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Alkyl Amines Chemicals Ltd.

BSE: 506767 Sector: Industrials
NSE: ALKYLAMINE ISIN Code: INE150B01021
BSE LIVE 15:03 | 09 Dec 315.00 -2.25
(-0.71%)
OPEN

315.00

HIGH

315.00

LOW

315.00

NSE LIVE 15:31 | 09 Dec 319.55 2.60
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OPEN

314.80

HIGH

320.00

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OPEN 315.00
PREVIOUS CLOSE 317.25
VOLUME 56
52-Week high 409.75
52-Week low 279.60
P/E 13.21
Mkt Cap.(Rs cr) 642.60
Buy Price 314.00
Buy Qty 1.00
Sell Price 315.00
Sell Qty 44.00
OPEN 315.00
CLOSE 317.25
VOLUME 56
52-Week high 409.75
52-Week low 279.60
P/E 13.21
Mkt Cap.(Rs cr) 642.60
Buy Price 314.00
Buy Qty 1.00
Sell Price 315.00
Sell Qty 44.00

Alkyl Amines Chemicals Ltd. (ALKYLAMINE) - Auditors Report

Company auditors report

To

The

Members of

Alkyl Amines Chemicals Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Alkyl AminesChemicals Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2016 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement 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 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 theauditor's 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 that we have obtained is sufficient and appropriateto provide 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 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 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.

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 March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 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 A.

g. With respect to the other matters to be included in the Auditors Rs.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 has disclosed the impact if any of pending litigations as at March 312016 on its financial position in its standalone financial statements - Refer Note 27.1 tothe standalone financial statements;

ii. the Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312016.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein Annexure B a statement on the matters specified in the paragraphs 3 and 4 of the Order.

For BANSI S. MEHTA & CO.

Chartered Accountants

Firm Registration No. 100991W

PARESH H. CLERK

Partner

Membership No. 36148

PLACE: Mumbai

DATED: MAY 20 2016.

"ANNEXURE - A"

TO THE INDEPENDENT AUDITORS REPORT

Referred to in paragraph 1(f) under the heading of "Report on Other Legal andRegulatory Requirements" of our Independent Auditors Rs.Report of even date to themembers of the Company on the standalone financial statements for the year ended March 312016.

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 interna! financial controls over financial reporting of AlkylAmines Chemicals Limited ("the Company") as of March 31 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required 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 and Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 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 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 andexpenditure 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 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note.

For BANSI S. MEHTA & Co.

Chartered Accountants

Firm Registration No. 100991W

PARESH H. CLERK

Partner

Membership No. 36148

PLACE: Mumbai

DATED: May 20 2016.

"ANNEXURE - B"

TO THE INDEPENDENT AUDITORS REPORT

Referred to in paragraph 2 under the heading of "Report on Other Legal andRegulatory Requirements" of our Independent Auditors'

Report of even date to the members of the Company on the standalone financialstatements for the year ended March 31 2016.

Report on the Companies (Auditor's Report) Order 2016 issued in terms of Section143(11) of the Companies Act 2013 ("the Act") of Alkyl Amines Chemicals Limited("the Company")

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

b. The fixed assets have been physically verified by the management according to aphased programme designed to cover all the fixed assets over a period of three yearswhich in our opinion provides for physical verification of all the fixed assets atreasonable intervals. Pursuant to the programme a portion of the fixed assets have beenphysically verified by the management during the year and no material discrepancies havebeen 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 asincluded in Note 11 on Fixed Assets to the financial statements are held in the name ofthe Company except that in case of two Leasehold Lands namely one situated at Kurkumbhtaken on lease from Maharashtra Industrial Development Corporation having Gross Block ofRs.131.13 Lakhs (Net Block of Rs.107.49 Lakhs) and the other situated at Dahej taken onlease from Gujarat Industrial Development Corporation having Gross Block of Rs.1135.33Lakhs (Net Block of Rs.1114.17 Lakhs) for which Lease Deeds are yet to be executed.

ii. Inventories other than stocks-in-transit and stocks lying with third parties havebeen physically verified by the management during the year and at year end. Forstocks-in-transit at the year-end the necessary documentary evidences have been obtained.In our opinion the frequency of such verification is reasonable. In case of stocks lyingwith third parties certificates confirming such stocks have been received in respect ofstocks held as on March 31 2016. In our opinion the frequency of such verification isreasonable and no material discrepancies were noticed on such physical verification.

iii. The Company has not granted any loan secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto investments made. The Company has not given any loan or guarantee or provided anysecurity in connection with a loan to any person or other body corporate and accordinglythe question of commenting on compliance with the provisions in respect thereof does notarise.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public. Accordingly paragraph 3 (v) of theOrder to comment on whether the Company has complied with the directives issued by theReserve Bank of India and the provisions of Sections 73 to 76 or any other relevantprovisions of the Act and rules framed thereunder is not applicable.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 as specified by the Central Governmentunder Section 148 (1) of the Act in respect of the 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 said accounts andrecords with a view to determine whether they are accurate or complete.

vii. a. According to the information and explanations given to us and on the basis ofthe books and records examined by us the Company has been regular in depositingundisputed statutory dues including Provident Fund Income Tax Employees Rs.StateInsurance Sales-tax Service Tax Customs Duty Excise Duty Value Added Tax Cess andother statutory dues as applicable to it with the appropriate authorities and there are noarrears of outstanding statutory dues as at the last date of the financial year for aperiod of more than six months from the date they become payable.

b. According to the information and explanations given to us and on the basis of thebooks and records examined by us given herein below are details of dues of Income-TaxSales-Tax Service Tax Duty of Customs Duty of Excise Value Added Tax and Cess as onMarch 31 2016 which have not been deposited on account of disputes:

Name of the Statute Forum where dispute is pending Nature of the Dues Period to which the amount relates Amount (Rs. In Lakhs)
The Assessing Officer is yet to give effect to the orders of the Income-tax Assessment Year 1998-1999
Disallowance of expenditure/ deductions and interest Assessment Year 1999-2000 84.89*
Appellate Tribunal Assessment Year 2003-2004
Assessment Year 2004-2005
The Income-tax Income-tax and interest Assessment Year 2007-2008
The Income-tax Act 1961 Appellate Tribunal Assessment Year 2008-2009 70.05**
Assessment Year 2009-2010
Assessment Year 2008-2009
Commissioner of Income-tax (Appeals) Income-tax and interest Assessment Year 2011-2012
Assessment Year 2012-2013 237.12***
Assessment Year 2013-2014
The Central Excise Act 1944 The Customs Excise and Service Tax Appellate Tribunal Dispute relating to Cenvat Credit (interest and penalty) Financial Years 20022003 to 2010-2011 748.27****
The Bombay Sales Tax Act 1959 MST Tribunal Maharashtra Non-granting of Sales tax set-off Financial Year 2002-2003 24 72*****

* Amounts deposited under protest is Rs.84.71 Lakhs

** Amounts deposited under protest is Rs.41.05 Lakhs

*** Amounts deposited under protest is Rs.216.83 Lakhs

**** Amounts deposited under protest is Rs.21.07 Lakhs

***** Amounts deposited under protest is Rs.1 Lakh

viii. According to the information and explanations given to us as also on the basisof the books and records examined by us the Company has not defaulted in the repayment ofdues to financial institutions banks Government or debenture holders.

ix. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Accordingly paragraph 3 (ix)of the Order in respect thereof is not applicable. Moneys raised by way of term loans wereapplied for the purposes for which those are raised.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year in the course of our audit.

xi. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

xii. The Company is not a Nidhi company. Accordingly paragraph 3(xii) of the Order isnot applicable 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 sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv. The Company has not made a preferential allotment or private placement of sharesfully paid or fully or partly convertible debentures during the year under review.Accordingly reporting under paragraph 3(xiv) of the Order is not applicable.

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 be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable tothe Company.

For BANSI S. MEHTA & CO.

Chartered Accountants

Firm Registration No. 100991W

PARESH H. CLERK

Partner

Membership No. 36148

PLACE: Mumbai

DATED: May 20 2016.

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