To the Members of
Kamper Concast Limited.
Report on the financial statements
We have audited the accompanying financial statements of Kamper Concast Limited
("the Company"), which comprise the Balance Sheet as at March 31, 2015, and the
Statement of Profit and Loss for the year then ended the cash flow statement 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 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 the maintenance of adequate accounting records in accordance
with the provision of the Act for safeguarding of the assets of the Company and for
preventing and detecting the 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 internal financial control, 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.
Auditor’s Responsibility:
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. 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
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 control relevant to the Company’s preparation and
fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing an opinion on the
effectiveness of entitys internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by management, 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.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the financial statements read with other notes appearing there on give the
information required by the Act in the manner so required and, subject to note no. 9(2)
for investment and giving loan in excess of limits prescribed by Companies Act, 2013 13(1)
for non provision of doubtful debts, 15(5) for non provision of deferred Tax Assets /
liabilities, note no. 16(1)(1) relating to non provision of Excise duty of Rs. 328.13
lacs, note no. 16(2) relating to non provision of Electricity bills of Rs. 8,283.79 lacs,
note no. 16(3) relating to non provision of Income tax liability of Rs. 154.72 lacs, note
no. PL - 4 relating to taking value of rejected Cl mould for Rs. 189.66 lacs, in our
opinion it seems to be on higher side, gives a true and fair view in conformity with the
accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March
31,2015;
b) in the case of the Profit and Loss Account, of the profit/ loss for the year ended
on that date;
c) In the case of Cash Flow Statement, of the 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 of the Act,
we give in the Annexure ‘1’, a statement on the matters specified in paragraphs
3 and 4 of the Order.
2. As required by section 227(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, and the Statement of Profit and Loss dealt with by this Report
are in agreement, with the books of account.
d) In our opinion, the Balance Sheet, and the Statement of Profit and Loss comply with
the Accounting Standards notified under the Act read with the General Circular 15/2013
dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133
of the Companies Act, 2013.
e) On the basis of written representations received from the directors as on March 31,
2015, and 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 clause (g) of
sub-section (1) of section 274 of the Act.
New Dak Bunglow Road Patna
The 21 st day of August 2015
For SINGHANIA AGRAWAL & CO.
Chartered Accountants.
FRN No. 005 527C
Partner,
Annexure - 1 .
Referred in point 1 of "Report on Other Legal and Regulatory Requirements" of
our report of even date
| (a) Whether the company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. |
The company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets. |
| (b) Whether these fixed assets have been physically verified by the management at
reasonable intervals; whether any material discrepancies were noticed on such verification
and if so, whether the same have been properly dealt with in the books of account. |
As explained to us, the fixed assets have been physically verified by the management
during the year at regular intervals, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. No material discrepancies were noticed
on such physical verification. |
| (ii) (a) Whether the physical verification of inventory has been conducted at
reasonable intervals by the management. |
The stock of Raw Materials and Finished Goods has been physically verified during the
year by the management at regular intervals. In our opinion, the frequency of verification
is reasonable. |
| (b) Are the procedures of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the company and nature
of its business? If not, the inadequacies in such procedures should be reported. |
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) Whether the company is maintaining proper records of inventor) and whether any
material discrepancies were noticed on physical verification and if so, whether the same
have been properly dealt with in the books of accounts. |
The company is maintaining proper records of inventories. The discrepancies noticed on
verification between the physical stocks and the book records were not material and the
same have been properly dealt with in the books of account. |
| (iii) (a) Whether the company has granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained u/s 189 of the act.
If so, |
The company had granted loan/advances to companies, firms or parties listed in the
Register maintained under section 189 of the Companies Act, 2013. The number of parties
are three and the amount involved in these transactions is Rs. 178-95 lacs. |
| (b) Whether the rate of interest and other terms and conditions of loans given or
taken by the company, secured or unsecured, are prima facie prejudicial to the interest of
the company. free. As no specific terms and conditions on which loan have been taken from
companies, firms or parties listed in the registers maintained under section 189 of the
Companies Act, 2013 are made available to us, so we are unable to comment on the effect on
the interest of the company. |
The loan / advances gf&Ifety/s intert$Eh |
| (c) Whether the payment of principal amount and interest are also regular. As
explained to us, no fixed period is stipulated for payment of principal amount. However,
parties to whom the Company had granted loans / advances are blocked and not repaying the
loan amount and no provision for doubtful debts has been made in this regard. |
|
| (iv) Is there an adequate internal control system commensurate with the size of the
company and nature of its business, for the purchase of inventory and fixed assets and for
the sale of goods and services. Whether there is a continuing failure to correct major
weakness in the internal control system. In our opinion and according to the information
and explanations provided by the management, there are adequate internal control
procedures commensurate with the size of the company and the nature of its business, with
regard to purchases of inventory and fixed assets and with regard to sale of goods and
services. However, there is further scope of improvement. |
|
| (v) In case of company accepted deposits, whether the directives issued by the Reserve
bank of India and the provisions of sections 73 to 76 or any other relevant provisions of
the act and the rules framed there under, where applicable, have been complied with? If
not, the nature of contravention should be stated. If an order has been passed by the
company law board or National Company Law Tribunal or Reserve Bank of India or any court
or any other Tribunal whether the same has been complied with or not? The company has not
accepted any deposits from public so in contravention to rules framed under the provisions
of 73 to 76 of companies act, , 2013 are not applicable to the company. |
|
| (vi) Where the maintenance of cost records has been specified by the central
government under sub - section (1) of section 148 of the The Central Government has
prescribed maintenance^^^eqst records under Section^mr Companies Act, 201 iOn rdspect
certain manufacturing act. Whether such accounts and records have been made and
maintained. Company. We have broadly reviewed the accounts and records of the Company in
this connection and are of the opinion, that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a detailed examination
of the same. |
|
| (vii) (a) Is the company regular in depositing undisputed statutory dues including
provident fund, employee’ state insurance, income tax, sales tax, wealth tax, service
tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues
with the appropriate authorities and if not, the extent of the arrears of outstanding
statutory dues as at the last day of the financial year concerned for a period more than
six months from the date they become payable, shall be indicated by the auditor. According
to the records of the Company, undisputed statutory dues including Provident fund,
Investor Education and Protection fund, Employees State Insurance, Income tax, Sales tax,
Wealth tax, Service Tax, Custom duty, Excise duty, Cess and any other statutory dues have
been generally deposited with the appropriate authorities. According to information and
explanations given to us, no undisputed amounts 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 they becoming payable, except in the case of the following disputed
statutory dues that have not been deposited on account of matters pending before
appropriate authorities. These dues are as under. |
|
| Name of the Statute |
Nature of Dues |
Amount Disputed (Rs. In Lacs) |
Amou nt Paid (Rs. In Lacs) |
Period to which the amount relates |
Forum Where dispute is pending |
| Central Excise Department |
Clandesti ne removal of goods |
328.13 |
20.00 |
2000-02 |
Cestat, Kolkata |
Case No. O-IN-O 04/DENOVQ/AAYUKT/2008/DATED-31,03.2008
| BSEB |
Electric Bill for the power cut period |
957.47 |
45.00 |
1999-00 |
Honb’l Patna High Court |
| Case No. CWJC12538-99-00 |
|
|
|
|
|
| Cabinet Vigilance Department |
Excess Capacity of furnace |
7326.32 |
- |
2000-05 |
Honb’l Patna High Court |
| Case no. CWJC114/06 |
|
|
|
|
|
| Income Tax Department |
Scrutiny Proceed in |
-154.72 |
- |
1997-98 |
|
Case No. ITA-220/A-l~2005-06 ^
| (b) In case dues of sales tax/income tax/custom tax/wealth tax/ excise duty/cess have
not been deposited on account of any dispute, then the amounts involved and the forum
where dispute is pending may please be mentioned. |
As mentioned above |
| Whether the amount required to be transferred to investor education and protection
fund in accordance with the relevant provisions of the Companies Act, 2013 and rules made
thereunder has been transferred to such fund within time. |
No such transfer has been made during the year. |
| (viii) Whether in case of company which has been registered for a period not less than
five years, its accumulated losses at the end of the financial year are not less than
fifty percent of its net worth and whether it has incurred cash losses in such financial
year and in the immediately preceding financial year. |
The company has been registered for a period more than five years and its accumulated
loss at the end of the financial year is in excess o f fifty percent of its net worth. The
Company has accumulated loss, of Rs. 1904.49 lacs (Previous Year Rs. 660.36 lacs) at the
end of the financial year ending 31st March 2015. The Company has incurred cash
loss of Rs.660.36 lacs during the current financial year. |
| (ix) Whether the company has defaulted in repayments of dues to a financial
institution or bank or debenture holders? If yes, the period and amount of default to be
reported. |
Based on our audit procedures and according to information and explanations given to
us, we are of the opinion that the company has not defaulted in repayment of dues to Banks
or financial institutions. |
| (x) Whether adequate documents and records are maintained in cases where the company
has granted loans and advances on the basis of security by the way of pledge of shares,
debentures and other securities; if not. The deficiencies to be pointed out. |
In our opinion and according to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security by way of pledge
of shares and other securities. |
| (xi) Whether the company has given any guarantee for loans taken by others from bank
or financial institutions, the terms and conditions whereof are prejudicial to the
interest of the company. |
According to the information explanation provided management, the Company has given
corporate guarantee loans taken by City Rolling Mills Pvt. Ltd., a related party, For Rs.
1000.00 lacs from Bank of Baroda. |
| (xii) Whether any fraud on or by the company has been noticed on reported during the
year. If yes, the the nature and the amount involved is to be indicated. |
Based upon the audit procedures and information and explanation given by the
management, we report that no fraud on or by the Company has been noticed or reported
during the course of our audit. |
For SINGHANIA AGRAWAL & CO.
Chartered Accountants
FRN No. 005527C
S.C.Agrawal, M.No.- 072510
Partner
New Dak Bunglow Road, Patna.
The 21st day of August, 2015
+91-9892691696
