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Amforge Industries Ltd.

BSE: 513117 Sector: Engineering
NSE: AMFORGEIND ISIN Code: INE991A01020
BSE LIVE 15:40 | 09 Dec 4.36 -0.14
(-3.11%)
OPEN

4.33

HIGH

4.50

LOW

4.33

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 4.33
PREVIOUS CLOSE 4.50
VOLUME 900
52-Week high 6.20
52-Week low 2.28
P/E
Mkt Cap.(Rs cr) 6.45
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.33
CLOSE 4.50
VOLUME 900
52-Week high 6.20
52-Week low 2.28
P/E
Mkt Cap.(Rs cr) 6.45
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 M/s Amforge IndustriesLimited ("the Company") which comprise the Balance Sheet as at 31/03/2016the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda summary of significant accounting policies and other explanatory information.

Management’s Responsibility for theFinancial Statements:

The Company’s Board of Directors is responsible for the matters in section 134(5)of the 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 theauditor’s 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 Company’spreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of the accounting estimates made by Company’s Directors as wellas 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 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 at31/03/2016 and its Profit and its Cash Flows for the year ended on that date.

Emphasis of Matters:

We draw attention to the following matter in the Notes to the financial statements:

Refer Note 19(3) to the financial statements which describes overdue businessadvancegiven to a Company amounting to Rs. 21658/- thousands.

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 sub-section (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’ a statement on the matters specified in paragraphs 3 and4 of the Order as may be applicable.

(II) 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 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 on31/03/2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31/03/2016 from being appointed as a director in terms of Section164(2) of the Act.

(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 onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting.

(g) With respect to the other matters to be included in the Independent Auditors’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’to the financialstatements.

(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.

For J. Singh & Associates
Chartered Accountants
(ICAI Firm Reg. No. 110266W)
S. P. Dixit
(Partner)
Membership No. 041179
Place: Mumbai
Dated: 20th May 2016

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

The Annexure referred to in paragraph (I) under our Independent Auditors’ Reportto the members of M/s Amforge Industries Limited on the financial statements for the yearended 31/03/2016 we report 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 financialyearwhich in our opinion is reasonable having regard to size of the Company and thenature of its assets and no material discrepancies have been noticed on such verification.

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

Particular of Property Status
Three 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 there quirement 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 Act2013 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 Taxduty of customs duty of excise cess and otherstatutory dues as applicable with the appropriate authorities. There were no arrearsoutstanding as at the last day of the financial year for a period of more than six monthsfrom 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 31/03/2016 which have not been depositedon 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 Rs. (‘000)
Central Excise Act 1944 Excise Duty F.Y. 2003-04 CESTAT Mumbai Asst./ Addl./Joint Commissioner of Cen- tral Excise 46524/-
Central Sales Tax Act1956 Sales Tax F.Y. 2005-06 Commissioner of Ap- peals (Sales Tax) 2057/-
Central Sales Tax Act1956 Sales Tax F.Y. 2005-06 Joint Commissioner of Sales Tax 11175/-
Value Added Tax Maharashtra MVAT F.Y. 2004-05 Commissioner of Sales Tax 397/-

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 hasnot raisedany 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 Act2013 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 Act2013 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)
S.P. Dixit
(Partner)
M. No. 041179.
Place: Mumbai
Dated: 20th May 2016

Annexure ‘B’ to the Independence Auditors’ Report:

The Annexure referred to in paragraph (II)(f) under ‘Report on Other Legal andRegulatory Requirements’ 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 M/ sAmforge Industries Limited (‘the Company’) as of 31/03/2016 in conjunction withour audit 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 thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable 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 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 were 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 auditors’ judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company’s internal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting:

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of 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 (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofthe Management and directors of the Company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the Company’s assets that could have a material effect on the financialstatements.

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 31/03/2016 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)
S.P. Dixit
(Partner)
M. No. 041179.
Place: Mumbai
Dated: 20th May 2016

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