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Alfa Transformers Ltd.

BSE: 517546 Sector: Engineering
NSE: N.A. ISIN Code: INE209C01015
BSE LIVE 14:59 | 21 Nov 29.25 0.80
(2.81%)
OPEN

29.25

HIGH

29.25

LOW

29.25

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 29.25
PREVIOUS CLOSE 28.45
VOLUME 25
52-Week high 33.60
52-Week low 18.35
P/E
Mkt Cap.(Rs cr) 20
Buy Price 27.55
Buy Qty 500.00
Sell Price 29.50
Sell Qty 100.00
OPEN 29.25
CLOSE 28.45
VOLUME 25
52-Week high 33.60
52-Week low 18.35
P/E
Mkt Cap.(Rs cr) 20
Buy Price 27.55
Buy Qty 500.00
Sell Price 29.50
Sell Qty 100.00

Alfa Transformers Ltd. (ALFATRANSFORMER) - Auditors Report

Company auditors report

To the Members of Alfa Transformers Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of ALFA TRANSFORMERSLIMITED ( 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 the significant accounting policies and other explanatory information.

Management s Responsibility for the 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 of thesestandalone 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 of 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 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 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 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 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 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 31st March 2017 and its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor s Report) Order 2016 (the Order ) issued bythe Central Government of India in terms of Sub-section (11) of Section 143 of the Act we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

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 purposes 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 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 and returns;

(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) As required under Section 143 (3) (i) of the Companies Act 2013 we report inAnnexure B on existence of adequate internal financial controls systems and its operatingeffectiveness for the financial year 2016-17; and

(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. The Company does not have any pending litigations which would impact its financialposition Refer Para no-8 of Note-26 to the Standalone Financial Statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company; and

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management Refer Para no-11 ofNote-26 to the standalone financial statement.

For A. K. SABAT & CO.
Chartered Accountants
Firm Registration No: 321012E
(UMAKANTA JENA)
PARTNER
Membership No. 307338
Bhubaneswar
Date : 29th May 2017

ANNEXURE A TO INDEPENDENT AUDITORS REPORT

Annexure A referred to in paragraph 1 of Report on Other Legal and RegulatoryRequirements paragraph of our report of even date to the members of ALFA TRNSFORMERSLIMITED on the Standalone Financial Statements of the Company for the year ended 31stMarch 2017.

We report that

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

b) The Company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this program certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regards to the size of the Company and thenature of its assets.

c) The title deeds of the immovable properties are held in the name of the Company.

(ii) As explained to us the inventories were physically verified during the year bythe management at a reasonable interval and no material discrepancies were noticed on suchverification.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to parties covered in the register maintainedunder section 189 of the Companies Act 2013 ( the Act ). Accordingly the provisions ofclause 3(iii)(b)&(c) of the order are not applicable to the Company and hence notcommented upon.

(iv) As per information and explanations given to us there are no loans investmentsguarantees and securities to which provisions of Section 185 or 186 of the Act areapplicable and hence commenting on compliance of above provisions doesn't arise.

(v) The Company has not accepted any deposit from the public consequently theprovisions of sections 73 to 76 or any other relevant provisions of the Act and the rulesframed there under are not applicable and hence not commented upon.

(vi) We have broadly reviewed the cost records maintained by the company including therecords prescribed by the Central Government under section 148(1) of the Act for theproducts of the Company and are of the opinion that prima facie the prescribed costrecords have been made and maintained. We have however not made a detailed examinationof the cost records with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and on basis of ourexamination of the records of the Company the Company is regular in respect of undisputedstatutory dues including provident fund employees state insurance income tax sales taxwealth tax service tax duty of customs duty of excise value added tax cess and anyother statutory dues. According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees state insurance incometax sales tax wealth tax service tax duty of customs duty of excise value added taxcess and any other statutory dues were in arrears as at 31st March 2017 for a period ofmore than 6 months from the date they became payable.

(b) Details of disputed statutory dues which have not been deposited on account of anydispute are given below:

Name of the Statute Period Dispute (in brief) Disputed Amount Rs. Forum where dispute is pending
Income Tax Act1961 1994-95 Deduction U/S 80 I disallowed in assessment 277227 High Court of Orissa
Income Tax Act1961 1995-96 Deduction U/S 80 I disallowed in assessment 271209 High Court of Orissa
Income Tax Act1961 2006-07 Disallowance of Deposit/ advances written off loss on discarded assets. 1190020 Income Tax Appellate Tribunal Cuttack
Income Tax Act1961 2009-10 Disallowance of expenses 23860 Commissioner of Income Tax (Appeals)
Income Tax Act1961 2010-11 Disallowance of advances written off loss on discarded assets Disallowance of expenses 5960 Commissioner of Income Tax (Appeals)
Central Sales Tax1956 1989-90 Disallowance of CST exemption 251039 High Court of Orissa
Central Sales Tax1956 1990-91 Disallowance of CST exemption 108000 Commissioner of Sales Tax Bhubaneswar
Central Sales Tax1956 1991-92 Disallowance of CST exemption 1550740 Sales Tax Tribunal
The Orissa Sales Tax Act 1947 1996-97 Disallowance of Price Variation Bill 73008 Sales Tax Tribunal
The Orissa Sales Tax Act 1947 2003-04 Wanting Form IV & XXXIV 662384 Assistant Commissioner of Sales Tax
The Orissa Entry Tax Act 1999 2004-05 Demand on Purchase of Raw Materials 277791 Sales Tax Tribunal Cuttack
The Orissa Entry Tax Act 1999 2005-06 Demand on Purchase of Raw Materials 8706714 Orissa High Court Cuttack
Central Sales Tax 1956 2012-14 Disallowance of CST Exemption 2 25068 JCST Bhubaneswar Range Bhubaneswar
Service Tax (Finance Act 1994) July 12 to March 15 Service Tax on Manpower Service 401388 Commissioner of Customs Central Excise and Service Tax

((viii) According to the information and explanations given to us the Company has notdefaulted in repayment of dues to any financial institution or bank or debenture holders.

(ix) As per information and explanations given to us the Company has not raised anymoney by way of initial public offer further public offer (including debt instruments)and term loans during the year.Accordingly the provision of clause 3(ix) of the Order arenot applicable.

(x) During the course of our examination of books of account carried out in accordancewith the generally accepted auditing practices in India and in our opinion and as perinformation and explanations given to us no fraud by the company or on the company by itsofficers or employees has been noticed or reported during the year;

(xi) As per examination of books of accounts and as per information and explanationsgiven to us managerial remuneration has been paid or provided in accordance with therequisite approval mandated by the provisions of Section 197 read with Schedule-V to theAct.

(xii) As the Company is not a Nidhi company reporting under Para 3 (xii) of the Orderis not applicable;

(xiii) Based on our examination of books of accounts and as per information andexplanations given to us all transactions with related parties are in compliance withSection 177 and 188 of the Act where applicable and the details have been disclosed inthe financial statements as required by the applicable accounting standards;

(xiv) The Company has made a private placement of 945588 no s of fully paid equityshares (Rs.10/- each share)at a premium of Rs. 12/- per security during the year.

(xv) The company doesnot have any non cash transactions with directors or personsconnected with directors.

(xvi) As per information and explanations given to us the Company is not required tobe registered under Section 45-IA of the Reserve Bank of India Act 1934.

For A. K. SABAT & CO.
Chartered Accountants
Firm Registration No: 321012E
(UMAKANTA JENA)
Bhubaneswar PARTNER
Date : 29th May 2017 Membership No. 307338

Annexure B referred to in paragraph 2(f) of Report on Other Legal and RegulatoryRequirements paragraph of our report of even date to the members of ALFA TRANSFORMERSLIMITED on the accounts of the Company for the year ended 31st March 2017.

We have audited the internal financial controls over financial reporting of AlfaTransformers Limited ( the Company ) as of 31st March 2017 in conjunction with our auditof the 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 laying down 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 company s policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

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 Standards on Auditing to the extent applicable to an audit of internal financialcontrols and the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the Guidance Note ) 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 audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our 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 judgment 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 there liability 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 mis statements 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 31st March 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 A. K. SABAT & CO.
Chartered Accountants
Firm Registration No: 321012E
(UMAKANTA JENA)
Bhubaneswar PARTNER
Date : 29th May 2017 Membership No. 307338