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Adhunik Metaliks Ltd.

BSE: 532727 | NSE: ADHUNIK | Series: BZ | ISIN: INE400H01019 | SECTOR: Steel - Sponge Iron

BSE Live

Nov 29, 16:00
0.49 -0.02 (-3.92%)
Volume
AVERAGE VOLUME
5-Day
3,426
10-Day
5,067
30-Day
4,257
11,261
  • Prev. Close

    0.51

  • Open Price

    0.51

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Nov 29, 15:32
0.50 0.00 (0.00%)
Volume
AVERAGE VOLUME
5-Day
26,194
10-Day
19,802
30-Day
13,803
33,015
  • Prev. Close

    0.50

  • Open Price

    0.50

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2016 2015 2014 2013 2012 2011 2010 2009 2008

Auditor's Report

1. We have audited the attached Balance Sheet of Adhunik Metaliks Limited (''the Company'') as at March 31, 2011 and also the Profit and Loss account and the Cash Flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditor''s Report) Order, 2003 (as amended) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 (''the Order''), we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 4. Further to our comments in the Annexure referred to above, we report that : i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit; ii. 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; iii. The Balance Sheet, Profit and Loss account and Cash Flow statement dealt with by this report are in agreement with the books of account; iv. In our opinion, the Balance Sheet, Profit and Loss account and Cash Flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, read with paragraph 5 below; v. On the basis of the written representations received from the directors, as on March 31, 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. 5. Without qualifying our opinion, we draw attention to Note no. 7(b) on Schedule 25 regarding utilisation of Securities Premium Account of Rs.1,289.03 lacs (^3,545.74 lacs) towards meeting the net deferred tax liability arisen during the year, pursuant to the Hon''ble High Court of Calcutta''s Order dated March 29, 2010. The above accounting treatment is not in line with the Accounting Standard 22 Accounting for Taxes on Income (AS-22) as notified by the Companies (Accounting Standards) Rules 2006 (as amended). 6. In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, 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 Balance Sheet, of the state of affairs of the Company as at March 31, 2011; b) in the case of Profit and Loss account, of the profit for the year ended on that date; and c) in the case of Cash Flow statement, of the cash flows for the year ended on that date. Annexure to the Auditors'' Report (Referred to in our report of even date to the members of Adhunik Metaliks Limited as at and for the year ended 31st March, 2011) i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verification in a phased manner to cover all the items of fixed assets over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification of fixed assets during the year. c) There was no substantial disposal of fixed assets during the year. ii) a) The management has conducted physical verification of inventory at reasonable intervals during the year. b) 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) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification. iii) a) According to the information and explanations given to us, the Company has not granted any loan, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Therefore, the provisions of clauses 4(iii) (a) to (d) of the Order are not applicable to the Company and hence not commented upon. b) According to information and explanations given to us, the Company has not taken any loan, secured or unsecured, from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Therefore, the provisions of clauses 4(iii) (e) to (g) of the Order are not applicable to the Company and hence not commented upon. iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. During the course of our audit, we have not observed any major weakness or continuing failure to correct any major weakness in the internal control system of the company in respect of these areas. v) a) Based on the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register under section 301, have been so entered. b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding the value of Rupees five lakhs have been entered into during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time. vi) The Company has not accepted any deposits from the public within the provisions of section 58A, 58AA or any other relevant provisions of the Companies Act, 1956, and rules framed there under. vii) In our opinion, the Company''s internal audit system is commensurate with the size and nature of its business. viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 for the products of the Company and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. ix) a) Undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and other material statutory dues have generally been deposited with delays with the appropriate authorities. As explained, there is no amount due for deposit with Investor Education & Protection Fund. Further, since the Central Government has till date not prescribed the amount of cess payable under section 441A of the Companies Act, 1956, we are not in a position to comment upon the regularity or otherwise of the company in depositing the same. b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees'' state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable. c) According to the records of the Company, there are no dues outstanding of income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty and cess on account of any dispute except as mentioned below : Name of the Nature of dues Amount Period to which Forum where statute (Rs. in lacs) the amount relates dispute is pending Orissa Entry Tax Entry tax on machinery & spares & 59.92 2002-08 Orissa Sales Tax Tribunal / Capital Goods Additional Commissioner of Sales Tax. Cuttack Central Sales Tax Demand against transfer of stock to 123.40 2003-04 Orissa Sales Tax Tribunal, Cuttack (Orissa) Rules 57 branches and consignment agents Central Sales Tax Demand against discrepancies identified 20.05 2003-04 Deputy Commissioner of Sales during investigation Tax, Rourkela Central Sales Tax Disallowance of sale against Form-C, 68.97 2004-08 Orissa Sales Tax Tribunal, Cuttack, Form-H and transfer of stock to branches Deputy Commissioner of Sales Tax, Rourkela, Additional Commissioner of Sales Tax, Cuttac Orissa Value Dispute on account of disallowance 140.16 2005-07 Orissa Sales Tax Tribunal & Added Tax of Input Tax credit High Court,Orissa, Cuttack Orissa Sales Tax Dispute on gross turnover 6.65 2003-05 Orissa Sales Tax Tribunal, Cuttack, vis--vis taxable turnover Deputy Commissioner of Sales Tax, Rourkela Orissa Sales Tax Demand against discrepancies identified 12.06 2003-04 Deputy Commissioner of Sales during investigation Tax, Rourkela Central Excise and Dispute on Cenvat credit on structural 1,121.60 2003-09 CESTAT (Kolkata), Additional Service Tax steel used for construction of capital Commissioner (Adjudication) goods, input, classification, excise duty Bhubaneswar, Commissioner on job work, transaction value for stock (Appeal), Bhubaneswar transfer, short production booking * Net of payments made by the Company under protest. x) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year. xi) Based on our audit procedures and as per the information and explanations given by the management, the Company has not defaulted in repayment of dues to banks except for a delay of less than 30 days in repayment of dues amounting to Rs. 2,896.90 lacs and that of 30 to 90 days towards repayment oft 4,551.80 lacs. However there was no amount outstanding against such defaults as on the balance sheet date. Further, as informed, there were no outstanding dues to the debenture holders and financial institutions. xii) According to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable. xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable. xv) According to the information and explanations given to us, the Company has pledged a part of its investments / given corporate guarantee for loans taken by two of its subsidiaries from banks, the terms and conditions whereof, in our opinion, are not prima- facie prejudicial to the interest of the Company. Further, the said corporate guarantee has been released by the bank on full repayment of the relevant loans as on 30th March 2011. xvi) Based on the information and explanations given to us by the management, term loans were applied for the purpose for which these loans were obtained. xvii) According to the information and explanations 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 have been used for long-term investment. xviii) The Company has not made preferential allotment of shares during the year to parties and companies covered in the register maintained under section 301 of the Act. xix) The Company did not have any outstanding debentures during the year. xx) The Company has not raised any money through a public issue during the year. xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the year. For S. R. Batliboi & Co. Firm registration number: 301003E CHARTERED ACCOUNTANTS 22 Camac Street Block ''C, 3rd Floor per R. K. AGRAWAL Kolkata-700 016. Partner Date : May 20, 2011 Membership No. 16667