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Adhunik Metaliks Ltd.

BSE: 532727 Sector: Metals & Mining
NSE: ADHUNIK ISIN Code: INE400H01019
BSE LIVE 15:40 | 09 Dec 7.34 0.10
(1.38%)
OPEN

7.30

HIGH

7.50

LOW

7.10

NSE LIVE 15:31 | 09 Dec 7.35 0.15
(2.08%)
OPEN

7.10

HIGH

7.40

LOW

7.05

OPEN 7.30
PREVIOUS CLOSE 7.24
VOLUME 16276
52-Week high 16.60
52-Week low 5.77
P/E
Mkt Cap.(Rs cr) 90.65
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.30
CLOSE 7.24
VOLUME 16276
52-Week high 16.60
52-Week low 5.77
P/E
Mkt Cap.(Rs cr) 90.65
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Adhunik Metaliks Ltd. (ADHUNIK) - Auditors Report

Company auditors report

TO THE MEMBERS OF ADHUNIK METALIKS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of ADHUNIK METALIKSLIMITED ("the Company") which comprise the Balance Sheet as at 30th June 2015the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda summary of significant 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 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 effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation of thefinancial 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 thereunder.

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 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.

We believe that the audit evidence obtained by us and the audit evidence obtained bythe other auditors in terms of their reports referred to in the Other Matters paragraphbelow is sufficient and appropriate to provide a basis for our audit opinion on thestandalone 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 affairs of the Companyas at 30th June 2015 and its loss and its cash flows for the year ended on that date.

Emphasis of Matter

a) We draw attention to the fact that the Company had locked out its plant w.e.f 13thFebruary 2015 till 15th May 2015 due to adverse business conditions. In view of suchlock out the company has not made provision for most of the employees' salary at plantand related statutory obligation for the lock out period the amount of which is notascertainable.

b) With reference to Note No 6.2 of the financial statement the company has recognizedNet Deferred Tax Assets amounting to Rs. 13336.06 lacs up to 30th June 2015 based on thefuture profitability projections made by the management. The management is of the viewthat sufficient future taxable income will be available against which such deferred taxassets can be adjusted.

Our Opinion is not modified in respect of above matters

Other Matters

We did not audit the financial statements of one foreign branch included in thestandalone financial statements of the Company whose financial statements reflect totalassets (net) of Rs.917.62 lacs as at 30th June 2015 and total revenues of Rs. Nil for theyear ended on that date as considered in the standalone financial statements. Thefinancial statements of this branch have been audited by the branch auditor whose reportshave been furnished to us and our opinion in so far as it relates to the amounts anddisclosures included in respect of this branch is based solely on the report of suchbranch auditor.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 of the Order to the extent applicable.

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 Cash Flow Statement dealtwith 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) On the basis of the written representations received from the directors as on 30thJune 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 30th June 2015 from being appointed as a director in terms of Section164 (2) of the Act.

f) The matters describes in the 'Emphasis of Matter' paragraph above in our opinionmay not have an adverse effect on the functioning of the company.

g) 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. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements as stated in Note No. 29 to the financial statements.

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

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

For Das & Prasad
Chartered Accountants
Firm Registration No.-303054E
Anil Kumar Agarwal
Place: Kolkata Partner
Dated: 28th August 2015 Membership No.-062368

Annexure to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

(i) In respect of fixed assets:

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

b. The Company has a program of verification of fixed assets to cover all the items ina phased manner over a period of three/reasonable intervals which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Pursuantto the program certain fixed assets were physically verified by the Management during theyear.

According to the information and explanations given to us no material discrepancieswere noticed on such verification.

(ii) In respect of Inventory:

a. As explained to us inventories were physically verified during the year by themanagement at reasonable intervals.

b. As the Company's inventory of raw material and finished goods mostly include bulkmaterials which require technical expertise for establishing the quantity thereof theCompany has hired independent agencies for physical verification of such stocks. Relyingon the above verification by independent expert agencies and according to information andexplanation furnished to us the procedures of physical verification of inventory followedby the management are reasonable and adequate in relation to the size of the Company andthe nature of its business.

c. In our opinion and according to the information and explanation given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.

(iii) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms or other parties covered in the register maintained undersection 189 of the Companies Act 2013.

Consequently the provisions of clauses iii (a) and iii (b) of the order are notapplicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us thereis generally an adequate internal control procedure commensurate with the size of theCompany and the nature of its business with regard to purchase of inventories fixedassets sale of goods and services. During the course of our audit no major instance ofcontinuing failure to correct any weakness in the internal controls has been noticed.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public covered under Section 73 to 76 of theCompanies Act 2013. Therefore the provisions of the clause 4 (v) of the Order are notapplicable to the Company.

(vi) According to the information and explanations given to us in our opinion theCompany have prima facie made and maintained the prescribed cost records pursuant to theCompanies (Cost Records and Audit) Rules 2014 as amended prescribed by the CentralGovernment under subsection (1) of Section 148 of the Companies Act 2013. We havehowever not made a detailed examination of the cost records with a view to determiningwhether they are accurate or complete.

(vii) (a) According to the information and explanation given to us and on the basis ofour examination of the records of the company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Income TaxSales Tax Service Tax Value Added Tax cess or other material statutory dues have beengenerally regularly deposited during the year by the Company with appropriate authorities.

According to the information and explanation given to us no undisputed statutory duesincluding Provident Fund Income Tax Service Tax Value Added Tax cess or other materialstatutory dues were in arrears as at 30th June 2015 for a period of more than six monthsfrom the date they become payable except in following cases:

Nature of statute Nature of dues

Amount

Period to which the amount relates

(Rs. in Lacs)

Income Tax Act 1961 Tax Deducted at Source 377.05 April 2014 to November 2014
Finance Act 1994 Service Tax on reverse charge mechanism 2.68 October2014 to November 2014
The Central Excise Act 1944 Excise duty 266.67 September 2014 to November 2014
Employees' Provident Funds Scheme 1952 Employees' Share Employer share and PF on contractors 40.29 November 2014
Employees' State Insurance Act 1948 Employees' Share and ESI on contractors 5.33 November 2014

(b) According to the information and explanation given to us the following dues ofsales-tax have not been deposited by the company on account of dispute as at 30th June2015:

Nature of statute Nature of dues

Amount

Period to which the amount relates

Forum where dispute is pending

(Rs. in Lacs)

Central Sales Tax Disallowance of Sale against Form-C Form-H and transfer of stock to branches 179.84 2004-05 2005-06 & 2007-08 Additional Commissioner of Sales Tax Orissa Sales Tax Tribunal Cuttack
Sales tax has arisen due to pending C/F/H Forms and Supporting document for Deemed Export. 17.30 2011-12 & 2012-13 Additional Commissioner of Sales Tax Sambalpur
On assessment for 2005-06 shortfall in Sales tax has arisen due to pending C Forms H Forms and F Forms. 14.22 2003-04 & 2005 -06 The Joint. Commissioner of Sales Tax Rourkela
For 2003-04 Demand raised on the basis of discrepancies identified during investigation
Disallowance for sale against Form-C 2.30 2009-10 Sr. Jt Commissioner Chowringhee Circle Kolkata
Central Excise and Service Tax Dispute towards Cenvat Credit on structural steel used for construction of capital goods input and disallowance of Service Tax on Commission Income 2121.14 2003-09 CESTAT( KOLKATA)
Dispute towards Cenvat Credit on capital goods & input. 763.42 2006-11 Commissioner Jt. Commissioner Addl. Commissioner Commissioner (Appeal) Bhubaneswar
Dispute towards Cenvat Credit on input. 16.20 2005-11 Dy. Commissioner Asst. Commissioner Rourkela
Orissa Entry Tax Entry Tax on machinery & spares and Capital Goods Interest & Penalty for late filling of return 121.52 2011-12 & 2012-13 Addl. Commissioner of Sales Tax Sambalpur
Entry Tax on machinery & spares & Capital Goods 59.92 2002-05 & 2007-08 Additional Commissioner of Sales Tax The Orissa Sales Tax Tribunal Cuttack
Orissa Value Added Tax Disallowance of Input Tax credit. 123.27 2005-06 & 2006-07 High Court Of Orissa Cuttack
Disallowance of Input Tax credit. 430.88 2005-06 & 2011-12 Orissa Sales Tax Tribunal Additional Commissioner of Sales Tax Cuttack
Disallowance of Input Tax credit Interest & Penalty for late filling of return 3.64 2012-13 Add. Commissioner of Sales Tax Sambalpur
Orissa Sales Tax Demand against discrepancies identified during investigation 0.67 2003-04 & 2004-05 Jt. Commissioner of Sales Tax Dy. Commissioner Rourkela
Dispute on gross turnover vis--vis taxable turnover 5.98 2003-04 The Orissa Sales Tax Tribunal Cuttack
West Bengal Value Added Tax Disallowance of input tax credit Addition of Turnover 289.89 2007 to 2012 Sr. Joint Commissioner Chowringhee circle Kolkata
Total 4150.19

(c) According to the information and explanation given to us there were no amountswhich were required to be transferred to the Investor Education and Protection Fund by theCompany.

(viii) The accumulated losses of the company are more than fifty percent of itsnetworth at the end of the current financial year.

The company has incurred cash losses in the current financial year but the company hadnot incurred cash losses in the immediate preceding financial year.

(ix) Based on the records examined by us and as per the information and explanationsgiven to us the Company has during the year defaulted in repayment of dues to the banksand financial institutions. However the Company's proposal for restructuring of creditfacilities has been approved by the Corporate Debt Restructuring- Empowered Group andRs.238.98 lacs were in arrears as on the balance sheet date (refer Note no 5(B) of thefinancial statement) . There were no outstanding debentures as on the balance sheet date.

(x) According to the information and explanation given to us the Company has pledged apart of its investments for the loan taken by its wholly owned subsidiary from bank andfinancial institutions the terms and conditions thereof in our opinion are notprima-facie prejudicial to the interest of the Company. According to the information andexplanations given to us the Company has not given any guarantee for loans taken byothers from banks or financial institutions.

(xi) According to the information and explanations given to us by the management termloans were applied for the purpose for which the loans were obtained.

(xii) Based on the audit procedures performed and the information and explanationsgiven to us we report that no fraud on or by the Company has been noticed or reportedduring the year nor have we been informed of such case by the management.

For Das & Prasad
Chartered Accountants
Firm's Registration No.-303054E
Anil Kumar Agarwal
Place: Kolkata Partner
Dated: 28th August 2015 Membership No.-062368

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