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Maithan Alloys Ltd.

BSE: 590078 | NSE: MAITHANALL |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE683C01011 | SECTOR: Mining & Minerals

BSE Live

Jun 02, 16:00
398.00 18.60 (4.90%)
Volume
AVERAGE VOLUME
5-Day
1,006
10-Day
947
30-Day
1,509
1,926
  • Prev. Close

    379.40

  • Open Price

    384.50

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Jun 02, 15:59
395.95 16.20 (4.27%)
Volume
AVERAGE VOLUME
5-Day
21,046
10-Day
17,901
30-Day
16,944
44,194
  • Prev. Close

    379.75

  • Open Price

    387.30

  • Bid Price (Qty.)

    395.95 (149)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2011 2010 2009

Auditor's Report

Report on the Standalone Ind AS Financial Statements

1. We have audited the accompanying standalone Ind AS financial statements of Maithan Alloys Limited (the “Company”), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as “the Standalone Ind AS financial statements”).

Management’s Responsibility for the Standalone Financial Statements

2. 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 of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued thereunder.

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 standalone Ind AS 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 standalone Ind AS financial statements based on our audit.

4. 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.

5. 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 standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. 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 standalone Ind AS financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

8. In our opinion, and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 including the Ind AS, of the state of affairs (financial position) of the Company as at 31 March 2018, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Other Matters

9. The comparative financial information of the Company for the year ended 31 March 2017 and the transition date opening Balance Sheet as at 1 April 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor D.K. Chhajer & Co. whose report for the year ended 31 March 2017 and 31 March 2016 dated 9 May 2017 and 14 May 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have been audited by us.

Report on Other Legal and Regulatory Requirements

10. As required by ‘the Companies (Auditor’s 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.

11. 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 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 it appears from our examination of those books;

(c) the Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;

d) in our opinion, the aforesaid standalone Ind AS financial statements dealt with by this report comply with the Accounting Standards specified under Section 133 of the Act, read with relevant rules issued thereunder;

(e) On the basis of written representations received from the directors as on 31 March 2018 and taken on record by the Board of Directors, none of the directors are disqualified as on 31 March 2018 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”;

(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 the best of our knowledge and belief and according to the information and explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements- Refer Note 44 to the Standalone Ind AS financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material forseeable losses;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2018.

i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) The fixed assets of the Company have been physically verified by the Management at reasonable intervals and no material discrepancies have been 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 physical verification of inventory has been conducted at reasonable intervals by the Management and no material discrepancies were noticed on such verification.

iii. The Company has not granted any loans, secured or unsecured, to companies, limited liability partnership firm, firms or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii)(a), (b) and (c) of the Order are not applicable to the Company.

iv. The Company has neither granted any loan nor provided any guarantee or security, hence the provisions of Section 185 of the Act are not applicable to the Company. In our opinion and according to the informations and explanations given to us, with respect to the investments made, the Company has complied with the provisions of Section 186 of the Act

v. The Company has not accepted any deposits from the public within the meaning of Sections 73 to 76 of the Act and the rules framed there under. Therefore, the provision of clause 3(v) of the order is not applicable on the Company.

vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain Cost Records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, such accounts and records have been so made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

vii. (a) The Company is generally regular in depositing the undisputed statutory dues, including Provident Fund, Employees’ State Insurance, Income tax, Sales tax, Service tax, Goods and Service tax, Customs Duty, Excise duty, Value Added Tax, cess and other material statutory dues, as applicable, with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31 March, 2018 for a period of more than six months from the date of becoming payable.

(b) The particulars of dues of Service tax, Excise duty, cess, etc, which have not been deposited as at 31 March, 2018 on account of dispute, are given as follows:

Name of the statute

Nature of dues

Amount (Rs.)

Period to which the amount relates

Forum where the dispute is pending

The Central Excise Act, 1944

Excise Duty & Service Tax

10,45,052

2006-07

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

44,97,245

2007-08

Addl. Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

2008-09

CESTAT,

Kolkata

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

4,98,473

2008-09

Commissioner (Appeal), Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

10,90,780

2008-09

Assistant Commissioner, Asansol

The Central Excise Act, 1944

Excise Duty & Service Tax

42,84,911

2009-10

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

4,45,698

2009-10

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

3,39,190

2009-10

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

27,13,055

2009-10

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

1,14,215

2009-10

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

98,051

2010-11

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty &Service Tax

70,54,065

2012-13

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

6,60,880

2013-14

Addl. Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

10,61,626

2013-14

Addl. Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

5,83,411

2013-14

Addl. Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

2,00,606

2013-14

Assistant Commissioner, Asansol

The Central Excise Act, 1944

Excise Duty & Service Tax

3,71,057

2013-14

Assistant Commissioner, Asansol

The Central Excise Act, 1944

Excise Duty & Service Tax

1,15,006

2014-15

Assistant Commissioner, Asansol

The Central Excise Act, 1944

Excise Duty & Service Tax

31,51,800

2013-14

Addl. Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

60,15,000

2014-15

Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

56,864

2016-17

Assistant Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

23,857

2016-17

Assistant Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

50,90,935

2016-17

Joint Commissioner, Bolpur

Finance Act, 1994

Service Tax

11,62,272

2017-18

Commissioner, Siliguri

Finance Act, 1994

Service Tax

5,57,442

2017-18

Commissioner, Siliguri

Finance Act, 1994

Service Tax

8,15,040

2017-18

Assistant Commissioner, Asansol

viii. The Company has not defaulted in repayment of loans or borrowings to any financial institution or banks at the Balance Sheet date. The Company has neither issued any debentures nor has taken any loans or borrowings from the Government as at the Balance Sheet date.

ix. The Company has not raised any money by way of initial public offer/ further public offer (including debt instruments)/term loans during the year. Accordingly, the provisions of clause 3(ix) of the Order are not applicable to the Company.

x. We have neither come across any instance of material fraud on or by the Company noticed or reported during the year, nor have we been informed of any such case by the Management.

xi. The managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of Act.

xii. As the Company is not a Nidhi Company, the provisions of clause 3(xii) of the Order is not applicable.

xiii. The Company has entered into transactions with related parties in compliance with the provisions of Section 177 and 188 of the Act. The details of such related party transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.

xiv. No money was raised through preferential allotment/private placements of shares/ fully/ partly convertible debentures during the year under review, hence, the provisions of clause 3(xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us and on the basis of our examination of the records, the Company has not entered into any non-cash transactions with its directors or person connected with them. Accordingly, clause 3(xv) of the Order is not applicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly the provision of clause 3(xvi) are not applicable to the Company.

We have audited the internal financial controls over financial reporting of Maithan Alloys Limited (“the Company”) as at 31 March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s 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 Company’s 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 (“the Act”).

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s 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 Act, 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 auditor’s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s 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 company’s 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 standalone Ind AS 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 unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the standalone Ind AS 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 31 March 2018, 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 ICAI.

For M Choudhury & Co.

Chartered Accountants

FRN 302186E

D Choudhury

Place: Kolkata Partner

Date: 30 April 2018 Membership No. 052066