AUDITOR
TO
THE MEMBERS OF RANJEEV ALLOYS LIMITED,
MANDI GOBINDGARH
1. We have audited the accompanying financial statements of Ranjeev Alloys Limited,
which comprises the Balance Sheet as at March 31, 2013, the statement of profit and loss
and Case Flow Statement for the year then ended and a summary of significant accounting
polices and other explanatory information.
Management’s Responsibility for the financial statements:
2. The management is responsible for the preparation of these financial statements that
give a true and Fairview of the financial position, financial performance and cash flows
of the company in accordance with the accounting principles generally accepted in India
including accounting standards referred to in section 211(3C) of the Companies Act, 1956.
This responsibility includes the design, implementation and maintenance of internal
control 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:
3. 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 misstatements.
4. An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the financial statements. The procedure selected depend upon
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. An audit also includes evaluating the appropriateness of
accounting polices used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
6. In our opinion and to best of our information and accounting to the explanations
given to us, the aforesaid financial statements to 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:
a) In the case of the Balance Sheet, of the state of affairs of the company as at March
31,2013;
b) In the case of the statement of Profit and Loss, of the profit for the year ended on
that date; and
(c) In the case of the cash flow statement, of the cash flows for the year ended on
that date.
Report on other Legal and Regulatory Requirements
7. The Companies (Auditor’s Report) Order, 2003 issued by Central Government of
India in terms of section 227(4A) of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the order.
8. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanation 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 Balance Sheet, the statement of Profit and Loss, and the Cash Flow
Statement comply with the Accounting Standards referred to in section 211(3C) of the Act;
e) On the bases of the written representations received from the directors as on March
31,2013, taken on record by the board of directors, none of the directors is disqualified
as on March 31,2013, from being appointed as a director in terms of Section 274(1)(g) of
the Act.
As required by the Companies (Auditor’s Report) Order, 2003 issued by Central
Government of India in terms of sub-section 227(4A) of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the order.
1. a) The company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets,
b) The management has certified that it has conducted a physical verification of the
fixed assets at reasonable interval, which in our opinion is reasonable, having regards to
the size of the company and nature of its assets. No material discrepancies have been
noticed on such verification,
c) During the year, the company has not disposed off any further remaining fixed asset
and the going concern status of the company is affected substantially as manufacturing
business has already ceased to exist in previous year and further Iron & Steel trading
has been done at a very low ebb.
2. a) As explained to us, there are no inventories with the company during the current
relevant year & as such physical verification is inapplicable.
b) The procedures of physical verification of inventories followed by the management is
also applicable in absence of the inventories.
c) Maintenance of proper records of inventories and its physical verification is also
inapplicable in absence of any inventory. Further proper records and physical verification
have duly been maintained in case of a very small purchase and sales made by the company.
3. a) There is only one person covered in the registered maintained under section 301
of the company Act 1956 to which the company has granted the advance.
The maximum amount involved during the year was Rs.61acs & the year end balance of
such loans/advances granted including already granted advances to two persons in previous
year stands at Rs.l8.551acs.
b) In our opinion and according to the information and explanation given to us, the
rate of interest and the terms and conditions of such loans granted are prime facie,
prejudicial to the interest of the company as no interest has been charged on the advances
given to stated persons.
c) The company is not regularly receiving the principal amount and interest thereon.
d) Overdue amount of loan granted to companies, firms or other parties listed in the
register maintained under section 301 of company’s Act 1956 stands at Rs.l8.551acs
which is still standing to be received.
e) The company has taken loan from one company during the year covered in the
registered maintained under section 301 of companies Act, 1956
The maximum amount involved during the year was Rs.33.40acs & the year- end balance
of this loan stands at Rs.33.401acs.
(f) In our opinion and according to the information and explanation given to us, the
rate of interest and the terms and conditions of such loans taken are not prime facie,
prejudicial to the interest of the company as no interest has been allowed on the loans
taken.
(g) The company is not regular in repaying the principal amount as stipulated and have
been regular in payment of interest wherever interest has been allowed on these loans.
4. In our opinion and according to the information and explanation given to us, there
are adequate internal control system commensurate with the size of the company and nature
of business with regards to purchase of inventory, fixed assets and with regard to 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 system.
5. a) According to the information and explanations given to us, we are of the opinion
that particular of contracts or arrangement referred to in section 301 of the Companies
Act, 1956 have been entered in the register required to be maintained under that section,
if any,
b) In our opinion and according to the information and explanation given to us, the
transaction made in pursuance of contracts or arrangement entered in the register
maintained under section 301 of companies Act, 1956 and exceeding the value of Rupees five
laces in respect of any party during the year have been, made at prices which are
reasonable having regard to the prevailing market prices at the relevant time, if any
6. In our opinion and according to the information and explanation given to us, the
company has complied with the provisions of section 58 A and 58AA of the companies Act,
1956 and the companies (Acceptance of Deposits) Rules, 1975 with regards to the deposits
accepted from the public, however, no deposits have been, accepted from the public except
unsecured demand loan raised from the associated company accepted in ordinary course of
business which is still outstanding. No 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.
7. In our opinion, the company has an adequate internal control system commensurate
with the size of the company and nature of business
8. We have broadly reviewed the books of accounts relating to materials, labor and
other items of cost maintained by the company pursuant to rules made by the Central
Government for the maintenance of cost records under section 207(1)(b) of the companies
Act, 1956 and we are the opinion that the prime facie the prescribed accounts and records
have been made and maintained.
9. a) The Company is regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Employees’ State Insurance, Family Pension,
Adminstrative Charges & Linked Insurance Fund, Income tax, Sales Tax, Central Sales
Tax, Wealth Tax, Service Tax, Custom Tax, Excise Duty, Cess and other material statutory
dues applicable to it.
b) according to the information and explanation given to us, no undisputed amounts
payable in respect of aforesaid dues were in arrear, as at 31st March, 2013,
for a period of more than six months from the date they became payable,
c) According to the information and explanation given to us, there is no dues of Sales
Tax,, Custom duty, wealth tax, service tax, Excise duty, and cess which have not been
deposited on account of any disputes.
10. In our opinion, the accumulated losses of the company are not more than fifty
percent of its net worth, The company has incurred cash losses for Rs. 13.55 laces during
the financial year covered by our audit, however, there was cash losses of Rs.26.651acs in
the immediately preceding financial year.
11. According to the information and explanation given to us, we are of the opinion
that the company has not defaulted in repayment of dues to a financial institutions, Banks
or debenture holders except that the company has defaulted in making repayment of C/c, BP
under LC development loan pertaining to IDBI as the accounts are in operative since
23.12.10 and as such, the entire amount of Rs.6.85 Crores under C/c amount &
Rs.5.55 Crores under BP account are payable. Further interest on the above referred
accounts has not been provided as the accounts are NPA.
12. In our opinion and according to the information and explanation given to us, no
loans and advances have been granted by the company on the bases of security by way of
pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or a Nidhi/Mutual benefit
fund/society, Therefore, clause 4(xiii) of the companies (Auditor’s Report) Order,
2003 is not applicable to the company.
14. The company is not dealing in or trading in shares, securities, debentures and
other investments and therefore the question of maintenances or records in respect of
these does not arise.
15. The company has not given any guarantee for loan taken by others form Bank or
financial institutions.
16. In our opinion, no term loan has been raised during the year and as such its
applicability is inapplicable as per information & explanation given by the
management.
17. According to the information and explanation given to us and on an overall
examination of the balance sheet of the company, we report that no funds raised on
short-term basis has been used from long-term investment.
18. Based on our examination of record and the information provided to us by management
we report that the company has not made preferential allotment of shares of parties and
companies covered in the register maintained under section 301 of the companies Act, 1956.
19. During the period covered by our audit report, the companies has not issued
debentures and therefore the question of creation of any security/charge in respect of
these debentures does not arise.
20. The company has not raised any money by way of public issue during the year.
21. Based on the audit procedures performed and information and explanations 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 M/S S.K. BHALLA & CO. |
|
|
| Chartered Accountants |
|
For Ranjeev Alloys Ltd. |
| (S.K. BHALLA) |
|
Director |
| Partner |
PLACE: KHANNA |
|
| Membership No:81783 |
DATED:30.05.2013 |
|
+91-9892691696
