ess dee aluminium ltd Auditors report

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To The Members of ESS DEE ALUMINIUM LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of ESS DEE Aluminium Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2019, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").

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 Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, the loss and total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. 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.

Material Uncertainty Related to Going Concern

We draw attention to Note no 2.1 in the financial statements, regarding preparation of financial results on a Going Concern basis for the reasons stated therein. The Company has incurred a loss of Rs. 776.31 crores during the year ended 31 March 2019. During the year the Company has made provision for Impairment of Property, Plant and Equipment, Impairment of Investments, Bad and Doubtful Debts and other balances to the extent of Rs 583.12 crores (Refer note no 31). These events and conditions, among others as explained in Note no 2.1 indicate that a material uncertainty exists that may cast significant doubt on the Companys ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

SR NO KEY AUDIT MATTERS	AUDITORS RESPONSE
	Principal Audit Procedures
1 Disclosures of contingent liabilities claims, litigations and tax dues.	Our audit procedures included among others:
The Company is exposed to different laws, regulations and interpretations thereof. The company is also subject to significant claims and litigations. The assessment of the likelihood and quantum of any liability in respect of these matters can be judgmental due to the uncertainty inherent in their nature. As at 31st March, 2019, the Company has material contingent liabilities in respect of claims and litigations and dues pertaining to direct and indirect taxes [Refer Note 35 to the financial statements]. We considered this to be a key audit matter, since the accounting and disclosure of these contingent liabilities is complex and judgmental, and the amounts involved are, or can be, material to the financial statements.	I. Understanding and assessing the internal control environment relating to the identification, recognition and measurement of provisions for disputes, potential claims and litigation, and contingent liabilities;
	II. Analyzed significant changes/ update from previous periods and obtained a detailed understanding of such items. Assessed recent judgments passed by the court authorities affecting such change;
	III. Discussed the status of significant known actual and potential litigations with the management & noted that information placed before the board for such cases and
	IV. Assessment of the managements assumptions and estimates related to the recognized provisions for disputes and disclosures of contingent liabilities in the financial statements.

Information Other than the Standalone Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report, Business Responsibility Report, Corporate Governance and Shareholder’s Information, but does not include the standalone financial statements and our auditor’s report thereon.These reports are expected to be made available to us after the date of this auditor’s report.

Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

When we read the above reports, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and report that fact.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of 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, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the order.

2. As required by Section 143(3) of the Act, based on our audit 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 including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.

d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e)All the directors of the Company are disqualified as on March 31, 2019, from being appointed as a director in terms of Section 164(2) of the Act, due to failure by the Company to redeem debentures due on 31st July, 2015.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over financial

g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section 197(16) of the Act, as amended, during the year no remuneration has been paid by the Company to any of its Directors.

h) 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, as amended 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 standalone financial (Refer Note No 35)

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 delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.

For SHAH & TAPARIA

Chartered Accountants

(Firm Regn No 109463W)

BHARAT JOSHI

Partner

M. No. 130863

Place: Mumbai

Date: May 30, 2019

Annexure ‘A’ to the Independent Auditor’s Report

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members of ESS DEE Aluminium Limited of even date)

i) a) The Company has maintained unit wise fixed assets records and / or compiled item wise lists showing particulars of all its fixed assets. The aggregate value shown by these records agrees with the gross values of fixed assets as per the books of account of the Company. However, these are not proper records showing full particulars including quantitative details and situation of fixed assets.

b) Based on the information and explanations furnished to us, the Company has not physically verified the fixed assets during the year. Accordingly, we are unable to state whether material discrepancies were noticed.

c) According to the information and explanations given to us title deeds of immovable properties, classified as fixed assets, are in the name of the company.

ii) According to the information and explanations given to us due to the situation of financial stress, inventories have not been physically verified by the Management during the year as per its process of verification. Accordingly, we are unable to state whether material discrepancies were noted.

iii) a) Based on the information and explanations furnished to us, we are of the opinion that the terms and conditions of unsecured loans granted to its overseas subsidiary, Ess Dee Aluminium Pte Ltd., Singapore a party covered in the register maintained u/s 189 of the Companies Act, 2013 is prima facie not prejudicial to the interest of the Company.

b) In case of the above interest free loan to the overseas subsidiary, there is no stipulation regarding repayment of principal.

c) In view of the above the question of the loan and the advances being overdue does not arise.

iv) According to the information and explanations given to us and on the basis of representations of the management which we have relied upon, the loan to the overseas subsidiary is not covered by Section 185 or Section 186 of The Companies Act, 2013 and hence, this clause is not applicable.

v) According to the information and explanations given to us, the Company has not accepted deposits from the public in terms of provisions of sections 73 to 76 of the Companies Act, 2013.

vi) According to the information and explanations given to us, pursuant to the rules prescribed by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, we are of the opinion that the requirement of Cost Audit is not applicable to the Company.

vii) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax, cess have not been regularly deposited with the appropriate authorities and there have been serious delays in a large number of cases. The extent of the arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable is as under:-

Statement of Arrears of Statutory Dues Outstanding for More than Six Months

Name of the Statute	Nature of the Dues	Amount (Rs. In Lakhs.)	Period to Which Amount relates	Due Date	Pymt Date
EPFO	PF	5.36	February-16	15/03/2016	Nil
		18.93	March-16	15/04/2016	Nil
		18.02	April-16	15/05/2016	Nil
		17.60	May-16	15/06/2016	Nil
		16.90	June-16	15/07/2016	Nil
		6.64	July-16	15/08/2016	Nil
		1.99	August-16	15/09/2016	Nil
		8.01	September-16	15/10/2016	Nil
		2.54	October-16	15/11/2016	Nil
		1.65	November-16	15/12/2016	Nil
		33.78	December-16	15/01/2017	Nil
		16.10	January-17	15/02/2017	Nil
		2.65	February-17	15/03/2017	Nil
		13.93	March-17	15/04/2017	Nil
		17.53	Various Sates 17-18	Various Due Dates	Nil
		0.78	Various Dates 18-19	Various Due Dates	Nil
ESIC	ESIC		0.23	November-15	21/12/2015	Nil
		0.46	December-15	21/01/2016	Nil
		0.47	January-16	21/02/2016	Nil
		0.44	February-16	21/03/2016	Nil
		0.59	March-16	21/04/2016	Nil
		0.15	April-16	21/05/2016	Nil
		0.16	May-16	21/06/2016	Nil
		0.15	June-16	21/07/2016	Nil
		0.03	July-16	21/08/2016	Nil
		0.04	August-16	21/09/2016	Nil
		0.29	September-16	21/10/2016	Nil
		0.03	October-16	21/11/2016	Nil
		0.03	November-16	21/12/2016	Nil
		0.28	December-16	21/01/2017	Nil
		0.07	January-17	21/02/2017	Nil
		0.09	February-17	21/03/2017	Nil
		0.15	March-17	21/04/2017	Nil
		1.92	Various Dates 16-17	Various Due Dates	Nil
		2.73	Various Dates 17-18	Various Due Dates	Nil
		0.05	Various Dates 18-19	Various Due Dates	Nil
Sales Tax	Profession Tax		0.57	November-15	28/12/2015	Nil
		0.70	December-15	28/01/2016	Nil
		0.67	January-16	28/02/2016	Nil
		0.70	February-16	28/03/2016	Nil
		0.78	March-16	28/04/2016	Nil
		0.61	April-16	28/05/2016	Nil
		0.61	May-16	28/06/2016	Nil
		0.59	June-16	28/07/2016	Nil
		0.43	July-16	28/08/2016	Nil
		0.10	August-16	28/09/2016	Nil
		1.53	September-16	28/10/2016	Nil
		0.10	October-16	28/11/2016	Nil
		0.09	November-16	28/12/2016	Nil
		0.09	December-16	28/01/2017	Nil
		0.63	January-17	28/02/2017	Nil
		0.07	February-17	28/03/2017	Nil
		0.47	March-17	28/04/2017	Nil
		0.20	April-17	28/05/2017	Nil
		0.18	May-17	28/06/2017	Nil
		0.17	June-17	28/07/2017	Nil
		0.17	July-17	28/08/2017	Nil
		0.17	August-17	28/09/2017	Nil
		0.17	September-17	28/10/2017	Nil
		0.17	October-17	28/11/2017	Nil
		0.17	November-17	28/12/2017	Nil
		0.17	December-17	28/01/2018	Nil
		0.01	March-18	28/04/2018	Nil
		0.17	Various Dates 18-19	Various Due Dates	Nil
Sales Tax	Vat	4.40	July-15	Various Due Dates	Nil
		1.46	August-15		Nil
		0.21	September-15		Nil
		0.22	October-15		Nil
		0.72	December-15		Nil
		0.42	March-16		Nil
Sales Tax	Cst	0.05	July-15	Various Due Dates	Nil
		0.04	August-15		Nil
		0.05	September-15		Nil
		0.01	October-15		Nil
Income tax	TDS Contractor	0.01	October-15	07/11/2015	Nil
		.27	November-15	07/12/2015	Nil
		0.06	December-15	07/01/2016	Nil
		0.47	January-16	07/02/2016	Nil
		0.16	February-16	07/03/2016	Nil
		0.69	March-16	07/04/2016	Nil
		0.08	April-16	07/05/2016	Nil
		0.08	May-16	07/06/2016	Nil
		0.08	June-16	07/07/2016	Nil
		0.04	July-16	07/08/2016	Nil
		0.05	August-16	07/09/2016	Nil
		0.04	September-16	07/10/2016	Nil
		0.04	October-16	07/11/2016	Nil
		0.05	December-16	07/01/2017	Nil
		0.03	January-17	07/02/2017	Nil
		0.02	February-17	07/03/2017	Nil
		0.03	March-17	07/04/2017	Nil
		0.01	April-17	07/05/2017	Nil
		0.02	May-17	07/06/2017	Nil
		0.05	June-17	07/07/2017	Nil
		0.03	July-17	07/08/2017	Nil
		0.03	August-17	07/09/2017	Nil
		0.03	September-17	07/10/2017	Nil
		0.03	October-17	07/11/2017	Nil
		0.04	November-17	07/12/2017	Nil
		0.03	December-17	07/01/2018	Nil
		0.03	January-18	07/02/2018	Nil
		0.03	February-18	07/03/2018	Nil
		0.03	March-18	07/04/2018	Nil
Income Tax	Tds Professional	0.25	November-15	07/12/2015	Nil
		0.36	January-16	07/2/2016	Nil
		5.84	February-16	07/3/2016	Nil
		10.11	March-16	07/04/2016	Nil
		1.26	April-16	07/05/2016	Nil
		0.46	May-16	07/06/2016	Nil
		1.39	June-16	07/07/2016	Nil
		0.16	July-16	07/08/2016	Nil
		0.51	August-16	07/09/2016	Nil
		1.05	September-16	07/10/2016	Nil
		2.18	October-16	07/11/2016	Nil
		0.47	November-16	07/12/2016	Nil
		1.55	December-16	07/01/2017	Nil
		1.24	January-17	07/02/2017	Nil
		2.43	February-17	07/03/2017	Nil
		5.41	March-17	07/04/2017	Nil
		12.90	FY 2017-18	Various Due Dates	Nil
Income Tax	Tds Salary	4.94	November-15	07/12/2015	Nil
		8.01	December-15	07/01/2016	Nil
		5.82	January-16	07/02/2016	Nil
		5.92	February-16	07/03/2016	Nil
		12.91	March-16	07/04/2016	Nil
		0.08	April-16	07/05/2016	Nil
		0.09	May-16	07/06/2016	Nil
		0.10	June-16	07/07/2016	Nil
		3.77	July-16	07/08/2016	Nil
		2.01	August-16	07/09/2016	Nil
		1.97	September-16	07/10/2016	Nil
		1.90	October-16	07/11/2016	Nil
		1.93	November-16	07/12/2016	Nil
		1.85	December-16	07/01/2017	Nil
		2.01	January-17	07/02/2017	Nil
		1.99	February-17	07/03/2017	Nil
		7.44	March-17	07/04/2017	Nil
		13.00	FY 2017-18	Various Due Dates	Nil
		3.19	FY 2018-19	Various Due Dates	Nil
Income Tax	Tds Interest	1.05	November-15	07/12/2015	Nil
		2.52	January-16	07/02/2016	Nil
		2.48	February-16	07/03/2016	Nil
		4.29	March-16	07/04/2016	Nil
		0.56	April-16	07/05/2016	Nil
		2.37	May-16	07/06/2016	Nil
		25.02	June-16	07/07/2016	Nil
		0.61	July-16	07/08/2016	Nil
		2.26	August-16	07/09/2016	Nil
		3.82	September-16	07/10/2016	Nil
		0.58	October-16	07/11/2016	Nil
		2.14	November-16	07/12/2016	Nil
		3.62	December-16	07/01/2017	Nil
		0.55	January-17	07/02/2017	Nil
		2.03	February-17	07/03/2017	Nil
		3.41	March-17	07/04/2017	Nil
Income Tax	Tds Comission	0.37	November-15	07/12/2015	Nil
		0.14	June-16	07/07/2016	Nil
Excise	Service tax	1.04	January-16	06/02/2016	Nil
		0.71	February-16	06/03/2016	Nil
		0.66	March-16	06/04/2016	Nil
		3.63	September-16	06/10/2016	Nil
		0.83	December-16	06/01/2017	Nil
		9.05	March-17	06/04/2017	Nil
		0.93	June-17	06-07-17	Nil
Excise	Swach Bharat	0.01	December-15	06/01/2016	Nil
	Cess	0.01	January-16	06/02/2016	Nil
Income Tax	Corporate Tax	1,077.43	FY 2013-14	Various Dates	Nil
Income Tax	Corporate Tax	939.92	FY 2014-15	Various Dates	Nil
Gopalpur Property	Municipal Taxes	Un ascertained	Since 2012	Various Dates	Nil
	Total	2,430.04

Further, the following are not paid:-

Dues of Deferred Sales Tax, aggregating Rs. 2102.62 lakhs, as set out below, which is Outstanding as at the end of the year:-

Period to which the amount relates	Due Date	Rs. In Lakhs
Quarter ended 30.09.96	31.10.05	12.98
Quarter ended 31.12.96	31.01.06	25.62
Quarter ended 31.03.97	30.04.06	31.45
Quarter ended 30.06.97	31.07.06	29.76
Quarter ended 30.09.97	31.10.06	42.45
Quarter ended 31.12.97	31.01.07	51.39
Quarter ended 31.03.98	30.04.07	51.58
Quarter ended 30.06.98	31.07.07	33.74
Quarter ended 30.09.98	31.10.07	48.82
Quarter ended 31.12.98	31.01.08	41.61
Quarter ended 31.03.99	30.04.08	53.02
Quarter ended 30.06.99	31.07.08	65.44
Quarter ended 30.09.99	31.10.08	79.66
Quarter ended 31.12.99	31.01.09	89.31
Quarter ended 31.03.00	30.04.09	84.82
Quarter ended 30.06.00	31.07.09	68.94
Quarter ended 30.09.00	31.10.09	67.52
Quarter ended 31.12.00	31.01.10	71.84
Quarter ended 31.03.01	30.04.10	71.55
Quarter ended 30.06.01	31.07.10	76.21
Quarter ended 30.09.01	31.10.10	68.58
Quarter ended 31.12.01	31.01.11	56.70
Quarter ended 31.03.02	30.04.11	53.37
Quarter ended 30.06.02	31.07.11	59.68
Quarter ended 30.09.02	31.10.11	61.58
Quarter ended 31.12.02	31.01.12	45.93
Quarter ended 31.03.03	30.04.12	30.45
Quarter ended 30.06.03	31.07.12	35.84
Quarter ended 30.09.03	31.10.12	39.05
Quarter ended 31.12.03	31.01.13	39.16
Quarter ended 31.03.04	30.04.13	39.57
Quarter ended 30.06.04	31.07.13	46.95
Quarter ended 30.09.04	31.10.13	43.41
Quarter ended 31.12.04	31.01.14	66.77
Quarter ended 31.03.05	30.04.14	60.46
Quarter ended 30.06.05	31.07.14	53.54
Quarter ended 30.09.05	31.10.14	63.48
Quarter ended 31.12.05	31.01.15	58.60

 

Period to which the amount relates	Due Date	Rs. In Lakhs
Quarter ended 31.03.06	30.04.16	78.02

Note: Interest due on above Rs.2139.07 Lakhs (P.Y. Rs 1887.21 lakhs)

b) As at the year-end, according to the records of the Company and information and explanations given to us, the disputed statutory dues that have not been deposited on account of appeal matters pending before the appropriate authorities are as under:-

 

Name of the statute	Nature of dues	Amount (Rs. In lacs)	Period to which the amount relates	Forum where the disputes are pending
	Sales Tax	1,710.41	1982-1984,1986- 1988,1993-94 to 1999-2001 & 2003- 04	Revision Board (Tribunal)
		451.39	2001-02 to 2002-03	WB Taxation Tribunal
		(103.44)	2004-05 to 2010-11	Sr. Joint Commissioner (Appeals) / Deputy Commissioner (Appeals)
		584.25	2011-12	Central Audit Cell
West Bengal Sales Tax Act/ West Bengal Value Added Tax Act/ Central Sales Tax Act	Sales Tax	106.86	2007-08 to 2012-13	Commissioner Appeals
Goa Sales Tax/VAT Central Sales Tax	Sales Tax	280.87	2007-08 to 2012-13	Commissioner Appeals
Total ( A )		3,030.36
Central Excise (EDH)	Excise Duty	139.50	1996 to 2001	AC/DC/Comr. of Central Excise
Central Excise (EDH)	Excise Duty	355.44	Apr 2011 to 2012-13	Comr. of C. Ex.
Central Excise (EDK)	Excise & Service Tax	605.81	1999 to 2014	Comr./Comr. (App)/Tribunal
Central Excise (EDK)	Excise & Service Tax	66.34	2010-11 to Sep 15	AC/JC/Comr. (Appeals)
Central Excise (EDT)	Excise Duty	558.30	1996 to 2002	Comr. & HC Commissioner of
Central Excise (ED1)	Excise Duty	133.58	2006-Oct.2009	Central Excise
Central Excise (ED2)	Excise Duty	379.62	2007-08 to Oct 2013	CESTAT, Ahmedabad
Central Excise (ED2)	Excise Duty	67.99	Nov 2013 to Apr 2015	Commissioner (Appeals)
Central Excise (ED2)	Excise Duty	14.04	May 15 to Jan 16	Asst. Comr.
Total ( B )		2,320.62
DCIT - Central Circle	Income tax	590.31	FY 2007-08	Pending before CIT(A)
DCIT - Central Circle	Income tax	393.62	FY 2007-08	Pending before ITAT
DCIT - Central Circle	Income tax	1,377.31	FY 2008-09	Pending before CIT(A)
DCIT - Central Circle	Income tax	73.61	FY 2008-09	Pending before CIT(A)
DCIT - Central Circle	Income tax	106.73	FY 2009-10	Pending before CIT(A)
DCIT - Central Circle	Income tax	4,051.73	FY 2009-10	Pending before ITAT
DCIT - Central Circle	Income tax	598.26	FY 2010-11	Pending before CIT(A)
DCIT - Central Circle	Income tax	5,001.13	FY 2011-12	Pending before CIT(A)
DCIT - Central Circle	Income tax	2,903.82	FY 2012-13	Pending before CIT(A)
DCIT - Central Circle	Income tax	2,837.77	FY 2013-14	Pending before CIT(A)
DCIT - Central Circle	Income tax	3,476.33	FY 2013-14	Pending before ITAT
ITAT	Income tax	5,980.50	FY 2010-11	Pending before ITAT
ITAT	Income tax	5,911.71	FY 2012-13	Pending before ITAT
Total ( C )		33,302.83
Total ( A ) + ( B ) + ( C )		38,653.81

viii) According to the records of the Company examined by us and the information and explanations given to us, the Company has during the year defaulted in repayment of loans or borrowing to banks, financial institutions and debenture holders. The Company has not borrowed any funds from Government. The lender wise details of defaults as at the year-end are as under:-

(Rs. In Lakhs)

Particulars	Amount of default as at the balance sheet	Period of default	Nature of Security
i) Name of the Lenders:
In case of:
Bank
State Bank of India CC	7,942.56
State Bank of Patiala CC	2,092.89
State Bank of Patiala LC Devolvement	2,492.81	Entire loan has been Recalled vide SARFAESI notice dated 20.07.2016	First pari passu charge on Current Assets of the Company & Second pari passu charge on Fixed Assets of the Company
State Bank of Bikaner & Jaipur CC	2,635.61
Bank of Baroda CC	5,094.98
Bank of Maharashtra CC	3,042.89
Corporation Bank CC	4,176.44
AXIS Bank CC	8,978.12
IDBI Bank CC	7,241.64
The SVC Bank CC	312.58
State Bank of India CL	9,100.00		Hypothecation of Stock, receivables and other Current Assets
State Bank of Patiala TL	2,116.13		First Pari Passu Charge on Fixed Assets of Company located at Kamarhati
State Bank of Bikaner & Jaipur
	4,050.02		Hypothecation of Stock, receivables and other Current Assets
CL
		Entire loan has been
		Recalled vide SARFAESI
AXIS Bank TL	4,502.71	notice dated 20.07.2016	First charge on Fixed Assets at Unit II No.57/5/2 Bhenslore Village Daman
IDBI Bank TL	1,491.38		Sharing of Charges with AXIS Bank & HERO FinCorp on Daman U2 Property
			First Charge on Plant &
			Machinery (Caster II and
The SVC Bank TL	1,393.40
Union Bank of India	2,652.24	Entire loan has been Recalled vide SARFAESI notice dated 25.04.2017	Ancillaries) valued at Rs.8066 lacs Respective machineries & Plot No. 170 located at Daman
Financial Institution
IFCI	1,548.72		Sharing of Charges with State Bank of Patiala for
			Fixed Assets Located at Kamarhati
HERO Fin Corp	2,724.97	Entire loan has been Recalled vide SARFAESI notice dated 20.07.2016	Sharing of Charges with AXIS Bank & IDBI Bank on Daman U2 Property
Government	-
ii) Debentures
LIC	3,000.00	Entire loan has been Recalled vide SARFAESI notice dated 20.07.2016	First charge on Land at Mehasana and Fixed Asset situated at Daman Bhimpore to the extent Rs. 5000 Lacs
Interest provision on above facilities	33,167.19
TOTAL	109,757.30

ix) To the best of our knowledge and belief and according to the information and explanations given to us, during the year the Company has not raised any monies through initial public offer or further public offer (including debt instruments) or term loans; accordingly reporting under this para is not applicable. x) According to the information and explanations given to us and on the basis of representation of the management which we have relied upon, no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.

xi) In our opinion and according to the information and explanations given to us, the company has not paid/provided for any managerial remuneration during the year. Hence reporting under this para is not applicable.

xii) Since the company is not a Nidhi company, this clause is not applicable.

xiii) According to the information and explanations given to us, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 as applicable and the details have been disclosed in the Ind AS Financial Statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

(xv) The Company has not entered into any non-cash transactions with directors or persons connected with them.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of lndia Act, 1934.

For SHAH & TAPARIA

Chartered Accountants

FRN: 109463W

BHARAT JOSHI

Partner

Membership No.: 130863

Place: Mumbai.

Date: May 30, 2019

Annexure "B" to the Independent Auditor’s Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members of Allied Digital Services Limited of even date) Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Ess Dee Aluminium Limited ("the Company") as of March 31, 2019 in conjunction with our audit of the standalone Ind AS financial statements of the

Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial

Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India (the "ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") issued by ICAI and the Standards on Auditing, issued by

ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.

Because of the matter described in disclaimer of opinion paragraph below, we were unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on internal financial controls system over financial reporting of the Company

Meaning of Internal Financial Controls Over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material effect on the Ind AS financial statements.

Disclaimer of Opinion

According to the information and explanation given to us, the Company due to its situation of financial stress has during the year not established its internal financial controls over financial reporting on criteria based on or considering the essential components of internal controls stated in Guidance Note on Audit and Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. Because of this reason, we are unable to obtain sufficient appropriate audit evidence to provide a basis for our opinion whether the Company has adequate internal financial controls over financial reporting and whether such internal financial controls were operating effectively as at March 31, 2019.

We have considered the disclaimer reported above in determining the nature, timing and extent of audit tests applied in our audit of the standalone Ind AS financial statements of the Company, and the disclaimer does not affect our opinion on the standalone Ind AS financial statements

For SHAH & TAPARIA

Chartered Accountants

FRN: 109463W

BHARAT JOSHI

Partner

Membership No.: 130863

Place: Mumbai.

Date: May 30, 2019