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Advanced Micronic Devices Ltd.

BSE: 517552 Sector: Health care
NSE: N.A. ISIN Code: INE903C01013
BSE LIVE 15:45 | 07 Dec 7.60 0
(0.00%)
OPEN

7.70

HIGH

7.70

LOW

7.60

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 7.70
PREVIOUS CLOSE 7.60
VOLUME 250
52-Week high 10.60
52-Week low 5.00
P/E
Mkt Cap.(Rs cr) 4.01
Buy Price 0.00
Buy Qty 0.00
Sell Price 7.60
Sell Qty 757.00
OPEN 7.70
CLOSE 7.60
VOLUME 250
52-Week high 10.60
52-Week low 5.00
P/E
Mkt Cap.(Rs cr) 4.01
Buy Price 0.00
Buy Qty 0.00
Sell Price 7.60
Sell Qty 757.00

Advanced Micronic Devices Ltd. (ADVANCEDMICRON) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR

To the Members of Advanced Micronic Devices Limited Bangalore

Report on the Financial Statements

We have audited the accompanying financial statements of Advanced MicronicDevices Limited which comprise the Balance Sheet as at March 31 2014 and theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act 1956('the Act') read with the General Circular 15/2013dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 ofthe Companies Act 2013. This responsibility includes the design implementation andmaintenance of internal control 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 financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

1. During the year State Bank of India appointed Subhas Patil & Co a firm ofindependent Chartered Accountants to conduct stock audit. And they have submitted theirreport on 20.05.2014 stating that stock of Terminal and Multi Para Patient Monitors werenon moving resulted in not being sold aggregating to Rs.1747 lacs. Also the company hasnot assessed realisable value of the non-moving stock out of Rs.1747 lacs. Accordingly thecompany has not provided for loss on non-moving stock

2. Similarly stock auditors have also notified that bills receivable amounting toRs.1967 lacs are not realised for more than 180 days. The company has not made properassessment of the amount realisable from the above mentioned debtor. Accordingly companyhas not made provision for bad and doubtful debts.

Accordingly the net loss for the year has been understated to that extent and reservesand surplus stock and debtors have been overstated by such amount.

3. We also observed that Company has a branch at U S A. This branch has not beenaudited by any other independent auditors for any financial year and also the company hasnot produced any records for our verification to check the correctness of the entries.These entries are certified by the management where in the branch share of assetsRs.593.81 lacs.. Our report in so far it relates to the amount included in respect of thebranch is based solely on financial statements certified by the branch management. In theabsence of independent audit we are unable to comment on the correctness of unauditedresults of the above mentioned branch..

4. Company has not obtained confirmation of balances of debtors outstanding as on31.03.2014.

Subject to above In our opinion and to the best of our information and according to theexplanations given to us the financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March312014;

b) in the case of the Statement of Profit and Loss Account of the loss for the yearended on that date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on other Legal Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2003 issued by the CentralGovernment of India in terms of sub-section (4A) of section 227 of the Act we give in theAnnexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act we report that

a) we have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books

c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d) Subject to qualification in respect of debtor and stock in our opinion the BalanceSheet Statement of Profit and Loss and Cash Flow Statement comply with the AccountingStandards referred to in subsection (3C) of section 211 of the Companies Act 1956('theAct') read with the General Circular 15/2013 dated 13 September 2013 of the Ministry ofCorporate Affairs in respect of section 133 of the Companies Act 2013;

e) on the basis of written representations received from the directors as on March 312014 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 312014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act 1956.

For Anand Amarnath & Associates
Chartered Accountants
FRN-.000121S
B K Amarnath
Place: Bengaluru Partner
Date: 30.05.2014 Membership No: 026536

ANNEXURE TO THE AUDITOR'S REPORT

(The Annexure referred to in our Report of even date on the accounts of AdvancedMicronic Devices Ltd for the year ended 31 st March 2014)

On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:

1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) Physical verification of Fixed Assets is performed by the management in a regularprogramme for verification once in a year. In our opinion the frequency of verificationis reasonable having regard to the size and the nature of its business.

(c) In our opinion and according to the information and explanations given to us nosubstantial part of fixed asset has been disposed during the year and therefore does notaffect the going concern assumption.

2. (a) We are informed that the physical verifications of inventories exceptinventories lying with the third parties were conducted by the management at reasonableintervals. In our opinion the frequency of verification is reasonable.

(b) In our opinion and 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 and the nature of itsbusiness.

(c) The company has maintained proper records of inventories. Subject to qualificationin the audit report about non moving stock amounting to Rs.1747 lacs as noticed by stockauditor appointed by State Bank of India no discrepancies were noticed on verificationbetween physical stocks and stock records for which company has not made any provisions.

3 (a) As per the explanation given to us the Company has not given any loans to theparties listed in the register maintained under section 301 of the Companies Act 1956.

(b) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has taken loan amounting to Rs.1641.04lacs from companies firms or other parties listed in the register maintained underSection 301 of the Companies Act 1956.Expect for loan taken from its Holding Company(OptoCircuits(india) Ltd and from Opto infranstructure india ltd for other parties company ispaying interest at the rate of 12% P A. The rate of interest and other terms andconditions of such loans given are not prejudicial to the interest of the Company

4 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 for the purchase of inventories & fixed assetsand payment for expenses & for sale of goods. During the course of our audit no majorinstance of continuing failure to correct any weaknesses in the internal controls has beennoticed.

5 (a) According to the information and explanation given to us we are of the opinionthat the transactions that need to be entered into the register maintained under section301 of the Companies Act 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us thetransactions made in pursuance of contracts or arrangements entered in the registermaintained under section 301 of the Companies Act 1956 and exceeding Rs. 500000 inrespect of each party during the year have been made at prices which are reasonable havingregard to the prevailing market price at the relevant time

6 The Company has not accepted any deposits from the public covered under section 58Aof the Companies Act 1956.

7 As per information & explanations given by the management the Company has aninternal audit system commensurate with its size and the nature of its business.

8 Since the company is involved in trading activity only the Central Government hasnot prescribed maintenance of cost records under section 209 (1) (d) of the Companies Act1956 for any product of the company.

9 On the basis of records produced before us the Company has generally not beenregular in depositing undisputed statutory dues like Employees State Insurance Provident Fund Income Tax Service Tax etc. According to the information andexplanations given to us there are no undisputed amounts payable in respect of CustomsDuty Excise Duty income tax except below mentioned statutory dues

(Rs. in. Lakes)
Service Tax 124.60
Dividend distribution tax 31.12
Provident Fund 39.73
ESI 2.36
Income tax demand for AY 2011-12 9.58
Tax deducted at source -other than on salary 8.65
Tax deducted at source on salary 17.57
Total 233.61

which were outstanding as on 31st March 2014 for a period of more than six months fromthe date on which they became payable

10 The Company does not have any accumulated loss but has incurred cash loss amountingto Rs. 480.23 lacs during the financial year covered by our audit. Based on the stockaudit conducted by the Independent auditors the company has not assessed realisable valueof the non-moving stock out of Rs. 1747 lacs. Accordingly the company has not provided forloss on non-moving stock.

Similarly stock auditors have also notified bills receivable amounting to Rs.1967 lacsas not realised for more than 180 days which has been identified by them as nonrealisable. The company has not made proper assessment of the amount realisable from theabove mentioned debtor. Accordingly company has not made provision for bad and doubtfuldebts.

11 During the year the company has not taken additional Term Loan from Banks/FinancialInstitutions However it has not defaulted in repayment of its dues to financialinstitution.

12 In our opinion and according to the information and explanations given to us andbased on the documents and records produced to us the Company has not granted any loansand advances on the basis of security by way of pledge of shares debentures and othersecurities.

13 In our opinion and according to the information and explanations given to us thenature of activities of the Company does not attract any special status applicable toChit-Fund and Nidhi / Mutual Benefit Fund/ Societies accordingly clause 4 (xii) of theorder is not applicable.

14 In our opinion the Company is not dealing or trading in shares securitiesdebentures or other investments and hence the requirement of Clause 4 (xiv) of the orderis not applicable to the company.

15 Since the company does not have any subsidiary the question of giving guarantee forloans taken by its subsidiary does not arise accordingly clause 4(XV) of the order is notapplicable.

16. In our opinion and based on information and explanations given to us by themanagement term loans have been applied for the purpose for which they were obtained.

17 According to the information and explanations given to us and on an overallexamination of the balance sheet of the company we report that no funds raised onshort-term basis have been used for long term purpose. No long-term funds have been usedto finance short-term assets.

18 The Company has not made any preferential allotment of shares to parties andcompanies covered in the register maintained under section 301 of the companies Act 1956

19 During the year the company has not issued debentures during the financial year.

20 The Company has not raised any money by public issue during the year.

21 Subject to qualification in audit report based on the audit procedures performedand the information and explanations given to us we report that no fraud on or by theCompany has been noticed or reported during the year nor have we been informed of suchcase by the management.

For Anand Amarnath & Associates
Chartered Accountants
FRN:000121S
B K Amarnath
Place: Bengaluru Partner
Date: 30.05.2014 Membership No: 026536

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