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Orissa Sponge Iron Ltd.

BSE: 504864 | NSE: | Series: NA | ISIN: INE228D01013 | SECTOR: Steel - Sponge Iron

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Sep 12, 16:00
219.40 0.00 (0.00%)
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    219.40

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    219.40 (500)

Orissa Sponge Iron is not traded on BSE in the last 30 days

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Dec 27, 11:22
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Orissa Sponge Iron is not listed on NSE

Annual Report

For Year :
2015 2014 2013 2012 2011 2010 2009 2008 2007

Auditor's Report

We have audited the attached Balance Sheet of Orissa Sponge Iron & Steel Limited as at March 31, 2007, and 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. 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. 1. As required by the Companies (Auditor's Report) Order, 2003, (the Order) issued by the Central Government of India in terms of Sub-section (4A) of Section 227 of the Act, 1956 (the Act), we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 2. Further to our comments in the Annexure referred to above, we report that: (a) 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; (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 and 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 and 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 Act to the extent applicable. (e) On the basis of written representations received from the directors of the Company, as on March 31, 2007, and taken on the records by the Board of Directors, we report that none of the director of the Company is disqualified as on March 31, 2007 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956. (f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the Note No. 1 in Sch. 14B of Notes of Accounts and para-(vii) of Sch. 14A of the statement in Accounting Policies relating to accruals of Carbon Credit give the information required by the Company's Act, 1956 in the manner so required and 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, 2007. (ii) In the case of the Profit and Loss Account, of the loss for the year ended on that date; and (iii) In the case of cash flow statement, of the cash flows for the year ended on that date. for L.N More & Company Chartered Accountants (L. N. More) Partner Membership No. 011485 Place : Bhubaneswar Date : 14th September, 2007 ANNEXURE TO THE AUDITORS' REPORT With reference to the Annexure referred to in paragraph 1 of the Auditors' Report to the members of Orissa Sponge Iron & Steel Limited (the Company) on the financial statements for the year ended 31st March, 2007 we report that: 1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets. (b) The Company has a regular programme of physical verification of its fixed assets, by which all fixed assets are verified in a phased manner over a period of three years. In our opinion this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Accordingly, certain fixed assets have been physically verified by the management during the current year and no material discrepancies were noticed upon such verification. (c) Fixed assets disposed off during the year were not substantial and therefore do not affect the going concern assumption. 2. (a) The inventory of the Company has been physically verified by Management during the year. In our opinion, the frequency of such physical verification is reasonable. (b) The procedures of physical verification of inventories followed by management are reasonable and adequate in relation to the size of the Company and the nature of its business. (c) On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. The discrepancies noted on physical verification between the physical stocks and the book records were not material. 3. According to the information and explanations given to us, the Company has not granted or taken any loans, secured or unsecured, to/from Companies, Firms or other parties in the register pursuant to the Section 301 of the Companies Act, 1956. 4. 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 nature of its business with regard to purchases of inventory and fixed assets and with regard to sale of goods and services. 5. (a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under the section. (b) In our opinion, and according to the information and explanations given to us, the transactions made in pursuance of contracts and arrangements referred to in (a) above and exceeding the value of Rs.5 lacs with any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. 6. The Company has not accepted any deposits under the provisions of section 58(A) and 58(AA) of the Act, and the Rules framed there under. 7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business. 8. We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However we have not mad e a detailed examination of such records. 9. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, undisputed statutory dues including Provident Fund, Employees' State Insurance, Income Tax, Sales Tax, Service tax. Customs duty. Excise duty. Cess and other material statutory dues are generally deposited during the year by the Company with the appropriate authorities. As explained to us, the Company does not have any dues on account of investor education and protection fund. According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees' State Insurance, Income Tax, Sales Tax, Service Tax, Customs duty, Excise duty. Cess and other material statutory dues were in arrears, as at 31st March, 2007, for a period of more than six months from the date they became payable except the following: Nature of Dues Amount (in Rs. Lacs) Tax deducted on salaries 12.10 Tax deducted on contractors/others 26.76 Contractors Labour PF 7.59 Entry Tax 70.42 Provident/Pension Fund and EPF interest 105.83 Work Contract Tax 18.43 Fringe Benefit Tax 13.30 (b) According to the information and explanations given to us, there are no dues of Income Tax, Sales Tax, Service tax. Customs duty. Excise Duty and Cess which have not been deposited with the appropriate authorities on account of dispute other than those mentioned as follows. Name of the statute Nature of dues Amount (Rs. in lacs) Central Sales Tax Act, 1956 Non-collection of declaration 895.41 forms Authorities Orissa Sales Tax Act, 1947 Enhanced assessment & Penalty 1762.94 Central Excise Act, 1944 Disputed Central Excise 144.35 demand Name of the statute Forum where Dispute is pending Central Sales Tax Act, 1956 Sales Tax Appellate Authorities Orissa Sales Tax Act, 1947 - do - Central Excise Act, 1944 Commissioner of Appeals, Central Excise 10. The Company has accumulated losses at the end of the financial year. It has incurred cash losses in the current financial year. However, it has not incurred any cash losses in the immediately preceding financial year. 11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to its bankers and institutions excepting in case of Industrial Development Bank of India (IDBI) and Indian Renewable Energy Development Agency Limited (IREDA). As informed by the Company, it has assigned its receivables from sale of Carbon Credit to IDBI towards repayment of over-dues and requested IREDA to adjust over-dues with un-drawn sanctioned loan. The Company does not have any outstanding debentures during the year. 12. According to the information and explanations given 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. 13. In our opinion and according to the information and explanations given to us the Company is not a chit fund/nidhi/mutual benefit fund/society. Accordingly, the provisions of clause 4(xiii) of the Order are not applicable to the Company. 14. According to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments,. Accordingly, the provisions of paragraph 4(xiv) of the Order are not applicable to the Company. 15. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. Accordingly the provisions of clause 4(xv) of the Order are not applicable to the Company. 16. In our opinion and according to the information and explanations given to us, the term loan taken by the Company have been applied for the purpose for which it is raised. 17. According to the information and explanations given to us and on an overall examination of the balance Sheet of the Company, we are of the opinion that the funds raised during the year on short term basis have been used for long term investment, primarily due to losses. 18. The Company has issued 14,10,000 nos. of equity shares on preferential basis to Torsteel Research Foundation in India during the year. 19. According to the information and explanations given to us, the Company has not issued debentures during the year. 20. The Company has not raised any money by public issues during the year. 21. According to the information and explanations given to us, no material fraud on or by the company has been noticed or reported during the course of our audit. for L.N More & Company Chartered Accountants (L. N. More) Partner Membership No.011485 Place : Bhubaneswar Date : 14th September, 2007