| We have audited the accompanying standalone financial statements of
METKORE ALLOYS & INDUSTRIES LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, the Profit and Loss Statement, Cash
flow statement for the year then ended, and a summary of 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 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.
AUDITORS' 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 misstatements.
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
controls system over financial repor ting 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.
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 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.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS :
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 Profit and Loss Statement, 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
Repor t 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 does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
iii. There has not been an occasion in case of the Company during the
year under repor t to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
Reports under The Companies (Auditor's Report) Order, 2015 (CARO 2015)
CARO 2015 Report on the standalone financial statement of METKORE
ALLOYS & INDUSTRIES LIMITED for the year ended March 31, 2015.
To the Members of METKORE ALLOYS & INDUSTRIES LIMITED
We refer to our repor t on the standalone financial statements of
METKORE ALLOYS & INDUSTRIES LIMITED (the Company) for the year ended
March 31, 2015 issued on May 25, 2015. The Gazette version of the
Companies (Auditor's Report) Order, 2015 (CARO 2015) was not available
in the Official Gazette of India on the date of our report.
Accordingly, our report does not contain an Annexure on the matters
specified in paragraphs 3 and 4 of CARO 2015.
Subsequent to the issuance of our report dated May 25, 2015, CARO 2015
has been published in the Official Gazette of India. While it is not
obligatory on our part to issue our repor t on the matters specified in
paragraphs 3 and 4 of CARO 2015, based on the discussions with the
Company, as a measure of good governance, we give hereinafter a
statement on the matters specified in paragraphs 3 and 4 of CARO 2015.
This may be treated as an Annexure to our aforesaid Report on
standalone financial statements for the year ended March 31, 2015.
i. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
ii. In respect of its inventories:
a) The inventories have been physically verified during the year by the
management. 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 verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As per the
information and explanation given to us, no material discrepancies were
noticed on physical verification.
iii. The company has not granted any loans, secured or unsecured,
companies, firms or other par ties covered in the register maintained
under Section 189 of the Companies Act, 2013. iv. In our opinion and
according to the information and explanations given to us, the Company
has an adequate internal control system commensurate with its size and
the nature of its business for the purchase of inventory and fixed
assets and for the sale of goods and services.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in such internal control system.
v. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (v) of paragraph 3 of the CARO 2015 are not
applicable to the Company. vi. We have broadly reviewed the cost
records maintained by the Company pursuant to the Companies (Cost
Records and Audit) Rules, 2014 prescribed by the Central Government
under Section 148(1)(d) of the Companies Act, 2013 and are of the
opinion that, prima facie, the prescribed accounts and cost records
have been maintained. We have, however, not made a detailed examination
of the cost records with a view to determine whether they are accurate
or complete. vii. In respect of statutory dues:
a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, duty of Customs, Duty of Excise, Value
Added Tax, Cess and other material statutory dues have been generally
regularly deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at March 31, 2015
for a period of more than six months from the date of becoming payable.
b) Details of dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
duty of Customs, Duty of Excise, Value Added Tax, Cess which have not
been deposited as on March 31, 2015 on account of disputes are given
below:
S.
No. Name of the Statute Nature of
Dues Amount Period to which the amount
(Rs. in Lacs) relates Forum where dispute
is pending
01. Sales Tax 3.51 S.T.A.T for the year 1998-99
02. Sales Tax 6.25 High court for the year
1996-97
TOTAL 9.76
c) According to the records of the Company, there are no amounts that
are due to be transferred to the Investor Education and Protection Fund
in accordance with the relevant provisions of the Companies Act, 1956
(1 of 1956) and rules made there under.
viii. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
ix. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions, banks and
debenture holders.
x. The Company has not given any guarantees for loans taken by others
from banks and financial institutions.
xi. The Company has not raised any loans during the year. The loans
outstanding at the beginning of the year and those raised during the
year have been applied for the purposes for which they were raised.
xii. In our opinion and according to the information and explanations
given to us, no fraud by the Company and no material fraud on the
Company has been noticed or repor ted during the year.
For Nekkanti Srinivasu & Co
Char tered Accountants
Firm Regn. No.008801S
Place : Hyderabad CA N Srinivasu
Date : 25th May, 2015 PARTNER, | 