You are here » Home » Companies » Company Overview » Accel Transmatic Ltd

Accel Transmatic Ltd.

BSE: 517494 Sector: IT
NSE: N.A. ISIN Code: INE258C01020
BSE 10:31 | 19 Feb 3.20 0.15
(4.92%)
OPEN

3.20

HIGH

3.20

LOW

3.20

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 3.20
PREVIOUS CLOSE 3.05
VOLUME 4140
52-Week high 6.40
52-Week low 2.53
P/E
Mkt Cap.(Rs cr) 4
Buy Price 3.20
Buy Qty 2360.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.20
CLOSE 3.05
VOLUME 4140
52-Week high 6.40
52-Week low 2.53
P/E
Mkt Cap.(Rs cr) 4
Buy Price 3.20
Buy Qty 2360.00
Sell Price 0.00
Sell Qty 0.00

Accel Transmatic Ltd. (ACCELTRANS) - Auditors Report

Company auditors report

To The Members Accel Transmatic Limited Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Accel TransmaticLimited ('the Company') which comprise the Balance Sheet as at 31 March 2017Statement of Profit and Loss and the Cash flow Statement for the year then ended and asummary of the signi cant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

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. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for 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 e ectively 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

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

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 there under.

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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 control 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of a airs of the Companyas at 31 March 2017 and its Profit and its cash flows for the year ended on that date.

Emphasis of Matter

(i) We draw attention to Note No.10.6. As stated therein the management expects thevalue in use based on estimated future cash flows for the Intellectual Property Rightsamounting to Rs. 30892761/- carried in the books as Intangible assets to be not lessthan its carrying amount. Hence no adjustment for impairment is made in the books ofaccount. The pattern/quantum of the cash flows would however depend upon crystallizationof enquiries received by the company.

(ii) As stated in Note No.4.1 the Company has suffered cash loss from its operationsduring the year. The Net worth of the Company has been fully eroded as at the BalanceSheet date. The Current Liabilities as at the yearend exceeds the Current Assets byRs.11146448/-. This read with the matters stated in para (i) above raises seriousdoubt about the ability of the Company to continue as going concern.

(iii) Also as stated in Note No.24.9 the proposal for merger with the holding companyis pending approval from concerned authorities.

Our report is not modified in this respect.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by thefficentral Government of India in terms of sub-section(11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified in theparagraph 3 and 4 of the Order to the extent applicable.

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 bestof 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 theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss and the Cash flow Statementdealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) The matters described in the sub para i & ii of Emphasis of Matter paragraphabove in our opinion may have an adverse e ect on the functioning of the Company;

(f) On the basis of the written representations received from the directors as on31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017from being appointed as a director in terms of Section164(2) of the Act; and

(g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating e ectiveness of such controls refer to ourseparate report in "Annexure B".

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements-Refer Note-24.6 to the standalone financialstatements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses; and

(iii) There has been no delay in transferring amounts required to be transferred tothe Investorfieducation and Protection Fund by the Company.

The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management Refer Note No. 15.1 toFinancial Statements.

For Varma & Varma
Chartered Accountants
FRN. 004532S
Place : Chennai P.R Prasanna Varma
Date : 25 May 2017 Partner
M.No. 25854

ANNEXURE 'A' REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING REPORT ON "OTHER LEGALAND REGULATORY REQUIREMENTS" OF OUR INDEPENDENT AUDIT REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF ACCEL TRANSMATIC LIMITED FOR THE YEAR ENDED 31.03.2017

(i) a. The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b. We are informed that fixed assets have been physically verified by the Management atreasonable intervals and that no material discrepancies were noticed on such verification.

c. According to the information and explanations given to us and based on theexamination of the records of the company and also having regard to the con rmationreceived from banks in respect of title deeds deposited with them wherever applicable andalso legal opinion received in a case we report that the title deeds of immovableproperties are held in the name of the company.

(ii) We are informed that the physical verification of inventory has been conducted bythe management at reasonable intervals and no material discrepancies were noticed on suchverification.

(iii) The Company has not granted any loans secured or unsecured to companies/ rms orother parties covered in the register maintained under section 189 of the Companies Act2013 and hence the relative reporting requirements under Clause 4 (iii) of the Order isnot commented upon.

(iv) According to the information and explanations given to us and based on the recordsof the company examined by us the company has not made any investments granted any loansor given any security or guarantee for which the provisions of section 185 and 186 of theAct are applicable.

(v) The company has not accepted any deposit from the public during the year. Inrespect of deposits accepted by the company in the earlier years and repaid during thecurrent year the company has complied with the directives issued by the Reserve Bank ofIndia and the provisions of Section 73 to 76 or any other relevant provisions of the Actand the rules framed there under.

(vi) To the best of our knowledge and according to the information and explanationsgiven to us thefficentral Government has not prescribed the maintenance of cost recordsunder Section 148 (1) of the Act for the company.

(vii) a. As per the information and explanations furnished to us there are delays indepositing undisputed statutory dues including provident fund employee's state insuranceincome tax sales tax service tax duty of excise value added tax cess and othermaterial statutory dues as applicable to the Company with the appropriate authoritiesduring the year and there are no undisputed amounts payable in respect of income taxwealth tax sales tax customs duty excise duty material statutory dues were in arrearsas at 31 March 2017 for a period of more than six months from the date they becamepayable except as given below:

Name of the Statue Nature Amount (Rs.)
IT Act1961 Income tax 1790633
Finance Act1991 Service tax 66052
PT ActTN Professional tax 10828
Provident Fund Act1952 Provident fund 3812

b. According to the information and explanations given to us and based on the recordsof the Company examined by us the particulars of dues of income tax sales tax servicetax duty of customs duty of excise and value added tax that have not been deposited onaccount of any dispute as at 31.03.2017 are as follows:

Nature of dues Amount Period to which the amount relates Forum where the dispute is pending
(Rs in lakhs)
Income Tax 136.11 AY 2008-09 to AY 2010-11 Income Tax Appellate Tribunal Kochi
Service Tax 15.79 AY 2005-07 CESTAT Bangalore
Customs Duty 0.16 AY 2010-11 Honorable High Court

(viii)In our opinion and according to the information and explanations given to us andthe records of the Company examined by us the Company has not defaulted in repayment ofloans to the banks except in case of Asset backed loan availed from banks during the yearwhich have been belatedly settled as given below:

Month Due(Installment + Interest) Repayment Due date Payment date Delay
Mar'16 1152677 1152677 4/1/2016 5/5/2016 34
Apr-16 1134328 2285005 5/1/2016 5/25/2016 24
May-16 1141069 1171069 6/1/2016 7/11/2016 40
Jun-16 1121542 1121542 7/1/2016 8/18/2016 48
200000 8/1/2016 8/24/2016 23
800000 8/1/2016 8/26/2016 25
50000 8/1/2016 8/26/2016 25
Jul-16 1132203 82203 8/1/2016 9/26/2016 56
417797 9/1/2016 9/26/2016 25
700000 9/1/2016 10/5/2016 34
Aug-16 1125822 8025 9/1/2016 10/18/2016 47
Sep-16 1101768 1091975 10/1/2016 10/18/2016 17
Oct-16 1104644 1104644 11/1/2016 1/3/2017 63
Nov-16 1088972 1088972 12/1/2016 1/25/2017 55
Dec-16 1105596 1105596 1/1/2017 1/25/2017 24
Jan-17 1093235 1094671 2/1/2017 3/30/2017 57
Feb-17 1043409 975329 3/1/2017 3/30/2017 29
Total 13276518

(ix) According to the information and explanations given to us and based on the recordsof the Company examined by us no monies were raised by way of initial public offer orfurther public offer (including debt instruments) or by way of term loans during the yearand hence relative reporting requirements under clause 3 (ix) of the Order are notcommented upon.

(x) During the course of our examination of the books and records of the companycarried out in accordance with generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstances of material fraud by the company or on the company by its officers or employeeswhich has been noticed or reported during the year nor have we been informed of any suchcase by the management.

(xi) According to the information and explanations given to us and based on the recordsof the Company examined by us managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

(xii) The Company is not a Nidhi Company. Accordingly the reporting requirements underclause 3 (xii) of the Order are not applicable.

(xiii)According to the information and explanations given to us and based on therecords of the Company examined by us transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and the details there ofhave been duly disclosed in Note 24.4 to the standalone financial statements as requiredby the applicable accounting standard.

(xiv)According to the information and explanations given to us and based the records ofthe Company examined by us the company has not made any preferential allotment/privateplacement of shares or fully or partially convertible debentures during the year underreview and hence the requirements of Section 42 of the Act are not Applicable.

(xv) According to the information and explanations given to us and based the records ofthe Company examined by us the company has not entered into any non-cash transactionswith directors or persons connected with the directors. Accordingly the reportingrequirements under clause 3 (xv) of the Order is not applicable.

(xvi)According to the information and explanations given to us and the records of theCompany examined by us the company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Accordingly the reporting requirement underclause 3 (xvi) of the Order is not applicable.

For Varma & Varma
Chartered Accountants
FRN. 004532S
Place : Chennai P.R Prasanna Varma
Date : 25 May 2017 Partner
M.No. 25854

ANNEXURE 'B' REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING "REPORT ON OTHERLEGAL AND REGULATORY REQUIREMENTS" OF OUR INDEPENDENT AUDIT REPORT OF EVEN DATE ONTHE STANDALONE FINANCIAL STATEMENTS OF ACCEL TRANSMATIC LIMITED FOR THE YEAR ENDED 31MARCH 2017

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

We have audited the internal financial controls over financial reporting of AccelTransmatic Limited ("the Company") as of March 31 2017 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 e ectively for ensuring the orderly and e cient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' 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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated e ectively 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 operating eectiveness. 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 e ectiveness 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 su cient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material e ect 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 tofferror 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 in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating e ectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Varma & Varma
Chartered Accountants
FRN. 004532S
Place : Chennai P.R Prasanna Varma
Date : 25 May 2017 Partner
M.No. 25854