| Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
PRAKASH STEELAGE LIMITED ('the Company'), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the
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.
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 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.
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 fo r 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 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 March 31, 2015, and its profit and its cash flows for the year ended
on that date.
Emphasis of matter
We draw attention to note no. 40 of the financial statements regarding
non-disclosure of initial disclosures namely total assets, total
liabilities, revenue, expenses, net cash flows and pre-tax profit or
loss in respect of the ordinary activities attributable to the
discontinuing operation and the income tax expense related thereto as
required by Accounting Standard (AS) 24 'Discontinuing Operations' in
respect of proposed transfer of its seamless business. As stated in
aforesaid note, the company is unable to determine the income,
expenses, assets and liabilities clearly attributable to the
discontinued operations and the management is of the view that the
seamless business, a component of the enterprise, cannot be
distinguished operationally and for financial reporting purposes for
the reasons mentioned therein.
Our opinion is not modified in respect of this matter.
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 Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraphs 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 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 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 March 31, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
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 its
financial position in its financial statements - Refer Note 41 to the
financial statements;
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts - Refer Note 42
to the financial statements;
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company - Refer Note 43
to the financial statements.
Annexure to the Independent Auditors' Report
Annexure referred to in paragraph 1 under the heading of 'Report on
Other Legal and Regulatory Requirements' of Independent Auditors'
Report to the members of PRAKASH STEELAGE LIMITED ("the Company") for
the year ended March 31, 2015. We report that:
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of fixed
assets by the management, as informed to us, is at reasonable
intervals, having regard to the size of the Company and the nature of
the assets physically verified. As explained to us no material
discrepancies were noticed on such verification.
(ii) a) Inventory have been physically verified by the management at
reasonable intervals. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical ve rification of inventory
followed by the management are generally 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 explanation
given to us, the Company is maintaining proper records of inventory.
Discrepancies noticed on verification by management between the
physical stocks and the book records were not material and the same
have been properly dealt with in The books of account.
(iii) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act. Therefore, the provisions of clause
3(iii) of Companies (Auditor's Report) Order, 2015 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
purchase of inventory, fixed assets and for sale of goods and services.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in the internal control systems.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits during the year
from the public within the meaning of the provisions of Section 73 to
76 or any other relevant provisions of the Companies Act, 2013 and the
rules made thereunder.
(vi) According to information and explanations given to us, the Company
has maintained books of account and records required to be maintained
pursuant to the rule prescribed by the Central Government for the
maintenance of cost records under section 148(1) of the Companies Act,
2013 and are of the opinion that prima facie the prescribed accounts
and records have been made and maintained. The contents of these
accounts and records have not been examined by us.
(vii) a) Undisputed Statutory dues including Employees' Provident Fund,
Employees' State Insurance (ESIC), Value Added Tax, Central Sales Tax,
Entry Tax, Tax Deducted at Source (TDS), Wealth Tax, Service Ta x and
Profession Tax have generally been regularly deposited with the
appropriate authorities except for dues in respect of income- tax where
considerable delay has been observed in depositing such dues with the
appropriate authorities. According to the information and explanations
given to us, there were no undisputed statutory dues which have
remained outstanding as at March 31, 2015 for the period of more than
six months from the date they became payable.
b) According to the information and explanations given to us, and the
records examined by us, the dues in respect of Sales-Tax, Income-Tax,
Duty of Customs, Wealth-tax, Service Tax, entry tax, Value Added Tax,
Central Sales Tax, Duty of Excise, Cess as at March 31, 2015 that have
not been deposited with the appropriate authority on account of any
disputes and the forum where the dispute is pending are as under:
c) According to the information and explanations given to us, there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and rules
made thereunder.
Sr. Name of Nature of Financial Year
No. the Statute the Dues to which
amount relates
1 Bombay Sales Sales Tax 1994-95
Tax Act
2 Bombay Sales Sales Tax 1995-96
Tax Act
3 Central Sales Central 1995-96
Tax Act Sales Tax
4 Central Sales Central 2009-10
Tax Act, 1958 Sales Tax
5 Maharashtra Maharashtra 2009-10
VAT Act, 2002 Value Added Tax
6 Maharashtra Maharashtra 2005-06
VAT Act, 2002 Value Added Tax
7 Central Sales Central Sales 2005-06
Tax Act, 1958 Tax
8 Maharashtra Maharashtra 2008-09
VAT Act, 2002 Value Added Tax
9 Central Sales Central Sales 2008-09
Tax Act, 1958 Tax
10 Central Excise Cenvat Credit April 2007 to
Act,1944 & Penalty August 2009
Name of the Statute Amount Forum where dispute
(Rs.) is Pending
Bombay Sales Tax Act 79,202/- Dy. Comm. Sales Tax (Appeal)
IV, Mumbai
Bombay Sales Tax Act 59,317/- Dy. Comm. Sales Tax (Appeal)
IV, Mumbai
Central Sales Tax Act 2,85,360/- Dy. Comm. Sales Tax (Appeal)
IV, Mumbai
Central Sales Tax Act 42,53,968/- Joint Comm. Sales Tax (Appeal)
IV, Mumbai
Maharashtra VAT
Act, 2002 1,07,56,527/- Joint Comm. Sales Tax (Appeal)
IV, Mumbai
Maharashtra VAT
Act, 2002 1,14,78,701/- Joint Comm. Sales Tax (Appeal)
IV, Mumbai
Central Sales Tax
Act, 1958 1,25,90,800/- Joint Comm. Sales Tax (Appeal)
IV, Mumbai
Maharashtra VAT
Act, 2002 3,76,000/- Joint Comm. Sales Tax (Appeal)
IV, Mumbai
Central Sales Tax
Act, 1958 3,82,78,500/- Joint Comm. Sales Tax (Appeal)
IV, Mumbai
Central Excise
Act, 1944 17,23,624/- Customs Excise & Service Tax
Appellate Tribunal, Ahmedabad
(viii) The Company has no accumulated losses at the end of the
financial year and has not incurred cash loss in the current financial
year or in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank.
(x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xi) In our opinion and according to the information and explanation
given to us, the term loans raised during the year have been applied
for the purpose for which they were raised.
(xii) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on the
Company or by the Company has been noticed or reported during the
course of our audit.
FOR KHANDELWAL JAIN & CO. FOR BATLIBOI & PUROHIT
Chartered Accountants Chartered Accountants
Firm's Registration No. 105049W Firm's Registration No. 101048W
sd/- sd/-
(NARENDRA JAIN) (R.D.HANGEKAR)
PARTNER PARTNER
Membership No. 048725 Membership No. 030615
Place: Mumbai
Date: May 30, 2015
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