To the Members of M/s. ANUP MALLEABLES LIMITED Report on the Ind As Financial
Statements
We have audited the accompanying Ind As financial statements of M/s. Anup Malleables
Limited, which comprise the Balance Sheet as at 31s1 March, 2018, the
Statement of Profit and Loss (including other comprehensive Income), statement of cash
flow and statement of change in Equity for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys 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 Ind As financial statement that give a true and fair view of the financial position,
financial performance including other comprehensive income , cash flow and changes in
equity of the Company in accordance with accounting principles generally accepted in
India, including the Indian Accounting Standards (Ind As) specified under Section 133 of
the Act, read with Rule 7 of the Companies (Ind As standards) Rules, 2015 as amendend .
This responsibility also includes maintenance of adequate accounting record in accordance
with the provisions of the Act for safeguarding of 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 the design, implementation and maintenance of adequate 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 Ind As 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 Ind As financial statements based
on our audit. We have taken into ccount 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 of the
Ind As financial statements in accordance with the Standards on Auditing, issued by the
Institute of Chartered Accountants of India, as specified under Section 143(10) of the
Act. Those Standards require that we comply with the ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the Ind As financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the Ind As financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
Ind As financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal financial control relevant to the
Companys preparation and fair presentation of the Ind As financial statements that give a
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 the Companys
Directors, as well as evaluating the overall presentation of the Ind As 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 Ind As financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the Ind As 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 31st
March, 2018, its Profit including other comprehensive income , its cash flows and
the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, we give in the Annexure A, a statement on the matters specified in the paragraph
3 and 4 of the order.
2. 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, Statement of Profit and Loss (including other comprehensive
income), the statement of Cash Flow and the Statement of changes in equity dealt with by
this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid Ind As financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with companies (Ind
As)Rules,2015, as amended.
(e) On the basis of written representations received from the directors as on 31st
March, 2018 and taken on recoid bv the Board of Directors, none of the directors is
disqualified as on 31st March, 2018 from being appointed as a director in terms of section
164(2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company with reference to these Ind As financial statements and the
operating effectiveness of such controls, refer to our separate report in "Annexure
B"; and
(g) With respect to the other matters to be included in the Auditors Report 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 has disclosed the pending litigation which would impact its its Ind As
financial position in note No. 39(b).
ii) The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii) There are no amounts which are required to be transferred to the Investor
Education and Protection Fund by the Company.
|
For A.K. Saraf & Company, |
|
Chartered Accountants, |
|
Firm Regn. : 325864E |
| 50, Weston Street, |
|
| Kolkata - 700 012. |
|
|
CA. Kk. Saraf |
| Dated the 4th day of July, 2018. |
Partner |
|
M. No. 055428 |
Annexure - A to the Auditors Report
Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory
Requirements of our Report of even date to the members of M/s. Anup Malleables Limited
on the accounts of the company for the year ended 31st March, 2018.
i) (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, fixed assets have been physically verified by the management
during the year in accordance with the phased program of verification adopted by the
management which, in our opinion, provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and explanations given to us,
no material discrepancies were noticed on such verification.
(c) All the title deeds of all immovable properties are in the name of the company.
Building has been constructed by the company.
ii) (a) As explained to us, the inventories of finished goods, semi-finished goods,
stores, spare parts and raw materials were physically verified at regular intervals/ (at
the end of the year) by the Management.
(b) In our opinion and according to the information and explanation given to us, 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 our opinion and according to the information and explanations given to us, the
Company has maintained proper records of its inventories and no material discrepancies
were noticed on physical verification of stocks as compared to book records.
iii) According to the information and explanations given to us, the Company has not
granted unsecured loans to companies, firm, Limited liability partnerships or other
parties covered in the register maintained under section 189 of Act. Therefore, the
provisions of clause 3(iii),(iii) (a) (iii) (b) and (iii) (c) of the said order are not
applicable to the company.
iv) The company has not granted any loans or provide any guarantees or security any
party during the year. Hence provision of section 185 &, 186 of the Act are not
applicable to the company
v) The company has not accepted any deposits within the meaning of sections 73 to 76 of
the Act and the companies (Acceptance of deposits) Rules , 2014 (as amended). Accoringly ,
the provisions of clause 3(v) of the order are not applicable to the company.
vi) As informed to us, the Central Government has not prescribed maintenance of cost
records under sub-section (1) of Section 148 of the Act, in respect of the activities
carried on by the Company.
vii) (a) According to the records of the company and information and explanations given
to us, the Company has generally been regular in depositing undisputed statutory dues,
including Provident Fund, employees state insurance (ESI), Investor Education and
Protection Fund, Income-tax, Tax deducted at sources, Tax collected at source,
Professional Tax, Sales Tax, value added tax (VAT), Goods & services Tax (GST) Wealth
Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it, with the appropriate authorities. However there were some minor delays.
No undisputed statutory dues were outstanding as at 31 March, 2018 for a period of more
than six months from the date they became payable.
(b) The particulars of dues of income tax as at March 31, 2018 which have not been
deposited on account of a dispute, are as follows
| Name of the statute |
Nature of dues |
Amount (Rs.) |
Amount paid under protest (Rs.) |
Period to which the amount relates |
Forum where the dispute is pending |
| The Income Tax Act, 1961 |
Income tax |
4,48,770 |
|
A.Y. 2012-13 |
Dy. Commissioner of Income Tax (Appeal) |
| The Income Tax Act, 1961 |
Income tax * |
69,17,436 |
|
A.Y. 2014-15 |
Commissioner of Income Tax (Appeal) |
viii) Based on our audit procedures and according to the information and explanations
given to us, we are of the opinion, the company has not defaulted in repayment of dues to
a financial institution, bank, Government or dues to debenture holders.
ix) According to the information and explanations given to us, during the year the term
loan has been raised by the Company and the same has been applied by the Company for the
purposes for which they were obtained.
x) To the best of our knowledge 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
reported during the year.
xi) Company has not paid any managerial remuneration during the year.
xii) The company is not a Nidhi Company hence this clause is not applicable.
xiii) According to the information and explanations given to us, the transaction with
related parties has been entered as per arms length price and therefore the provisions of
section 188 are not applicable. However provision of subsection 177 are applicable and are
duly complied with.
xiv) During the year the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures and hence reporting under
clause(xiv) of Paragraph 3 of the Order is not applicable to the Company.
xv) The company has not entered into any non-cash transactions with directors or
persons connected with him.
xvi) The company is not required to be registered under section 45-1A of the Reserve
Bank of India Act, 1934.
|
For A.K. Saraf & Company, |
|
Chartered Accountants, |
|
Firm Regn TY 325864E |
| 50, Weston Street, Kolkata - 700 012. |
|
|
CA. A.K Saraf |
| Dated the 4th day of July, 2018. |
Partner |
|
M. No. 055428 |
Annexure - B to the Auditors Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of M/s.
Anup Malleables Limited as of 31st March, 2018 in conjunction with our audit of the
standalone financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls. These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to
companys policies, the safeguarding of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICA1 and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance 168 Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects. Our audit
involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our
audit of internal financial controls over financial reporting included obtaining an
understanding of internal financial controls over financial reporting, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditors judgement, including the assessment of the risks of material
misstatemept of the financial statements, whether due to fraud or error. We believe that
the audit evidence I/we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the Companys internal financial controls system over financial
reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31-Mar-2018.
|
For A.K. Saraf & Company, |
|
Chartered Accountants, |
|
Firm Regr/1325864E |
| 50, Weston Street, |
|
| Kolkata - 700 012. |
|
|
CA. A.K. Saraf |
| Dated the 4th day of July, 2018. |
Partner |
|
M. No. 055428 |
+91-9892691696
