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OCL Iron & Steel Ltd.

BSE: 533008 Sector: Metals & Mining
NSE: OISL ISIN Code: INE196J01019
BSE 00:00 | 17 Aug 3.08 -0.06
(-1.91%)
OPEN

3.23

HIGH

3.23

LOW

2.99

NSE 00:00 | 17 Aug 3.05 0
(0.00%)
OPEN

3.05

HIGH

3.15

LOW

2.90

OPEN 3.23
PREVIOUS CLOSE 3.14
VOLUME 17583
52-Week high 6.00
52-Week low 1.74
P/E
Mkt Cap.(Rs cr) 41
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.23
CLOSE 3.14
VOLUME 17583
52-Week high 6.00
52-Week low 1.74
P/E
Mkt Cap.(Rs cr) 41
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

OCL Iron & Steel Ltd. (OISL) - Auditors Report

Company auditors report

To the Members of OCL Iron and Steel Limited Report on the Standalone Ind AS FinancialStatements

We have audited the accompanying standalone Ind AS financial statements of OCL Iron andSteel Limited (‘The Company) which comprises the Balance Sheet as at 31stMarch 2017 the statement of Profit and Loss (including other comprehensive income) thestatement of Change in Equity and the statement of Cash Flow for the year then ended anda summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The company's board of directors is responsible for the matters specified in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income change in equity andcash flows of the company in accordance with the accounting principles generally acceptedin India including the Indian accounting standards (Ind AS) prescribed under section 133of the Act read with relevant rules issued there under. This responsibility also includesthe maintenance of adequate accounting records in accordance with the provisions of theAct for safeguarding of the assets of the company and for preventing and detecting thefrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the standalone Ind AS financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ins AS financial statements are freefrom material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the company'sdirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion 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 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 2017 and its loss total comprehensive income the change inequity and its cash flows for the year ended on that 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 act we give in annexure A a statement on the matters specified in paragraph 3 &4 of the Order to the extent applicable.

2. 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;

(c) The Balance Sheet the statement of Profit and Loss including Other ComprehensiveIncome the Statement of Changes in Equity and Statement of Cash Flow dealt with by thisReport are in agreement with relevant the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under section 133 of the Act;

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 and taken on record by the board of directors none of the directors isdisqualified as on March 31 2017 from being appointed as a director in terms of Section164 (2) of the Act;

(f) 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 B". Our report expresses an unmodified opinion onthe adequacy and the operating effectiveness of the company's internal financial controlsover financial reporting; and

(g) 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 as amended 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 its financialposition in its standalone Ind AS financial statements [Refer Note no.34.1].

ii. the company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

iv. The company has provided requisite disclosures in its standalone Ind AS financialstatements as to holdings as well as dealings in specified bank notes during the periodfrom 8th November 2016 to 30th December 2016. Based on the auditprocedures performed and the representations provided to us by the management we reportthat the disclosures are in accordance with the books of accounts maintained by thecompany and as produced to us by the management. Refer Note 11.1 to the standalone Ind ASFinancial Statements.

For A. C. Gupta & Associates
Chartered Accountants
Firm's registration number: 008079N
Sd/-
A.C.Gupta
Partner
Membership number: 8565
New Delhi
May 29 2017

Annexure - A to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31st March 2017.

(i) In respect of the Company's property plant and equipment:

(a) The company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) As explained to us the property plant and equipment according to the practice ofthe company have been physically verified during the year by the management at reasonableintervals. In our opinion the frequency of physical verification of property plant andequipment is reasonable having regard to the size of the Company and nature of its assets.According to the information and explanations given to us no material discrepancies werenoticed on such physical 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) We have been informed that the inventories are physically verified during theperiod by the management at reasonable intervals. The frequency of physical verificationin our opinion is reasonable having regard to the size of the company and nature of itsbusiness.

The discrepancies noticed on verification between the physical inventories and the bookrecords were not material in relation to the operation of the company and the same havebeen properly dealt with in the books of account.

(iii) The company has granted unsecured loans to companies covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act') during the periodunder review:

(a) The terms and conditions of grant of such loan are not prejudicial to the interestof the company.

(b) The Schedule of repayment is stipulated and there is no irregularity in thisregard.

(c) No Amount is overdue for more than 90 days as on 31st March 2017.

(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 Act 2013in respect of the loans investments guarantees and security.

(v) Since the company has not accepted any deposit from public the directives issuedby the Reserve Bank of India and the provisions of section 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under with regard to thedeposits accepted from the public are not applicable.

(vi) The Central Government has prescribed the maintenance of cost records undersection 148 (1) of the Companies Act 2013(‘the Act'). On the basis of recordsproduced before us for our verification we are of the opinion that prima facie theprescribed accounts and cost records have been maintained. However we are neither requiredto carry out nor have carried out any detailed examination of such accounts & records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the company there had been delays in depositingundisputed statutory dues including provident fund employees state insurance income-taxsales tax service tax duty of excise value added tax cess and other statutory dueswith appropriate authorities during the year ended 31st March 2017. Theoutstanding amount as on 31st March 2017 on account of statutory dues beingRs. 3104.03 Lakh.

According to the information and explanations given to us arrears of undisputedstatutory dues outstanding for a period of more than six months as on the date of balancesheet i.e. March 31 2017 was Rs. 1748.44 Lakh.

(b) According to the information and explanations given to us and as per ourverification of records of the company the company has not paid / deposited followingstatutory dues on account of disputes:

Name of the Statute Nature of Dues Year to which it relates Forum where dispute is pending Amount (in Lakhs)
1 Central Excise Tax Cenvat 2005-16 Addl. Commissioner Commissionerate office Bhubaneswar 1.59
2 Central Excise Tax Cenvat 2012-14 Addl. Commissioner (Adjn.) Commissionerate office Bhubaneswar 15.45
3 Central Sales Tax CST 2002-03 Odisha Sales Tax Tribunal 1.00
4 Central Sales Tax CST 2004-05 Odisha Sales Tax Tribunal 79.33
5 Central Sales Tax CST 2006-07 Odisha Sales Tax Tribunal Cuttack 8.98
6 Central Sales Tax CST 2007-10 Addl. Commissioner of Sales Tax Odisha Sambalpur 33.64
7 Central Sales Tax CST 2010-11 Addl. Commissioner of Commercial tax Sambalpur 26.96
8 Central Sales Tax CST 2011-12 Odisha Sales Tax Tribunal Cuttack 23.67
9 Central Sales Tax CST 2011-13 Odisha Sales Tax Tribunal Cuttack
58.25
10 Central Sales Tax CST 2011-13 Odisha High Court 0.84
11 Central Sales Tax CST 2013-14 Addl. Commissioner of Sales Tax Appeal North Zone Sambalpur 7.65
12 Central Sales Tax CST 2014-15 Additional Commissioner of Commercial Taxes Sambalpur 106.68
13 Central Service Tax Service Tax 2006-12 Addl. Commissioner (Adjn.) Commissionerate office Bhubaneswar 30.00
14 Central Service Tax Service Tax 2008-10 Commissioner Commissionerate office Bhubaneswar 275.73
15 Central Service Tax Service Tax 2010-12 Addl. Commissioner (Audit) Commissionerate office Bhubaneswar 23.05
16 Central Service Tax Service Tax 2013-14 Addl. Commissioner (Audit) Commissionerate office Bhubaneswar 8.57
17 Central Service Tax Service Tax 2013-14 Commissioner Commissionerate office Bhubaneswar 52.99
18 Central Service Tax Service Tax 2014-15 Addl. Commissioner (Audit) Commissionerate office Bhubaneswar 2.98
19 Odisha Entry Tax State Entry 2002-03 Odisha Sales Tax Tribunal 0.08
Tax
20 Odisha Entry Tax State Entry 2005-06 Joint Commissioner of
Tax Sales Tax Sundergarh 2.66
21 Odisha Entry Tax State Entry Tax 2006-07 Addl. Commissioner of Sales Tax Odisha Cuttack 3.05
22 Odisha Entry Tax State Entry Tax 2007-08 Commissioner of Sales Tax Odisha Cuttack 23.55
23 Odisha Entry Tax State Entry Tax 2007-10 Addl. Commissioner of Sales Tax North Zone Sambalpur 4.07
24 Odisha Entry Tax State Entry Tax 2010-12 Commissioner of Sales Tax Odisha Cuttack 3.52
25 Odisha Entry Tax State Entry Tax 2011-13 Commissioner of Sales Tax Odisha Cuttack 20.58
26 Odisha Entry Tax State Entry Tax 2011-13 Odisha High Court 7.38
27 Odisha Entry Tax State Entry Tax 2011-13 Odisha High Court 51.30
28 Odisha Sales Tax VAT 2005-06 Addl. Commissioner of Sales Tax Odisha Cuttack 117.89
29 Odisha Sales Tax VAT 2006-07 Odisha Sales Tax Tribunal Cuttack 36.17
30 Odisha Sales Tax VAT 2007-08 Odisha Sales Tax Tribunal Cuttack 6.57
31 Odisha Sales Tax VAT 2009-10 Commissioner of Sales Tax Odisha Cuttack 25.01
32 Odisha Sales Tax VAT 2009-10 Addl. Commissioner of Commercial Taxes Jajpur road 8.64
33 Odisha Sales Tax VAT 2010-12 Commissioner of Sales Tax Odisha Cuttack 16.77
34 Odisha Sales Tax VAT 2011-13 Commissioner of Sales Tax Odisha Cuttack 37.67
35 Odisha Sales Tax VAT 2011-13 Sales Tax Officer Keonjhar 0.25
36 Odisha Sales Tax VAT 2011-13 Odisha High Court 35.14
37 Odisha Sales Tax VAT 2011-13 Odisha High Court 76.80
TOTAL 1234.46

(viii) According to the information and explanations given to us and as per ourverification of the records of the company there had been delays in payment ofinstalments and Interest of term loans and foreign currency loans to the banks during theperiod. In view of the persisting defaults entire term loans amounting to Rs.124804.95Lakhs [including interest due thereon] is under default.

(ix) According to the information and explanations given to us and as per ourverification of the records of the company the company has not raised moneys by way ofinitial public offer or further public offer (Including debt instruments). The term loansavailed by the company have been applied for the purpose for which the loans wereobtained. (x) According to the information and explanations given to us no fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe Year ended 31st March 2017.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the company the company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to usthe company is not a Nidhi company. Therefore the provisions of Clause 3 (xii) of theOrder are not applicable to the company.

(xiii) According to the information and explanations given to us and as per ourverification of the records of the company all transactions with the related parties arein compliance with the Sections 177 and 188 of the Companies Act 2013 where applicableand the details have been disclosed in the financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us and as per ourverification 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 period under review. Accordingly the provisions of Clause 3 (xiv) of the order arenot applicable to the company.

(xv) According to the information and explanations given to us and as per ourverification of the records of the company the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly the provisions ofClause 3 (xv) of the order are not applicable to the company.

(xvi) In our opinion the company is not required to be registered under section 45-IAof the reserve Bank of India Act 1934. Accordingly the provisions of Clause 3 (xvi) ofthe order are not applicable to the company.

For A. C. Gupta & Associates
Chartered Accountants
Firm's registration number: 008079N
Sd/-
A.C.Gupta
Partner
Membership number: 8565
New Delhi
May 29 2017

Annexure - B to the Independent Auditors' Report

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of OCL Ironand Steel Limited ("the Company") as of 31st March 2017 in conjunction with ouraudit of the standalone Ind AS financial statements of the company for the year ended onthat 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' 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 Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 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 financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 unauthorised 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 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 31st March 2017based on 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.

For A. C. Gupta & Associates
Chartered Accountants
Firm's registration number: 008079N
Sd/-
A.C.Gupta
Partner
Membership number: 8565
New Delhi
May 29 2017