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Ador Welding Ltd.

BSE: 517041 Sector: Engineering
NSE: ADORWELD ISIN Code: INE045A01017
BSE LIVE 15:48 | 24 Nov 510.80 -9.90
(-1.90%)
OPEN

534.90

HIGH

534.90

LOW

509.20

NSE 15:49 | 24 Nov 509.80 -9.55
(-1.84%)
OPEN

521.00

HIGH

529.45

LOW

507.00

OPEN 534.90
PREVIOUS CLOSE 520.70
VOLUME 3780
52-Week high 658.85
52-Week low 280.00
P/E 40.25
Mkt Cap.(Rs cr) 695
Buy Price 0.00
Buy Qty 0.00
Sell Price 510.80
Sell Qty 34.00
OPEN 534.90
CLOSE 520.70
VOLUME 3780
52-Week high 658.85
52-Week low 280.00
P/E 40.25
Mkt Cap.(Rs cr) 695
Buy Price 0.00
Buy Qty 0.00
Sell Price 510.80
Sell Qty 34.00

Ador Welding Ltd. (ADORWELD) - Auditors Report

Company auditors report

to the Members of Ador Welding Limited

report on the standalone Financial statements

1. We have audited the accompanying standalone financial statements of Ador WeldingLimited ("the Company") which comprise the Balance Sheet as at 31 March 2017the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

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 for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement 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. 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.

7. 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

8. 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 31 March 2017 and its profit and its cash flows for the year ended on that date.

report on other Legal and regulatory requirements

9. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder.

10. Further to our comments in Annexure A as required by Section 143(3) of the Act wereport that: a. we have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purpose of our audit; b. inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books; c. the standalone financialstatements dealt with by this report are in agreement with the books of account; d. in ouropinion the aforesaid standalone financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 (as amended); e. on the basis of the written representationsreceived from the directors and taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2017 from being appointed as a director in termsof Section 164(2) of the Act; f. we have also audited the internal financial controls overfinancial reporting (IFCoFR) of the Company as of 31 March 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate and our report dated 9 May 2017 as per Annexure B expressed an unmodified opinion; g.with respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014(as amended) in our opinionand to the best of our information and according to the explanations given to us: i. theCompany as detailed in Note 32 to the standalone financial statements the Company hasdisclosed the impact of pending litigations on its financial position; ii. the Company didnot have any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses; iii. there has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Company;iv. the company as detailed in Note 19 a to the standalone financial statements has maderequisite disclosures in these standalone financial statements as to holdings as well asdealings in Specified Bank Notes during the period from 8 November 2016 to 30 December2016. Based on the audit procedures performed and taking into consideration theinformation and explanations given to us in our opinion these are in accordance with thebooks of account maintained by the company.

For Walker Chandiok & Co LLp
Chartered Accountants
Firm's Registration No.: 001076N/N500013
per Sudhir N. Pillai
place: Mumbai partner
date: 9 May 2017 Membership No.:105782

Annexure A to the Independent AudItor's report f even date to the members of AdorWelding Limited on the financial statements for the year ended 31 March 2017

Annexure A

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 and to the best of our knowledge and beliefwe report that: (i) (a) The Company has maintained proper records showing fullparticulars including quantitative 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 over a period of three yearswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. In accordance with this program certain fixed assets were verifiedduring the year and no material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties (which are included under the head‘fixed assets') are held in the name of the Company. (ii) In our opinion themanagement has conducted physical verification of inventory at reasonable intervals duringthe year except for stocks lying with third parties. For stocks lying with third partiesat the year-end written confirmations have been obtained by the management. No materialdiscrepancies were noticed on the aforesaid verification.

(iii) The Company has not granted any loan secured or unsecured to companies firmsLimited Liability Partnerships (LLPs) or other parties covered in the register maintainedunder Section 189 of the Act. Accordingly the provisions of clauses 3(iii)(a) 3(iii) (b)and 3(iii)(c) of the Order are not applicable.

(iv) In our opinion company has complied with the provisions of Sections 185 and 186of the Act in respect of loans investments guarantees and security.

(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) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company's products/services andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. However we have not made a detailed examination of the cost records witha view to determine whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues as applicable have generally beenregularly deposited to the appropriate authorities though there has been a slight delayin a few cases. Further no undisputed amounts payable in respect thereof were outstandingat the year-end for a period of more than six months from the date they became payable.

(b) The dues outstanding in respect of income-tax sales-tax service tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:

name of the statute nature of dues Amount (Rs.) in lakhs Amount paid under protest Rs. ( ) in lakhs period (Financial year) to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Disallowance of scientific research expenses 62.63 9.40 2013-2014 CIT (Appeals)
The Central Excise Act 1944 Additional Liability arising due to difference in assessable value 7.72 1.00 1998-1999 Custom Excise and Service Tax Appellate Tribunal
disallowance of CENVAT credit (including penalty/ interest if any) 2.18 0.96 2006-2007 Assistant Commissioner
13.42 - 2008-2009 Commissioner-Appeal
Central Sales Tax Additional Liability arising due to difference 18.07 9.21 1987-1988 1992- 1993 High Court
Act and Local Sales in assessable value disallowance of input tax 43.20 30.00 2005-2006 Deputy Commissioner
1.99 1.34 2005-2006 Deputy Commissioner
Tax Acts of various states credit (including penalty/ interest if any)
152.23 5.50 2005-2006 Deputy Commissioner
20.09 - 2004-2005 Joint Commissioner
6.88 - 2004-2005 Joint Commissioner
7.98 - 2003-2004 Joint Commissioner
0.21 - 2003-2004 Joint Commissioner

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank orfinancial institution or government during the year. The Company did not have anyoutstanding debentures during the year.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments) and did not have any term loans outstanding during theyear. Accordingly the provisions of clause 3(ix) of the Order are not applicable.

(x) No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit. (xi) Managerial remunerationhas been paid and provided by the company in accordance with the requisite approvalsmandated by the provisions of Section 197 of the Act read with Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly clause 3(xii) ofthe Order is not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements as required by the applicable accounting standards.Consolidated FinanCials (xiv) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures. (xv)In our opinion the Company has not entered into any non-cash transactions with directorsor persons connected with them covered under Section 192 of the Act. (xvi) The Company isnot required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For Walker Chandiok & Co LLp
Chartered Accountants
Firm's Registration No.: 001076N/N500013
per Sudhir N. Pillai
place: Mumbai partner
date: 9 May 2017 Membership No.: 105782

Annexure B to the Independent AudItor's report

of even date to the members of Ador Welding Limited on the standalone financialstatements for the year ended 31 March 2017

Annexure B

Independent Auditor's report on the Internal Financial Controls under Clause (i) ofsub-section 3 of section 143 of the Companies Act 2013 ("the Act")

1. In conjunction with our audit of the standalone financial statements of Ador WeldingLimited ("the Company") as of and for the year ended

31 March 2017 we have audited the internal financial controls over financial reporting(IFCoFR) of the company of as of that date.

Management's responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of the company's business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors' responsibility

3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India (ICAI) and deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of IFCoFR and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting

(the "Guidance Note") issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate IFCoFR were established and maintainedand if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.

Meaning of Internal Financial Controls over Financial reporting

6. A company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sIFCoFR 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

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate. opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Walker Chandiok & Co LLp
Chartered Accountants
Firm's Registration No.: 001076N/N500013
per Sudhir N. Pillai
place: Mumbai partner
date: 9 May 2017 Membership No.: 105782