We have audited the accompanying financial statements of Lloyds Steel
Industries Limited, which comprise the Balance sheet as at March 31,
2012 and the Statement of Profit and Loss and Cash Flow statement for
the period ended then, and a summary of Significant Accounting Policies
and other explanatory information.
Management''s Responsibility for the Financial Statements Management
is responsible for 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 accounting
standards referred to in sub section (3C) of section 211 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.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the auditing standards 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 of
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by Management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
As required by the Companies (Auditors'' Report) Order, 2003. as amended
by Companies (Auditors'' Report) (Amendment) 2004 (together ''the
order'') issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, of India (the Act) and on the basis
of such checks as we considered appropriate, and according to the
information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable to the Company.
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purposes of
(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
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account:
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report have been prepared in
compliance with the applicable accounting standards referred to in
Section 211 (3C) of the Act:
(e) On the basis of the written representations received from the
Directors and taken on record by the Board of Directors of the Company,
none of the Directors is disqualified as on March 31,2012 from being
appointed as a Director in terms of clause (g) of sub-section (1) of
Section 274 of the Act;
(f) In view of the foregoing paragraphs, in our opinion and to the best
of our information and according to the explanations given to us. the
Balance Sheet. Profit and Loss Account and Cash flow together with the
Notes thereon and attached thereto, give in the prescribed manner, the
information required by the Act and also give, a true and fair view in
conformity with the accounting principles generally accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012:
ii) In the case of the Profit and Loss Account, of the Loss for the
period ended on that date; and
iii) In the case of the Cash Flow Statement, of the Cash Flow of the
Company for the period ended on that date.
ANNEXURE TO AUDITORS'' REPORT
[Referred to in above the Auditor''s Report of even date to the
Members of Lloyds Steel Industries Limited on the Financial
Statements for the period ended 31st March 2012]
1. (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
(b) As per the information and explanation given to us, fixed assets
are physically verified by the management according to a phased
programmed designed to cover all the locations which in our opinion, is
reasonable having regard to the size of the company and the nature of
its assets. Pursuant to the programmed, the management during the period
physically verified the fixed assets at certain locations and no
material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanation
given to us, the company has disposed off an insignificant part of the
fixed assets during the period. Thus, paragraph 4(i) (c) of the
Companies (Auditor''s Report) Order, 2003 is not applicable.
2. (a) Inventory has been physically verified by the management during
the period. In our opinion, the frequency of verification is
(b) In our opinion, 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) In our opinion and according to the information & explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material.
3. (a) According to information and explanation given to us, the
Company has neither granted nor taken any secured or unsecured loans to
from companies, firms, parties covered in the register maintained under
Section 301 of the Act.
In view of the above, provisions of clause 4(iii) (b). (c),