1. We have audited the accompanying financial statements of Ranjeev
Alloys Limited, which comprises the Balance Sheet as at March 31, 2013,
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 management is responsible for the preparation of these
financial statements that give a true and Fairview of the financial
position, financial performance and cash flows of the company in
accordance with the accounting principles generally accepted in India
including accounting standards referred to in section 211(3C) of the
Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control 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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 misstatements.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedure selected depend upon 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. An audit also includes evaluating the
appropriateness of accounting polices used and the reasonableness of
the accounting estimates made by management, 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.
Opinion
6. In our opinion and to best of our information and accounting to the
explanations given to us, the aforesaid financial statements to 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 March 31,2013;
b) In the case of the statement of Profit and Loss, of the profit 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.
Report on other Legal and Regulatory Requirements
7. The Companies (Auditor's Report) Order, 2003 issued by Central
Government of India in terms of section 227(4A) of the Act, we give in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the order.
8. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanation 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 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 Balance Sheet, the statement of Profit and Loss, and
the Cash Flow Statement comply with the Accounting Standards referred
to in section 211(3C)of the Act;
e) On the bases of the written representations received from the
directors as on March 31,2013, taken on record by the board of
directors, none of the directors is disqualified as on March 31,2013,
from being appointed as a director in terms of Section 274(1 )(g) of
the Act.
As required by the Companies (Auditor's Report) Order, 2003 issued by
Central Government of India in terms of sub-section 227(4A) of the Act,
we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the order.
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets, b) The management has certified that it has conducted a
physical verification of the fixed assets at reasonable interval, which
in our opinion is reasonable, having regards to the size of the company
and nature of its assets. No material discrepancies have been noticed
on such verification,
c) During the year, the company has not disposed off any further
remaining fixed asset and the going concern status of the company is
affected substantially as manufacturing business has already ceased to
exist in previous year and further Iron & Steel trading has been done
at a very low ebb.
2. a) As explained to us, there are no inventories with the company
during the current relevant year & as such physical verification is
inapplicable.
b) The procedures of physical verification of inventories followed by
the management is also applicable in absence of the inventories.
c) Maintenance of proper records of inventories and its physical
verification is also inapplicable in absence of any inventory. Further
proper records and physical verification have duly been maintained in
case of a very small purchase and sales made by the company.
3. a) There is only one person covered in the registered maintained
under section 301 of the company Act 1956 to which the company has
granted the advance.
The maximum amount involved during the year was Rs.61acs & the year end
balance of such loans/advances granted including already granted
advances to two persons in previous year stands at Rs. 18.55lacs.
b) In our opinion and according to the information and explanation
given to us, the rate of interest and the terms and conditions of such
loans granted are prime facie, prejudicial to the interest of the
company as no interest has been charged on the advances given to stated
persons.
c) The company is not regularly receiving the principal amount and
interest thereon.
d) Overdue amount of loan granted to companies, firms or other parties
listed in the register maintained under section 301 of company's Act
1956 stands at Rs. 18.55lacs which is still standing to be received.
e) The company has taken loan from one company during the year covered
in the registered maintained under section 301 of companies Act, 1956
The maximum amount involved during the year was Rs.33.40acs & the year-
end balance of this loan stands at Rs.33.401acs.
(f) In our opinion and according to the information and explanation
given to us, the rate of interest and the terms and conditions of such
loans taken are not prime facie, prejudicial to the interest of the
company as no interest has been allowed on the loans taken.
(g) The company is not regular in repaying the principal amount as
stipulated and have been regular in payment of interest wherever
interest has been allowed on these loans.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control system commensurate
with the size of the company and nature of business with regards to
purchase of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
system.
5. a) According to the information and explanations given to us, we
are of the opinion that particular of contracts or arrangement referred
to in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section, if any,
b) In our opinion and according to the information and explanation
given to us, the transaction made in pursuance of contracts or
arrangement entered in the register maintained under section 301 of
companies Act, 1956 and exceeding the value of Rupees five laces in
respect of any party during the year have been, made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time, if any
6. In our opinion and according to the information and explanation
given to us, the company has complied with the provisions of section 58
A and 58AA of the companies Act, 1956 and the companies (Acceptance of
Deposits) Rules, 1975 with regards to the deposits accepted from the
public, however, no deposits have been, accepted from the public except
unsecured demand loan raised from the associated company accepted in
ordinary course of business which is still outstanding. No order has
been passed by the Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal.
7. In our opinion, the company has an adequate internal control system
commensurate with the size of the company and nature of business
8. We have broadly reviewed the books of accounts relating to
materials, labor and other
items of cost maintained by the company pursuant to rules made by the
Central Government for the maintenance of cost records under section
207(1 )(b) of the companies Act, 1956 and we are the opinion that the
prime facie the prescribed accounts and records have been made and
maintained.
9. a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees' State Insurance, Family Pension, Administrative Charges &
Linked Insurance Fund, Income tax, Sales Tax, Central Sales Tax, Wealth
Tax, Service Tax, Custom Tax, Excise Duty, Cess and other material
statutory dues applicable to it.
b) according to the information and explanation given to us, no
undisputed amounts payable in respect of aforesaid dues were in arrear,
as at 31st March, 2013, for a period of more than six months from the
date they became payable,
c) According to the information and explanation given to us, there is
no dues of Sales Tax,, Custom duty, wealth tax, service tax, Excise
duty, and cess which have not been deposited on account of any
disputes.
10. In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The company has incurred cash
losses for Rs. 13.55 laces during the financial year covered by our
audit, however, there was cash losses of Rs.26.65lacs in the
immediately preceding financial year.
11. According to the information and explanation given to us, we are
of the opinion that the company has not defaulted in repayment of dues
to a financial institutions. Banks or debenture holders except that the
company has defaulted in making repayment of C/c, BP under LC
development loan pertaining to IDBI as the accounts are in operative
since 23.12.10 and as such, the entire amount of Rs.6.85 Crores under
C/c amount & Rs.5.55 Crores under BP account are payable. Further
interest on the above referred accounts has not been provided as the
accounts are NPA.
12.In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the bases of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the company is not a chit fund or a Nidhi/Mutual
benefit fund/society, Therefore, clause 4(xiii) of the companies
(Auditor's Report) Order, 2003 is not applicable to the company.
14. The company is not dealing in or trading in shares, securities,
debentures and other investments and therefore the question of
maintenances or records in respect of these does not arise.
15. The company has not given any guarantee for loan taken by others
form Bank or financial institutions.
16. In our opinion, no term loan has been raised during the year and
as such its applicability is inapplicable as per information &
explanation given by the management.
17. According to the information and explanation given to us and on an
overall examination of the balance sheet of the company, we report that
no funds raised on short-term basis has been used from long-term
investment.
18. Based on our examination of record and the information provided to
us by management we report that the company has not made preferential
allotment of shares of parties and companies covered in the register
maintained under section 301 of the companies Act, 1956.
19. During the period covered by our audit report, the companies has
not issued debentures and therefore the question of creation of any
security/charge in respect of these debentures does not arise.
20. The company has not raised any money by way of public issue during
the year.
21. Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
FOR M/S S.K. BHALLA & CO.
Chartered Accountants For Ranjeev Alloys Ltd.
(S.K. BHALLA)
Director
Partner PLACE: KHANNA
Membership No:81783 DATED:30.05.2013
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