To The Members of
M/S. BHUWALKA STEEL INDUSTRIES LIMITED REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of BHUWALKA STEEL
INDUSTRIES
LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended, and a summary of the significant accounting policies and other
explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE STANDALONE FINANCIALSTATEMENTS
The Companys 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 standalone 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 standalone 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 thereunder. 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 misstatement. 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 auditors 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
Companys 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 Companys 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 standalone 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, its Loss and its cash flows for the year ended on that date.
EMPHASIS OF MATTER
We draw attention to:
1. Note 23 Sl No.7 (i) Other disclosure in respect of Finance cost not recognized in
the books by the company for Rs.42,24,11,280/- in view of representation by management
that they have disputed on account of unilateral withdrawal of CDR Package by the Banks.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies ( Auditors Report) Order, 2015 ( "the
Order") issued by the Central
Government in terms of Section 143(11) of the Act, we give in the Annexure a statement
on the matters specified in paragraphs 3 and 4 of the Order.
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 best
of 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 the
Company 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 Statement
dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone 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 31st
March, 2015 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March, 2015 from being appointed as a director in terms of Section
164 (2) of the Act.
(e) With respect to the other matters to be included in the Auditors 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:
a. The Company has disclosed the impact of pending litigations on its financial
position in its financial statements - Refer Note 23 serial number 01(iii) and serial
number 07 to the financial statements;
b. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses;
c. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company.
for ASR Associates
Chartered Accountants
(CA A. S. Rafiq )
Proprietor
Membership No.204646
FRN No. 8877S
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verified during the year by the Management
in accordance with a programme of verification, which in our opinion, provides for
physical verification of all the fixed assets at reasonable intervals. According to the
information and explanations given to us, no material discrepancies were noticed on such
verification.
(ii) In respect of its inventories:
(a) As explained to us, the inventories were physically verified during the year by the
Management at reasonable intervals. Based on information, explanation and necessary
documents pertaining to inventory like Excise Inventory registers, Physical verification
report conducted by management and other supporting documents provided to us, we report
that the management has conducted physical verification of Inventory at reasonable
intervals.
(b) In our opinion and according to the information and explanations given to us, the
procedures of physical verification of inventories followed by the Management were
reasonable and adequate in relation to the size of the Company and the nature of its
business.
(c) In our opinion and according to the information and explanations given to us, the
Company has maintained proper records of its inventories and no material discrepancies
were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms
or other parties covered in the Register maintained under Section 189 of the Companies
Act, 2013.
(iv) In our opinion and according to the information and explanations given to us,
there is an adequate internal control system 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, and during the course of our audit, we have not observed any major
weakness in such internal control system.
(v ) According to the information and explanations given to us, the Company has not
accepted any deposit during the year.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant to
the Companies (Cost Records and Audit) Rules, 2014, as amended and prescribed by the
Central Government under subsection (1) of Section 148 of the Companies Act, 2013, and are
of the opinion that, prima facie, the prescribed cost records have been made and
maintained. We have, however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
(vii)According to the information and explanations given to us, in respect of statutory
dues:
a) The Company has generally been regular in depositing undisputed statutory dues,
except as mentioned in table below including Provident Fund, Employees State Insurance,
Income-tax, Sales Tax, Service
Tax, Wealth Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material
statutory dues applicable to it with the appropriate authorities.
| Sl.No |
Particulars |
Amount ( Rs.) |
| 1 |
EPF |
4138183 |
| 2 |
ESI |
1216929 |
| 3 |
TDS |
|
|
a) TDS CONTRACT |
1049217 |
|
b) TDS ON SALARY |
368090 |
|
c ) TDS ON RENT |
541374 |
|
d) TDS ON PROF. & CONST. |
1651896 |
|
e) TDS ON INTEREST |
3194553 |
|
f) TDS ON Commission or Brokarage |
15395 |
|
g) TCS ON Scrap |
44243 |
| 4 |
SERVICE TAX Payable on GTA and Others |
3001582 |
| 5 |
VAT |
8930825 |
| 6 |
Profession Tax |
358500 |
|
Total Rs. |
24510787 |
(a) There were undisputed amounts payable in respect of Provident Fund, Employees
State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Value Added Tax, Cess and other material statutory dues in arrears as at 31 March
2015 for a period of more than six months.
| Nature of dues |
Period pertaining to |
Amount Rs. |
Due date |
Date of payment |
Nos. of days delayed |
| TDS |
Apr-13 |
28415 |
5/7/2013 |
Pending |
693 |
| TDS |
May-13 |
58797 |
6/7/2013 |
Pending |
662 |
| TDS |
Jun-13 |
89936 |
7/7/2013 |
Pending |
632 |
| TDS |
Jul-13 |
86793 |
8/7/2013 |
Pending |
601 |
| TDS |
Aug-13 |
60224 |
9/7/2013 |
Pending |
570 |
| TDS |
Sep-13 |
71231 |
10/7/2013 |
Pending |
540 |
| TDS |
Oct-13 |
72516 |
11/7/2013 |
Pending |
509 |
| TDS |
Nov-13 |
144073 |
12/7/2013 |
Pending |
479 |
| TDS |
Dec-13 |
1082579 |
1/7/2014 |
Pending |
448 |
| TDS |
Jan-14 |
159679 |
2/7/2014 |
Pending |
417 |
| TDS |
Feb-14 |
77649 |
3/7/2014 |
Pending |
389 |
| TDS |
Mar-14 |
634670 |
4/7/2014 |
Pending |
358 |
| TDS |
Apr-14 |
101399 |
5/7/2014 |
Pending |
328 |
| TDS |
May-14 |
117374 |
6/7/2014 |
Pending |
297 |
| TDS |
Jun-14 |
175676 |
7/7/2014 |
Pending |
267 |
| TDS |
Jul-14 |
151057 |
8/7/2014 |
Pending |
236 |
| TDS |
Aug-14 |
230919 |
9/7/2014 |
Pending |
205 |
| Service Tax |
Mar-14 |
625158 |
4/5/2014 |
Pending |
360 |
| Service Tax |
Apr-14 |
6251 |
5/5/2014 |
Pending |
330 |
| Service Tax |
May-14 |
130049 |
6/5/2014 |
Pending |
299 |
| Service Tax |
Jun-14 |
150798 |
7/5/2014 |
Pending |
269 |
| Service Tax |
Jul-14 |
134817 |
8/5/2014 |
Pending |
238 |
| Service Tax |
Aug-14 |
161851 |
9/5/2014 |
Pending |
207 |
| EPF |
Sep-13 |
129291 |
10/15/2013 |
Pending |
532 |
| EPF |
Oct-13 |
129926 |
11/15/2013 |
Pending |
501 |
| EPF |
Nov-13 |
130368 |
12/15/2013 |
Pending |
471 |
| EPF |
Dec-13 |
331074 |
1/15/2014 |
Pending |
440 |
| EPF |
Jan-14 |
260505 |
2/15/2014 |
Pending |
409 |
| EPF |
Feb-14 |
258877 |
3/15/2014 |
Pending |
381 |
| EPF |
Mar-14 |
244953 |
4/15/2014 |
Pending |
350 |
| EPF |
Apr-14 |
228728 |
5/15/2014 |
Pending |
320 |
| EPF |
May-14 |
232330 |
6/15/2014 |
Pending |
289 |
| EPF |
Jun-14 |
111297 |
7/15/2014 |
Pending |
259 |
| EPF |
Jul-14 |
210863 |
8/15/2014 |
Pending |
228 |
| EPF |
Aug-14 |
204566 |
9/15/2014 |
Pending |
197 |
| ESI |
Oct-13 |
80407 |
11/20/2013 |
Pending |
496 |
| ESI |
Nov-13 |
82339 |
12/20/2013 |
Pending |
466 |
| ESI |
Dec-13 |
75253 |
1/20/2014 |
Pending |
435 |
| ESI |
Jan-14 |
78675 |
2/20/2014 |
Pending |
404 |
| ESI |
Feb-14 |
81000 |
3/20/2014 |
Pending |
376 |
| ESI |
Mar-14 |
80000 |
4/20/2014 |
Pending |
345 |
| ESI |
Apr-14 |
80530 |
5/20/2014 |
Pending |
315 |
| ESI |
May-14 |
82117 |
6/20/2014 |
Pending |
284 |
| ESI |
Jun-14 |
83118 |
7/20/2014 |
Pending |
254 |
| ESI |
Jul-14 |
84036 |
8/20/2014 |
Pending |
223 |
| ESI |
Aug-14 |
84036 |
9/20/2014 |
Pending |
192 |
| Profession Tax |
Mar-14 |
120475 |
4/20/2014 |
Pending |
345 |
| Profession Tax |
Apr-14 |
23425 |
5/20/2014 |
Pending |
315 |
| Profession Tax |
May-14 |
22400 |
6/20/2014 |
Pending |
284 |
| Profession Tax |
Jun-14 |
20300 |
7/20/2014 |
Pending |
254 |
| Profession Tax |
Jul-14 |
18575 |
8/20/2014 |
Pending |
223 |
| Profession Tax |
Aug-14 |
17575 |
9/20/2014 |
Pending |
192 |
| KVAT |
Mar-14 |
148551 |
5/20/2014 |
Pending |
315 |
|
Total Rs. |
8287501 |
|
|
|
(c ) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty, Value Added Tax and Cess which have not been deposited as on 31 March 2015 on
account of disputes are given below :-
| Sr. No. |
Name of the Statute |
Nature of Dues |
Forum where dispute is pending |
Amount (Rs.in lakhs) |
| 1 |
Central Excise Act, 1944 |
Excise Duty and service tax |
Commissioner of Central Excise ( Appeals) CESTAT, High Court, Supreme Court |
885.12 |
| 2 |
Income Tax Act, 1961 |
Income Tax |
Commissioner of Income Tax ( Appeals), ITAT |
116.70 |
(d) The Company has been regular in transferring amounts to the Investor Education and
Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and Rules made thereunder within time.
(viii) The Company have accumulated losses at the end of the financial year is Rs
1004.29Lakhs and the Company has incurred cash losses of Rs 76.69Lakhs during the
financial year covered by our audit and in the immediately preceding financial year for
Rs. 2221.26Lacs.
Due to losses the Net Worth of the company has eroded by more than 50% (without giving
effect to the observation in Note 23 (7)(i)). The company has already filed Form C with
BIFR.
(ix) In our opinion and according to the information and explanations given to us, the
Company has defaulted in the repayment of dues to financial institutions, banks as
mentioned in Note 23 (7)(ii).
(x ) In our opinion and according to the information and explanations given to us, the
terms and conditions of the guarantees given by the Company for loans taken by others from
banks and financial institutions are not, prima facie, prejudicial to the interests of the
Company.
(xi) In our opinion and according to the information and explanations given to us, the
term loans have been applied by the Company during the year for the purposes for which
they were obtained, other than temporary deployment pending application.
(xii) To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company and no material fraud on the Company has been noticed
or reported during the year.
|
for ASR Associates |
|
Chartered Accountants |
| Place : Bangalore |
(CA A. S. Rafiq ) |
| Date : 11th July, 2015 |
Proprietor |
|
Membership No.204646 |
|
FRN No. 8877S |
+91-9892691696
