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Abhishek Corporation Ltd.

BSE: 532831 Sector: Industrials
NSE: ABHISHEK ISIN Code: INE004I01017
BSE LIVE 15:15 | 23 May 2.20 -0.11
(-4.76%)
OPEN

2.20

HIGH

2.20

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2.20

NSE 00:00 | 26 Apr Stock Is Not Traded.
OPEN 2.20
PREVIOUS CLOSE 2.31
VOLUME 550
52-Week high 2.40
52-Week low 0.95
P/E
Mkt Cap.(Rs cr) 4
Buy Price 2.20
Buy Qty 1550.00
Sell Price 2.40
Sell Qty 3401.00
OPEN 2.20
CLOSE 2.31
VOLUME 550
52-Week high 2.40
52-Week low 0.95
P/E
Mkt Cap.(Rs cr) 4
Buy Price 2.20
Buy Qty 1550.00
Sell Price 2.40
Sell Qty 3401.00

Abhishek Corporation Ltd. (ABHISHEK) - Auditors Report

Company auditors report

To The Members of Abhishek Corporation Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Abhishek CorporationLimited ("the Company") which comprise the Balance Sheet as at March 312016 the Statement of Profit and Loss for the year then ended and the Cash Flow Statementfor the year then ended and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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.

Auditors' 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 accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour 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:

a. In the case of the Balance Sheet of the state of affairs of the Company as at March31 2016; and

b. In the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c. In the case of the Cash Flow Statement of the Cash Flows for the year ended on thatdate.

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 ofthe Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 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 ourknowledge 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 theCompany so far as appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss and 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 the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts)Rule2014.

e. On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2016 from being appointed as a director in terms of Section164(2) of the Act.

f. With respect to the other matters included in the Auditor's Report and to our bestof 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 1(13) to the financial statements.

ii) The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii) There were no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Shrikant & Co.
Chartered Accountants FRN : 110186
Shrikant Shirdhonkar
Date :May 10 2016 Proprietor
Place: Kolhapur M. No. 015703

Annexure 1 as referred to in paragraph (1) under the heading "Reporting on OtherLegal and Regulatory Requirements" of our report on even date of Abhishek CorporationLimited for the year ended on 31/03/2016

(i) In respects to fixed assets:-

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The fixed Assets have been physically verified by the management at reasonableintervals. No material discrepancies were noticed on such verification by the management.

c. The title deeds of immovable properties other than self constructed properties asdisclosed in Note 8 on fixed assets to the financial statements are held in the name ofthe company including the leasehold properties held by the company.

(ii) The inventory has been physically verified by the management at regular intervalsand the discrepancies noticed on such physical verification of inventory compared to bookrecords were not material.

(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 Companies Act2013.

(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loans or provided any guarantees or security to the partiescovered under Section 185 and Section 186.

(v) During the year under review the company has not accepted any amount by way ofDeposits pursuant to provisions of section 73 to 76 or any other relevant provisions ofthe Companies Act & the rules framed there under.

(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 Companies Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained.

(vii) In respects statutory dues :-

a. According to the information and explanation given to us the company is regular indepositing with appropriate authorities undisputed statutory dues including providentfund Income Tax Wealth Tax Sales Tax Purchase Tax Custom Duty Excise Duty CessEntry Tax & Service Tax Value added taxes Cess and any other statutory dues exceptfollowing dues which are due since more than six months but still not paid.

i. Tax Deducted At Source 4699420/-
ii. Provident Fund 5899729/-
iii. Professional Tax 2528350/-

b. The disputed statutory dues have not been deposited on account of disputed matterspending before appropriate authorities as on March 31 2016 are as under:-

Sr. No. Name of the Statute Nature of Dues Amount (Rs.) Period to which the amount relates Forum where dispute is pending
1 Central Excise Excise duty 1570662/- May 10 to Jun-11 CESTAT
2 Central Excise Custom Duty 8828839/- Jan-06 to 0ct-09 CESTAT
3 Central Excise Excise & Custom Duty 48044348/- Aug-09 to Apr-14 CESTAT
4 Service Tax Service Tax 7351370/- Oct-07 to Mar-12 CESTAT
5 Central Excise Excise/Custom Duty 3750661/- Mar-00 to Jun-02 CESTAT
6 EPF &MP Act 1952 PF interest & Damages 18032097/- Apr-96 to Nov-14 EPF appellate Tribunal
7 Income Tax Act1961 Income Tax * A.Y 06-07 & A.Y 07-08 ITAT

* The Company is not in a position to exactly quantify the amount of liability as theorder of the AO giving effect to the ITAT order is not yet received.

The company has not considered any interest and penalties while considering the abovefigures except for sr. no. 6 where the amount itself is in relation to penalty andinterest.

(viii) The company has defaulted in repayment of the loans as are mentioned in Note 4aand Note 6a of the Balance Sheet. However dispute lies between the company and thelenders in terms of the amount of repayment as well as the other terms of repayment.Considering the same we are of the opinion that the repayment of these loans are defaultedsince the withdrawal of CDR i.e. 24-2-2012(date of withdrawal of CDR) however thewithdrawal of CDR itself is disputed.

(ix) The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans. Accordingly the provisions ofClause 3(ix) of the Order are not applicable to the Company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor we have been informed of any such case by theManagement.

(xi) The Company has paid/provided for managerial remuneration wherever applicable inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

(xii) As the Company is not a Nidhi Company and the Nidhi Rules 2014 are notapplicable to it the provisions of Clause 3(xii) of the Order are not applicable to theCompany.

(xiii) The Company has entered into transactions with related parties in compliancewith the provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard (AS) 18 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies(Accounts) Rules 2014.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly the provisions of Clause 3(xiv) of the Order are not applicable to theCompany (Accounts) Rules 2014.

xv) According to the information and explanations given to us the Company has notentered into non-cash transactions with any of the directors/ person connected with thedirector during the year.

xvi) The Company is not required to be register under Section 45-IAof the Reserve Bankof India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For Shrikant & Co.
Chartered Accountants FRN : 110186
Date :May 10 2016 Shrikant Shirdhonkar
Place: Kolhapur Proprietor
M. No. : 015703

Annexure 2 to the Independent Auditor's Report of even date on the FinancialStatements of Abhishek Corporation Limited for the year ended on 31/03/2016

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AbhishekCorporation Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany'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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has maintained in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 312016 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Shrikant & Co.
Chartered Accountants FRN : 110186
Date :May 10 2016 Shrikant Shirdhonkar
Place: Kolhapur Proprietor
M. No. : 015703