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Ador Fontech Ltd.

BSE: 530431 Sector: Engineering
NSE: N.A. ISIN Code: INE853A01022
BSE LIVE 15:24 | 09 Dec 86.55 -0.35
(-0.40%)
OPEN

85.10

HIGH

87.80

LOW

85.10

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 85.10
PREVIOUS CLOSE 86.90
VOLUME 2236
52-Week high 120.00
52-Week low 82.00
P/E 22.84
Mkt Cap.(Rs cr) 151.46
Buy Price 86.55
Buy Qty 38.00
Sell Price 87.60
Sell Qty 95.00
OPEN 85.10
CLOSE 86.90
VOLUME 2236
52-Week high 120.00
52-Week low 82.00
P/E 22.84
Mkt Cap.(Rs cr) 151.46
Buy Price 86.55
Buy Qty 38.00
Sell Price 87.60
Sell Qty 95.00

Ador Fontech Ltd. (ADORFONTECH) - Auditors Report

Company auditors report

To the Members of Ador Fontech Limited

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of Ador FontechLimited ('the Company') which comprise the Balance Sheet as at March 312016 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary 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 andpresentation of these Standalone Financial Statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Companies Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgements and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors' 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 & 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'sjudgement including the assessment of risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the Auditorsconsider internal financial control relevant to the Company's preparation of the financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficient 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 affairs of the Companyas at March 31 2016 and its profits and cash flows for the year ended on that date.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of subsection (11) of Section 143 of the Act wegive in the Annexure 'A' a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

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. On the basis of written representations received from the Directors as on March 312016 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 312016 from being appointed as a Director in terms of Section 164 (2) of theAct.

f. With respect to the adequacy of internal financial controls over financial reportingof the Company & the operating effectiveness of such controls refer to our separatereport in 'Annexure B' and

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 & according to the explanations given to us: (i)the Company has disclosed the impact if any of pending litigations as at March 31 2016on its financial position in its Standalone Financial Statements. (ii) the Company hasmade provisions as required under the applicable law(s) / accounting standards formaterial foreseeable losses if any on long-term contracts. (iii) There has been no delayin transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company.

For Amarnath Kamath and Associates
Chartered Accountants
Firm Registration No. 000099S
Bengaluru Amarnath Kamath
May 10 2016 Partner [Membership No.13124]

Annexure 'A' to the Auditors' Report

The Annexure referred to in the Independent Auditors' Report to the Members of theCompany on the Standalone Financial Statements for the year ended March 312016 we reportthat:

1. a. The Company has maintained proper records showing full particulars includingquantitative detail & situation of fixed assets.

b. The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

c. According to the information & explanations given to us and on the basis of ourexamination of the records of the Company title deeds of immovable properties are held inname of the Company.

2. a. We are informed that inventories have been physically verified by the Managementduring the year and also at the end of the year. In our opinion the frequency ofverification is reasonable.

b. In our opinion & according to the information and explanations given to us theprocedures of physical verification of inventories followed by the Management arereasonable and adequate in relation to the size of the Company & the nature of itsbusiness.

c. In our opinion and according to the information and explanations given to us theCompany is maintaining proper records of inventories. The discrepancies noticed onverification between physical stocks and book records were not material and have beenproperly dealt with in the books of account.

3. The Company has granted loans to bodies corporate covered in the register maintainedunder Section 189 of the Companies Act 2013.

a. In our opinion the rate of interest other terms & conditions on which theloans have been granted to the bodies corporate listed in the register maintained underSection 189 of the Act were not prima facie prejudicial to the interest of the Company.

b. In the case of loans granted to bodies corporate listed in the register maintainedunder Section 189 of the Act the borrower has repaid the inter-corporate-loan andinterest there on during the year. The loan to the joint venture entity and interest thereon is repayable on demand.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act with respectto loans and investments made and securities offered as lien.

5. The Company has not accepted any deposits from the public.

6. We have broadly reviewed the records maintained by the Company pursuant to the Rulesprescribed by the Central Government for maintenance of cost records under Section 148(1)of the Act and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. However we have not made a detailed examination of therecords.

7. a. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance excise income- tax sales tax value added tax customs duty service taxcess & other material statutory dues have been regularly deposited during the year bythe Company with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundemployees' state insurance excise income tax sales tax value added tax duty ofcustoms service tax cess and other material statutory dues were in arrears as at March312016 for a period of more than six months from the date they became payable.

7. b. According to the information and explanations given to us there are no materialdues of customs duty sales tax and value added tax which have not been deposited with theappropriate authorities on account of any dispute. However according to information andexplanations given to us the following dues of income tax duty of excise service taxhave not been deposited by the Company on account of disputes:

Name of the Statute Nature of the Dues Rs. in lakhs Period to which the amount relates Forum where dispute/objection raised is pending
The Maharashtra Village Panchayat Taxes and Fees Rules 1970 Grampanchayat Tax 2 2001 to 2015 HonRs.ble Nagpur Bench of Bombay High Court passed an order in our favour. However the Dept. has preferred an appeal before the Supreme Court.
The Finance Act 1994 Excise duty as per order passed by the Commissioner of Central Excise dated August 18 2008 71 2002 to 2006 Appeal filed against the order at CESTAT and Rs.Stay orderRs. received.
The Finance Act 1994 Service tax as per order passed by the Jt. Commissioner of Central Excise & Service tax dated Jan 18 2010 32 2008 to 2009 Appeal filed against the order at CESTAT and Rs.Stay orderRs. received.
The Finance Act 1961 Service tax as per order passed by the Commissioner of Central Excise & Service tax (Appeals) dated Feb 08 2011 2 2009 to 2010 Appeal filed against the order at CESTAT with 100% pre-deposit.
Income Tax Act 1961 Income tax liability as per order passed u/s 143(3) of Income Tax Act 1961 39 AY 2012-13 Commissioner of Income Tax (Appeals-I) Bengaluru
283 AY 2013-14

8. The Company does not have any loans or borrowings from any financial institutionbanks government or debenture holders during the year. Accordingly paragraph 3(viii) ofthe Order is not applicable.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) & term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

10. According to the information & explanations given to us no material fraud bythe Company or on the Company by its officers or employees has been noticed or reportedduring the course of our audit.

11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with requisite approvals mandated by the provisions of Section197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableAccounting Standards.

14. According to the information and explanations given to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash-transactions withDirectors or persons connected with them. Accordingly paragraph 3(xv) of the Order is notapplicable.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For Amarnath Kamath and Associates
Chartered Accountants
Firm Registration No. 000099S
Bengaluru Amarnath Kamath
May 10 2016 Partner [Membership No.13124]

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofsub-section 3 of Section 143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of AdorFontech Limited ('the Company') as of March 312016 in conjunction with our audit of theStandalone 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 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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies safeguarding of its assetsprevention and detection of frauds and errors accuracy and completeness of the accountingrecords and timely preparation of reliable financial information as required under theCompanies 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 deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Notes requirethat we comply with ethical requirements plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofinternal financial control 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 testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the Auditor's judgement including the assessment of risks of materialmisstatement 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 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. The Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords which 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 controlsover 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 effectively as at March 31 2016 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 Amarnath Kamath and Associates
Chartered Accountants
Firm Registration No. 000099S
Bengaluru Amarnath Kamath
May 10 2016 Partner [Membership No.13124]

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