| I have audited the accompanying financial statements of ENSA STEEL
INDUSTRIES LIMITED, which comprise the Balance Sheet as at 30th June,
2015, the Statement of Profit & Loss, the Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
2. Management's Responsibility for the 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 financial statements that give a true and
fair view of the financial position, financial performance and Cash
Flow 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 the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the Company and
for preventing and detecting the 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 internal financial control, 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.
3. Auditor's Responsibility
My responsibility is to express an opinion on these financial
statements based on my audit.
I 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.
I conducted my audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that I 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 financial control relevant to the Company's
preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements. I believe that the
audit evidence I have obtained is sufficient and appropriate to provide
a basis for my audit opinion on the financial statements.
4. Opinion
In my opinion and to the best of my information and according to the
explanations given to me, the aforesaid financial statements give the
information required by the Companies Act, 2013 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 30th June, 2015, and its loss and its Cash
Flows for the year ended on that date.
5. 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, I give in The
Annexure statement on the matters specified in paragraphs3and4 of the
Order.
2. As required by section 143(3) of the Act, I report that:
a) I have sought and obtained all the information and explanations
which to the best of my knowledge and belief were necessary for the
purposes of my audit.
b) In my opinion proper books of account as required by law have been
kept by the Company so far as appears from my examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In my opinion, the aforesaid 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 written representations received from the directors
as on 30th June, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 30th June, 2015, from being
appointed as a director inters 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 & Auditors)
Rules, 2014, in my opinion and to the best of my information and
according to the explanations given to me:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The company did not have any material foreseeable losses on long
term contracts including derivative contracts.
iii. There were no amounts which were required to be transferred, to
the Investor Education and Protection Fund by the Company.
Referred to in paragraph 1 under Report on other Legal and Regulatory
Requirements of my Report of even date to the members of Ensa Steel
Industries Limited on the accounts as at and for the period ended 30th
June, 2015
(i). (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Fixed assets have been physically verified by the management based
on a phased program of verification of all the assets during the year,
which in my opinion is reasonable having regard to the size of the
company and the nature of its business. No material discrepancies were
noticed on such verification.
(ii) In respect of the inventories of the company:
(a) As explained to me, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In my opinion and according to the information and explanations
given to me, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In my opinion and according to the information and explanations
given to me, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) The Company has not granted any secured or unsecured loans to any
company or party covered in the register maintained under section 189
of the Companies Act, 2013.
(iv) According to the information and explanations given to me, there
are adequate internal control procedures commensurate with the size of
the company and nature of its business for the purchase of inventory
and fixed assets and sales of Goods and Services.
(v) The Company has not accepted any deposits from public and does not
have any unclaimed deposits.
(vi) The provision of clause 3(vi) of the order are not applicable to
the company as the company is not Covered by the Companies (Cost Record
and Audit)Rules, 2014.
(vii) (a) According to the records of the company, the company has been
regular in depositing with appropriate authorities, Undisputed
statutory dues including Provident Fund, Income tax, Sales tax, Wealth
tax, Service Tax, Custom duty, Cess and other statutory dues,
applicable to the company.
(b) According to the information and explanations given to me, no
undisputed amounts payable in respect of such statutory dues were
outstanding as at the 30th June, 2015 for a period of more than six
months from the date they became payable.
(c) The amount required to be transferred to Investor Education &
Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956(1of1956) and rules made there under has been
transferred to such fund within time.
(viii) The Company does not have any accumulated losses at the end of
the financial year. However the company has incurred cash losses during
the financial year covered by my audit and in the immediately preceding
financial year.
(ix) The Company has not obtained any loans from banks or financial
institution and not issued any debentures, hence the clause is not
applicable.
(x) The Company has not given guarantees for loans taken by others from
banks or financial institutions.
(xi) According to the information and explanations given to me, the
company did not avail any term loan during the year.
(xii) To the best of my knowledge and belief and according to the
information and explanations given to me, no fraud by the company and
no material fraud on the company has been noticed or reported during
the year.
For and on behalf of
For H. S. Hathi & Co.
Firm Reg. No. 103596W
Chartered Accountants
Hemant S. Hathi
Place : Mumbai
Membership No. 37109
Date : 27th August, 2015 Proprietor |