Manaksia Steels Ltd.
|BSE: 539044||Sector: Metals & Mining|
|NSE: MANAKSTEEL||ISIN Code: INE824Q01011|
|BSE 00:00 | 25 May||37.20||
|NSE 15:58 | 25 May||37.15||
|Mkt Cap.(Rs cr)||244|
|Mkt Cap.(Rs cr)||243.66|
Manaksia Steels Ltd. (MANAKSTEEL) - Auditors Report
Company auditors report
To the Members of Manaksia Steels Limited
Report on the audit of Standalone Ind AS financial statements
We have audited the standalone Ind AS financial statements of ManaksiaSteels Limited ("the Company") which comprise the balance sheet as at 31stMarch 2021 and the statement of profit and loss including Other Comprehensive Incomestatement of changes in equity and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information for the year ended on that date (hereinafter referred toas "Ind AS financial statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manne r sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021and profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Ind AS financial statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the independence ethical requirements that arerelevant to our audit of the financial statements under the provisions of the Act and theRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to Note 44 to the standalone financial statementwhich describes the uncertainties and potential impact of the Covid-19 pandemic of theCompany's operation and results as assessed by the management. The actual results maydiffer from such estimates depending upon future developments. Our opinion is not modifiedin respect of this matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements for the financial yearended 31 March 2021. These matters were addressed in the context of our audit of thefinancial statements and in forming our opinion thereon and we do not provide a separateopinion on these matters.
We have determined the matters described below to be the key auditmatters to be communicated in our report. For each matter below our description of howour audit addressed the matter is provided in that context.
We have determined that there are no other key audit matters tocommunicate in our report.
Information Other than the Standalone Ind AS financial statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in Other Section ofAnnual Report but does not include the financial statements and our auditor's reportthereon.
Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.
In connection with our audit of the standalone Ind AS financialstatements our responsibility is to read the other information identified above and indoing so consider whether the other information is materially inconsistent with thestandalone Ind AS financial statements or our knowledge obtained in the audit or otherwiseappears to be materially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Management's Responsibility for the Standalone Ind AS financialstatements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Standalone Ind AS financial statements that gives a true and fairview of the financial position financial performance Changes in Equity and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and 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 financial statements that gives a true and fair viewand are free from material misstatement whether due to fraud or error.
In preparing the standalone Ind AS financial statements management isresponsible for assessing the Company'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 are also responsible for overseeing thecompany's financial reporting process.
Auditor's Responsibilities for the Audit of Standalone Ind AS financialstatements
Our objectives are to obtain reasonable assurance about whether theStandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that inc ludes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Ind AS financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of theStandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal controls relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial control system in place andthe operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theability of the Company 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 Ind AS 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 report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of theStandalone Ind AS financial statements including the disclosures and whether theStandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
I. 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 of the Companies Act2013 and according to the information and explanations given to us and also on the basisof such checks as we considered appropriate we give in the "Annexure
A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.
II. As required by Section 143(3) of the Act we report that:
a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;
b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income the Statement of Changes in Equity and the Statements of Cash Flowsdealt with by this report are in agreement with the books of account;
d. In our opinion the aforesaid standalone Ind AS financial statementscomply with the Indian Accounting Standards specified under section 133 of the Act readwith rule 7 of the Companies (Accounts) Rules 2014;
e. On the basis of the written representations received from thedirectors as on March 31 2021 and taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director interms of section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".
In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.
h. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 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 itsfinancial position in its financial statements (Refer Note no. 35 of the standalone Ind ASfinancial statements).
ii. The Company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.
Annexure -A to the Independent Auditors' Report
The Annexure referred to in our Independent Auditor's Report to themembers of Manaksia Steels Limited (the Company') on the standalone Ind ASfinancial statements for the year ended on March 31 2021. We report that:
i. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant andequipment.
(b) The Company has a regular programme of physical verification of itsproperty plant and equipment by which property plant and equipment are verified in aphased manner over a period of three years. In accordance with this programme certainproperty plant and equipment were verified during the year and no material discrepancieswere noticed on such verification. In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets.
(c) According to information and explanation given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.
ii. The inventories have been physically verified during the year bythe management at regular intervals. In our opinion and according to the information andexplanations given to us no material discrepancies were noticed on physical verification.
iii. The Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013 ('the Act'). Accordinglyparagraph 3(iii)a 3(iii)b and 3(iii)(c) of the Order is not applicable to the Company.
Iv In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of sections 185 and 186 of theAct in respect of grant of loans making investments and providing guarantees andsecurities as applicable.
v. The Company has not accepted any deposits within the meaning ofsections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable tothe Company.
vi. We have broadly reviewed the books of accounts maintained by theCompany pursuant to the rules prescribed by the Central Government for maintenance of costrecords under Section 148 of the Companies Act 2013 and are of the opinion thatprima-facie the prescribed records have been made and maintained. We have however notmade a detailed examination of the records with a view to determine whether they areaccurate or complete.
vii According to the information and explanations given to us inrespect of statutory dues:
(a) The Company has been regular in depositing undisputed statutorydues including Provident Fund Employees State Insurance Income Tax Service Tax SalesTax Value Added Tax duty of Custom duty of Excise Cess GST and other statutory dueswith the appropriate authorities during the year. According to the information andexplanations given to us no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at 31st March 21 for a period of more than six months from the datethey became payable.
(b) According to the information and explanations given to us thereare no dues of income tax and duty of customs which have not been deposited with theappropriate authorities on account of any dispute. However according to information andexplanations given to us the following dues of service tax sales tax duty of excise andvalue added tax have not been deposited by the Company on account of disputes:
viii. In our opinion and according to information and explanationsgiven by the management we are of the opinion that the Company has not defaulted in therepayment of dues to financial institution and banks. The Company does not have any loansor borrowings from Government and has not issued any debentures.
ix. To the best of our knowledge and belief and according to theinformation and explanations given to us the Company has not raised any money by way ofinitial public offer or further public offer (including debt instruments) and has nottaken any term loans during the year. Accordingly paragraph 3 (ix) of the order is notapplicable.
x. According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the year.
xi. According to the information and explanations given to us theCompany has paid/provided for managerial remunerations in accordance with the requisiteapprovals mandated by the provisions of Sec 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.
xiii. According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the standalone Ind AS financialstatements as required by the applicable Indian accounting standards.
xiv. According to the information and explanations given to us andbased on our examination of the records the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with them. Accordinglyparagraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.
Annexure -B to the Independent Auditors' Report
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Manaksia Steels Limited ("the Company") as of March 31 2021 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India ('ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally 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 detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2021 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.