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Shri Bajarang Alloys Ltd.

BSE: 526981 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE402H01015
BSE 00:00 | 20 Jul 16.95 -1.40
(-7.63%)
OPEN

17.90

HIGH

18.35

LOW

16.70

NSE 05:30 | 01 Jan Shri Bajarang Alloys Ltd
OPEN 17.90
PREVIOUS CLOSE 18.35
VOLUME 552
52-Week high 25.25
52-Week low 15.15
P/E 12.94
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 17.90
CLOSE 18.35
VOLUME 552
52-Week high 25.25
52-Week low 15.15
P/E 12.94
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shri Bajarang Alloys Ltd. (SHBAJRANGALL) - Auditors Report

Company auditors report

To the Members of

SHRI BAJRANG ALLOYS LIMITED

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of SHRI BAJRANGALLOYS LIMITED ('the Company') which comprise the standalone balance sheet as at 31March 2017 the statement of profit and loss and the cash flow statement for the year thenended and a summary of significant accounting policies and other explanatory informationfor the year then ended.

Management's Responsibility for the Standalone Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate 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 give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

6. 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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in

India of the state of affairs of the Company as at 31 March 2017 and its loss and itscash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

7. 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 the Annexure-A statement on the matters specified in the paragraph 3and 4 of the Order to the extent applicable.

8. 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 standalone balance sheet the statement of profit and loss and the cash flowstatement dealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

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

(f) With respect to the adeqacy of internal financial controls over financial reportingof the company and the operating effectiveness of such controls refer to our separatereport in Annexure-B' 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 in our opinionand to the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations(Note-30) on itsfinancial position in its financial statements.

ii. the Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts (Note.30). and

iii. The Company is not liable to transfer any amounts to the Investor Education andProtection Fund during the year.

iv. "the Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 36 to the standalone financialstatements."

FOR R.K. SINGHANIA AND ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No. 004435C
Date : 23rd May 2017 Sd/-
Place : Raipur RAMESH KUMAR SINGHANIA
(PARTNER)
MEMBERSHIP NO. 041880

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in paragraph 7 of our Independent Auditors' Report of evendate to the members of the Company on the standalone financial statements for the yearended 31 March 2017 we report that:

(i) (a) According to the information and explanations given to us the Company ismaintaining proper records showing full particulars including quantitative details andsituation of fixed assets.

(b) As explained to us the Company has a regular programme of physical verification ofits fixed assets by which fixed assets are verified in a phased manner over a period ofone year. In accordance with this programme certain fixed assets were verified during theyear and no material discrepancies were noticed on such verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the record of the company the title deeds of immovable properties asdisclosed in Note - 10 on the fixed assets to the financial statements are held in thename of the company.

(ii) (a) According to the information and explanations given to us the company has beenphysically verified the inventory at reasonable intervals during the year.

(b) According to the information and explanations given to us the procedures ofphysical verification of inventory followed by the management is reasonable and adequatein relation to the size of the company and the nature of the business. Further thediscrepancies noticed in our physical verification of inventory as compared to books ofaccounts were not material.

(iii) According to the information and explanations given to us the Company has grantedloans (Note No.34) to the bodies corporate covered in the register maintained undersection 189 of the Companies Act 2013 ('the Act').The terms and conditions of the loansare not prejudicial to the interest of the company. The stipulated schedule of payment ofprincipal and interest are regular in nature and the company has taken reasonable stepsfor recovery of the overdue loan and interest amount during the year.

(iv) The company has granted loans investments guraantees (Note No.34) and securitiesgranted in respect of which the provisions of section 185 & 186 of the Act andcomplied as applicable.

(v) According to the explanation and information given to us the Company has notaccepted any deposits within the meaning of section 73 to 76 of the Act and the rulesframed thereunder to the extent notified during the year.

(vi) The Central Govt. has prescribed maintenance of cost records under section 148(1)of the Companies Act 2013 in respect of manufacturing activities of the company. We havebroadly reviewed the accounts and records of the company in this connection and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have not however made a detailed examination of the same.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the company the company is regular in depositing theundisputed statutory dues including provident fund employee's state insurance incometax sales tax wealth tax service tax duty of customs duty of excise value added taxcess and any other statutory dues with the appropriate authorities. And there is no arrearof outstanding statutory dues at the last day of the financial year concerned for a periodof more than six months from the date they became payable.

(b) According to the information and explanations given to us there is disputed amountof statutory dues which have not been deposited with the concerned authorities during theyear; which are as follows

Sl. No Name of the Statute Nature of the duties Amount in Lakhs Period to which the amount relates Forum where dispute is pending
1 Central Excise Act1944 Penalty 0.14 2011-12 to 2013-14 Commissioner of Central Excise(A) Raipur

(viii) According to the records of the company examined by us and the information andexplanation given to us the company has not defaulted in repayment of loans or borrowingsto any banks financial institutions or govt. Further the company doesnot have anydebentures issued/ outstanding any time during the year.

(ix) The company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. The company has obtained freshterm loan during the year and the same has been mainly applied for the purpose for whichthese are obtained.

(x) According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the course of our audit.

(xi) According to the information and explanations given 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 explanation given to us thecompany is not a nidhi company. Accordingly paragraph 3 (xii) of the Order is notapplicable during the year.

(xiii) According to the information and explanation given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with sections 177 and 188 of the Act wherever applicable and details of suchtransactions have been disclosed in (Note -34) to the financial statement as required bythe applicable accounting standard.

(xiv) According to the information and explanation given to us and based on ourexamination of the records of the company the company has not made any preferrentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanation given to us and based on ourexamination of the records of the company the company has not entered into any non-cashtransactions with directors or persons connected with them as prescribed under section 192of the Act. Accordingly paragraph 3 (xv) of the Order is not applicable during the year.

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3(xvi) of the order is not applicableduring the year.

FOR R.K. SINGHANIA AND ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No. 004435C
Date : 23rd May 2017 Sd/-
Place : Raipur RAMESH KUMAR SINGHANIA
(PARTNER)
MEMBERSHIP NO. 041880

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF SHREE BAJRANG ALLOYS LIMITED

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

We have audited the Internal Financial controls over financial reporting of SHRIBAJRANG ALLOYS LIMITED ("the Company") as of March 31 2017 in conjunction withour audit of the financial statements of the Company for the year ended on the 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 responsiblitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and effcient 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 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 deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothisued by the Institute of Chartered Accountants of India. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respect.

Our audit involves performing procedures to obtain audit evedence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporing 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 interrnal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement 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 and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial 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 realibility of financial reporting and thepreparation of financial statements for external purpose in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting including those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable details 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 statement.

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 evalution 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 degreee 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 March 31 2017 based on theinternal controls 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 R.K. SINGHANIA AND ASSOCIATES
CHARTERED ACCOUNTANTS
Place : Raipur Firm Registration No. 004435C
Date : 23rd May 2017 Sd/-
RAMESH KUMAR SINGHANIA
(PARTNER)
MEMBERSHIP NO. 041880