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Aftek Ltd.

BSE: 530707 Sector: IT
NSE: AFTEK ISIN Code: INE796A01023
BSE LIVE 15:29 | 30 Nov Stock Is Not Traded.
NSE LIVE 15:29 | 16 Mar Stock Is Not Traded.
OPEN 1.63
PREVIOUS CLOSE 1.71
VOLUME 96775
52-Week high 1.75
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 17.96
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.63
Sell Qty 69754.00
OPEN 1.63
CLOSE 1.71
VOLUME 96775
52-Week high 1.75
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 17.96
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.63
Sell Qty 69754.00

Aftek Ltd. (AFTEK) - Auditors Report

Company auditors report

To

The Members of Aftek Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Aftek Limited (theCompany) which comprise the Balance Sheet as at 31 March 2015 and the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management s Responsibility for the Financial Statements

Management is responsible for the matters stated in Section 134(5) of the Companies Act2013 (the Act) with respect to the preparation of these financial statements thatgive a true and fair view of the financial position financial performance and cash flowsof the Company in accordance with the Accounting Standards referred to in section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and 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 financial statements based on ouraudit. 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 have conducted our audit in accordance with the Standards on Auditing specifiedunder section 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 anddisclosures in the financial statements. The procedures selected depend on the auditors 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 control relevant to the Company s preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the entity s Internal Control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.

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

Basis for qualified opinion

1. Note no.39 regarding Management has not considered any provision inrespect of outstanding Debtors for a period more than 12 months amounting to Rs. 22398.36Lacs which in our opinion as evidenced by the poor recovery made during the year aredoubtful of recovery. Consequently profit before tax is overstated by Rs. 22398.36Lacs. Further in our view there is significant uncertainty as to ultimate collection ofDebtors due to non-receipt from overseas debtors. Therefore we are further unable tocomment on recoverability of balance debtors amounting to Rs. 4995.58 Lacs;

2. Note no.40 regarding company has given certain capital advances andmade some investments totaling to Rs. 6975.20 Lacs towards the building underconstruction at Hinjewadi Pune upto the year ended 31-3-2010 thereafter there are nofurther developments/construction made. The said Plot of land is mortgaged to Bank ofIndia -Jersey Channel Islands against the term loan. However since the Company has madedefault in repayment of Principal and Interest thereon Bank has demanded repayment totalloan and taken the possession of the land alongwith the construction in progress. The bankhas called for bids at a base price of Rs. 1800.00 Lacs. There is no provision madetowards the eventual loss on such auction which is presently not ascertainable till suchdisposal. The bank has now agreed for an one time settlement (OTS) of outstanding for Rs.2600 lacs;

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matters described in the Basis for qualifiedopinion paragraph the financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:-

a) in the case of the Balance Sheet of the state of affairs of the Company asat March 31 2015;

b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and

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

Emphasis of matter

1. Note no.34 b (ii) regarding Liability if any of the pending assessment under IncomeTax Sales tax (including interest if any) which are presently not ascertainable.

2. Without qualifying our opinion we draw attention to Note No.41 regarding intangibleAssets under development for various ongoing projects. Due to the delay in the projectsIntangible Assets under development for Rs. 19910.32 Lacs are yet to be put to use as onthe date of balance sheet. The company is of the opinion that with the improved marketconditions all the Assets under development will be profitably used by the company in thefuture projects.

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor s Report) Order 2015 (the Order) issued bythe Central Government of India in terms of sub-section (11) of section 143 of theAct we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.

2. As required by section143(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 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) Except for the effects of the matter described in the Basis for Qualified Opinionparagraph in our opinion and with regard to the non availability of the Actuarialvaluation of the Gratuity Liability. the aforesaid 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 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of section 164 (2) ofthe Act.

f) with respect to other matters to be included in the Auditor s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and the best of our information and according to explanation given to us:

i. Company has disclosed the amount of pending litigations on its financial position init s Financial Statements which is in the nature of contingent liability being notrequired to be provided in the accounts.

ii. The Company does not anticipate any material foreseeable losses on long- termcontracts.

iii. There has been delay in transferring amounts of Rs. 13.91 Lacs which wererequired to be transferred to the Investor Education and Protection Fund by the Company.

For GMJ & Co.
Chartered Accountants
Firm s Regn. No. 103429W
CA Haridas Bhat
Partner
M. No. 039070
Mumbai
30th May 2015

Annexure to the Independent Auditors Report of Aftek Limited

The Annexure referred to in our Independent Auditors Report to the members ofcompany on the financial statement for the year ended 31 March 2015 in Paragraph 1under the heading of report on other legal and regulatory requirements of even date

We report that

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

b) The Fixed assets of the Company have been physically verified by the managementwhich in our opinion is reasonable having regard to the size of the company and thenature of its assets. No material discrepancies have been noticed on such verification.

ii. a) In our opinion physical verification of inventory lying with the company hasbeen conducted at reasonable intervals by the management.

b) In our opinion the procedures of physical verification of inventory followed by themanagement are adequate in relation to the size of the Company and the nature of itsbusiness.

c) The Company has maintained proper records of inventory. No material discrepancieshave been noticed on physical verification between physical stock and book records.

iii. In respect of loans secured or unsecured to/from companies firms or otherparties covered in the register maintained under Section 189 of the Companies Act 2013.

a) In the case of the loans granted to the bodies corporate the borrowers have beenregular in the payment of the interest as stipulated. The terms of arrangements do notstipulate any repayment schedule and the loans are repayable on demand. Accordingly thisparagraph is not applicable to the Company in respect of repayment of the principalamount.

b) There are no overdue amounts of more than rupees one lakh in respect of the loansgranted to the bodies corporate.

iv In our opinion and according to the information and explanations given to us havingregard to the explanation that the IPRs purchased are of special nature and suitablealternative source do not exist for obtaining comparable quotation there exist anadequate internal control system commensurate with its size and nature of its businesswith regards to purchase of inventory and fixed assets and with regards to the sale ofgoods and service. During the course of our audit we have not observed any major weaknessin such internal control system.

v. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits during the year under audit.

vi We have been informed by the company that the maintenance of cost record undersection 148 (1) of the Act has not been prescribed by the Central Government.

vii. a) According to the information and explanations given to us the company is notregular in depositing undisputed statutory dues Employees State Insurance Sales-taxWealth Tax Service Tax Custom Duty Excise Duty Cess and any other statutory dues withthe appropriate authorities. Undisputed provident fund dues are not regularly depositedwith the appropriate authorities. In respect of income tax the Company is not regular indepositing those dues with the appropriate authorities and there have been significantdelays in a large number of cases. Undisputed amounts payable in respect of abovementioned taxes which were outstanding at the year-end for a period of more than sixmonths from the date they became payable are as follows:

Name Of The Statute Nature of Dues

Amount (Rs.inLacs)

Period to which Amount relates Date of Payment
Income tax Act1961 Deduction of Tax At Source

177.95

April 2010 to September2014 Not Paid
Employees Provident Fund and Miscellaneous Provisions Act 1952 Provident Fund Contribution

82.53

April 2010 to september2014 Not Paid
Maharashtra State Tax on Professions Trades Callings and Employments Act 1952 Profession Tax

6.24

September 2010 to september2014 Not Paid
Maharashtra Value Added Tax Act 2002 Sales Tax

0.20

March2011 to september2014 Not Paid
Central Sales Tax Act 1956 Central Sales Tax

21.48

September2010 to september2014 Not Paid

b) According to the information and explanations given to us followings dues arepayable to concerned authorities on account of dispute as at 31st March 2015.

Name of the Statute Nature of the Dues

Amount (Rs. in Lacs)

Period to which Amount relates Date of Payment
Income TaxAct 1961 Tax on Regular Assessments U/s143(3) 30.52 2008-09 Not Paid
Income TaxAct 1961 Tax on Regular Assessments U/s143(3) 8.78 2009-10 Not Paid

c) According to the information and explanations given to us there were Rs.13.91 Lacswhich were required to be transferred to the investor education and protection fund inaccordance with the relevant provision of the Act and rules there under.

viii. The company has no accumulated losses at the end of the financial year and hasnot incurred cash losses in the financial year and has not incurred cash losses in theimmediately preceding financial year;

ix. According to the information and explanations given to us the company has defaultedin repayment of dues to a bank the details of the same as on 31st March 2015 are asmentioned below.

Sr.No Name of the Bank Type of Loan Period to which Amount relates

Defaulted Principal

Defaulted Interest

(Rs. in Lacs)

(Rs. in Lacs)

I Bank of India - Jersey Channel Islands Term Loan April 2011 to March 2015 3037.97 360.83
II State Bank of Bikaner & Jaipur Term Loan April 2011 to March 2015 4000.00 2136.00
III State Bank of Bikaner & Jaipur Cash Credit A/c April 2011 to March 2015 1479.28 624.41

The company did not borrow any money by way of debenture issues. The company had nottaken loans from any financial institution during the year.

x. The company has given guarantee for loans taken by Associates from a bank Accordingto the information and explanations given to us the terms and conditions whereof are primafacie not prejudicial to the interest of the company.

xi. In our opinion the term loans have been used for the purpose for which the samewere obtained.

xii. According to the information and explanation given to us no material fraud on orby the company has not been noticed or reported during the year nor we have been informedof any such case by the management that causes the financial statements to be materiallymisstated.

For GMJ & Co.
Chartered Accountants
Firm s Regn. No. 103429W
CA Haridas Bhat
Partner
M. No. 039070
Mumbai
30th May 2015

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