We have audited the accompanying standalone financial statements of
Ashirwad Steels & Industries Limited (''the Company''), which comprise
the balance sheet as at 31 March 2015, the statement of profit and loss
and the cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s 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 standalone 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 provisions 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.
Our responsibility is to express an opinion on these standalone
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 there under.
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 the 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 financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s 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 the standalone
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 31 March 2015 and its profit and its 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
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
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 it appears from our examination of those
(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 standalone 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 the written representations received from the
directors as on 31 March 2015
taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 2015 from being appointed as a director in
terms of Section 164 (2) of the Act;
(f) In our opinion the Company has adequate internal financial control
system in place and the operating effectiveness of such controls; and
(g) with respect to the other matters to be included in the Auditor''s
Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our
opinion and to the best of our information and according to the
explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 29(b) to
the financial statements;
ii. There were no material foreseeable losses, if any, on long-term
contracts including long- term derivative contracts, therefore the
requirement for making any provision does not arise.
iii. There has been no event requiring any amount to be transferred,
to the Investor Education and Protection Fund by the Company.
Annexure to the Auditors'' Report
The Annexure referred to in our report to the members of Ashirwad
Steels & Industries Ltd. for the year ended on 31st March,2015. We
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) The fixed assets have been physically verified by the management as
per a phased program of verification. In our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its assets. The discrepancies reported on such
verification were not material and have been properly dealt with in the
books of accounts.
(ii) As explained to us the management has conducted physical
verification of inventory at reasonable intervals during the year
wherever possible and/or required.
(iii) The requirement of clause (iii) a and (iii) b of the order are
not applicable since no loans have been given to companies, firms or
parties covered under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and suitable alternative sources do not
exist for obtaining comparable quotation, there are adequate internal
control procedures commensurate with the size of the company and the
nature of its business for the purchase of inventory, fixed assets and
with regard to the sale of goods. During the course of our audit, no
major weakness has been observed in the internal controls regarding
purchase of inventory and fixed assets and sale of goods.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
meaning of sections 73 to 76 or any other relevant provisions of the
Companies Act,2013 and the rules framed there under.
(vi) Since the net worth of the Company is less than Rupees one hundred
and fifty crores and the turnover in respect of sponge iron is less
than Rupees twenty five crore, the requirement of maintenance of cost
records is not considered necessary.
(vii) (a) The company is generally regular in depositing undisputed
statutory dues including Staff Provident Fund, Employees''
State Insurance, Income Tax, VAT, CST, Service Tax, Excise Duty, Cess,
duty of customs and other material statutory dues as applicable to it.
(b) According to the information and explanations given to us the
following taxes were not deposited as the same were disputed in appeal
at the end of the year:
Particulars Disputed Forum where dispute
Amount (Rs.) is pending in
appeal As on
i) VAT Tax on Coal 15,08,910 Appellate Dy.
purchase (Net of Commissioner (CT),
payment) Hyderabad Rural
ii) Income Tax for:
Asst. Yr. 2003-04 2,43,395 Hon''ble Income Tax
Asst. Yr. 2008-09 1,49,196 C.I.T. (Appeals)
Asst. Yr. 2010-11 8,00,230 C.I.T. (Appeals)
iii) CENVAT on Capital 12,14,662 Commissioner of
Goods(Net of Customs, Central
payment) Excise and Service
Tax (Appeals III ),
(c) In our opinion there is no amount required to be transferred to
Investor education and protection fund in accordance with the relevant
provisions of the Companies Act,1956 and rules framed thereunder.
(viii) The Company does not have any accumulated past losses at the end
of the financial year under review and has not incurred cash loss in
the current financial year. There was no cash loss incurred in the
immediately preceding financial year.
(ix) According to the information and explanations given to us and the
records examined by us, the Company has not defaulted in repayment of
dues to banks or any financial institutions. The company has not
accepted any fund on account of issue of debentures.
(x) According to the information and explanations given to us and the
records examined by us, the Company has not given any guarantees for
loans taken by others from banks or financial institutions, the terms
and conditions whereof could have been prima facie prejudicial to the
interest of the Company.
(xi) As informed to us, the company has not taken any term loans during
(xii) According to the information and explanations given to us no
fraud on or by the Company has been noticed or reported during the
For A. Pradhan & Associates
Firm''s registration number: 325131E
Place- 28B Kalidas Patitundi Lane
Date- 29th May , 2015.
Membership number: 053543