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Advanced Micronic Devices Ltd.

BSE: 517552 Sector: Health care
NSE: N.A. ISIN Code: INE903C01013
BSE LIVE 12:00 | 02 Jun Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 8.10
PREVIOUS CLOSE 7.80
VOLUME 300
52-Week high 9.88
52-Week low 5.00
P/E
Mkt Cap.(Rs cr) 4
Buy Price 8.19
Buy Qty 700.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.10
CLOSE 7.80
VOLUME 300
52-Week high 9.88
52-Week low 5.00
P/E
Mkt Cap.(Rs cr) 4
Buy Price 8.19
Buy Qty 700.00
Sell Price 0.00
Sell Qty 0.00

Advanced Micronic Devices Ltd. (ADVANCEDMICRON) - Auditors Report

Company auditors report

To

The Members of

Advanced Micronic Devices Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Advanced MicronicDevices Limited ("the Company") which comprise the Balance Sheet as at 31 March2016 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the 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 sub-section 5of Section 134 of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 (‘‘the Rules"). This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring 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 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 theauditors' 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 sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone financial statements.

Basis For Qualified Opinion:

1 During the course of audit we have observed that company has stock of Terminal andMulti Para Patient Monitors were non moving to the extent of Rs 456.34 Lakhs.Out of whichstock worth Rs 136.75 lying in the customs bonded warehouse

2 we have noticed bills receivable amounting to Rs 609.55 Lakhs and Rs 1124.79 lakhsare not realized for more than 6 Months & more than 36 Months as on march 2016respectively. The Company has not obtained confirmation of balances of debtors has notmade any provision for bad and doubtful debts.

3 We also observed that Company has a branch at USA. This branch has not been auditedby any other independent auditors for any financial year and also the company has notproduced any records for verification to check the correctness of the entries. Theseentries are certified by management where in the branch share of assets are Rs730 Lakhs.Our report in so far it relates to the amount included in respect of the branch is basedsolely on financial statements certified by the branch management. In the absence ofindependent audit we are unable to comment on correctness of unaudited results of theabove mentioned branch

4 The company has stopped its Bengaluru business operation since July 2015

5 During financial year 2013-14the company had opted for VCES scheme under service taxact. There is a Contingent liability to the extent of Rs 81 Lakhs

6 During the year under review the company has incurred a loss of Rs 2136.75 Lakhs andafter Provisioning/write off resulted in negative networth

7 An Appropriate reference to BIFR/NCLT has to be made under the sick companiesRehabilitation Scheme which was not done by the management

8 As per the information available from the income tax website an amount of Rs. 355.09Lakhs remains as unpaid demand which is not reconciled with the unaccounted payments madeby the company

9 Similarly as per the information available from the NSDL website an amount of RS 37Lakhs remains as unpaid demand on company

10 In view of the above comments the company's ability to continue as a going concernis doubtful

Qualified Opinion

Subject to the above qualifications in our opinion and to the best of our informationand according to the explanations given to us the aforesaid standalone financialstatements give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at 31 March 2016 and its loss and itscash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

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

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 except for the indeterminate effects of the matters described inthe Basis for Qualified Opinion paragraph proper books of account as required by law havebeen kept by the Company so far a sit 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 except for the indeterminate effects of the matters described inthe Basis for Qualified Opinion paragraph the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31March 2016taken on record by the Board of Directors none of the directors isdisqualified as on31 March 2016 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure B.

(g) With respect to the other matters to be included in the Auditors' 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 doesn't have any pending litigations which would impact financialposition.

ii. The Company did not have any long term contracts for which there were any materialforeseeable losses; and

iii. There were no amounts required to be transferred to the Investor Education andProtection Fund by the company.

For B. V. Swami & Co.
Chartered Accountants
[A. Amarnath]
Partner
Place : Bengaluru Membership No: 213629
Date : 14th June 2016

ANNEXURE TO THE AUDITOR'S REPORT

The Annexure Referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31 March 2016 we report that:i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets of the Company have been physically verified by the Managementduring the year and no material discrepancies have been noticed on suchverification. In our opinion the frequency of verification is reasonable.

(c) The title deeds of immovable properties as disclosed in the fixed assets to thefinancial statements are held in the name of the Company.

ii. The physical verification of inventory have been conducted at periodical intervalsby the Management but not effectively conducted during the year. As certified by themanagement the discrepancies noticed on physical verification of inventory as compared tobook records were not material. However we recommend the Management to conduct thephysical verification of inventories on quarterly basis and maintain proper recordscommensurate to the nature and size of the business.

iii. (a) As per the explanations given to us the Company has not granted any unsecuredloans to the parties listed in the register maintained under Section 189 of theCompanies Act.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of the loans and investments made and guarantees and security provided by it.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public.

vi. We have broadly reviewed the records maintained by the Company pursuant to therules prescribed by Central Government for maintenance of cost records under subsection 1of Section 148 of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. However we have not made a detailedexamination of the records.

vii. According to the information and explanations given to us and the records of theCompany examined by us company has generally not been regular in depositing undisputedstatutory dues likes ESI Provident Fund Income Tax Service Tax Etc. According to theinformation and explanation given to us there are no undisputed amounts payable inrespect of Customs Duty Excise Duty Income Tax except below mentioned statutory dues

Service tax 37.76
Dividend Distribution Tax 31.12
Professional tax 2.22
ESI 9.94
Provident Fund 44.32
Tax Deducted at source other than on salary 1.61
Tax deducted at source on salary 42.28
VAT 16.58
Total 185.83

viii. The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans during the year under review.Accordingly the provisions of Clause 3(ix) of the Order are not applicable to theCompany.

ix. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

x. The Company has paid/ provided for managerial remuneration in accordance withtherequisite approvals mandated by the provisions of Section 197 read with Schedule V tothe Act.

xi. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under

Accounting Standard (AS) 18 Related Party Disclosures specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014.

xiii. The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly the provisions of Clause 3(xiv) of the Order are not applicable to theCompany.

xiv. The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xv. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For B. V. Swami & Co.
Firm Registration
Number: 009151S
Chartered Accountants
[A. Amarnath]
Partner
Place : Bengaluru Membership No: 213629
Date : 14th June 2016