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Maithan Alloys Ltd.

BSE: 590078 Sector: Metals & Mining
NSE: MAITHANALL ISIN Code: INE683C01011
BSE 00:00 | 13 Dec 472.30 -0.40
(-0.08%)
OPEN

475.15

HIGH

475.30

LOW

461.30

NSE 00:00 | 13 Dec 468.90 -4.10
(-0.87%)
OPEN

478.00

HIGH

478.00

LOW

461.00

OPEN 475.15
PREVIOUS CLOSE 472.70
VOLUME 260
52-Week high 697.50
52-Week low 339.75
P/E 5.68
Mkt Cap.(Rs cr) 1,375
Buy Price 461.30
Buy Qty 1.00
Sell Price 479.00
Sell Qty 1.00
OPEN 475.15
CLOSE 472.70
VOLUME 260
52-Week high 697.50
52-Week low 339.75
P/E 5.68
Mkt Cap.(Rs cr) 1,375
Buy Price 461.30
Buy Qty 1.00
Sell Price 479.00
Sell Qty 1.00

Maithan Alloys Ltd. (MAITHANALL) - Auditors Report

Company auditors report

To the Members of

Maithan Alloys Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying Standalone Financial Statements of Maithan AlloysLimited (the "Company") which comprise the Balance Sheet as at 31 March 2019and the Statement of Profit and Loss (including Other Comprehensive Income) Statement ofChanges in Equity and Statement of Cash Flows for the year then ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "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 give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31 March 2019 and the Profit and otherComprehensive Income changes in Equity and its Cash Flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the Standalone Financial Statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

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. Wehave determined that there are no key audit matters to be communicated in our report.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

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 Report CorporateGovernance and Shareholder's Information but does not include the Standalone FinancialStatements and our auditor's report thereon. Our opinion on the Standalone FinancialStatements does not cover the other information and we do not express any form ofassurance conclusion thereon. In connection with our audit of the Standalone FinancialStatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the Standalone FinancialStatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated. If based on the work we have performed we conclude thatthere is a material misstatement of this other information we are required to report thatfact. We have nothing to report in this regard.

Management's Responsibility for 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 changesin Equity 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 relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone Financial Statement that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the Standalone Financial StatementsmanagementisresponsibleforassessingtheCompany's ability to continue as a Going Concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is also 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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism 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 internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch 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 concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue 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 Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified 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 with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by ‘the Companies (Auditor's Report) Order 2016' issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act wegive in the "Annexure A" statement on the matters specified in paragraphs 3 and4 of the Order.

As required by Section 143(3) of the Act we report that: (a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; (b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; (c) The Balance Sheet the Statement of Profit and Lossincluding Other Comprehensive Income Statement of Changes in Equity and the Statement ofCash Flow dealt with by this Report are in agreement with the books of account; (d) In ouropinion the aforesaid Standalone Financial Statements comply with the AccountingStandards specified under Section 133 of the Act read with relevant rules issuedthereunder; (e) On the basis of the written representations received from the directors ason 31 March 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2019 from being appointed as a director in terms of Section164 (2) of the Act; (f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B"; (g) With respect to the othermatters to be included in the Auditors Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us: i. The Company has disclosed the impact ofpending litigations on its financial position in its Standalone Financial Statements. ii.The Company did not have any long-term contracts including derivative contracts for whichthere were any material foreseeable losses; iii. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany during the year ended 31 March 2019.

For M Choudhury & Co.

Chartered Accountants FRN.: 302186E

D Choudhury

Place: Kolkata

Partner Date: 30 April 2019

Membership No.: 052066

Annexure A to Independent Auditor's Report

Referred to in paragraph 10 of the Independent Auditors' Report of even date to themembers of MAITHAN ALLOYS LIMITED on the Standalone Financial Statements for the yearended 31 March 2019.

i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets of the Company have been physically verified by the Management atreasonable intervals and no material discrepancies have been noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company. ii. The physical verification of inventory has beenconductedatreasonableintervalsbytheManagement and no material discrepancies were noticedon such verification. iii. The Company has not granted any loans secured or unsecured tocompanies limited liability partnership firm firms or other parties covered in theregister maintained under Section 189 of the Act. Therefore the provisions of Clause3(iii)[(a) (b) and (c)] of the said Order are not applicable to the Company. iv. TheCompany has neither granted any loan nor provided any guarantee or security hence theprovisions of Section 185 of the Act are not applicable to the Company. In our opinion andaccording to the informations and explanations given to us with respect to the investmentsmade the Company has complied with the provisions of Section 186 of the Act.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 to 76 of the Act and the rules framed there under. Therefore the provision ofclause 3(v) of the order is not applicable on the Company. vi. Pursuant to the rules madeby the Central Government of India the Company is required to maintain Cost Records asspecified under Sec 148(1) of the act in respect of its products. We have broadly reviewedthe same and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have not however made a detailed examination of therecords with a view to determine whether they are accurate or complete. vii. (a) TheCompany is regular in depositing the undisputed statutory dues including provident fundEmployees' State Insurance Income tax Goods and Service tax Customs Duty cess andother material statutory dues as applicable with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the aforesaid dues were outstanding as at

31 March 2019 for a period of more than six months from the date of becoming payable.b) The particulars of dues of Service tax Excise duty cess etc. which have not beendeposited as at 31 March 2019 on account of dispute are given as follows:

Name of the statute Nature of dues Amount (H) Period to which the amount relates Forum where the dispute is pending
The Central Excise Act 1944 Excise Duty & Service Tax 1045052 2006-07 CESTAT Kolkata
The Central Excise Act 1944 Excise Duty & Service Tax 1236512 2008-09 CESTAT Kolkata
The Central Excise Act 1944 Excise Duty & Service Tax 498473 2008-09 Commissioner (Appeal) Kolkata
The Central Excise Act 1944 Excise Duty & Service Tax 4284911 2009-10 CESTAT Kolkata
The Central Excise Act 1944 Excise Duty & Service Tax 660880 2013-14 Addl. Commissioner Bolpur
The Central Excise Act 1944 Excise Duty & Service Tax 3151800 2013-14 CESTAT Kolkata
The Central Excise Act 1944 Excise Duty & Service Tax 6015000 2014-15 CESTAT Kolkata
The Central Excise Act 1944 Excise Duty & Service Tax 5090935 2016-17 CESTAT Kolkata
Finance Act 1994 Service Tax 1162272 2017-18 Commissioner (Appeal)Siliguri
Finance Act 1994 Service Tax 557442 2017-18 Commissioner (Appeal) Siliguri
Finance Act 1994 Service Tax 127680 2017-18 Commissioner (Appeal) Siliguri
Name of the statute Nature of dues Amount (H) Period to which the amount relates Forum where the dispute is pending
The Central Excise Act 1944 Excise Duty & Service Tax 901462 2017-18 Assistant Commissioner Asansol
The Central Excise Act 1944 Excise Duty & Service Tax 3351688 2013-14 Assistant Commissioner Asansol
The Central Excise Act 1944 Excise Duty & Service Tax 7945242 Sept'14-March'16 Addl. Commissioner Bolpur
The Central Excise Act 1944 Excise Duty & Service Tax 8939616 2016-17 & UPTO June'17 Addl. Commissioner Bolpur

viii. The Company has not defaulted in repayment of loans or borrowings to anyFinancial Institution or banks as at the Balance Sheet date. The Company has neitherissued any debentures nor has taken any loans or borrowings from the Government as at theBalance Sheet date. ix. The Company has not raised any money by way of initial publicoffer/further public offer (including debt instruments)/term loans during the year.Accordingly the provisions of clause 3(ix) of the Order are not applicable to theCompany. x. We have neither come across any instance of material fraud on or by theCompany noticed or reported during the year nor have we been informed of any such caseby the Management. xi. The managerial remuneration has been paid / provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV of the Act. xii. As the Company is not a Nidhi Company the provisions of clause 3(xii)of the Order are not applicable. xiii. The Company has entered into transactions withrelated parties in compliance with the provisions of section 177 and 188 of the Act. Thedetails of such related party transactions have been disclosed in the Standalone FinancialStatements as required by the applicable accounting standards. xiv. No money was raisedthrough preferential allotment/ private placements of shares/fully/partly convertibledebentures during the year under review hence the provisions of clause 3(xiv) of thesaid order is not applicable to the Company. xv. The Company has not entered into anynon-cash transactions with its directors or person connected with them. Accordinglyclause 3(xv) of the Order is not applicable to the Company. xvi. The Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.Accordingly the provision of clause 3(xvi) are not applicable to the Company.

For M Choudhury & Co.

Chartered Accountants FRN.: 302186E

D Choudhury

Place: Kolkata

Partner Date: 30 April 2019

Membership No.: 052066

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF MAITHAN ALLOYS LIMITED

Referred to in paragraph 10 of the Independent Auditors' Report of even date to themembers of MAITHAN ALLOYS LIMITED on the Standalone Financial Statements for the yearended 31 March 2019.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of MaithanAlloys Limited ("the Company") as at 31 March 2019 in conjunction with our auditof the Standalone 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 ("The Act").

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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 Standalone FinancialStatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations 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 Standalone 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 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 2019 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.

For M Choudhury & Co.

Chartered Accountants FRN.: 302186E

D Choudhury

Place: Kolkata

Partner Date: 30 April 2019

Membership No.: 052066