VISA Steel Limited Annual Report 2007-08

VISA Steel Limitedauditor’s reportTO THE BOARD OF DIRECTORS OF VISA STEEL LIMITEDON THE CONSOLIDATED FINANCIAL STATEMENTSVISA Steel Limitedauditor’s reportTO THE BOARD OF DIRECTORS OF VISA STEEL LIMITEDON THE CONSOLIDATED FINANCIAL STATEMENTS1. We have audited the attached Consolidated Balance Sheet of VISA Steel Limited (‘the Company’) and its subsidiary(‘the Group’) as at 31 March 2008, the Consolidated Profit and Loss Account for the year ended on that date annexedthereto and the Consolidated Cash Flow Statement for the year ended on that date, which we have signed underreference to this report. These consolidated financial statements are the responsibility of the Company’s management.Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit.2. We conducted our audit in accordance with generally accepted auditing standards in India. Those Standards requirethat we plan and perform the audit to obtain reasonable assurance whether the Consolidated Financial Statementsare free of material misstatements. An audit includes, examining on a test basis, evidence supporting the amounts anddisclosures in the Consolidated Financial Statements. An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overall Consolidated Financial Statementspresentation. We believe that our audit provides a reasonable basis for our opinion.3. We report that:The re-appointment and remuneration amounting to Rs. 4.51 Million for one of the Whole Time Directors of the HoldingCompany with effect from 15 December 2007 is subject to the approval of shareholders of the Company.4. We did not audit the financial statements of the subsidiary and joint venture, whose financial statements reflect totalassets of Rs. 18.68 Million as at 31 March 2008 and total revenues of Rs. 0.24 Million and total net cash outflow of Rs.1.43 Million for the year then ended. The financial statements of the subsidiary have been audited by other auditorswhose report has been furnished to us, and our opinion, in so far as it relates to the amounts included in respect ofthe subsidiary, is based solely on the report of the other auditors and in so far as it relates to the amounts included inrespect of the joint venture, is based solely on the accounts, which are not audited, prepared by the management of theCompany for the internal management reporting purposes to assess the performance of the joint venture.6. On the basis of the information and explanation given to us and on the consideration of the separate audit report onindividual audited financial statements of the Company and its aforesaid subsidiary and unaudited financial statementsof joint venture prepared by the Company as stated in paragraph 3 above and subject to our remarks in paragraph 4above, in our opinion the Consolidated Financial Statements give a true and fair view in conformity with the accountingprinciples generally accepted in India:(a) in the case of the Consolidated Balance Sheet, of the state of affairs of the Group as at 31 March 2008;(b) in the case of the Consolidated Profit and Loss Account, of the results of operations of the Group for the yearended on that date; and(c) in the case of the Consolidated Cash Flow Statement, of the cash flows of the Group for the year ended on thatdate.Partha MitraPartnerMembership Number 50553For and on behalf ofPlace: KolkataLovelock & LewesDate: 28 May 2008Chartered AccountantsAnnual Report 2007-085. We report that the Consolidated Financial Statements have been prepared by the Company in accordance with therequirements of Accounting Standard 21, Consolidated Financial Statements and Accounting Standard 27, FinancialReporting of Interest in Joint Ventures issued by the Institute of Chartered Accountants of India and on the basis of theseparate audited financial statements of the Company and its Subsidiary and unaudited financial statements of jointventure prepared by the Company included in the Consolidated Financial Statements.91