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AksharChem (India) Ltd.

BSE: 524598 Sector: Industrials
NSE: AKSHARCHEM ISIN Code: INE542B01011
BSE LIVE 15:40 | 20 Nov 686.95 -1.35
(-0.20%)
OPEN

690.00

HIGH

693.50

LOW

682.90

NSE 15:31 | 20 Nov 688.30 -1.55
(-0.22%)
OPEN

704.90

HIGH

704.90

LOW

682.25

OPEN 690.00
PREVIOUS CLOSE 688.30
VOLUME 1035
52-Week high 941.95
52-Week low 490.00
P/E 13.44
Mkt Cap.(Rs cr) 563
Buy Price 0.00
Buy Qty 0.00
Sell Price 686.95
Sell Qty 47.00
OPEN 690.00
CLOSE 688.30
VOLUME 1035
52-Week high 941.95
52-Week low 490.00
P/E 13.44
Mkt Cap.(Rs cr) 563
Buy Price 0.00
Buy Qty 0.00
Sell Price 686.95
Sell Qty 47.00

AksharChem (India) Ltd. (AKSHARCHEM) - Auditors Report

Company auditors report

To

The Members of AksharChem (India) Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of AksharChem (India)Limited ("the Company") which comprise the balance sheet as at March 31 2017the statement of profit and loss the cash flow statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITYFOR 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the Accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof 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 internal financial controls that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

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 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 standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by Company's Directors as well asevaluating the overall presentation of 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 March 31 2017 and its profit and its cash flows for the year ended on that date.

REPORTON OTHER LEGALAND 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 ofthe Act we give in the Annexure-A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

2. 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 appears from our examination of those books.

(c) The Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the 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.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 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 Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best our information and according to the explanations given to us:

(a) The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer Note 30 to the standalonefinancial statements;

(b) The Company did not have any long-term contract including derivative contract forwhich there were any material foreseeable losses;

(c) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended March 312017.

(d) The Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer to Note 41 to the standalone financialstatements.

For Trushit Chokshi & Associates
Chartered Accountants
Firm Registration No: 111072W
Trushit Chokshi
Place: Ahmedabad Partner
Date: 05/07/2017 Membership No.: 040847

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THESTANDALONE FINANCIALSTATEMENTS OF AKSHARCHEM _INDIA_ LIMITED.

Referred to in Paragraph 1 under the heading "Report on Other Legal and RegulatoryRequirements" of our Report of even date:

i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets; (b) These fixed assets have beenphysically verified by the Management at reasonable intervals and no materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the Company.

ii) (a) According to the information and explanation given to us the inventories havebeen physically verified by the management during the year. In our opinion the proceduresfor the physical verification of inventory followed by management are reasonable andadequate in relation to the size of the Company and the nature of its business.

(b) In our opinion and according to the information and explanation given to us theCompany has maintained proper records of inventory. No material discrepancies were noticedon physical verification of inventory. iii) The Company has not granted any loans securedor unsecured to companies firms or other parties covered in the register maintainedunder section 189 of the Act. Accordingly clause (iii)(a) and (iii)(b) of paragraph ofthe Order are not applicable to the Company for the current year.

iv) In our opinion and according to the information and explanations given to us theCompany has not given any loans guarantees or security or made any investments to whichprovisions of section 185 and 186 of the Act is applicable and accordingly paragraph 3(iv) of the Order is not applicable to the Company.

v) The Company has not accepted any deposits from the Public within the meaning of theprovisions of section 73 to 76 or any other relevant provisions of the Act and the rulesframes there under. vi) According to the information and explanation provided for theprovisions of clause 3(vi) of the Order are not applicable to the Company as the Companyis not covered by the Company (Cost Records and Audit) Rules 2014. The Company doesmaintain cost records in accounting system as per financial data however the detailedexamination has not been made to determine whether they are sufficient accurate orcorrect.

vii) According to the information and explanations given to us in respect of statutorydues:

(a) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has been regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income-taxSales-tax Service tax Custom duty Excise duty Value added Tax Cess and any othermaterial statutory dues during the year with the appropriate authorities. Moreover as atMarch 31 2017 there are no such undisputed dues payable for a period of more than sixmonths from the date they became payable.

(b) According to the information and explanations given to us the particulars of duesof Income tax Sales tax Excise duty and Service tax and other material statutory dues asat March 31 2017 which have not been deposited on account of any dispute are as follows:

Name of the Statute Nature of Dues Amount of Demand net of Deposits Year to Which Amount Relates Forum where Dispute is Pending
Gujarat Vat Act 2003 Sales Tax 1803341 2004-2005 Ahmedabad VAT Tribunal
Income Tax Act 1961 Income Tax 4427236 2003-2004 High Court of Gujarat
Income Tax Act 1961 Income Tax 293669 2004-2005 Commissioner of Income Tax Circle (1) Ahmedabad

viii) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not defaulted in repayment of loansor borrowings from any financial institution banks government or due to debentureholders during the year.

ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments). The term loans raised during the year has beenutilized by the Company for the purpose for which the same has been taken.

x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

xi) According to the information and explanations given to us and on the basis of ourexamination of the books of account the managerial remuneration has been paid or providedin accordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V of the Companies Act 2013.

xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.

xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable to the Company. xvi) The Company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934.

For Trushit Chokshi & Associates
Chartered Accountants
Firm Registration No: 111072W
Trushit Chokshi
Place: Ahmedabad Partner
Date: 05/07/2017 Membership No.: 040847

ANNEXURE "B" REPORT ON THE INTERNAL FINANCIAL CONTROL CLAUSE _I_ OFSUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013_"THE ACT"_

We have audited the internal financial controls over financial reporting of AksharChem(India) Limited ("the Company") as at March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to 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.

Auditors' 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 ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 judgment 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:

(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and Directors of the company; and

(iii) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the standalone 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 31 2017 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 Trushit Chokshi & Associates
Chartered Accountants
Firm Registration No: 111072W
Trushit Chokshi
Place: Ahmedabad Partner
Date: 05/07/2017 Membership No.: 040847