You are here » Home » Companies » Company Overview » Vidarbha Iron & Steel Corporation Ltd

Vidarbha Iron & Steel Corporation Ltd.

BSE: 504991 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE392D01017
BSE 05:30 | 01 Jan Vidarbha Iron & Steel Corporation Ltd
NSE 05:30 | 01 Jan Vidarbha Iron & Steel Corporation Ltd

Vidarbha Iron & Steel Corporation Ltd. (VIDARBHAIRON) - Auditors Report

Company auditors report


Report on the Financial Statements

We have audited the accompanying financial statements of Vidarbha Iron & SteelCorporation Ltd. ("the Company") which comprise the Balance Sheet as at 31stMarch 2015 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

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 that give a true and fair view of the financial positionfinancial performance and cash flows 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 maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the 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 financial statements based on ouraudit. 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 thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

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


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 on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of Section 143 (11) of the Act we givein the Annexure a statement on the matters specified in the paragraph 3 and 4 of theOrder 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 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 the written representations received from the directors as on 31stMarch 2015 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 of Section164 (2) of the Act.

(f) 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 be 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 financial statements- refer to Note No. 23 to the financial statements;

ii) the Company did not have any long term contracts including the derivative contractsfor which there were any material foreseeable losses;

iii) there was no amount required to be transferred to the Investor Education andProtection Fund by the Company.

For SALVE & Co.
Chartered Accountants
(Firm's Registration No.109003W)
Place : NAGPUR Partner
Date : 29th May 2015 (Membership No. 7021)


The Annexure referred to in our report to the members of Vidarbha Iron & SteelCorporation Limited ('the Company') for the year ended 31st March 2015.

We report that :

i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) All the fixed assets have been physically verified by the Management at reasonableintervals and no material discrepancies were noticed on such verification.

ii) a) Since there is no inventory clause ii a) ii b) and ii c) is not applicable.

iii) The Company has not granted any loans secured or unsecured to Companies firms orother parties covered in the Register maintained under Section 189 of the Companies Act2013 ('the Act').

iv) In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services and during the course of our audit we have not observed any continuingfailure to correct major weaknesses in internal control system.

v) The Company has not accepted any deposits from the public.

vi) Maintenance of cost records has not been prescribed by the Central Government underCompanies (Cost Records & Audit) Rules 2014 read with Companies (Cost Records &Audit) amendment rules 2014 prescribed by the Central Government U/s 148 of theCompanies Act 2013.

vii) (a) According to the information and explanations given to us the Company isregular in depositing the undisputed statutory dues including provident fund employees'state insurance income-tax sales-tax wealth tax service tax duty of customs duty ofexcise value added tax cess and any other statutory dues with the appropriateauthorities.

(b) The Company has disputed statutory dues of Rs.637.60 lacs in respect of Service Taxdemand for the period from May-2003 to September-2011 which has not been deposited onaccount of appeal is pending before CESTAT.

(c) According to the information and explanations given to us no amount was required tobe transferred to the investor education and protection fund in accordance with therelevant provisions of the Companies Act 1956 (1 of 1956) and rules there under.

viii) The Company's accumulated losses at the end of the financial year are more thanfifty percent of its net worth and it has not incurred cash losses in the currentfinancial year and in the immediately preceding financial year.

ix) The Company has not defaulted in repayment of dues to financial institution or bankor debenture-holders.

x) The Company has not given any guarantee for loans taken by others from bank orfinancial institution the terms and conditions whereof are prejudicial to the interest ofthe Company.

xi) The Company has not raised any term loan during the year.

xii) According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the year.

For SALVE & Co.
Chartered Accountants
(Firm's Registration No.109003W)
Place : Nagpur Partner
Date : 29th May 2015 (Membership No. 7021)