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Amforge Industries Ltd.

BSE: 513117 Sector: Engineering
NSE: AMFORGEIND ISIN Code: INE991A01020
BSE 13:45 | 20 Apr 3.07 -0.16
(-4.95%)
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3.07

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3.07

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NSE 05:30 | 01 Jan Amforge Industries Ltd
OPEN 3.07
PREVIOUS CLOSE 3.23
VOLUME 20
52-Week high 6.17
52-Week low 2.74
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.07
CLOSE 3.23
VOLUME 20
52-Week high 6.17
52-Week low 2.74
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Amforge Industries Ltd. (AMFORGEIND) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

AMFORGE INDUSTRIES LIMITED

Report on the Financial Statements:

We have audited the accompanying financial statements of Amforge Industries Limited("the Company") which comprise the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of 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 in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility:

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances

An audit also includes evaluating the appropriateness ofaccounting policies used andthe reasonableness ofthe accounting estimates made by Company's Directors as well asevaluating 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 financial statements.

Opinion:

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state affairs of the Company as at March31 2017 and its losses and its Cash Flows for the year ended on that date.

Emphasis of Matters:

Without qualifying our report we draw attention to the following matters in the Notesto the financial statements:

i) Refer Note 20 (4) which describes other expenses includes the amount of Rs.21658thousand written off during the year outstanding on account of long drawn litigation ofbusiness advance given to a company and Rs.16655 thousand written off during the yearoutstanding on account of the long drawn litigation of inter corporate deposit given to acompany.

ii) Refer Note 20(5) in view of uncertainty of earning sufficient future taxableincome the Management has decided to reverse the Deferred Tax Assets (DTA) created in theearlier years amounting to Rs.116436 thousand.

Report on Other Legal and Regulatory Requirements:

(I) As required by the Company (Auditor's Report) Order 2016 issued by the CentralGovernment of India of subsection (11) of section 143 of the Act (hereinafter referred toas the Order) and on the basis of such checks of the books and records of the Company aswe considered appropriate and according to the information and explanations given to uswe give in Annexure ‘A Rs.a statement on the matters specified in paragraphs 3 and 4of the Order as may be applicable.

(II) As required by section 143(3) of the Act we report to the extent applicable 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 appears from our examination of those books.

(c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.

(f) With respect to the adequacy of internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in Annexure ‘B'. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

(g) With respect to the other matters to be included in the Independent AuditorsRs.Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements refer Note ‘19 Rs.to the financial statements.

(ii) The Company did not have any long-term contracts including derivatives contractsfor which 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.

(iv) The Company has provided requisite disclosures in the financial statements asregards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated 8th November 2016 to 30th December 2016. Based on audit proceduresperformed and the representations provided to us by the management we report that thedisclosures are in accordance with the books of account maintained by the Company and asproduced to us by the Management.

For J. Singh & Associates
Chartered Accountants
(Firm Reg. No. 110266W)
CA.S.P. Dixit
(Partner)
Membership No. 041179
Place: Mumbai
Dated: 18th May 2017

Annexure ‘A' to the Independent Auditor's Report:

The Annexure referred to in paragraph (I) under our Independent Auditors' Report to themembers of Amforge

Industries Limited on the financial statements for the year ended 31 March 2017 wereport that:

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

(b) The fixed assets are physically verified by the management during the financialyear which in our opinion is reasonable having regard to size of the Company and thenature of its assetsand no material discrepancies have been noticed on such verification.

(c) The title deeds of all the immovable properties of the Company are held in the nameof the Company except in case of

Particular of Property Status
3 Residential Flats at Khopoli Maharashtra Title in the name of the Company but ownership of the Flats are under dispute.

2. The nature of business of the Company does not require it to have any inventory.Hence the requirement of clause (ii) of paragraph 3 of the said Order is not applicableto the Company.

3. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013.

4. In respect of loans investments guarantees and security provisions of Section 185and 186 of the Companies Act 2013 have been complied with.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public covered under Section 73 to 76 ofthe Companies Act 2013 and the rules made thereunder as notified.

6. It has been explained to us that the maintenance of cost records has not beenprescribed under section 148(1) of the Act.

7. (a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including Provident Fund Employees' State InsuranceIncome-tax Sales-tax Service Tax duty of customs duty of excise cess and otherstatutory dues as applicable with the appropriate authorities.

There were no arrears outstanding as at the last day of the financial year for a periodof more than six months from the date of they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues of duty of Excise duty of Customs Salestax include value added tax and Income tax as at 31st March 2017 which have not beendeposited on account of any dispute are as follows;

Name of the statute Nature of dues Period to which the amount relates Forum where dispute is pending Amt. in '(‘000)
Central Excise Act 1944 Excise Duty F.Y. 2003-04 CESTAT Mumbai Asst./Addl./Joint Commissioner of Central Excise 46524/-
Central Sales Tax Act1956 Sales Tax F.Y. 2005-06 Commissioner of Appeals (Sales Tax) 2057/-
Central Sales Tax Act1956 Sales Tax F.Y. 2005-06 Joint Commissioner of Sales Tax 11175/-
Name of the statute Nature of dues Period to which the amount relates Forum where dispute is pending Amt. in '(‘000)
Central Sales Tax Act1956 Sales Tax F.Y. 2006-07 Joint Commissioner of Sales Tax 18727/-
Value Added Tax Maharashtra Sales Tax F.Y. 2006-07 Joint Commissioner of Sales Tax 53934/-
Central Sales Tax Act1956 Sales Tax F.Y. 2007-08 Joint Commissioner of Sales Tax 16151/-
Value Added Tax Maharashtra Sales Tax F.Y. 2007-08 Joint Commissioner of Sales Tax 48110/-

According to the information and explanations given to us and the records of theCompany examined by us there are no dues of service tax which have not been deposited onaccount of any dispute.

8. According to the records of the Company examined by us and as per the informationand explanations given to us the Company has not defaulted in repayment of dues tofinancial institutions Banks Government or Debenture holders as at the balance sheetdate.

9. In our opinion and according to the information and explanations given to us theCompany has not raised any moneys by way of initial public offer or further public offerincluding debt instruments during the year.

10. During the course of our examination of the books and records of the Companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud by the Company or any fraud on the company byits officers/employees has been noticed or reported during the course of our audit norhave we been informed of any such instance by the Management during the year.

11. The managerial remuneration has been provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the CompaniesAct 2013.

12. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it; the provisions of Clause 3(xii) of the Order are not applicable to the Company.

13. All the transactions with related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in thefinancial statements etc as required by the accounting standards.

14. The Company has not made any private placement /preferential Allotment during theyear hence compliance with section 42 of the Companies Act 2013 is not applicable to theCompany during the year.

15. The Company has not entered into any non-cash transactions with directors orpersons connected with him and hence compliance of section 192 is not applicable to theCompany during the year.

16. The Company is not required to be registered under section 45 -IA of the ReserveBank of India Act 1934 accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For J. Singh & Associates
Chartered Accountants
(Firm Reg. No. 110266W)
CA.S.P. Dixit
(Partner)
M.No. 041179.
Place: Mumbai
Dated: 18th May 2017

Annexure ‘B' to the Independence Auditors' Report:

The Annexure referred to in paragraph (II) (f) under ‘Report on Other Legal andRegulatory Requirements Rs.section of our report of even date)

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 internal financial controls over financial reporting of AmforgeIndustries Limited (‘the Company') as of 31st March 2017 in conjunction with ouraudit of the 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 on Audit of Internal Financial Controls over Financial Reporting(the ‘Guidance Note') and the 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 the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. 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. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Company's internal financial controls system over 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 andexpenditures of the Company are being made only in accordance with authorizations of theManagement 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 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 31 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 J. Singh & Associates
Chartered Accountants
(Firm Reg. No. 110266W)
CA.S.P. Dixit
(Partner)
M.No. 041179
Place: Mumbai
Dated: 18th May 2017