To the Members
Alliance Integrated Metaliks Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Alliance IntegratedMetaliks Limited (the Company) which comprise the balance sheet as at June 30th 2015 the statement of profit and loss and the cash flow statement for the year thenended and a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Financial Statements
The Companys 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 of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements 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.
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 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 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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Companys Directors aswell as evaluating the overall presentation of 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.
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 30th June 2015 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 (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inthe paragraph 3 and 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 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;
(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 30thJune 2015 taken on record by the Board of Directors none of the directors is disqualifiedas on 30th June 2015 from being appointed as a director in terms of Section 164 (2) of theAct; and (f) with respect to the other matters to be included in the Auditors Reportin accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and 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.
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.
For A. C. Gupta & Associates
Firms registration number: 008079N
Membership number: 8565
26th August 2015
Annexure to the Independent Auditors Report
The Annexure referred to in our Independent Auditors Report to the members of theCompany on the standalone financial statements for the year ended 30th June2015 we report that: (i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
(b) As explained to us fixed assets according to the practice of the Company havebeen physically verified by the management at reasonable intervals. In our opinion thefrequency of physical verification of fixed assets is reasonable having regard to the sizeof the company and nature of its assets. According to the information and explanationsgiven to us no material discrepancies were noticed on such physical verification.
(ii) (a) The inventories have been physically verified during the year by themanagement in our opinion the frequency of physical verification is reasonable.
(b) The procedures for physical verification of the inventories followed by themanagement are reasonable and adequate in relation to the size of the company and natureof its business.
(c) In our opinion the company has maintained proper records of inventories. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material & the same have been properly dealt with in the books of account.
(iii) (a) The Company during the year has granted loans of Rs. 1651.84 Lacs to onebody corporate covered in the register maintained under section 189 of the Companies Act2013 (the Act).
(b) In the case of the loans granted to the body corporate listed in the registermaintained under section 189 of the Act the Company has given loan interest free. Theterms of arrangements do not stipulate any repayment schedule and the loans are repayableon demand. Accordingly the paragraph 3(iii)(b) of the Order is not applicable to theCompany in respect of repayment of the principal amount.
(c) There is no overdue amount in respect of the loans granted to the body corporatelisted in the register maintained under section 189 of the Act.
(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business with regard to purchase of inventories consumable storesfixed assets and with regard to sale of goods and services. We have not observed any majorweakness in the internal control system during the course of the audit.
(v) The Company has not accepted any deposits from the public. Therefore theprovisions of clause (v) of paragraph 3 of the CARO2015 are not applicable to theCompany.
(vi) The Central Government has prescribed the maintenance of cost records undersection 148(1) of the Act and are of the opinion that prima facie the prescribedaccounts and cost records have been maintained.
However we are neither required to carry out nor have carried out any detailedexamination of such accounts & records.
(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxemployees state insurance sales tax wealth tax service tax duty of customs duties ofexcise value added tax cess and other material statutory dues have been regularlydeposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of aforesaid dues were in arrears as at 30th June 2015 for a period ofmore than six months from the date they became payable.
(b) According to the information and explanations given to us there are no dues ofincome tax sales tax wealth tax service tax custom duty excise duty value added taxand cess which have not been deposited on account of any dispute.
(c) According to the information and explanations given to us there is no amounts whichwere required to be transferred to the investor education and protection fund inaccordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rulesthere under.
(viii) The Company has no accumulated losses more then fifty percent of net worth atthe end of the financial year and has incurred cash losses of Rs.583.92 Lacs in thefinancial year and Rs. Nil in the immediately preceding financial year.
(ix) According to the information and explanations given to us and as per ourverification of the records of the company there had been delays in payment of Interestof term loan to the bank/financial institution during the year. The amount overdue as onthe date of balance sheet was Rs. 849.09 Lacs with delay of less than 90 days.
(x) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.
(xi) According to the information and explanation given to us in our opinion termloan availed by the company were prima facie applied by the company during the yearunder report for the purpose for which the term loans were obtained other than temporarydeployment pending applications.
(xii) According to the information and explanations given to us no material fraud onor by the Company has been noticed or reported during the course of our audit.
Firms registration number: 008079N
Membership number: 8565
26th August 2015