| Report on the financial statements
We have audited the accompanying financial statements of Kamper Concast
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss for the year then ended,
and a summary of significant accounting policies and other explanatory
information.
Management's Responsibility for the Financial Statements:
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act") read with the General Circular 15/2013
dated 13th September, 2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India. 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;
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 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 entity'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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements read with, subject
to note no. 13(1) for non provision of doubtful debts, 15(4) for non
provision of deferred Tax Assets / liabilities, note no. 16(1)(1)
relating to non provision of excise duty Of Rs. 265.47 lacs, note no.
16(1)(2) relating to non provision of Excise duty of Rs. 328.13 lacs,
note no. 16(2) relating to non Electricity bills of Rs. 8,283.79 lacs,
note no. 16(3) relating to non provision of Income tax liability of
Rs.154.72 lacs, and other notes appearing there on, 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 31,2014;
b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date;
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor's Report) Order, 2003
("theOrder") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure
' 1', a statement on the matters specified in paragraphs 4 and 5 of theOrder.
2. As required by section 227(3) of the Act, we report 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 appears from our examination of those
books
c) The Balance Sheet and the Statement of Profit and Loss, dealt with
by this Report are in agreement with the books of account.
d) in our opinion, the Balance Sheet and the Statement of Profit and
Loss comply with the Accounting Standards notified under the Act read
with the General Circular 15/2013 dated 13 th September, 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013.
e) On the basis of written representations received from the directors
as on March 31, 2014, 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 clause (g) of sub-section (1) of
section 274 of the Act.
Annexure: A
Referred to in paragraph 3 of our report of even date.
(i) (a) Whether the company is maintaining The company has maintained
proper records showing full proper records showing
particulars, including full particulars,including
quantitative details and quantitative details and
situation of fixed assets. situation of fixed assets.
(b) Whether these fixed assets As explained to us, the
have been physically verified fixed assets have been
by the management at reasonable physically verified by the
intervals;whether any material management during the year
discrepancies were noticed on at regular intervals,
such verification and if so, which in our opinion is
whether the same have been reasonable,having regard
properly dealt with in the to the size of the Company
books of account. and nature of its assets.
No material discrepancies
were noticed on such
physical verification.
(c) If a substantial part of fixed
assets,have been disposed No substantial part of
off during the year,whether it fixed assets have been
has affected the going concern. disposed off during the
year.
(ii)(a)Whether the physical verification The stock of Raw Materials
of inventory has been conducted and Finished Goods has
at reasonable intervals by the been physically verified
management. during the year by the
management at regular
intervals.In our opinion,
the frequency of
verification is
reasonable.
(b) Are the procedures of physical In our opinion and
verification of inventory according to the
followed by the management is information and
reasonable and adequate in explanation given to us,
relation to the size of the the procedures of physical
company and nature of its verification of inventory
business?If not, the followed by the management
inadequacies in such are reasonable and adequate
procedures should be reported. in relation to the size of
the company and the nature
of its business.
(c) Whether the company is maintaining The company is maintaining
proper records of inventory and proper records of
whether any material discrepancies inventories.The
were noticed on physical discrepancie noticed on
verification and if so, whether verification between the
the same have been properly dealt physical stocks and the
with in the books of accounts. book records were not
material and the same have
been properly dealt with
in the books of account.
(iii)
(a) Has the company either granted or The company had granted
taken any loans, secured or loan/advances to companies,
unsecured to/from companies, firms firms or parties listed in
or other parties covered in the the Register maintained
register maintained u/s 301 of the under section 301 of the
act. If so, give the number of Companies Act, 1956. The
parties and amount involved number of parties are seven
in the and the amount involved in
these trasaction is Rs
(b) Whether the rate of interest and The loan / advances granted
other is interest terms and is interest free. As no
conditions of loans given specific terms and
or taken by the company, conditions on which loan
unsecured or unsecured, are have been taken from
prima facie prejudicial to companies, firms or
the interest of the company. parties listed in the
registers maintained under
section 301 of the
Companies Act, 1956 are
made available to us, so
we are unable to comment
on the effect on the
interest of the company
(c) Whether the payment of principal As explained to us, no
amount and interest are also fixed period is stipulated
regular. for payment of principal
amount. However, parties
to whom the Company had
granted loans / advances
are blocked and not
repaying the loan amount
and no provision for
doubtful debts has been
made in this regard.
(d) If overdue amount is more than As no fixed period was
one lakh.whether reasonable stipulated in the case
steps have been taken by the of loan granted, it is not
company for recovery/payment possible to comment on its
of the principal and interest. repayment obligation &
overdue amount as referred
to in 'a' above.
(iv) Is there an adequate internal In our opinion and
control procedure commensurate according to the
with the size of the company information and provided
explanations and nature of its by the management, there
business, For the purchase of are adequate internal
inventory and fixed assets and control procedures
for the sale of goods? Whether commensurate with the size
there is a continuing failure of the company and the
to correct major weakness in nature of its business,
the internal control. with regard to purchases of
inventory and fixed assets
and with regard to sale
of goods and services.
However, there is further
scope of improvement.
(v) (a) Whether transaction that need According to the
to be entered into a register information and
in pursuance of section 301 explanations given to us,
of the act have be we are of the opinion that
so entered. the particulars of
contracts or arrangements,
that needto be entered
into register maintained
under section 301 of
Companies Act,1956 have
been so entered.
(b) Whether each of these Based on the information
transaction have been made explanation given
at prices which are and to us, we are of the
reasonable having regard to opinion that the
the prevailing market prices transactions made in
at the relevant time, pursuance of Contracts or
agreements entered in the
register-rnaintained under
section 301of the companies
Act, 1956 and exceting the
value ofrupees five lacs in
respect of any party during
the year have been made at
reasonable prices, having
regard to the prevailing
market price at the
relevant time.
(vi) In case of company accepted
deposits from the public,
whether the directives issued
by the reserve bank of india
and the provisions of sections No, during the period of
58A and 58AA of the act and audit the company does not
the rules trained there under, accepted deposits from the
where applicable, have been public.
complied with. If not the
nature of contravention
should be stated. If an order
has been passed by the company
law board whether the same has
been complied with or not
(vii) In case of listed companies and
/or other companies having paid
-up capital and reserves
exceeding Rs 50 lakhs as at the In our opinion the internal
commencement of the financial audit system as entorced
year concerned, or having during the year was
an average annual turnover commensurate with the size
exceeding five crores rupees and nature of the Companys
for a period of three business, however, there is
consecutive financial further scope for
years immediately preceeding improvement,
the financial year concerned,
whether the company has an
internal audit system
commensurate with the size
and nature of its business.
(viii) Where the maintainance of cost The Central Government has
records has been prescribed by prescribed maintenance of
the central government under cost records under Section
clause (d) of sub - section 209(1 )(d)of the Companies,
209 (1) (d) of the act. Whether Act 1956 in respect of
such accounts and records have certain manufacturing
been made and maintained. activity of the Company. We
have broadly reviewed the
accounts and records of the
Company in this connection
and are of the opinion,
that prima facie,the
prescribed accounts and
records have been made and
maintained. We have not,
however, made a detailed
examination of the same.
(ix) Is the company regular in According to the records of
depositing undisputed statutory the Company, undisputed
dues including provident fund, statutory dues including
investor educationand protection Provident fund, Investor
fund, employees state insurance, Education and Protection
income - tax, sales tax, wealth fund, Employees State
- tax, custom duty, excise duty, Insurance, Income tax,
ccss and any other statutory Sales tax, Wealth tax
dues as with the appropriate Service Tax, Custom duty,
authorities and if not, the Excia duty,Cess and any
extent of the arrears of other statuory dues have
outstanding statutory dues as been generally deposited
at the last day of the financial with the appropriate
year concerned for a period more authorities. According to
than six months from the date they information and
become payable, shall be indicated explanations given to us,no
by the auditor. (BIFR Case) undisputed amounts payable
in respect of the aforesaid
dues were outstanding as at
31st March 2014, for a
period of more than six
months from the date of
they becoming payable,
except in the case of the
following disputed
statutory dues that have
not been deposited on
account of matters pending
before appropriate
authorities. These dues are
as under.
Name of the Nature of Amount Amou Period to Forum Where
Statute Dues Disputed (Rs. nt Paid which the dispute
In Lacs) (Rs. In amount is pending
Lacs) relates
Central compoun
Excise Ding duty 530.94 - 1997-00 Commissio-
Department ner Central
Excise,
Patna
Case No. O-IN-O.NO-25-28 MP/COMMR. DENOVO/2001/DT-1 1.09.2001
Central Clandesti
Excise ne removal 328.13 20.00 2000-02 Cestat,
Department of goods Kolkata
Case No. 0-IN-O 04/DENOVO/AAYUKT/2008/DATED-31.03 .2008
BSEB Electric 957.47 45.00 1999-00 Honb'l
Bill for Patna
the power High
cut period Court
Case No. CWJC 12 53 8-99-00
Cabinet Excess
Vigilance Capacity 7326.32 - 2000-05 Honb'l
Department of furnace Patna
High
Court
Case no. CWJC 11 4/06
Income Tax Scrutiny
Department Proceedings 154.72 - 1997-98 Commiss
ioner IT
Appeal
Case No. ITA-220/A- 1-2005-06
(b) In case dues of sales tax/
income tax/custom tax/wealth
tax / excise duty/cess have
not been deposited on account
of any dispute, then the
amounts involved and the As mentioned above
forum where dispute is pending
may please be mentioned.
(x) Whether in case of company which The company has been
has been registered for a period registered for a period
not less than five years, its more than live years add
accumulated losses at the end of its accumulated loss at the
the financial year are not end of the financial year
lessthan fifty percent of its is in excess of fifty net
percent of its net worth and worth. The Company has
whether it has incurred cash accumulated loss of
losses in such financial year Rs. 1244.13lacs (Previous
and in the financial year Year Rs. 713.81 lacs)
immediately preceeding such at the end of the financial
financial year also year ending 31st March
2014. The Company has
incurred cash loss of
Rs.531.22 lacs during the
current financial year.
(xi) Whether the company has Based on our audit
defaulted in repayments of dues procedures and according
to a financial institutions or to information and
Bank or debenture holders If yes, explanations given to us,
the period and amount of default we are of the opinion that
to be reported. the company has not
defaulted in repayment of
dues to
(xii) Whether adequate documents and
records are maintained in cases In our opinion and according
where the company has granted to the information and
loans and advances on the basis explanations given to us,
of security by the way of pledge the company has not granted
of shares, debentures and other any loans and advances on
securities; if not. The the basis of security by
deficiencies to be pointed out. way of pledge of shares
and other securities.
(xiii) whether the provisions of The company is not a chit
any special statue applicable fund company and does not
to chit fund have been duly have any nidhi/mutual
complied benefit fund/ Society.
So, the provision of clause
4(xiii) of the Companies
(Auditor's Report)
(Amendment) Order,
2004 are not applicable.
(xiv) If the company is dealing or
trading in shares, securities,
debentures and other investments
whether proper records have been The company is not dealing
maintained of the transactions or trading in shares,
and contracts and whether timely securities,debentures and
entries have been made therein ; other investments.
also whether the shares, Accordingly, the provision
securities, debentures and of clause 4(xiv) of the
other securities have been held Companies (Auditor s Report)
by the company, in its own name (Amendment) Order, 2004 are
except to the extent of not applicable,
exemption, if any, granted under
section 49 of the act.
(xv) whether the company has given According to the information
any guarantee for loans taken and explanation provided by
by others from bank or financial the management, the Company
institutions, the terms and has given corporate
conditions whereof are guarantee for loans taken by
prejudicial to the interest of City Rolling Mills Pvt.Ltd.,
the company. a related party, For Rs.
423.28 Lacs from State
bank of India.
(xvi) Whether the term loans were
applied for the purpose for
which the loans were obtained. Not Applicable
(xvii) Whether funds raised on According to the information
short-terms basis have been and explanations given to us
used for long- term investment and on an overall
and vice - versa. If yes, examination of the Cash Flow
the nature and amount is to be Statement and Balance Sheet
indicated. of the Company, we are of
the opinion that no funds
raised on short-term
basis have been used for
long term investment.
(xviii)Whether the company has made
any preferential allotment of The company has not made
shares to parties and companies preferential allotment of
covered in the register shares to parties, covered
maintained under section in the register maintained
301 of the act, and if so under section 301 of the
whether the price at which the Companies Act, 1956.
shares have been issued is
prejudicial to the interest of
the company.
(xix) Whether securities have been The company has not issued
created in respect of debentures any debentures during the
issued year
(xx) Whether the management has
disclosed on the end use of The Company has not raised
money by public issues and the money through public issue
same has been verified. during the year.
(xxi) Whether any fraud on or by the Based upon the audit
company has been noticed on procedures and information
reported during the year.If yes, and explanation given by
the nature and the amount the the management, we
involved is to be indicated. report that no fraud on or
by the Company has been
noticed or reported during
the course of our audit.
For SINGHANIAAGRAWAL & CO.
Chartered Accountants
New Dak Bunglow Road, Patna. FRN No. 005527C
The 21st day of August, 2014
S.C.Agrawal, M.No.- 072510
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