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Zenith Steel Pipes & Industries Ltd.

BSE: 531845 | NSE: ZENITHSTL |

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Series: BE | ISIN: INE318D01020 | SECTOR: Steel - Tubes & Pipes

BSE Live

Oct 21, 16:00
1.11 0.05 (4.72%)
Volume
AVERAGE VOLUME
5-Day
27,299
10-Day
25,107
30-Day
36,728
16,460
  • Prev. Close

    1.06

  • Open Price

    1.11

  • Bid Price (Qty.)

    1.11 (35500)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Oct 21, 15:31
1.00 0.05 (5.26%)
Volume
AVERAGE VOLUME
5-Day
15,585
10-Day
24,225
30-Day
38,213
440
  • Prev. Close

    0.95

  • Open Price

    1.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

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

Auditor's Report

1. We have audited the accompanying financial statements of ZENITH BIRLA (INDIA) LIMITED (the Company), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements 2. The Company''s Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the act'') with respect to 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 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; 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. Auditor''s Responsibility 3. Our responsibility is to express an opinion on these 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 thereunder. 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. 4. An audit involves performing procedures to obtain audit evidence about the amounts and 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 control system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of 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. 5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements. 6. Emphasis of Matter: We draw attention to the following matter in Notes to the financial statements: Note no. 49 in the financial statements which indicates that the company has accumulated losses and its net worth has been fully eroded. The company has incurred a net loss/net cash loss during the current and previous years and the Company''s current liabilities exceeded its current assets as at the Balance Sheet date. These conditions, along with other matters, indicate the existence of a material uncertainty that may cast significant doubt about the Company''s ability to continue as a going concern. However, the financial statements of the company have been prepared on a going concern basis for the reasons stated in the said Note. Our opinion is not modified in respect of this matter. 7. Basis for Qualified Opinion 1. With reference to Note no. 44 regarding the non provision by the company of the interest amounting to Rs. 32.70 crores on its working capital facilities from banks during the year. Had this amount been provided for, the loss would have been higher by Rs. 32.70 crores and Secured loans would have been higher by an amount of Rs. 32.70 crores. 2. The Company has not complied with the provisions of sections 74 or any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules 2014 with regard to non-repayment of deposits and interest on due date, maintenance of liquid assets to the extent required as well as not fully complying with the orders passed by The Company Law Board. 3. With reference to Note no. 42 regarding the company not having the balance confirmations for its party balances and hence our inability to state whether these balances are recoverable / payable to the extent stated. 8. Qualified Opinion In our opinion and to the best of our information and according to the explanations given to us, subject to the effects of the matters described in the basis for Qualified Opinion paragraph the 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: a) In the case of the Balance Sheet, of the state of affairs of the company as at 31st March 2015. b) In the case of the statement of Profit and Loss ,of the loss for the year ended on that date; and c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date. 9. 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 paragraphs 3 and 4 of the Order. 10. 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, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account; d. in our opinion, the aforesaid financial statements comply with the applicable Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014 e. on the basis of written representations received from the directors as on 31st March, 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015, from being appointed as a director in terms of Section 164(2) of the Act f. With respect to 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) As per the best estimates made by the management on the basis of opinion taken, the Company is of the view that the ongoing litigations as at the reporting date would not have a material impact on its financial position; ii) Based upon the assessment made by the company, there are no material foreseeable losses on its long term contracts that may require any provisioning. iii) In view of there being no amount(s) required to be transferred to the Investor Education and Protection Fund for the year under audit the reporting under this clause is not applicable. ANNEXURE TO INDEPENDENT AUDITOR''S REPORT Referred to in paragraph 7 under the heading of report on other legal and regulatory requirement of our report of even date. i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Fixed Assets as at 31st March 2014. These details are however yet to be updated for the year. The Company has started the process of updating these. (b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its assets. However during the year the Company has not adhered to the programme of physical verification in its Khopoli and Murbad Units. ii. (a) The Inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. (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) On the basis of our examination of inventory records, in our opinion the Company is maintaining proper records of inventory. As informed to us no material discrepancies were noticed on physical verification. (a) The Company has granted unsecured loans to three companies covered in the register maintained under section 189 of the Act. The maximum amount involved during the year was Rs. 10664.69 lacs and year-ended balance was Rs. 10556.42 lacs (b) As explained to us no amounts of principal and interest has become due during the year. (c) In view of our comments in (b) above, para iii(b) of the Order is not applicable to the Company. (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, fixed assets and for the sale of goods and services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanation given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system. (v) In our opinion, and according to the information and explanations given to us, in respect of compliance by the company with the directives issued by the Reserve Bank of India, the provisions of Section 74 or any other relevant provisions of the Act and the rules framed there under, with regard to the deposits accepted from the public, we have to state that these have not been complied with in respect to non repayment of deposits and interest on due date and maintenance of liquid assets to the extent required as per Rule 13 of the Companies (Acceptance of Deposit) Rules,2014. The Company has also not fully complied with the orders passed by Company Law Board. (vi) We have broadly reviewed the books of accounts maintained by the Company in respect of products where, pursuant to the Rules made by the Central Government of India the maintenance of cost records has been prescribed under subsection (1) of section 148 of the Companies Act,2013, and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete. (vii) (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion except for dues in respect of Dividend Distribution Tax, Tax Deducted at source, Professional Tax, Tax Collected at Source, Service Tax, and Provident Fund, the Company is generally regular in depositing the undisputed statutory dues including Wealth Tax, Excise Duty Custom Duty,Cess and other material statutory dues, as applicable, with the appropriate authorities. The following balances remain in arrears as at the last day of financial year for a period exceeding six months from the date they become payable. Nature of Dues Amount Outstanding (in Rs.) Tax Deducted at Source 1846145 Profession Tax 20550 Tax collected at Source 40763 Service Tax 158043 Provident Fund 579895 Dividend Distribution Tax 35908091 Interest on Dividend Distribution Tax 16158641 (b) According to the information and explanation given to us and the records of the company examined by us, there were no disputed dues in respect of Income Tax, Wealth Tax, Service Tax, and Cess. The particulars of dues of Custom Duty , Excise Duty and Sales Tax as at March 31,2015, which have not been deposited on account of disputes, are as follows: Name of Statute Amount Period to which (Rs. in Lacs) relates amount Forum where dispute is pending Customs Act, 1962 82.00 1998-1999 Tribunal 3.45 1985-1986 High Court Central Excise Act, 1959 129.78 1995-1996 Commissioner appeal Central Sales Tax Act and 78.88 1995-1996 Tribunal Local Sales Tax (c) There was a delay of 21 days in transferring the amount required to be transferred to Investor Education and Protection Fund in accordance with the relevant provisions of the Act. (viii) The Company''s accumulated loss as at March 31 2015, exceeded its net worth. The Company has incurred cash losses in the current financial year as well as in the immediately preceding financial year. (ix) According to the records of the Company examined by us and the information and explanations given to us, there has been default in payments to the banks since August, 2012 and the Company''s outstanding as at 31st March 2015, as per the notice received from the banks, is Rs. 21583.43 lacs plus interest of Rs. 5821.25 lacs for the period upto March 2015. (x) In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks and financial institutions. (xi) The Company has not raised new term loan during the year. The term loans outstanding at the beginning of the year have been applied for the purpose for which they were raised. (xii) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management. For Thakur, Vaidyanath Aiyar & Co. Chartered Accountants Firm Reg. No. 000038N Place: Mumbai C V Parameswar Date: 30.05.2015 Partner Mem. No. 11541