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Akar Auto Industries Ltd.

BSE: 530621 Sector: Engineering
NSE: N.A. ISIN Code: INE864E01013
BSE LIVE 09:32 | 23 Nov 145.00 -2.25
(-1.53%)
OPEN

145.10

HIGH

147.80

LOW

131.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 145.10
PREVIOUS CLOSE 147.25
VOLUME 22092
52-Week high 165.45
52-Week low 40.35
P/E 26.03
Mkt Cap.(Rs cr) 78
Buy Price 145.00
Buy Qty 12.00
Sell Price 146.00
Sell Qty 1.00
OPEN 145.10
CLOSE 147.25
VOLUME 22092
52-Week high 165.45
52-Week low 40.35
P/E 26.03
Mkt Cap.(Rs cr) 78
Buy Price 145.00
Buy Qty 12.00
Sell Price 146.00
Sell Qty 1.00

Akar Auto Industries Ltd. (AKARAUTO) - Auditors Report

Company auditors report

To

The Members of

Akar Tools Ltd.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Akar Tools Limited("the Company") which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss 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 ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing specified under section 143(10) of the Act andother applicable authoritative pronouncements issued by the Institute of CharteredAccountants of India. Those Standards and pronouncements 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 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 controls relevant to the Company's preparation of thestandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the standalone financial statements.

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

Matters of Emphasis

We draw attention to the following matter in Notes to the Standalone FinancialStatements; Note No 40 to the Standalone Financial Statements relating to overdue from adebtors of a sum of H74.92 Lakhs and the management assessment for the recovery is subjectto uncertainty and which if do not materialise could significantly impact the carryingvalues of the debtors. Our report is not modified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub section (11) of section 143 theAct we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section 143 (3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit except for confirmation from debtorsand creditors. b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books. c. TheBalance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with bythis Report are in agreement with the books of account. d. In our opinion the aforesaidstandalone financial statements comply with the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 save andexcept AS15 for employees' benefits as per Note No 23 e. On the basis of writtenrepresentations received from the directors as on 31st March 2017 and taken on record bythe Board of Directors none of the directors is disqualified as on 31 March 2017 frombeing appointed as a director in terms of Section 164 (2) of the Act. f. With respect tothe adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate Report in"Annexure B" to this report. g. With respect to the other matters to be includedin the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us: i The Company has disclosed the impact of pending litigations onits financial position in its standalone financial statements – Refer Note 28 to thestandalone financial statements. ii. The Company did not have any long-term contractsincluding derivatives contract for which there were any material foreseeable losses. iii.There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company - Refer Note 37 to the standalonefinancial statements. iv The Company has provided requisite disclosures in the standalonefinancial statement as to holding as well as dealings in Specified Bank Notes during theperiod from 8th November 2016 to 30th December 2016 on the basis of informationavailable with the Company. Based on audit procedures and relying on management'srepresentation we report that disclosures are in accordance with the books of accountsmaintained by the company and as produced to us by the Management. - Refer Note No 39

For A.K. Bagadia & Co.

Chartered Accountants

Sd/-

(A K Bagadia)

Proprietor Place : Aurangabad Membership No.30520 Dated : 30th May 2017 (FRN 100846W)

Annexure "A"

TO THE INDEPENDENT AUDITOR‘S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF AKAR TOOLS LIMITED

The Annexure referred to in Independent Auditors' Report to the members of the companyon the company's on the Standalone Financial Statement for the year ended March 31 2017.(i) We report that: (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets. (b) The Companyhas a regular program of physical verification of its fixed assets under which fixedassets are verified in a phased manner during the year. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its business. No material discrepancies were noticed on such verification.

(c) Based on our audit procedure performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the title deeds of immovable properties are held in the name of thecompany except in case of merged unit's lease hold land costing H0.32 Lakhs which is yetnot transferred in the name of the company in the records of M.I.D.C. for which theCompany is in the process of getting it registered in its name. (ii) The management hasconducted physical verification of inventory at reasonable intervals except material intransit and stocks lying with third parties and in bonded warehouses which are verifiedwith reference to the certification obtained and/or subsequent clearing of goods. In ouropinion the frequency of physical verification is reasonable. No material discrepancieswere noticed on physical verification between the physical stock and book records.

(iii) In our opinion and according to information and explanation given to us theCompany has granted any loan secured or unsecured to companies firms Limited LiabilityPartnerships (LLPs) or other parties covered in the register maintained under Section 189of the Act. a. The terms and conditions of the grant of such loans are not prejudicial tothe company's interest.

b. The schedule of repayment of principal and payment of interest has been stipulatedand the repayment or receipts are regular. c. There is no amount which is overdue which is90 days.

(iv) 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 in respect ofgrant of loans and advances given making investments and providing guarantees andsecurities as applicable.

(v) The Company has not accepted any deposits during the year from the public withinthe meaning of the provisions of Section 73 to 76 or any other provisions of the Act andthe Companies (Acceptance of Deposits) Rules 2014 to the extent notified with regard todeposits accepted from the public. (vi) The maintenance of cost record has been specifiedby the Central Government under Section 148 (1) of the Act. We have broadly reviewed thecost records maintained by the company pursuant to the companies (Cost Record and Audit)Rules 2014 as amended and prescribed by the Central Government under sub-section(1) ofSection 148 of the Act and are of the opinion that prima facie that prescribed costrecord have been made and maintained. We have however not made a detailed examination ofthe cost record with a view to determine whether they are accurate or complete. (vii) (a)According to the information and explanations given to us and the records of the companyexamined by us in our opinion the Company is generally regular in depositing undisputedstatutory dues including provident fund Investors' Education And Protection FundEmployees' State Insurance Income Tax Sales Tax including Value Added Tax Wealth TaxService Tax Entry tax Duty Of Customs Duty Of Excise Cess and other material statutorydues as applicable to each of them respectively with the appropriate authorities exceptH9.73 Lakhs which is outstanding as on 31st March 2017 on account of Dividend DistributionTax Except as above there were no arrears of undisputed outstanding statutory dues as atthe year-end for a period of more than six months from the date they become payable.

(b) The dues outstanding in respect of income-tax sales-tax wealth tax service taxduty of customs duty of excise value added tax and cess on account of any dispute theamount involved and the forum where disputes are as follows :-

Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the Amount Relates Amount Unpaid (H in
Lakhs)
Income Tax Act Income Tax Chief Commissioner of A.Y.1999-2000 0.44
1961 Income Tax A.Y.2000-2001 5.35
A.Y.2001-2002 10.72
A.Y.2002-2003 3.26
A.Y.2003-2004 13.65
A.Y.2004-2005 4.16
Income Tax Commissioner of Income A.Y.2005-2006 9.99
Tax (Appeals) A.Y.2006-2007 0.50
A.Y.2007-2008 1.81
A.Y.2008-2009 2.63
A.Y.2011-2012 14.38
A.Y.2012-2013 13.48
A.Y.2014-2015 83.00
Income Tax Income Tax officer (TDS) A.Y.2010-2011 4.23
(TDS) A.Y.2011-2012 0.48
A.Y.2012-2013 2.39
A.Y.2013-2014 6.54
A.Y.2014-2015 11.80
A.Y.2015-2016 1.78
A.Y.2016-2017 1.76
The Employee's Provident Funds & Miscellaneous Employee's Provident Funds Regional P F Commissioner RO. 2002-2003 & 2003-2004 8.02
Provision Act1952
Finance Act 1994 Service Tax Commissioner of Appeals Central Excise Customs and Service Tax Aug-2012 to Mar-2015 10.37

(viii) According to the records of the Company examined by us and information andexplanations given to us the Company has not defaulted in repayment of dues to any bankor financial institution or government during the year. The Company did not have anyoutstanding debentures during the year. (ix) The company did not raise money by way ofinitial public offer or further public offer (including debt instruments). In our opinionthe term loans were applied for the purposes for which the loans were obtained.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the period covered by our audit.

(xi) In our opinion and according to the information and explanations given to us thecompany has paid/provided for managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 of the Act read with Schedule V to theAct.

(xii) In our opinion the Company is not a Nidhi Company; accordingly provisions ofClause 3 (xii) of Companies (Auditor's Report) Order 2016 are not applicable to theCompany.

(xiii) In our opinion and according to the information and explanations given to usall transactions with the related parties are in compliance with sections 177 and 188 ofAct where applicable and the requisite details have been disclosed in the financialstatements as required by the applicable accounting standards.

(xiv) In our opinion and according to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with term.Therefore the provisions of Clause 3(xv) of Companies (Auditor's Report) Order 2016 arenot applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For A.K. Bagadia & Co.

Chartered Accountants

Sd/-

(A K Bagadia)

Proprietor Place : Aurangabad Membership No.30520 Dated : 30th May 2017 (FRN 100846W)

Annexure "B"

TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTSOF AKAR TOOLS LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub Section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AKAR TOOLSLIMITED ("the Company") as of March 31st 2017 in conjunction with our audit ofthe standalone 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's 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 the Institute ofChartered Accountants of India (ICAI) and deemed to be prescribed under section 143 (10)of the Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of internal financial controls and both issued bythe ICAI. Those standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone 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 standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial 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 controlover 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 312017 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 A.K. Bagadia & Co.

Chartered Accountants

Sd/-(A K Bagadia)

Proprietor Place : Aurangabad Membership No.30520 Dated : 30th May 2017 (FRN 100846W)