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Inducto Steel Ltd.

BSE: 532001 Sector: Others
NSE: N.A. ISIN Code: INE146H01018
BSE 00:00 | 04 Oct 15.22 0
(0.00%)
OPEN

14.50

HIGH

15.22

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14.50

NSE 05:30 | 01 Jan Inducto Steel Ltd
OPEN 14.50
PREVIOUS CLOSE 15.22
VOLUME 129
52-Week high 17.60
52-Week low 11.88
P/E 6.95
Mkt Cap.(Rs cr) 6
Buy Price 15.22
Buy Qty 10.00
Sell Price 15.22
Sell Qty 490.00
OPEN 14.50
CLOSE 15.22
VOLUME 129
52-Week high 17.60
52-Week low 11.88
P/E 6.95
Mkt Cap.(Rs cr) 6
Buy Price 15.22
Buy Qty 10.00
Sell Price 15.22
Sell Qty 490.00

Inducto Steel Ltd. (INDUCTOSTEEL) - Auditors Report

Company auditors report

To

The Members of Inducto Steel Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of InductoSteel Limited (‘the Company') which comprise the Balance Sheet as at March 312018 the Statement of Profit And Loss (including Other Comprehensive Income) theStatement of Cash Flow and the Statement of Changes in Equity for the year then ended anda summary of significant accounting policies and other explanatory information [in whichare incorporated the Returns for the year ended on that date audited by the branchauditors of the Company's branch at Mumbai].

Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards asprescribed under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based 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 there under.

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial 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 Ind AS financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements.

We believe that the audit evidence obtained by us and the audit evidence obtained bythe branch auditor of the Company in terms of their report referred to in the OtherMatters paragraph below is sufficient and appropriate to provide a basis for our auditopinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of report of the branch auditor on thefinancial information of the branch of the Company referred to in the Other Mattersparagraph below the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2018 and its profit total comprehensive income cash flows andthe changes in equity for the year ended on that date.

Other Matters

We did not audit the Ind AS financial statements/ information of Mumbai branch includedin these standalone Ind AS financial statements of the Company whose Ind AS financialstatements/ financial information reflect total assets of Rs. 3865.44 Lakhs as at March31 2018 and total revenues of Rs. 15.81 Lakhs for the year ended on that date asconsidered in the standalone Ind AS financial statements. The Ind AS financialstatements/information of this branch have been audited by the branch auditors whosereports have been furnished to us by the management and our opinion in so far as itrelates to the amounts and disclosures included in respect of this branch is based solelyon the report of such branch auditors.

Our opinion on the standalone Ind AS financial statements and our report on Other Legaland Regulatory Requirements below is not modified in respect of this matter with respectto our reliance on work done and the report of the branch auditors.

Report on Other Legal and Regulatory Requirements

1. 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 [and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus].

c. The reports on the accounts of the branch offices of the company audited undersection 143(8) of the Act by branch auditors have been sent to us and have been properlydealt with by us in preparing this report.

d. The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Statement of Cash Flows and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account [and with the returns received fromthe branches not visited by us].

e. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act.

f. On the basis of the written representations received from the directors as on March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of Section 164 (2) of theAct;

g. 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"; and

h. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us and tobranch auditors in terms of their report referred in the Other Matters paragraph above:

i. the Company has disclosed impact of pending litigations on its financial position inits financial

statements - Refer Note 39 of the standalone financial statements;

ii. the Company did not any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

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

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure B" statement on the matters specified in theparagraph 3 and 4 of the Order to the extent applicable.

For P. D. Goplani & Associates
Chartered Accountants
FRN: 118023W
Sd/-
CA. Sonam Langalia
Partner
M. No. 154014
Place : Mumbai
Date : May 30 2018

Annexure A 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")

We have audited the internal financial controls over financial reporting of InductoSteel Limited ("the Company") as of March 31 2018 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date [in which are incorporated the Returns for the year ended on that date auditedby the branch auditors of the Company's branch at Mumbai].

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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

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 the Institute of Chartered Accountant of Indiaand the Standards on Auditing as specified under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls both applicableto an audit of Internal Financial Controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 obtained by us and the audit evidence obtained bythe branch auditors in terms of their reports referred in the Other Matters paragraphbelow is sufficient and appropriate to provide a basis for our audit opinion on theinternal financial controls system over 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 to the best of information and explanations provided to us and basedon the consideration of report of the branch auditor on the financial information referredto in the Other Matters paragraph below the Company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at March 312018 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

Other Matters

Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operatingeffectiveness of the internal financial controls over financial reporting in so far as itrelates to Mumbai Branch is based on the corresponding reports of the auditors of suchbranch.

For P. D. Goplani & Associates
Chartered Accountants
FRN: 118023W
Sd/-
CA. Sonam Langalia
Partner
M. No. 154014
Place : Mumbai
Date : May 30 2018

Annexure B to the Independent Auditors' Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of oure report of even date on the accounts of Inducto SteelLimited (‘the Company') for the year ended March 31 2018)

Our reporting on the Order includes branch of the Company which has been audited bybranch auditors in terms of their report referred in the Other Matters paragraph of ourreport of even date and our report referred in respect of the branch is solely on thereport of the auditor.

i) a) The Company has maintained proper records showing the full particulars includingthe quantitative details and situation of its fixed assets.

b) All the assets have not been physically verified by the management during the yearbut as per the information and explanations provided to us there is a regular programmeof physical verification which in our opinion is reasonable having regard to the size ofthe Company and the nature of its assets. No material discrepancies were noticed on suchverification.

c) According to information and explanations given by the management the title deedsof immovable properties included under tangible fixed assets are held in the name of theCompany except as detailed in Annexure – 1 the properties which are not inthe name of the company. We were given to understand that the said immovable propertieswere owned and acquired by the company in the scheme of merger however the title deedsof the same are still in the name of erstwhile merging companies. Moreover in case ofGreen Plot Development (Alang) the company has done redevelopment work on a lease holdplot at Alang (Alang Ship Breaking Yard Alang).

ii) The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable and no material discrepancieswere noticed on such physical verification.

iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii)(a) (b) and (c) of theOrder are not applicable to the Company and hence not commented upon.

iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act2013.

v) According to the information and explanations given to us the company has notinvited any deposits as per the provisions of section 73 to 76 or any other relevantprovisions of companies act and the rules framed there under.

vi) We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 and are of the opinion that prima facie the specifiedaccounts and records have been made and maintained. We have not however made a detailedexamination of the same.

vii) a) In our opinion and according to the information and explanations given to us the Company is regular in depositing with appropriate authorities undisputed statutorydues including provident fund income-tax sales-tax service tax duty of customs dutyof excise value added tax cess and other material statutory dues applicable to it and nosuch undisputed amounts were in arrears for a period of more than six months from the datethey became payable.

b) According to the records of the Company the dues outstanding of income-taxsales-tax wealth-tax service tax duty of customs duty of excise value added tax andcess on account of any dispute are as follows:

Name of the authority (where the dispute is pending) Related period Nature Amount Rs.
Hon. CIT (Appeal)-41 Mumbai AY 2009-10 Income Tax 357180
Hon. CIT 3(2)(1) Mumbai AY 2010-11 Income Tax 3089730
Hon. CIT 3(2)(1) Mumbai AY 2011-12 Income Tax 1451040
Hon. CIT 3(2)(1) Mumbai AY 2012-13 Income Tax 584680
Hon. CIT 3(2)(1) Mumbai AY 2013-14 Income Tax 327660

viii) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to banks and financialinstitution. The Company has not taken any loan from government.

ix) In our opinion and according to the information and explanations given to us thecompany has not raised moneys by way of initial public offer or further public offer(including debt instruments) or tern loan during the year under report.

x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given bythe management we report that no fraud by the Company or material fraud on the Company byits officers or employees has been noticed or reported during the year.

xi) According to the information and explanations given by the management we reportthat the managerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company and hence not commented upon.

xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe standalone Ind AS financial statements as required by the applicable accountingstandards.

xiv) According to the information and explanations given by the management and based onthe examinations of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review.

xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him and hence provisions of section 192 of the Act arenot applicable.

xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For P. D. Goplani & Associates
Chartered Accountants
FRN: 118023W
CA. Sonam Langalia
Partner
Mumbai M. No. 154014
May 30 2018