TO THE MEMBERS OF M/S LLOYDS STEELS INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/S LLOYDS STEELS INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at March 312017and the Statement of Profit and Loss and Cash Flow Statement for accounting the year thenended and a summary of significant policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financialperformance flowsof and cash theCompany in accordance with the Accounting Standards notified under section 133 of theCompanies Act 2013 and Rule 7 of the Companies (Accounts) Rules 2014. This responsibilityincludes the design implementation and maintenance of internal control relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
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 on a test basisabout the amounts and disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal control relevant to the Company'spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by management as well as evaluating the overall presentation ofthe financial 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 give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: (a) in the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2017;
(b) in the case of the Statement of Profitand Loss of the profit for the year ended onthat date; and
(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date
Report on Other Legal and Regulatory Requirements
1. 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 Companies Act 2013 we give in the Annexure I a statement on the matters specified inparagraphs 3 and 4 of the Order.
2. We have inquired into the matters specified under section 143(1) and based on theinformation and explanations given to us there is no matter to be reported under thissection.
3. As required by section 143(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 Company has no branch office hence the provisions of sub-section 8 of section143 is not applicable to the Company;
d) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
e) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards notified under section 133 of the CompaniesAct 2013 read with Rule 7 of the Companies (Accounts) Rules 2014;
f) In our opinion and based on the information and explanations given to us there areno financial transactions or matters which have any adverse effect on the functioning ofthe Company;
g) On the basis of written representations received from the Directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a Director in terms of subsection (2) ofSection 164 of the Companies Act 2013;
h) There is no qualification reservation or adverse remark relating to the maintenanceof accounts and other matters connected therewith;
i) The Company has adequate internal financial controls system in place and there is anoperating effectiveness of such controls. A report as Annexure II giving ourresponsibilities and opinion has been annexed herewith;
j) Such other matters as are prescribed by the Companies (Audit and Auditors) Rules2014 namely:-
i. The Company has disclosed the impact if any of pending litigations on itsfinancial position in its financial statements. ii. The Company has made provision asrequired under any law or accounting standards for material foreseeable losses if anyon long term contracts including derivative contracts. iii. There has been no any delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company. iv. The Company has provided requisite disclosures in its financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are in accordance with the booksof accounts maintained by the Company.
For Todarwal & Todarwal
ICAI Reg No : 111009W
M. No. : 032512
Dated: 20th April 2017
ANNEXURE A TO INDEPENDENT AUDITOR'S REPORT
[Referred to in above the Independent Auditor's Report of even date to M/S LLOYDSSTEELS INDUSTRIES LIMITED on the Financial Statements for the year ended 31stMarch 2017]
1 (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets. (b) As per the information andexplanation given to us fixed assets are physically verified by the management accordingto a phased programme designed to cover all the locations which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Pursuantto the programme the management during the year physically verified the fixed assets atcertain locations and no material discrepancies were noticed on such verification.
(c) According to the information and explanation given to us and on verification thetitle deeds of immovable properties are held in the name of the Company.
2. As per the information provided to us Inventory has been physically verified by themanagement during the year and no material discrepancies were noticed.
3. (a) According to information and explanation given to us the Company has notgranted any secured or unsecured loans to Companies firms Limited Liability Partnershipsor other parties covered in the register maintained under Section 189 of the Act.
In view of the above provisions of clause 3(iii) (b) and (c) are not applicable to theCompany.
4. In our opinion and according to information and explanation given to us the Companyhas in respect of loans investments guarantees and security provisions complied withsection 185 and 186 of the Companies Act 2013.
5. According to the information and explanation given to us the Company has notaccepted any deposits whether the directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 or any other relevant provisions of the Companies Act2013. Hence the provisions of clause 3(v) are not applicable to the Company.
6. Pursuant to the rules made by the Central Government the maintenance of CostRecords has been prescribed u/s. 148(1) of the Companies Act 2013. We are of the viewthat prima facie the prescribed accounts and records have been maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.
7. (a) According to the books and records as produced and examined by us in accordancewith generally accepted auditing practices in India and also management representationsundisputed statutory dues in respect of Provident Fund Employees' State Insurance IncomeTax Sales Tax Service Tax Custom Duty Excise Duty Value Added Tax Cess and otherStatutory Dues if any applicable to it has been regularly deposited with theappropriate authorities.
(b) According to the information and explanation given to us and the recordproduced before us there is no disputed amount payable in case of Income Tax Sales TaxWealth Tax Service Tax Custom Duty Excise Duty Value Added Tax or Cess.
8. According to the information and explanation given to us and based on the recordsproduced before us the Company has not defaulted in repayment of dues to a FinancialInstitution Bank Government or dues to Debenture Holders.
9. According to the information and explanation given to us and the record producedbefore us the Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments). The Company has not taken any term loan duringthe year.
10. During the course of our examination of the books of account carried in accordancewith the generally accepted auditing standards in India we have neither come across anyinstance of fraud on or by the Company either noticed or reported during the year norhave we been informed of such case by the Management.
11. According to the information and explanation given to us and the books of accountsverified by us the Managerial Remuneration has been paid or provided in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act.
12. The Company is not a Nidhi Company hence the provision of clause 3(xii) are notapplicable to the Company.
13. According to the information and explanation given to us there are no transactionswith the related parties.
14 According to information and explanation given to us the Company during the yearhas not made any preferential allotment or private placement of shares or fully or partlyconvertible debentures hence the provision of clause 3(xiv) are not applicable to theCompany.
15. According to the information and explanation given to us and the books of accountsverified by us the Company has not entered into any non-cash transactions with Directorsor persons connected with him.
16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For Todarwal & Todarwal
ICAI Reg No : 111009W
M. No. : 032512
Dated : 20th April 2017