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Akar Tools Ltd.

BSE: 530621 Sector: Engineering
NSE: N.A. ISIN Code: INE864E01013
BSE LIVE 15:27 | 23 Jun 74.00 -1.05
(-1.40%)
OPEN

74.00

HIGH

74.00

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72.25

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 74.00
PREVIOUS CLOSE 75.05
VOLUME 3540
52-Week high 80.40
52-Week low 40.35
P/E 15.85
Mkt Cap.(Rs cr) 40
Buy Price 72.30
Buy Qty 100.00
Sell Price 74.00
Sell Qty 110.00
OPEN 74.00
CLOSE 75.05
VOLUME 3540
52-Week high 80.40
52-Week low 40.35
P/E 15.85
Mkt Cap.(Rs cr) 40
Buy Price 72.30
Buy Qty 100.00
Sell Price 74.00
Sell Qty 110.00

Akar Tools Ltd. (AKARTOOLS) - Auditors Report

Company auditors report

TO THE MEMBERS OF AKAR TOOLS LTD.

Report on the Standalone Financial Statements

1. We have audited the accompanying financial statements of Akar Tools Limited("the Company") which comprise the Balance Sheet as at 31st March 2016 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

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 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 (asamended). This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act; safeguarding the assets of the Company;preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 of Auditing specified undersection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the 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 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 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 2016 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 2015 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure I a statement on the matters specified in paragraphs 3 and 4 of theOrder.

10. 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 purpose of our audit;

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

c. the Standalone Financial Statements dealt with by this report are in agreement withthe books of account;

d. in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 (as amended);

e. on the basis of written representations received from the directors as on 31st March2016 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2016 from being appointed as a director in terms of Section 164(2) of theAct.

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 2" to this report.

g. with respect to the other matters to be included in the Auditor's 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. as detailed in Note 28 to the standalone financial statements the Company hasdisclosed the impact of pending litigations on its financial position;

ii. the Company did not have any long-term contracts including derivatives contract forwhich there were any material foreseeable losses; and

iii. there has been a delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company. [See Annexure 1 (VII) (c) and NoteNo.37]

For A.K. BAGADIA & CO.
CHARTERED ACCOUNTANTS
(A K BAGADIA)
PROPRIETOR
Place : Aurangabad MEMBERSHIP NO.30520
Dated : 30th May 2016 (FRN 100846W)

ANNEXURE 1 referred to in paragraph 1 under heading "Report on other legal andregulatory requirements" of our report of even date

Re: AKAR TOOLS LIMITED ("the Company")

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 we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative 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 during the year which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. 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 Rs. 0.32 lacs 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 has conducted physical verification of inventory at reasonableintervals during the year Inventories lying with third parties have been confirmed bythem as at March 31 2016 and no material discrepancies were noticed on such physicalverification.

(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) and3(iii)(b) and 3(iii)(c) of the Order are not applicable.

(iv) In our opinion and according to the information and explanations given to us theprovisions of sections 185 and 186 of the Act in respect of loans and advances giveninvestments made and guarantees and securities given to parities covered under therespective sections have been complied with by the company.

(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 and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income tax sales tax wealth tax servicetax duty of customs duty of excise value added tax cess and other material statutorydues as applicable with the appropriate authorities except Rs. 6.42 Lacs which isoutstanding as on 31st March 2016 on account of dividend Distribution Tax. Except asabove there were no arrears of undisputed outstanding statutory dues as at the year-endfor 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 :-

Statute Nature of Dues Amount (Rs. in lakhs) Amount paid under protest (Rs in Lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax Income tax and interest 0.44 - A.Y. 1999-2000 CCIT
Act 1961 Income tax and interest 5.34 - A.Y. 2000-2001 CCIT
Income tax and interest 10.72 - A.Y. 2001-2002 CCIT
Income tax and interest 3.26 - A.Y. 2002-2003 CCIT
Income tax and interest 13.65 - A.Y. 2003-2004 CCIT
Income tax and interest 4.16 - A.Y. 2004-2005 CCIT
Income tax and interest 0.50 - A.Y. 2006-2007 CIT (A)
Income tax and interest 1.81 - A.Y. 2007-2008 CIT (A)
Income tax and interest 2.07 - A.Y. 2010-2011 CIT (A)
Maharashtra Vat Act Sales Tax and interest 19.64 - A.Y. 2003-2004 Comm. Of ST

(c) A Sum of Rs. 0.97 lacs is outstanding on account of outstanding dividend payable ason 31.03.2016 related to FY 2007-08 required to be transferred to the Investor Educationand Protection Fund by the Company in accordance with the relevant provisions of theCompanies Act 2013 and rules made there under within time.

(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 money by way of initial public offer or further publicoffer (including debt instruments). In our opinion the term loans were applied for thepurposes for which the loans were obtained.

(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) In our opinion managerial remuneration has been provided in accordance with therequisite approvals mandated by the provisions of section 197 of the Act read withSchedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company Accordingly Clause 3 (xii)of the 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.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with term.

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

For A.K. BAGADIA & CO.
CHARTERED ACCOUNTANTS
(A K BAGADIA)
PROPRIETOR
Place : Aurangabad MEMBERSHIP NO.30520
Dated : 30th May 2016 (FRN 100846W)

Annexure 2 to the Independent Auditor's Report of even date on the Standalone FinancialStatements of Akar Tools Limited

Report on the Internal Financial Controls under Clause(i) of Sub Section 3 of Section143 of the Companies Act2013 ("the Act")

TO THE MEMBERS OF AKAR TOOLS LTD.

We have audited the internal financial controls over financial reporting of Akar ToolsLimited ("the Company") as of March31st 2016 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 as specified under section143 (10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the institute of Chartered Accountants of India. Those standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Out audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the 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 internal financial controls system overfinancial 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting 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

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 312016 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
(A K BAGADIA)
PROPRIETOR
Place : Aurangabad MEMBERSHIP NO.30520
Dated : 30th May 2016 (FRN 100846W)