To the Members of
Kamper Concast Limited.
Report on the financial statements
We have audited the accompanying financial statements of Kamper Concast Limited("the Company") which comprise the Balance Sheet as at March 31 2015 and theStatement of Profit and Loss for the year then ended the cash flow statement and a summaryof significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements:
The Companys Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 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 forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror. '
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor ^considers internal control relevant to the Companys preparation andfair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of entity's internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements read with other notes appearing there on give theinformation required by the Act in the manner so required and subject to note no. 9(2)for investment and giving loan in excess of limits prescribed by Companies Act 2013 13(1)for non provision of doubtful debts 15(5) for non provision of deferred Tax Assets /liabilities note no. 16(1)(1) relating to non provision of Excise duty of Rs. 328.13lacs note no. 16(2) relating to non provision of Electricity bills of Rs. 8283.79 lacsnote no. 16(3) relating to non provision of Income tax liability of Rs. 154.72 lacs noteno. PL - 4 relating to taking value of rejected Cl mould for Rs. 189.66 lacs in ouropinion it seems to be on higher side gives a true and fair view in conformity with theaccounting principles generally accepted in India:
a) in the case of the Balance Sheet of the state of affairs of the Company as at March312015;
b) in the case of the Profit and Loss Account of the profit/ loss for the year endedon that date;
c) In the case of Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of section 143 of the Actwe give in the Annexure 1 a statement on the matters specified in paragraphs3 and 4 of the Order.
2. As required by section 227(3) of the Act we report that:
a) we have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b) in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books
c) The Balance Sheet and the Statement of Profit and Loss dealt with by this Reportare in agreement with the books of account.
d) In our opinion the Balance Sheet and the Statement of Profit and Loss comply withthe Accounting Standards notified under the Act read with the General Circular 15/2013dated 13th September 2013 of the Ministry of Corporate Affairs in respect of Section 133of the Companies Act 2013.
e) On the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Act.
New Dak Bunglow Road Patna
The 21 st day of August 2015
For SINGHANIA AGRAWAL & CO.
FRN No. 005 527C
Annexure - 1 .
Referred in point 1 of "Report on Other Legal and Regulatory Requirements" ofour report of even date
|(a) Whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets. ||The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. |
|(b) Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account. ||As explained to us the fixed assets have been physically verified by the management during the year at regular intervals which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification. |
|(ii) (a) Whether the physical verification of inventory has been conducted at reasonable intervals by the management. ||The stock of Raw Materials and Finished Goods has been physically verified during the year by the management at regular intervals. In our opinion the frequency of verification is reasonable. |
|(b) Are the procedures of physical verification of inventory followed by the management is reasonable and' adequate in relation to the size of the company and nature of its business? If not the inadequacies in such procedures should be reported. ||In our opinion and according to the information and explanation given to us the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. |
|(c) Whether the company is maintaining proper records of inventor)' and whether any material discrepancies were noticed on physical verification and if so whether the same have been properly dealt with in the books of accounts. ||The company is maintaining proper records of inventories. The discrepancies noticed on verification between the physical stocks and the book records were not material and the same have been properly dealt with in the books of account. |
|(iii) (a) Whether the company has granted any loans secured or unsecured to companies firms or other parties covered in the register maintained u/s 189 of the act. If so ||The company had granted loan/advances to companies firms or parties listed in the Register maintained under section 189 of the Companies Act 2013. The number of parties are three and the amount involved in these transactions is Rs. 178-95 lacs. |
|(b) Whether the rate of interest and other terms and conditions of loans given or taken by the company secured or unsecured are prima facie prejudicial to the interest of the company. free. As no specific terms and conditions on which loan have been taken from companies firms or parties listed in the registers maintained under section 189 of the Companies Act 2013 are made available to us so we are unable to comment on the effect on the interest of the company. ||The loan / advances gf&Ifety/s intert$Eh |
|(c) Whether the payment of principal amount and interest are also regular. As explained to us no fixed period is stipulated for payment of principal amount. However parties to whom the Company had granted loans / advances are blocked and not repaying the loan amount and no provision for doubtful debts has been made in this regard. || |
|(iv) Is there an adequate internal control system commensurate with the size of the company and nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. Whether there is a continuing failure to correct major weakness in the internal control system. In our opinion and according to the information and explanations provided by the management there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory and fixed assets and with regard to sale of goods and services. However there is further scope of improvement. || |
|(v) In case of company accepted deposits whether the directives issued by the Reserve bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the act and the rules framed there under where applicable have been complied with? If not the nature of contravention should be stated. If an order has been passed by the company law board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal whether the same has been complied with or not? The company has not accepted any deposits from public so in contravention to rules framed under the provisions of 73 to 76 of companies act 2013 are not applicable to the company. || |
|(vi) Where the maintenance of cost records has been specified by the central government under sub - section (1) of section 148 of the The Central Government has prescribed maintenance^^^eqst records under Section^mr Companies Act 201 iOn rdspect \ certain manufacturing act. Whether such accounts and records have been made and maintained. Company'. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not however made a detailed examination of the same. || |
|(vii) (a) Is the company regular in depositing undisputed statutory dues including provident fund employee state insurance income tax sales tax wealth tax service tax duty of customs duty of excise value added tax cess and any other statutory dues with the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period more than six months from the date they become payable shall be indicated by the auditor. According to the records of the Company undisputed statutory dues including Provident fund Investor Education and Protection fund Employees State Insurance Income tax Sales tax Wealth tax Service Tax Custom duty Excise duty Cess and any other statutory dues have been generally deposited with the appropriate authorities. According to information and explanations given to us no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2015 for a period of more than six months from the date of they becoming payable except in the case of the following disputed statutory dues that have not been deposited on account of matters pending before appropriate authorities. These dues are as under. || |
|Name of the Statute ||Nature of Dues ||Amount Disputed (Rs. In Lacs) ||Amou nt Paid (Rs. In Lacs) ||Period to which the amount relates ||Forum Where dispute is pending |
|Central Excise Department ||Clandesti ne removal of goods ||328.13 ||20.00 ||2000-02 ||Cestat Kolkata |
Case No. O-IN-O 04/DENOVQ/AAYUKT/2008/DATED-3103.2008
|BSEB ||Electric Bill for the power cut period ||957.47 ||45.00 ||1999-00 ||Honbl Patna High Court |
|Case No. CWJC12538-99-00 || || || || || |
|Cabinet Vigilance Department ||Excess Capacity of furnace ||7326.32 ||- ||2000-05 ||Honbl Patna High Court |
|Case no. CWJC114/06 || || || || || |
|Income Tax Department ||Scrutiny Proceed in ||-154.72 ||- ||1997-98 || |
Case No. ITA-220/A-l~2005-06 ^
|(b) In case dues of sales tax/income tax/custom tax/wealth tax/ excise duty/cess have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending may please be mentioned. ||As mentioned above |
| Whether the amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act 2013 and rules made thereunder has been transferred to such fund within time. ||No such transfer has been made during the year. |
|(viii) Whether in case of company which has been registered for a period not less than five years its accumulated losses at the end of the financial year are not less than fifty percent of its net worth and whether it has incurred cash losses in such financial year and in the immediately preceding financial year. ||The company has been registered for a period more than five years and its accumulated loss at the end of the financial year is in excess o f fifty percent of its net worth. The Company has accumulated loss of Rs. 1904.49 lacs (Previous Year Rs. 660.36 lacs) at the end of the financial year ending 31st March 2015. The Company has incurred cash loss of Rs.660.36 lacs during the current financial year. |
|(ix) Whether the company has defaulted in repayments of dues to a financial institution or bank or debenture holders? If yes the period and amount of default to be reported. ||Based on our audit procedures and according to information and explanations given to us we are of the opinion that the company has not defaulted in repayment of dues to Banks or financial institutions. |
|(x) Whether adequate documents and records are maintained in cases where the company has granted loans and advances on the basis of security by the way of pledge of shares debentures and other securities; if not. The deficiencies to be pointed out. ||In our opinion and according to the information and explanations given to us the company has not granted any loans and advances on the basis of security by way of pledge of shares and other securities. |
|(xi) Whether the company has given any guarantee for loans taken by others from bank or financial institutions the terms and conditions whereof are prejudicial to the interest of the company. ||According to the information explanation provided management the Company has given corporate guarantee loans taken by City Rolling Mills Pvt. Ltd. a related party For Rs. 1000.00 lacs from Bank of Baroda. |
|(xii) Whether any fraud on or by the company has been noticed on reported during the year. If yes the the nature and the amount involved is to be indicated. ||Based upon the audit procedures and information and explanation given by the management we report that no fraud on or by the Company has been noticed or reported during the course of our audit. |
For SINGHANIA AGRAWAL & CO.
FRN No. 005527C
S.C.Agrawal M.No.- 072510
New Dak Bunglow Road Patna.
The 21st day of August 2015