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Accel Frontline Ltd.

BSE: 532774 Sector: IT
NSE: AFL ISIN Code: INE020G01017
BSE LIVE 15:40 | 09 Dec 61.35 1.75
(2.94%)
OPEN

59.95

HIGH

62.00

LOW

59.95

NSE LIVE 15:28 | 09 Dec 61.20 1.75
(2.94%)
OPEN

59.65

HIGH

62.50

LOW

59.60

OPEN 59.95
PREVIOUS CLOSE 59.60
VOLUME 5540
52-Week high 92.85
52-Week low 37.20
P/E
Mkt Cap.(Rs cr) 182.58
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 59.95
CLOSE 59.60
VOLUME 5540
52-Week high 92.85
52-Week low 37.20
P/E
Mkt Cap.(Rs cr) 182.58
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Accel Frontline Ltd. (AFL) - Auditors Report

Company auditors report

To the Members of Accel Frontline Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of AccelFrontline Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2015 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation in which are incorporated the returns for the year ended on that date auditedby the branch auditors of the Company's branch at Singapore.

Management's Responsibility for the Standalone Financial Statements

2. 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 (as amended). This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act; safeguarding the assetsof the Company; preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. 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.

5. 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 standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment 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 controls 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 circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

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

Basis for Qualified Opinion

8. As disclosed in note 20 (a) of the financial statements during the year theCompany has recognised revenue from operations amounting to Rs.397 lakhs however in ouropinion such recognition does not meet the conditions enunciated under AS 9 - 'RevenueRecognition'. Had the Company followed the principles of AS 9 the revenue from operationsand the changes in inventories of stores and spares and stock in trade for the year ended31st March 2015 would have been lower by Rs.397 lakhs and Rs.368 lakhsrespectively. The loss from ordinary activities after tax would have been higher by Rs.29lakhs and tax expense would be lower by Rs.9 lakhs for the year ended 31stMarch 2015. Further the trade receivables as at 31st March 2015 would belower by Rs.397 lakhs and the inventories would be higher by Rs.368 lakhs as at that date.

9. Further as disclosed in note 16(a) of the financial statements the Company'sinventory comprise of certain items carried at Rs.3044 lakhs as at 31st March2015 wherein due to reasons mentioned in the aforesaid note the management is unable tocompute the value of inventory in accordance with the Company's accounting policy andrequirements of Accounting standard (AS) 2 - Valuation of Inventories. Owing to the natureof the Company's records and in the absence of sufficient appropriate evidence we areunable to comment on the impact of the aforesaid matter on the changes in inventories ofstock-in-trade and store and sparesfor the year ended 31st March 2015 and thecarrying value of inventories as at 31st March 2015 and the consequentialimpact if any on the financial statements.

Qualified Opinion

10. In our opinion and to the best of our information and according to the explanationsgiven to us except for the effect / possible effects of the matters described in theBasis for Qualified Opinion paragraph the aforesaid standalone financial statements givethe information required by the Act in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2015 and its loss and itscash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

11. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

12. As required by Section 143(3) of the Act we report that:

a. we have sought and except for the possible effects of the matters described in theBasis for Qualified Opinion paragraph 9 obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

b. except for the possible effects of the matters described in the Basis for QualifiedOpinion paragraph 9 in our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those booksand properreturns adequate for the purposes of our audit have been received from the branches notvisited by us;

c. the report on the accounts of the branch office of the Company audited under Section143(8) of the Act by the branch auditors have been sent to us and have been properly dealtwith by us in preparing this report;

d. the standalone financial statements dealt with by this report are in agreement withthe books of account and with the returns received from the branches not visited by us;

e. except for the effects / possible effects of the matters described in the Basis forQualified Opinion paragraph in our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014 (as amended);

f. on the basis of the written representations received from the directors as on 31stMarch 2015 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in termsof Section 164(2) of the Act;

g. the qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion paragraph;

h. 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. as detailed in note 39 to the standalone financial statements the company hasdisclosed the impact of pending litigations on its standalone position of the Company

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
per Sumesh E S
Place: Chennai Partner
Date: 05th May 2015 Membership No.: 206931

Annexure to the independent Auditor's Report of even date to the members of AccelFrontline Limited on the financial statements for the year ended 31st March2015

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:

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

(b) The Company has a regular program of physical verification of its fixed assetsunder which fixed assets are verified in a phased manner every year which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(ii) (a) The management has conducted physical verification of inventory at reasonableintervals during the year except for goods-in-transit and stocks lying with thirdparties. For stocks lying with third parties at the year-end written confirmations havebeen obtained by the management.

(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) The Company is maintaining proper records of inventory except that due to thereasons mentioned the note 16(a) to the financial statements the new software is not ableto generate the details with respect to the issue of inventory in a chronological manner.No material discrepancies between physical inventory and book records were noticed onphysical verification

(iii) The Company has granted interest free unsecured loans to companies covered in theregister maintained under Section 189 of the Act; and with respect to the same:

(a) as the terms and conditions of the said loan are not stipulated we are unable tocomment as to whether the receipt of the principal amount is regular; and

(b) in the absence of stipulated terms and conditions we are unable to comment as towhether there is any overdue amount in excess of '. one lakh and whether reasonable stepshave been taken by the Company for recovery of the principal amount and interest.

(iv) In our opinion there is an adequate internal control system commensurate with thesize of the Company and the nature of its business for the purchase of inventory and fixedassets and for the sale of goods and services. During the course of our audit no majorweakness has been noticed in the internal control system in respect of these areas.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) To the best of our knowledge and belief the Central Government has not specifiedmaintenance of cost records under sub-section (1) of Section 148 of the Act in respect ofCompany's products/ services. Accordingly the provisions of clause 3(vi) of the Order arenot applicable.

(vii) (a) Undisputed statutory dues including provident fund employees' stateinsurance income- tax sales-tax wealth tax service tax duty of customs duty ofexcise value added tax cess and other material statutory dues as applicable havegenerally been regularly deposited with the appropriate authorities though there has beena slight delay in many cases. Further no undisputed amounts payable in respect thereofwere outstanding at the year-end for a period of more than six months from the date theybecame payable.

Annexure to the Independent Auditor's Report of even date to the members of AccelFrontline Limited on the financial statements for the year ended 31st March2015

(b) The dues outstanding in respect of income-tax sales-tax wealth tax service taxduty of customs duty of excise value added tax and cess on account of any dispute areas follows:

Rs. in lakhs

Name of the Statute Nature of Dues Amount Amount paid under protest Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Tax and Interest 570 - 2005-06 2006-07 and 2007-08 Income Tax Appellate Tribunal hennai Branch Chennai
Income Tax Act 1961 Tax and Interest 332 - 2010-11 and 2011-12 Commissioner of Income Tax (Appeals) Chennai
Finance Act 1994 Tax and Penalty 6 - 2007-08 and 2008-09 Customs Excise and Service TaxAp- pellate Tribunal Chennai
Customs and Excise Act 1964 Tax and Penalty 411 - 2014-15 Director of Revenue Intelligence (DRI)
Kerala VAT Act 2003 Tax and Interest 44 35 2007-08 Deputy Commissioner(Appeals)
Uttar Pradesh VAT Act 2008 Tax and Interest 1 - 2002-03 Trade Tax TribunalLucknow UP
West Bengal VAT Act 2003 Tax and Interest 3 - 2001-02 2003-04 and 2004-05 Asst. Commissioner Park Street Charge Kolkata
West Bengal VAT Act 2003 Tax and Interest 6 - 2006-07 Appellate &Revisional Board Kolkata
West Bengal VAT Act 2003 Tax and Interest 9 - 2007-08 and 2010-11 Joint. Commissioner Park Street Charge Kolkata
Jharkhand VAT Act 2005 Tax and Interest 1 - 2007-08 Joint. Commissioner Jharkand
Odisha VAT Act 2004 Tax and Interest 0 - 2011- 12 and 2012- 13 CST Deputy Commercial Tax OfficerOdisha
Odisha VAT Act 2004 Tax and Interest 10 - 2011- 12 and 2012- 13 VAT Deputy Commercial Tax Officer Odisha

*Amounts below rounding off norm adopted by the Company is shown as Rs.0'

Annexure to the independent Auditor's Report of even date to the members of accel

Frontline Limited on the financial statements for the year ended 31stmarch 2015

(c) The Company has transferred the amount required to be transferred to the investoreducation and protection fund in accordance with the relevant provisions of the CompaniesAct 1956 (1 of 1956) and rules made thereunder within the specified time.

(viii) In our opinion the Company has no accumulated losses at the end of thefinancial year and it has not incurred cash losses in the current and the immediatelypreceding financial year.

(ix) The Company has not defaulted in repayment of dues to any bank or financialinstitution during the year. The Company did not have any outstanding debentures duringthe year.

(x) In our opinion the terms and conditions on which the Company has given guaranteefor loans taken by others from banks or financial institutions are not prima facie prejudicialto the interest of the Company.

(xi) In our opinion the Company has applied the term loans for the purpose for whichthese loans were obtained.

(xii) No fraud on or by the Company has been noticed or reported during the periodcovered by our audit.

For Walker Chandiok & Co LLp
Chartered Accountants
Firm's Registration No.: 001076N/N500013
per Sumesh E S
Place: Chennai Partner
Date: 05th May 2015 Membership No.: 206931

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