To The Members,
A & M FEBCON LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of the A & M FEBCON LIMITED
which comprise of the Balance Sheet as at 31st March 2019, the Statement of Profit and
Loss for the year ended, Cash Flow Statement, Statement of changes in equity for the year
ended and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Ind As 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
and presentation of these Ind AS financial statements that give a true and fair view of
the financial position, financial performance and cash flows and changes in equity of the
Company in accordance with the accounting principles generally accepted in India,
including the Indian Accounting Standards specified under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding 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 design, implementation and maintenance of adequate internal financial
controls, 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.
Auditor’s Responsibility
Our responsibility is to express an opinion on these Ind AS 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, as specified u/s 143(10) of the act.
Those Standards require that we comply with 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
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 Ind AS 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 the 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 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.
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: i. in the case of the balance sheet, of the state
of affairs of the Company as at
31st March 2019; ii. in the case of the statement of profit and loss, of the profit for
the year ended on that date. iii. in the case of the statement of Cash Flow, for the year
ended on that date. iv. in the case of change in Equity, for the year ended on that date.
Other Matter:
The comparative financial information of the Company for the year ended 31st March 2018
and the transition date opening Balance Sheet at 1st April 2017 prepared in accordance
with Ind AS included in these Ind AS financial statements have been audited by us and have
expressed an unmodified opinion.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 ("the
Order") issued by the Central Government of India in terms of subsection (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 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, The Statement of Profit and Loss,
The statement of change in equity and The statement of Cash Flow 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 Indian Accounting Standards Specified under Section
133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. on the basis of written representations received from the directors as on 31st March
2019, and taken on record by the Board of Directors, none of the directors is disqualified
as on 31stMarch 2019, from being appointed as a director in terms of Section 164(2) of the
Companies Act, 2013. f. with respect to the adequacy of the internal financial controls
over financial reporting of the Company 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 impact of pending litigations on its financial
position in its financial statements. II. The Company has made provision, as required
under the applicable law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts. III. The Company is not required to
transfer the amount to the Investor
Education and Protection Fund and As per our report of even date
For, Parekh Parekh & Associates
Chartered Accountants
FRN: 132988W
SD/-
CA Sunny P Parekh
Partner
M.No- 131188
Place: Ahmedabad
Date: 30/05/2019
ANNEXURE A TO THE AUDITOR’S REPORT
Referred to in paragraph 1 under the heading Report on other legal and regulatory
requirements’ of our report of even date to the financial statements of the Company
for the year ended on March 31, 2019
Based on the audit procedures performed for the purpose of reporting a true and fair
view on the financial statements of the Company and taking into consideration the
information and explanations given to us and the books of account and other records
examined by us in the normal course of audit, we report that:
(a)We are unable to comment whether Company is maintaining proper records showing full
particulars, including quantitative Details and situation of fixed assets in absence of
documents provided to us and we relied upon management Representation for the same.
(b) These fixed assets have been physically verified by the management at reasonable
Intervals; we have further informed that no material discrepancies were noticed on such
Verification. We have not verified the same and relied upon Management Representation.
(‘c) Title deeds of all immovable properties are held in the name of company
except Industrial Land which the company has taken over from V P Corporation under Slump
Sale Agreement on 29.03.2017. The Process of Name transfer is in process.
(i) (a) Physical verification of inventory has been conducted at reasonable intervals
by the management;
(b) We are unable to comment whether the company is maintaining proper records of
inventory and any material discrepancies in absence of documents provided to us and we
relied upon management Representation for the same.
(ii) The company has not granted any loans, secured or unsecured to companies, firms,
LLP’s or other Parties covered in the register maintained under section 189 of the
Companies Act except those in the nature of contractual obligations.
(iii) The Company has not provided loan, Guarantees and Securities in respect of which
the provisions of Section 185 and 186 of the companies act, 2013 are applicable. The
company has complied with the provision of section 185 and 186 of companies act 2013 with
respect to loan and investment made.
(iv) In our opinion and according to information and management representation given to
us it seems that the company has not taken any deposit pursuant to provision of Section 73
to 76 of the Companies act, 2013, though we have not verified any documents for the same
and relied upon management representation only. However the company has unsecured loan of
Rs. 1,61,68,919/- as on 31st March 2019.
(v) We have broadly reviewed the cost records maintained by the company pursuant to
section 148 of the Companies Act, 2013 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have however not made a detailed
examination of the cost records whether they are complete or accurate.
(vi) (a) Based on the records produced before us the company is regular in depositing
undisputed statutory dues like providend fund, ESIC, income-tax, GST, duty of customs,
duty of excise, value added tax, cess, and any other statutory dues except Income Tax of
Rs. 157110 for the F.Y. 2014-15.
(b) According to information and explanation given to us there is no dues of providend
fund, ESIC, income tax or sales tax or GST or wealth tax or service tax or duty of customs
or duty of excise or value added tax or cess which have not been deposited on account of
any dispute.
(vii) The company has not defaulted in repayment of dues to a financial institution or
bank. We have been informed that the company has not issued any Debenture during the year.
(viii) According to the informations & explanations given to us term loans in the
books of account were used for the purpose it was taken.
(ix) According to the informations & explanations given to us no fraud by the
company or any fraud on the Company by its officers or employees has been noticed or
reported during the year.
(x) Provisions of section 197 read with Schedule V to the Companies Act, 2013 related
to managerial remuneration is applicable to company. The company has not paid managerial
remuneration during the year.
(xi) Provisions specified in Nidhi Rules, 2014 are not applicable to company.
(xii) According to the informations & explanations given to us all transactions
with the related parties are in compliance with sections 177 and 188 of Companies Act,
2013 and the details have been disclosed in the Financial Statements etc., as required by
the applicable accounting standards.
(xiii) According to the informations & explanations given to us the company has not
made preferential allotment or private placement of shares or fully or partly convertible
debenture during the year under review.
(xiv) According to the informations & explanations given to us the company has not
entered into any non-cash transactions with directors or persons connected with him so,
the provisions of section 192 of Companies Act, 2013 are not applicable to company.
(xv) Provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not
applicable to company.
| Place: Ahmedabad |
For, Parekh Parekh & Associates |
| Date: 30/05/2019 |
Chartered Accountants |
|
FRN -132988W |
|
SD/- |
|
CA Sunny Parekh |
|
Partner |
|
M.No- 131188 |
|
Place: Ahmedabad |
|
Date: 30/05/2019 |
ANNEXURE B TO THE AUDITOR’S 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 A & M
Febcon Limited (‘the Company’) as of 31 March 2019 in conjunction with our audit
of the financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (‘ICAI’). 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 the Company’s 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 Company’s 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 ICAI 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 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’ judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Company’s internal financial controls
system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company’s 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 company’s 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
the management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition
of the company’s 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 March 2019, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
| Place: Ahmedabad |
For, Parekh Parekh & Associates |
| Date: 30/05/2019 |
Chartered Accountants |
|
FRN -132988W |
|
SD/- |
|
CA Sunny Parekh |
|
Partner |
|
M.No- 131188 |
|
Place: Ahmedabad |
|
Date: 30/05/2019 |
+91-9892691696
