The Members of
Sharda IsoatLtd.. Nagpur.
Report on the Financial Statements:
1. We have audited the accompanying financial statements of Sharda Ispat Ltd. Nagpurwhich comprise the Balance Sheet as at 31st March 2015 the statement of Profit &Loss and the Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.
Management's Responsibility for the 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 financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance 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 accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based onour audit.
4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in financial statements. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 control systemsover financial reporting and the operating effectiveness of the Company's internalcontrol. An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide atI basis for our audit opinion on the financial statements.
8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2015 and its profit and its cash flows for the year ended of that date.
Report on Other Legal and Regulatory Requirements:
9. As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act and on the basis of such checks of the books and records of thecompany as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure a statement on the matters specified in the paragraph3 and 4 of the Order to the extent applicable.
10. 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 purpose of our audit.
b. In our opinion proper books of accountas required by law have been kept by theCompany so far as appears from our examination of those books.
c. The Balance Sheet and the Statement of Profit & Loss and the cash flow statementdealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
e. On the basis of written representations received from the Directors as on 31stMarch 2015 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a Director In terms ofSection 164(2) of the Act; and
f. With respect to the other matters to be included in the Auditors 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 on its financialposition in its financial statements Refer Note 281 to the financial statements;
ii) the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and
iii) there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
| ||FOR LOYA BAGRI & CO |
| ||Firm Registration No. 105658W |
| ||Chartered Accountants |
|Nagpur Dated the ||(GOPALDAS BAGRI) |
|30th May 2015 ||Partner (M.No.002933) |
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
The Annexure referred io in Paragraph 9' with the heading "Report on otherLegal and Regulatory
Requirements" of our Independent Auditors' Report to the members of Sharda IspatLtd. on the financial statements for the year ended 31st March 2015
i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) These assets have been physically verified by the management during the year and nodiscrepancies have been noticed on such verification.
ii) (a) As explained to us inventories were physically verified during the year by themanagement at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us theprocedures of the physical verification of inventories followed by the management werereasonable and adequate in relation to the size of the company and nature of its business.
(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of inventories and no material discrepancies werenoticed on physical verification.
iii) The Company has not granted any loans. Secured or Unsecured to companies firmsor other parties covered in the register maintained under section 189 of the CompaniesAct 2013. Accordingly clauses (a) and (b) of (iii) of the orderare not applicable.
iv) In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of the companyand the nature of its business for the purchase of inventory and fixed assets and for thesale of goods and Services.
v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public to which the directives issued byReserve Bank of India and the provisions of section 73 to 76 or any other relevantprovisions of the Companies Act 2013 and rules made there under are applicable.
vi) As prescribed by the Central Government under sub-section(1) of section 148 of theAct for maintenance of cost records and as per information and explanations given by themanagement such records are maintained by the company but we have not made a detailedexamination of the records with a view to determine whether they are accurate or complete.
vii (a) According to the information and explanations given to us and on the basis ofour examination of the records the Company is regular in depositing with appropriateauthorities undisputed statutory dues including Provident Fund Investor Education andProtection Fund Employees State Insurance Income Tax Sales Tax Wealth Tax ServiceTax Duty of Customs Duty of Excise. Value Added Tax Cess and any other statutory duesapplicable to it. According to the information and explanations given to us no undisputeddues are outstanding as at 31st March 2015 for a period of more than six months from thedate of becoming payable.
(b) According to the information and explanations given to us and the records of thecompany! examined by us the dues of Income Tax. Sales Tax Wealth Tax Service Tax Dutyofl Customs Duty of Excise Value Added Tax and Cess as at 31st March 2015 which have Inot been deposited on account of dispute and the forum where the disputes are pending Iare as under:
|Sr. No. Name of Statute ||Nature of Dues ||Amount (Rs.) ||(Forum where Dispute is pending) |
|1. Central Excise Act ||Excise Duty ||1257012 ||High Court Delhi |
|2. Central Excise Act ||Penalty ||224000 ||Commissioner of Central Excise Indore |
|3. Central Excise Act ||Excise Duty & Penalty ||1760778 ||CEGAT Mumbai (Appeals) Nagpur |
|4. Central Excise Act ||Excise Duty & Penalty ||2264530 ||Add. Commissioner of Central Excise Custom and Service Tax Nagpur |
|5. Central Excise Act ||Excise Duty & Penalty ||1963762 ||Jt. Commissioner of Central Excise Custom and Service Tax Nagpur |
|6. Central Excise Act ||Excise Duty & Penalty ||374578 ||Dy. Commissioner Central Excise Division I Nagpur |
|7. Central Excise Act ||Service Tax ||115559 ||Dy. Commissioner Service Tax Cell Nagpur |
|8. Bombay Sales Tax Act (1999-00) ||Sales Tax Interest and Penalty ||1308650 ||Joint Commissioner of Sales Tax (Appeals) Nagpur |
|9. Central Sales Tax Act (1999-00) ||Sales Tax Interest and Penalty ||237211 ||Joint Commissioner of Sales Tax (Appeals) Nagpur |
|10. Bombay Sales Tax Act (2000-01) ||Sales Tax Interest and Penalty ||12162805 ||Joint Commissioner of Sales Tax (Appeals) Nagpur |
|11. Central Sales Tax Act (2000-01) ||Sales Tax. Interest and Penalty ||3015700 ||Joint Commissioner of Sales Tax (Appeals) Nagpur |
(Above Sr. No 8.910 and 11 are in total. The allocation shall be made after finaldecision between demerged company and resultant companies) (Refer Note No.28.1)
(c) According to the information and explanations given to us there are no amountsthat are required to be transferred to the Investor Education and Protection Fund inaccordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rulesthere under.
viii) As per Records of the company the accumulated losses at the end of the financialyear are less than 50% of its net worth. The company has not incurred cash losses duringthe current financial year and in the immediately preceding financial year.
ix) According to the information and explanations given to us the Company has notdefaulted in repayment of dues to a financial institution or bank during the year. Thecompany did not have any outstanding dues to debenture holders during the year.
x) According to the information and explanations given to us the company has not givenany guarantee for loans taken by others from Banks or Financial Institutions.
xi) In our opinion and according to the information and explanations given to us thecompany has not received any term loan during the year.
xii) According to information and explanations given to us and to the best of ourknowledge and belief no fraud on or by the company was noticed or reported during theyear.
| ||FOR LOYABAGRI & CO |
| ||Firm Registration No. 105658W |
| ||CharteredAccountants |
|Nagpur Dated the ||(GOPALDASBAGRI) |
|30th May 2015 ||Partner (M.No.002933) |