| We have audited the accompanying financial statements of Ashiana Ispat
Limited ("the Company"), which comprise the Balance Sheet as at March
31,2015, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of 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 stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance 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 the audit
to obtain reasonable assurance about whether the financial statements
are free from material mis-statement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 March 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
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the
Order,to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of
those books;
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards 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 March 31,2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015,
from being appointed as a director in terms of Section 164(2) of the
Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements - Refer Note 33 to the
financial statements;
II. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
III. There has been no such amounts, required to be transferred during
the year , to the Investor Education and Protection Fund by the
Company.
Annexure to Independent Auditors' Report
We give hereinafter a statement on the matters specified in paragraphs
3 and 4 of Companies(Auditor's Report) Order, 2015, referred to in
paragraph 1 under the heading of "Report on other Legal and Regulatory
Requirements" of our report of even date:
1. a. The company has maintained records of Fixed Assets in statement
forms only.
b. According to the information & explanation given to us, the fixed
assets has been physically verified by the management during the year
in a phased periodical manner, which in our opinion, is reasonable
having regard to the size of the company and the nature of the assets.
No material discrepancies were noticed on such verification.
2. a. As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year.
b. In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c. In our opinion and according to information & explanation given to
us, The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of the loans, secured or unsecured, granted by the
companies to the companies, firm or other parties covered in the
registered maintained under section 189 of the Companies Act,2013 :
a.) The period for repayment of loan and interest thereon both is at
the discretion of the company.
b.) In respect of said loans and interest thereon, there are no
overdue amount.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. In our opinion and according to the information & explanation given
to us, the company has not accepted deposits from public within the
meaning of provision of Section 73 to 76 or any other relevant
provisions of the Companies Act,2013 and the Rules framed there under.
Hene the provision of clause (V) of paragraph 3 of Companies (Auditor's
Report) Order, 2015 is not applicable to the company.
6. In our opinion and according to the information and explanations
given to us, the cost records have been maintained by the company
pursuant to the Companies (Cost Records and Audit) Rule, 2014
prescribed the central government under section 148 (1) of the
Companies Act 2013 and are of the opinion that, prima facie, the
prescribed cost records have been made and maintained, however, we have
not made a detailed examination of such cost records.
7. a. According to the records of the Company, undisputed statutory dues
including Provident Fund, Employee State Insurance, Income Tax, Sales
tax, Wealth-tax, Service Tax, Custom Duty, Excise Duty, Cess and other
statutory dues have been generally regularly deposited with the
appropriate authorities except for delays in some cases. According to
the information and explanation given to us, no undisputed amount
payable in respect of the aforesaid dues were outstanding as at 31st
March,2015 for a period of more than six months from the date of
becoming payable.
b. The disputed statutory dues aggregating to Rs. 210.9 Lacs their
against Rs. 170.96 Lacs has been deposited under protest on account of
disputed matters pending before appropriate authorities as per details
given below:
Name of the Nature of the Period to which the Amount
Statute Dues amount relates (Rs. in Lacs)
Income Tax A.Y.2010-11
Income Tax Act Matters 2011-12 2012-13 171-33
Centra Excise Central Excise F.Y. 2001-02 1.02
Act & Finance Duty
Service tax F.Y. 2008-09 38.55
Name of the Forum where Dispute is pending
Statute
CIT (Appeals),Jaipur
Income Tax Act
High Court of Rajasthan- Jaipur
Centra Excise
Act & Finance
Act CESTAT- Delhi
c. According to the information and explanation given to us, there is
no such amount required transferred during the year to investor
education and protection fund in accordance with the relevant
provisions of Companies Act, 1956 and rules made there under.
8. The Company does not have accumulated Losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by our audit or in the immediately preceding
financial year.
9. Based on our audit procedure and according to the information and
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial institution or banks.
The company has not issued any debenture.
10. According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
11. According to the information and explanation given to us, and
record examined by us the company has taken Car Loan during during the
year. The same has been applied for the respective purpose.
12. According to the information and explanation given to us, no fraud
on or by the company has been noticed and reported during the year.
For S.SINGHAL & CO.
Chartered Accountants
(Reg No.001526C)
Date: 30.05.2015
Place: Bhiwadi
(R.K.Gupta)
PARTNER
M.No073846
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