil
0.29 September-16 21/10/2016 Nil
0.03 October-16 21/11/2016 Nil
0.03 November-16 21/12/2016 Nil
0.28 December-16 21/01/2017 Nil
0.07 January-17 21/02/2017 Nil
0.09 February-17 21/03/2017 Nil
0.15 March-17 21/04/2017 Nil
1.92 Various Dates 16-17 Various Due Dates Nil
2.73 Various Dates 17-18 Various Due Dates Nil
0.05 Various Dates 18-19 Various Due Dates Nil
Sales Tax

Profession Tax

0.57 November-15 28/12/2015 Nil
0.70 December-15 28/01/2016 Nil
0.67 January-16 28/02/2016 Nil
0.70 February-16 28/03/2016 Nil
0.78 March-16 28/04/2016 Nil
0.61 April-16 28/05/2016 Nil
0.61 May-16 28/06/2016 Nil
0.59 June-16 28/07/2016 Nil
0.43 July-16 28/08/2016 Nil
0.10 August-16 28/09/2016 Nil
1.53 September-16 28/10/2016 Nil
0.10 October-16 28/11/2016 Nil
0.09 November-16 28/12/2016 Nil
0.09 December-16 28/01/2017 Nil
0.63 January-17 28/02/2017 Nil
0.07 February-17 28/03/2017 Nil
0.47 March-17 28/04/2017 Nil
0.20 April-17 28/05/2017 Nil
0.18 May-17 28/06/2017 Nil
0.17 June-17 28/07/2017 Nil
0.17 July-17 28/08/2017 Nil
0.17 August-17 28/09/2017 Nil
0.17 September-17 28/10/2017 Nil
0.17 October-17 28/11/2017 Nil
0.17 November-17 28/12/2017 Nil
0.17 December-17 28/01/2018 Nil
0.01 March-18 28/04/2018 Nil
0.17 Various Dates 18-19 Various Due Dates Nil
Sales Tax Vat 4.40 July-15 Various Due Dates Nil
1.46 August-15 Nil
0.21 September-15 Nil
0.22 October-15 Nil
0.72 December-15 Nil
0.42 March-16 Nil
Sales Tax Cst 0.05 July-15 Various Due Dates Nil
0.04 August-15 Nil
0.05 September-15 Nil
0.01 October-15 Nil
Income tax TDS Contractor 0.01 October-15 07/11/2015 Nil
.27 November-15 07/12/2015 Nil
0.06 December-15 07/01/2016 Nil
0.47 January-16 07/02/2016 Nil
0.16 February-16 07/03/2016 Nil
0.69 March-16 07/04/2016 Nil
0.08 April-16 07/05/2016 Nil
0.08 May-16 07/06/2016 Nil
0.08 June-16 07/07/2016 Nil
0.04 July-16 07/08/2016 Nil
0.05 August-16 07/09/2016 Nil
0.04 September-16 07/10/2016 Nil
0.04 October-16 07/11/2016 Nil
0.05 December-16 07/01/2017 Nil
0.03 January-17 07/02/2017 Nil
0.02 February-17 07/03/2017 Nil
0.03 March-17 07/04/2017 Nil
0.01 April-17 07/05/2017 Nil
0.02 May-17 07/06/2017 Nil
0.05 June-17 07/07/2017 Nil
0.03 July-17 07/08/2017 Nil
0.03 August-17 07/09/2017 Nil
0.03 September-17 07/10/2017 Nil
0.03 October-17 07/11/2017 Nil
0.04 November-17 07/12/2017 Nil
0.03 December-17 07/01/2018 Nil
0.03 January-18 07/02/2018 Nil
0.03 February-18 07/03/2018 Nil
0.03 March-18 07/04/2018 Nil
Income Tax Tds Professional 0.25 November-15 07/12/2015 Nil
0.36 January-16 07/2/2016 Nil
5.84 February-16 07/3/2016 Nil
10.11 March-16 07/04/2016 Nil
1.26 April-16 07/05/2016 Nil
0.46 May-16 07/06/2016 Nil
1.39 June-16 07/07/2016 Nil
0.16 July-16 07/08/2016 Nil
0.51 August-16 07/09/2016 Nil
1.05 September-16 07/10/2016 Nil
2.18 October-16 07/11/2016 Nil
0.47 November-16 07/12/2016 Nil
1.55 December-16 07/01/2017 Nil
1.24 January-17 07/02/2017 Nil
2.43 February-17 07/03/2017 Nil
5.41 March-17 07/04/2017 Nil
12.90 FY 2017-18 Various Due Dates Nil
Income Tax Tds Salary 4.94 November-15 07/12/2015 Nil
8.01 December-15 07/01/2016 Nil
5.82 January-16 07/02/2016 Nil
5.92 February-16 07/03/2016 Nil
12.91 March-16 07/04/2016 Nil
0.08 April-16 07/05/2016 Nil
0.09 May-16 07/06/2016 Nil
0.10 June-16 07/07/2016 Nil
3.77 July-16 07/08/2016 Nil
2.01 August-16 07/09/2016 Nil
1.97 September-16 07/10/2016 Nil
1.90 October-16 07/11/2016 Nil
1.93 November-16 07/12/2016 Nil
1.85 December-16 07/01/2017 Nil
2.01 January-17 07/02/2017 Nil
1.99 February-17 07/03/2017 Nil
7.44 March-17 07/04/2017 Nil
13.00 FY 2017-18 Various Due Dates Nil
3.19 FY 2018-19 Various Due Dates Nil
Income Tax Tds Interest 1.05 November-15 07/12/2015 Nil
2.52 January-16 07/02/2016 Nil
2.48 February-16 07/03/2016 Nil
4.29 March-16 07/04/2016 Nil
0.56 April-16 07/05/2016 Nil
2.37 May-16 07/06/2016 Nil
25.02 June-16 07/07/2016 Nil
0.61 July-16 07/08/2016 Nil
2.26 August-16 07/09/2016 Nil
3.82 September-16 07/10/2016 Nil
0.58 October-16 07/11/2016 Nil
2.14 November-16 07/12/2016 Nil
3.62 December-16 07/01/2017 Nil
0.55 January-17 07/02/2017 Nil
2.03 February-17 07/03/2017 Nil
3.41 March-17 07/04/2017 Nil
Income Tax Tds Comission 0.37 November-15 07/12/2015 Nil
0.14 June-16 07/07/2016 Nil
Excise Service tax 1.04 January-16 06/02/2016 Nil
0.71 February-16 06/03/2016 Nil
0.66 March-16 06/04/2016 Nil
3.63 September-16 06/10/2016 Nil
0.83 December-16 06/01/2017 Nil
9.05 March-17 06/04/2017 Nil
0.93 June-17 06-07-17 Nil
Excise

Swach Bharat

0.01 December-15 06/01/2016 Nil

Cess

0.01 January-16 06/02/2016 Nil
Income Tax

Corporate Tax

1077.43 FY 2013-14 Various Dates Nil
Income Tax

Corporate Tax

939.92 FY 2014-15 Various Dates Nil
Gopalpur Property

Municipal Taxes

Un ascertained Since 2012 Various Dates Nil
Total 2430.04

Further the following are not paid:-

Dues of Deferred Sales Tax aggregating Rs. 2102.62 lakhs as set out below which isOutstanding as at the end of the year:-

Period to which the amount relates Due Date Rs. In Lakhs
Quarter ended 30.09.96 31.10.05 12.98
Quarter ended 31.12.96 31.01.06 25.62
Quarter ended 31.03.97 30.04.06 31.45
Quarter ended 30.06.97 31.07.06 29.76
Quarter ended 30.09.97 31.10.06 42.45
Quarter ended 31.12.97 31.01.07 51.39
Quarter ended 31.03.98 30.04.07 51.58
Quarter ended 30.06.98 31.07.07 33.74
Quarter ended 30.09.98 31.10.07 48.82
Quarter ended 31.12.98 31.01.08 41.61
Quarter ended 31.03.99 30.04.08 53.02
Quarter ended 30.06.99 31.07.08 65.44
Quarter ended 30.09.99 31.10.08 79.66
Quarter ended 31.12.99 31.01.09 89.31
Quarter ended 31.03.00 30.04.09 84.82
Quarter ended 30.06.00 31.07.09 68.94
Quarter ended 30.09.00 31.10.09 67.52
Quarter ended 31.12.00 31.01.10 71.84
Quarter ended 31.03.01 30.04.10 71.55
Quarter ended 30.06.01 31.07.10 76.21
Quarter ended 30.09.01 31.10.10 68.58
Quarter ended 31.12.01 31.01.11 56.70
Quarter ended 31.03.02 30.04.11 53.37
Quarter ended 30.06.02 31.07.11 59.68
Quarter ended 30.09.02 31.10.11 61.58
Quarter ended 31.12.02 31.01.12 45.93
Quarter ended 31.03.03 30.04.12 30.45
Quarter ended 30.06.03 31.07.12 35.84
Quarter ended 30.09.03 31.10.12 39.05
Quarter ended 31.12.03 31.01.13 39.16
Quarter ended 31.03.04 30.04.13 39.57
Quarter ended 30.06.04 31.07.13 46.95
Quarter ended 30.09.04 31.10.13 43.41
Quarter ended 31.12.04 31.01.14 66.77
Quarter ended 31.03.05

30.04.14

60.46

Quarter ended 30.06.05

31.07.14

53.54

Quarter ended 30.09.05

31.10.14

63.48

Quarter ended 31.12.05

31.01.15

58.60

 

Period to which the amount relates Due Date Rs. In Lakhs
Quarter ended 31.03.06

30.04.16

78.02

Note: Interest due on above Rs.2139.07 Lakhs (P.Y. Rs 1887.21 lakhs)

b) As at the year-end according to the records of the Company and information andexplanations given to us the disputed statutory dues that have not been deposited onaccount of appeal matters pending before the appropriate authorities are as under:-

 

Name of the statute

Nature of dues

Amount (Rs. In lacs) Period to which the amount relates Forum where the disputes are pending

Sales Tax

1710.41 1982-19841986- 19881993-94 to 1999-2001 & 2003- 04 Revision Board (Tribunal)
451.39 2001-02 to 2002-03 WB Taxation Tribunal
(103.44) 2004-05 to 2010-11 Sr. Joint Commissioner (Appeals) / Deputy Commissioner (Appeals)
584.25 2011-12 Central Audit Cell
West Bengal Sales Tax Act/ West Bengal Value Added Tax Act/ Central Sales Tax Act

Sales Tax

106.86 2007-08 to 2012-13 Commissioner Appeals
Goa Sales Tax/VAT Central Sales Tax

Sales Tax

280.87 2007-08 to 2012-13 Commissioner Appeals
Total ( A ) 3030.36
Central Excise (EDH) Excise Duty 139.50 1996 to 2001 AC/DC/Comr. of Central Excise
Central Excise (EDH) Excise Duty 355.44 Apr 2011 to 2012-13 Comr. of C. Ex.
Central Excise (EDK) Excise & Service Tax 605.81 1999 to 2014 Comr./Comr. (App)/Tribunal
Central Excise (EDK) Excise & Service Tax 66.34 2010-11 to Sep 15 AC/JC/Comr. (Appeals)
Central Excise (EDT) Excise Duty 558.30 1996 to 2002 Comr. & HC Commissioner of
Central Excise (ED1) Excise Duty 133.58 2006-Oct.2009 Central Excise
Central Excise (ED2) Excise Duty 379.62 2007-08 to Oct 2013 CESTAT Ahmedabad
Central Excise (ED2) Excise Duty 67.99 Nov 2013 to Apr 2015 Commissioner (Appeals)
Central Excise (ED2) Excise Duty 14.04 May 15 to Jan 16 Asst. Comr.
Total ( B ) 2320.62
DCIT - Central Circle Income tax 590.31 FY 2007-08 Pending before CIT(A)
DCIT - Central Circle Income tax 393.62 FY 2007-08 Pending before ITAT
DCIT - Central Circle Income tax 1377.31 FY 2008-09 Pending before CIT(A)
DCIT - Central Circle Income tax 73.61 FY 2008-09 Pending before CIT(A)
DCIT - Central Circle Income tax 106.73 FY 2009-10 Pending before CIT(A)
DCIT - Central Circle Income tax 4051.73 FY 2009-10 Pending before ITAT
DCIT - Central Circle Income tax 598.26 FY 2010-11 Pending before CIT(A)
DCIT - Central Circle Income tax 5001.13 FY 2011-12 Pending before CIT(A)
DCIT - Central Circle Income tax 2903.82 FY 2012-13 Pending before CIT(A)
DCIT - Central Circle Income tax 2837.77 FY 2013-14 Pending before CIT(A)
DCIT - Central Circle Income tax 3476.33 FY 2013-14 Pending before ITAT
ITAT Income tax 5980.50 FY 2010-11 Pending before ITAT
ITAT Income tax 5911.71 FY 2012-13 Pending before ITAT
Total ( C ) 33302.83
Total ( A ) + ( B ) + ( C ) 38653.81

viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has during the year defaulted in repayment of loansor borrowing to banks financial institutions and debenture holders. The Company has notborrowed any funds from Government. The lender wise details of defaults as at the year-endare as under:-

(Rs. In Lakhs)

Particulars Amount of default as at the balance sheet Period of default Nature of Security
i) Name of the Lenders:
In case of:
Bank
State Bank of India CC 7942.56
State Bank of Patiala CC 2092.89
State Bank of Patiala LC Devolvement 2492.81 Entire loan has been Recalled vide SARFAESI notice dated 20.07.2016 First pari passu charge on Current Assets of the Company & Second pari passu charge on Fixed Assets of the Company
State Bank of Bikaner & Jaipur CC 2635.61
Bank of Baroda CC 5094.98
Bank of Maharashtra CC 3042.89
Corporation Bank CC 4176.44
AXIS Bank CC 8978.12
IDBI Bank CC 7241.64
The SVC Bank CC 312.58
State Bank of India CL 9100.00 Hypothecation of Stock receivables and other Current Assets
State Bank of Patiala TL 2116.13 First Pari Passu Charge on Fixed Assets of Company located at Kamarhati
State Bank of Bikaner & Jaipur
4050.02 Hypothecation of Stock receivables and other Current Assets
CL
Entire loan has been
Recalled vide SARFAESI
AXIS Bank TL 4502.71 notice dated 20.07.2016 First charge on Fixed Assets at Unit II No.57/5/2 Bhenslore Village Daman
IDBI Bank TL 1491.38 Sharing of Charges with AXIS Bank & HERO FinCorp on Daman U2 Property
First Charge on Plant &
Machinery (Caster II and
The SVC Bank TL 1393.40
Union Bank of India 2652.24 Entire loan has been Recalled vide SARFAESI notice dated 25.04.2017 Ancillaries) valued at Rs.8066 lacs Respective machineries & Plot No. 170 located at Daman
Financial Institution
IFCI 1548.72 Sharing of Charges with State Bank of Patiala for
Fixed Assets Located at Kamarhati
HERO Fin Corp 2724.97 Entire loan has been Recalled vide SARFAESI notice dated 20.07.2016 Sharing of Charges with AXIS Bank & IDBI Bank on Daman U2 Property
Government -
ii) Debentures
LIC 3000.00 Entire loan has been Recalled vide SARFAESI notice dated 20.07.2016 First charge on Land at Mehasana and Fixed Asset situated at Daman Bhimpore to the extent Rs. 5000 Lacs
Interest provision on above facilities 33167.19
TOTAL 109757.30

ix) To the best of our knowledge and belief and according to the information andexplanations given to us during the year the Company has not raised any monies throughinitial public offer or further public offer (including debt instruments) or term loans;accordingly reporting under this para is not applicable. x) According to the informationand explanations given to us and on the basis of representation of the management which wehave relied upon no fraud by the Company or on the company by its officers or employeeshas been noticed or reported during the year.

xi) In our opinion and according to the information and explanations given to us thecompany has not paid/provided for any managerial remuneration during the year. Hencereporting under this para is not applicable.

xii) Since the company is not a Nidhi company this clause is not applicable.

xiii) According to the information and explanations given to us all transactions withthe related parties are in compliance with section 177 and 188 of Companies Act 2013 asapplicable and the details have been disclosed in the Ind AS Financial Statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year.

(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with them.

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

For SHAH & TAPARIA

Chartered Accountants

FRN: 109463W

BHARAT JOSHI

Partner

Membership No.: 130863

Place: Mumbai.

Date: May 30 2019

Annexure "B" to the Independent Auditor’s Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements’ section of our report to the Members of Allied Digital Services Limitedof even date) Report on the Internal Financial Controls Over Financial Reporting underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financial reporting of Ess DeeAluminium Limited ("the Company") as of March 31 2019 in conjunction with ouraudit of the standalone Ind AS 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

Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India (the "ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company’s policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies 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") issued by ICAI and the Standards on Auditing issued by

ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting were established and maintained and if such controls operatedeffectively in all material respects.

Because of the matter described in disclaimer of opinion paragraph below we wereunable to obtain sufficient appropriate audit evidence to provide a basis for an auditopinion on internal financial controls system over financial reporting of the Company

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 Ind AS 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

(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 Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance 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 Ind AS financial statements.

Disclaimer of Opinion

According to the information and explanation given to us the Company due to itssituation of financial stress has during the year not established its internal financialcontrols over financial reporting on criteria based on or considering the essentialcomponents of internal controls stated in Guidance Note on Audit and Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia. Because of this reason we are unable to obtain sufficient appropriate auditevidence to provide a basis for our opinion whether the Company has adequate internalfinancial controls over financial reporting and whether such internal financial controlswere operating effectively as at March 31 2019.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the standalone Ind AS financial statementsof the Company and the disclaimer does not affect our opinion on the standalone Ind ASfinancial statements

For SHAH & TAPARIA

Chartered Accountants

FRN: 109463W

BHARAT JOSHI

Partner

Membership No.: 130863

Place: Mumbai.

Date: May 30 2019

 

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