To
The Members,
SIRHIND STEEL LIMITED
Ahmedabad.
Report on the Financial Statements
We have audited the accompanying financial statements of Sirhind Steel Limited
("the Company"), which comprise the Balance Sheet as at March 31,2017, 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.
Managements Responsibility for the Financial Statements
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
and presentation 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 provision 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 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
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 true and fair view in order to design audit procedures that
are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by 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 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 31st
March, 2017 and its profit and its cash flows for the year ended on that date.
Emphasis Matter Paragraph
We invite attention to note 18 to the financial statements with regard to Reserve Bank
of India advising the company to select one of the options to either to dissolve the
company or divest the financial assets to the tune of less than 50% of the assets, since
it has invested the surplus funds in mutual funds and other liquid assets pursuant to
closure of manufacturing activities. As advised by Reserve Bank of India, the company has
divested the financial assets by 31st March, 2017 to comply with the suggestion
and requirement of RBI.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("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", 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 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 written representations received from the directors as on 31 March,
2017 taken on record by the Board of Directors, none of the directors is disqualified as
on 31 March, 2017 from being appointed as a director in terms of Section 164(2) of the
Act.
(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"; and
(g) 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 our best of our information and according to the explanations given to us :
(i) The Company does not have any pending litigations which would impact its financial
position.
(ii) The Company did not have any long-term contracts including derivatives contracts
for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
(iv) the Company has provided requisite disclosures in its standalone financial
statements as to holdings as well as dealings in Specified Bank Notes during the period
from 8th November, 2016 to 30th December, 2016. Based on audit
procedures and relying on the management representation, we report that the disclosure are
in accordance with the books of accounts maintained by the Company and produced to us by
management. Refer Note 19 to the standalone financial statements.
FOR G. K. CHOKSI & CO.
Chartered Accountants
[Firm Registration No. 101895W]
SHAUNAK V. MUZUMDAR
Partner
Mem. No. 37571
Ahmedabad,
9th May, 2017
Annexure - A to the Independent Auditors Report.
(i) (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during the year at
reasonable intervals and no material discrepancies were noticed on such verification
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties are
held in the name of the Company.
(ii) The Company does not have inventory hence clause 3(ii)(a), 3(ii)(b) and 3(ii)(c)
is not applicable to the Company.
(iii) The Company has not granted any secured / unsecured loan to any parties covered
in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the
provisions of Clause 3(iii) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of section 185 and 186 of the Act, with respect
to the loans, investments, guarantees and securities.
(v) According to information and explanations given to us, the Company has not accepted
any deposits as defined in The Companies (Acceptance of Deposits) Rules 2014. Accordingly,
the provisions of Clause 3(v) of the Order are not applicable to the Company.
(vi) As company is not engaged in production, processing or manufacturing activities
during the year, hence maintenance of cost records is not applicable to the company.
(vii) (a) According to the information given to us, the Company is generally regular in
depositing with appropriate authorities undisputed statutory dues and Company had no
arrears of such outstanding statutory dues as at 31st March, 2017 for a period
more than six months from the date they became payable.
(b) According to the information and explanation given to us, the company has no
disputed outstanding statutory dues as at 31st March, 2017.
(viii) According to the information and explanations given to us, the Company has not
defaulted in the repayment of loans and borrowings to financial institutions, banks,
government or dues to debenture holders during the year.
(ix) The Company has not raised moneys by way of initial public offer or further public
offer (including debt instruments) during the year. And no term loan has been raised
during the year.
(x) According to the information and explanations given to us, no fraud by company or
any fraud on the company by its officers and employees have been noticed or reported
during the year.
(xi) According to the information and explanations give to us, the Company has
paid/provided for managerial remuneration in accordance with the provisions of section 197
read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the
Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
(xiii) According to the information and explanations given to us, transactions with the
related parties are in compliance with sections 177 and 188 of the Act and details of
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
(xiv) According to the information and explanations give 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) According to the information and explanations given to us, the Company has not
entered into non-cash transactions with directors or persons connected with him.
Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act 1934.
FOR G. K. CHOKSI & CO.
Chartered Accountants
[Firm Registration No. 101895W]
SHAUNAK V. MUZUMDAR
Partner
Mem. No. 37571
Ahmedabad,
9th May, 2017
Annexure - B to the Independent Auditors Report of even date on the Financial
Statements of Sirhind Steel Limited. Report on the Internal Financial Controls 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 Sirhind
Steel Limited ("the Company") as of 31 March 2017 in conjunction with our audit
of the financial statements of the Company for the year ended on that date. Managements
Responsibility for Internal Financial Controls
The Companys 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
issued by the Institute of Chartered Accountants of India (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 companys 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") 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, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. 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 was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
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 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 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 financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March 2017,
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 issued by the Institute of
Chartered Accountants of India.
FOR G. K. CHOKSI & CO.
Chartered Accountants
[Firm Registration No. 101895W]
SHAUNAK V. MUZUMDAR
Partner
Mem. No. 37571
Ahmedabad, 9th May, 2017
+91-9892691696
