| We have audited the accompanying Standalone Financial Statements of
ANKIT METAL & POWER LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss and the
Cash Flow Statement for the year ended on that date, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matter stated
in Section 134(5) of the Companies Act, 2013 (" the Act") with respect
to the preparation of these Standalone Financial Statements that give a
true and fair view of the financial position, financial performance 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 provision 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.
Auditor's Responsibility
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 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 control relevant to the Company's preparation and
fair presentation of the Financial Statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, 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
Financial Statements.
Opinion
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 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 Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) In the case of Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date; and
(c) In the case of Cash Flow statement, of the Cash Flows of the
Company for the year ended on that date.
Emphasis of Matter
Without qualifying we draw your attention to Note No. 28 of the
Standalone Financial Statements, relating to CDR Package. The CDR
Package of the Company has been sanctioned vide LOA dated 17th
September, 2014. Pursuant to the said LOA, implementation of the CDR
policy is completed and the effect has been given in these accounts
w.r.t the CDR scheme as per the said LOA. The said accounts are subject
to confirmation and reconciliation with the lenders. The reported
financials would have consequential impact once the reconciliation is
completed, the quantum where of remains unascertained
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2015 ('the
order') issued by the Central Government of India in terms of
subsection (11) of the section 143 of the Act, we give in the Annexure
a statement on the matters specified in the paragraphs 3 and 4 of the
order, to the extent applicable.
2. As required by section 143(3) of the Act, we report, to the extent
applicable that:
a. We have 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Standalone Financial Statements comply with the
Accounting Standards specified under section 133 of the Companies Act,
2013; read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of section 164(2) of the Act.
f. 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 the
financial position in the Financial Statements - Refer Note No. 29 (c)
to (g) to its Financial Statements.
ii. The Company has no material foreseeable losses for which the
provision under the applicable law or accounting standards needs to be
made.
iii. During the year Company has transferred to Investor Education and
Protection Fund Rs. 0.24 Lacs pertaining to share application money for
the year 2007.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
Annexure referred to in paragraph 1 under the heading of "Report on
Other Legal and Regulatory Requirements" of even date to the members of
Ankit Metal & Power Limited on the accounts of the Company for the year
ended 31st March, 2015. On the basis of such checks as we considered
appropriate and accordingly to the information and explanations given
to us during the course of our audit, we report that:
(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 during the year and in our opinion, the frequency of
such verification is reasonable. No material discrepancies were noticed
on such verification.
(ii) (a) The inventory, except goods-in-transit has been physically
verified by the management during the year. In respect of inventory
lying with the third parties, these have substantially been confirmed by
them. In our opinion, the frequency of such verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material having regard to the size of the
operations of the Company and the same have been properly dealt with in
the books of account
(iii) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties listed in the register maintained
under Section 189 of the Companies Act, 2013. Therefore the provisions
of the clause iii (a) & (b) of the said order are 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 fixed assets, purchase of inventories 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
explanations 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) The Company has not accepted any deposits from the public and
consequently, the directives issued by Reserve Bank of India and
provisions of Section 73 to Section 76 of the Companies Act, 2013 and
the rules framed there under are not applicable.
(vi) We have broadly reviewed the books of account maintained by the
Company in respect of manufacture of Iron & Steel product & Power
generation unit pursuant to the Rules made by the Central Government
for the maintenance of cost records under Section 148(1) of the
Companies Act, 2013, and we are of the opinion that prima facie, the
records have been maintained. We have however not made a detailed
examination for the records with a view to determining whether they are
accurate and complete.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company has
generally been regular in depositing undisputed statutory dues including
Provident Fund, Income tax, sales tax, Wealth Tax, Service Tax, duty of
customs, value added tax, cess and other statutory dues during the year
with appropriate authorities except service tax.
According to the information's and explanations given to us, no
undisputed amount payable in respect of Provident fund, Income tax,
sales tax, Wealth Tax, duty of customs, value added tax, cess and other
statutory dues were in arrears as at 31st March, 2015 for a period of 6
months from the date they became payable except
Service Tax & Income tax deducted at source Rs. 58.91 lacs & Rs. 16.80
Lacs respectively.
(b) According to the information and explanations given to us, there
are no dues of Income tax, Wealth tax, Sales tax, Value added tax,
Service tax, Customs duty, Excise duty and Cess which have not been
deposited with the appropriate authorities on account of any dispute
except the following cases which are as follows:
Name of the Nature of Amount Period to which
Statute Dues (Rs.in Lacs) the amount relates
21.11 A.Y. 2006-2007
(Already
paid under
protest Rs.
16.11)
217.90 A.Y 2008-09
Income Tax Act,
1961 Income Tax 25.28 A.Y 2009-2010
(Petition
filed u/s
154)
6692.78 A.Y 2012-13
222.89 FY 2005-2006
917.91 F.Y. 2006-2007
358.16 F.Y. 2007-2008
W.B.VAT Act, 2003 Sales Tax
92.94 F.Y. 2008-2009
87.95 F.Y. 2008-2009
1946.82 F.Y. 2008-09
37.28 F.Y 2009-2010
W.B.VAT Act, 2003 Sales Tax
446.29 F.Y 2011-2012
The finance Act, Service Tax 5.00 A.Y. 2007-08
1944
36.66 September' 2007-
January' 2008
14.95 A.Y. 2012-13
(15.00
paid as
duty under
protest)
5.15 2011 - 2012
(5.00 paid
as duty
under
protest)
The Central Excise Excise Duty 4.32 July' 2007-
Act, 1944 October' 2007
37.46 2006 - 2007
(30.00 2007 - 2008
paid as 2008 - 2009
duty under
protest)
75.51 2008 - 2009
2009 - 2010
132.60 2008 - 2009
2009 - 2010
73.05 Aug'2009 to
Name of the Forum where the dispute is pending
Statute
Commissioner of Income Tax
(Appeals)-I, Kolkata.
High Court
Income Tax Act,
1961 Deputy Commissioner/Additional
Commissioner of Income Tax-
Circle-3 Kolkata.
Deputy Commissioner/Additional
Commissioner of Income Tax- Circle 3
Kolkata
Sr. Joint Commissioner of Commercial
Taxes, Dharmtala Circle.
Sr. Joint Commissioner of Commercial
Taxes, Dharmtala Circle.
Sr. Joint Commissioner of Commercial
W.B.VAT Act, 2003 Taxes, Dharmtala Circle.
Sr.J oint Commissioner of Commercial
Taxes, Dharmtala Circle.
Joint Commissioner of Commercial
Taxes, Durgapur Circle
Sr. Joint Commissioner of Commercial
Taxes, Dharmtala Circle.
Sr. Joint Commissioner of Commercial
W.B.VAT Act, 2003 Taxes, Dharmtala Circle.
Sr. Joint Commissioner of Commercial
Taxes, Dharmtala Circle.
The finance Act, Commissioner Appeal IV
1944
Joint Commissioner, Central Excise,
Bolpur Commissionerate
Directorate General of Central Excise
Intelligence, Kolkata
Commissioner of Central
Excise- Bolpur
The Central Excise Additional Commissioner, of Central
Act, 1944 Excise, & Service Tax, Durgapur
Joint Commissioner, Central Excise,
Bolpur Commissionerate
Joint Commissioner, Central Excise,
Bolpur Commissionerate
Joint Commissioner, Central Excise,
Bolpur Commissionerate
Joint Commissioner, Central Excise,
(c) During the year Company has transferred to Investor Education and
Protection Fund Rs. 0.24 Lacs pertaining to share application money for
the year 2007.
(viii) The Company does not have accumulated losses at the end of the
financial year but has incurred cash losses amounting to Rs. 11,962.29
Lacs during the financial year ended 31.03.2015 and Rs. 4,684.58 Lacs
in the immediately preceding financial year.
(ix) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to the financial
institutions or banks.
(x) The Company has not given any guarantee for loans taken by others
from banks or financial institutions during the year.
(xi) In our opinion and according to the information and explanations
given to us, the term loan have been applied for the purpose they were
obtained.
(xii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For R. Kothari & Company
Chartered Accountants
FRN : 307069E
Manoj Kumar Sethia
Place: Kolkata Partner
Date : 31.05.2015 Membership No. 064308
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