The Members of
SUPREMEX SHINE STEELS LIMITED (Formerly known as ICVL STEELS LIMITED)
Report on the Financial Statements
1. We have audited the accompanying financial statements of SUPREMEX SHINE STEELSLIMITED (Formerly known as ICVL STEELS LIMITED) ("the Company") which comprisethe balance sheet as at 31st March 2017 the statement of profit and loss the Cash Flowstatement for the year then ended and a summary of significant accounting policies andother 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 preparation ofthese financial statements to give a true and fair view of the financial positionfinancial performance and Cash Flow of the Company in accordance with the Accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the company and forpreventing and detecting the frauds and other irregularities selection and application ofappropriate accounting policies making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 and the Rules made thereunderincluding the accounting standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderunder section 143(11) of theAct.
5. We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards and pronouncement require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand 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 statement that give a true & fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Director's as well as evaluating the overall presentation ofthe financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a 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 2017 and its profit and its cash flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of subsection (11) of section 143 of the Act (herein afterreferred to as the "Order") and on the basis of such checks of the books andrecords of the company as we consider appropriate and according to the information andexplanation given to us. We give in the Annexure A statement on the matters specified inparagraphs 3 and 4 of the Order.
10. As required by section 143(3) of the Act we further 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 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 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 theAct read with Rule 7 of the Companies(Accounts) Rule 2014.
e. on the basis of written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms ofsection 164(2) of theAct .
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.
g. With respect to other matters to be included in the Auditor's Report in accordancewith the Rule 11 of the Companies ( Audit and Auditors) Rules 2014 in our opinion and tothe best of our knowledge and belief and according to the information and explanationsgiven to us:
I. The Company does not have any pending litigations which would impact its financialposition and its financial statements.
ii. The company did not have any long term contracts including derivative contracts asat 31st March 2017 as such the question of commenting for any material forcible lossesthere on does not arise.
iii. There has not been an occasion in case of the company during the year ended 31stMarch 2017 under report to transfer any sums to the Investor Education and ProtectionFund. The question of delay in transferring such sums does not arise.
iv. The company has provided requisite disclosures in its financial statements asregards to its holdings and dealings in 'Specified Bank Notes' as defined in theNotification S.O. 3407(E) dated 08th November2016 of the Ministry of Finance during theperiod from 08th November 2016 to 30th December 2016. Based on audit proceduresperformed and the representations provided to us by the management we report that thedisclosures are in accordance with the books of account maintained by the Company andproduced to us by the management.
Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of SUPREMEX SHINE STEELS LIMITED (Formerly known as ICVL STEELS LIMITED) on thefinancial statements as of and for the year ended 31st March 2017.
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) As explained to us the fixed assets have been physically verified by themanagement during the year at regular intervals and no material discrepancies were noticedon such physical verification. In our opinion the frequency of the verification isreasonable having regard to the size of the company and the nature of its assets.
(c) The company does not own any immovable property; therefore the clause Title deedsof immovable properties are held in the name of the company is not applicable.
2. As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals and no material discrepancies were notice on physicalverification.
3. According to the information and explanations given to us and on the basis of ourexamination of the books of account the company has not granted any loans secured orunsecured to the companies firms Limited Liability Partnership and other parties listedin the register maintained under section 189 of the Companies Act 2013. Therefore theprovision of the clause 3 (iii) (iii)(a) (iii)(b) and (iii)(c) of the said order are notapplicable to the company.
4. The company has not granted any loans or made any Investments or provided anyguarantee or security to the parties covered under section 185 and 186. Therefore theprovisions of the clause 3(iv) of the said order are not applicable to the company.
5. The company has not accepted any deposit from the public within the meaning ofsection 73 74 75 and 76 of the Companies Act 2013 and rules framed there under to theextent notified.
6. As informed to us the Central Government has not prescribed maintenance of costrecord under sub section (1) of section 148 of the Act.
7. (a) According to the record information and explanations given to us in respect ofstatutory dues the company is generally regular in depositing with appropriateauthorities undisputed amount of provident fund employee state insurance Income TaxSales Tax Custom duty Excise duty Service Tax Cess and other statutory duesapplicable to it and no undisputed amount payable were outstanding as at 31st March 2017for a period of more than Six months from the date they become payable.
8. According to the records of the company examined by us and the Information andexplanation given to us the company does not have any loans or borrowings from anyFinancial Institution bank Government or debenture holders during the year. Accordinglythe provisions of Clause 3(viii) of the order are not applicable to the company.
9. The company has not raised any moneys by way of initial public offer further publicoffer (including debt instruments) and Term Loans.Accordingly the provisions of Clause3(ix) of the order are not applicable to the company.
10. During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted Auditing practices in India andaccording to the information and explanation given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.
11. The Company has not paid / provided for Managerial Remuneration therefore provisionof Clause 3(xi) of the order are not applicable to the company.
12. As the company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it. The Provision of clause 3(xii) of the order are not applicable to the company 13.The company has entered into Transaction with related parties in compliance with theprovisions of section 177 and 188 of the Act. The details of such related partytransaction have been disclosed in the Financial Statement as required under AccountingStandard (AS) 18. Related Party Disclosers specified under section 133 of the Act readwith rule 7 of the Companies (Accounts) Rules 2014.
14. During the year the Company has not made any preferential allotment or privateplacement of Shares or fully or partly convertible Debentures during the year underreview. Accordingly the provisions of Clause 3(xiv) of the order are not applicable to thecompany.
15. The Company has not entered into any Non Cash Transaction with its Directors orperson connected with him during the year.
Accordingly the provisions of the Clause 3 (xv) of the order are not applicable to thecompany.
16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of the Clause 3 (xvi) of the order arenot applicable to the company.
ANNEXURE - B TO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 10 (f) of the Independent Auditors' Report of even date to themembers of SUPREMEX SHINE STEELS LIMITED (Formerly known as ICVL STEELS LIMITED) on thefinancial statements as of and for the year ended 31st March 2017.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act.
1. We have audited the internal financial controls over financial reporting of SUPREMEXSHINE STEELS LIMITED (Formerly known as ICVL STEELS LIMITED) ("The Company") asof 31st March 2017 in conjunction with our audit of the financial statements of theCompany for the year ended on that date.
Management's Responsibility for Internal Financial Controls
2. 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 theAct.
3. 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 bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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.
5. 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
6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles.Acompany's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations 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 financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. 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.
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 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note onAudit ofInternal Financial Controls Over Financial Reporting issued by the Institute ofCharteredAccountants of India.
| ||For J. B. Dudhela & Co. |
| ||Chartered Accountants |
| ||FRN: 102777W |
| ||Sd/- |
| ||(J. B. Dudhela) |
|Place : Mumbai ||Proprietor |
|Date : 30th May 2017 ||(Memb. No. 035354) |