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Vesuvius India Ltd.

BSE: 520113 Sector: Engineering
NSE: VESUVIUS ISIN Code: INE386A01015
BSE 15:41 | 27 Mar 2018 Vesuvius India Ltd
NSE 05:30 | 01 Jan 1970 Vesuvius India Ltd
OPEN 1296.90
PREVIOUS CLOSE 1254.10
VOLUME 30
52-Week high 1486.10
52-Week low 1091.00
P/E 26.41
Mkt Cap.(Rs cr) 2,568
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1296.90
CLOSE 1254.10
VOLUME 30
52-Week high 1486.10
52-Week low 1091.00
P/E 26.41
Mkt Cap.(Rs cr) 2,568
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Vesuvius India Ltd. (VESUVIUS) - Auditors Report

Company auditors report

TO THE MEMBERS OF VESUVIUS INDIA LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Vesuvius India Limited("the Company") which comprise the Balance Sheet as at 31 December 2015 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in india including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143 (10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumtances but not for the purpose of expressing an opinionon whether the Company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31December 2015 and its profit and its 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 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extend applicable.

2. As required by section 143 (3) of the Act report that:

(a) We have sought and obtained all the information and explanation which to the bestof 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 theCompany so far as it appears from our examination ofthose books;

(c) The Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid Financial statements comply with Accounting Standardsspecified 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 31December 2015 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 December 2015 from being appointed as a director in terms ofsection164 (2) of the Act;

(f) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements - refer note 26 (a) to the financial statement;

(ii) The Comany did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

(iii) There were no delays in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For BSR& Co. LLP
Chartered Accountants
Firm's Registration No. 101248W/W-100022
Jayanta Mukhopadhyay
Place: Kolkata Partner
Date : February 26 2016 Membership No. 055757

Annexure to the Auditors’ Report

(REFERRED TO IN OUR REPORT OF EVEN DATE)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation offixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of three years. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. In accordance with this programmecertain fixed assets were physically verified by the management and no materialdiscrepancies were noticed on such verification.

(ii) (a) The inventory except goods-in-transit has been physically verified by themanagement during the year. In ouropinion the frequency ofsuch verification isreasonable.

(b) The procedures for the physical verification of inventories followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business.

(c) The Company is maintaining proper records of inventory. No material discrepancieswere noticed on physical verification between the physical stocks and the book records.

(iii) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under Section 189 of the Act.Accordingly paragraph 3 (iii) of the Order is not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us andhaving regard to the explanation that purchases of certain items of inventories and fixedassets are for the Company's specialised requirements and suitable alternative sources arenot available to obtain comparable quotations there is an adequate internal controlsystem commensurate with the size of the Company and the nature of its business withregard to purchase of inventories and fixed assets and with regard to the sale of goodsand services. We have not observed any continuing failure to correct major weakness in theinternal control system.

(v) The Company has not accepted any deposit from the public in accordance with theprovision of section 73 to 76 of the Act and rules framed thereunder.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government for maintenance of cost records undersection 148(1) of the Act in respect of the products manufactured by the Company and areof the opinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made detailed examination of the records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees' StateInsurance Income-tax Sales-tax Value added tax Wealth tax Service tax Customs dutyExcise duty Cess and other material statutory dues have been regularly deposited duringthe year by the Company with appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of Provident FundEmployees' State Insurance Income-tax Sales-tax Value added tax Wealth tax Servicetax Customs duty Excise duty Cess and other material statutory dues were in arrears asat 31 December 2015for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofWealth tax which have not been deposited with the appropriate authorities on account ofany dispute.

According to the information and explanations given to us the following dues ofIncome-tax Sales-tax Value added tax Service tax Customs duty Excise duty Cess andEntry tax have not been deposited with the appropriate authorities on account ofdisputes:

Name of the statute Nature of the dues Amount (Rs in lakhs) Period to which amount relates Forum where dispute is pending
Income Tax Act1961 Disallowances arising in income tax proceedings (Net of deposit of Rs. 12867 lakhs) 952 Assessment years 1997-98 to 2010-11 Hon'ble High Court of Calcutta Income Tax Appellate Tribunal Commissioner of Income Tax (Appeals)
Central Excise Act1944 Disallowance of Cenvat Credit 256 2006 to 2014 Additional Commissioner Assistant Commissioner Commissioner (Appeals) Central Excise and Service Tax Appellate Tribunal Supreme Court of India
Central Excise Act 1944 Non-payment of Excise Duty on Service charges and Machine hire charges 108 2000 Central Excise and Service Tax Appellate Tribunal
Central Excise Act 1944 Penalty for delayed payment of differential excise duty for supply of goods under Advance Intermediate licence. 20 June 1999 to April 2000 Central Excise and Service Tax Appellate Tribunal
Customs Act 1962 Classification of High Alumina Cement 31 2005 to 2011 Central Excise and Service Tax Appellate Tribunal
Finance Act 1994 Non / short payment of service tax 12 2006-2008 Central Excise and Service Tax Appellate Tribunal
Central Sales Tax Act 1956 Non-submission of declaration form. (Net of deposit of Rs. 106 lakhs) 2053 2002-03 2005-06 2008-092009-10 2010-112011-12 Commissioner (Appeals) Sales Tax Appellate Tribunal Hon'ble High Court of Calcutta
State Sales Tax Act 2003 Disallowance of Input credit (Net of deposit of Rs. 99 lakhs) 173 2005-06 2006-07 2010-112011-12 Commissioner (Appeals) Supreme Court
The West Bengal Tax on entry of Goods into Local Areas Act 2012 Entry Tax 230 June 2013 to December 2015 Hon'ble High Court of Calcutta

(c) According to the information and explanations given to us the amount which wererequired to be transferred to Investor Education and Protection Fund in accordance withthe relevant provisions of the Companies Act 1956 (1 of 1956) and rules made thereunderhas been transferred to such fund within time.

(viii) The Company does not have any accumulated losses at the end of the financialyear and has not incurred cash losses in the financial year and in the immediatelypreceding financial year.

(ix) According to the information and explanations given to us the Company has neithertaken any loan from financial institution or bank nor has it issued any debentures duringthe year.

(x) According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from banks orfinancial institutions.

(xi) According to the information and explanations given to us the Company did nothave term loans outstanding during the year.

(xii) According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the year.

For BSR& Co. LLP
Chartered Accountants
Firm's Registration No. 101248W/W-100022
Jayanta Mukhopadhyay
Place: Kolkata Partner
Date : February 26 2016 Membership No. 055757