You are here » Home » Companies » Company Overview » Andhra Cements Ltd

Andhra Cements Ltd.

BSE: 532141 Sector: Industrials
NSE: ANDHRACEMT ISIN Code: INE666E01012
BSE 15:40 | 18 Jan 13.39 -0.60
(-4.29%)
OPEN

14.00

HIGH

14.47

LOW

13.30

NSE 15:45 | 18 Jan 13.35 -0.60
(-4.30%)
OPEN

14.00

HIGH

14.50

LOW

13.30

OPEN 14.00
PREVIOUS CLOSE 13.99
VOLUME 57949
52-Week high 16.02
52-Week low 8.10
P/E
Mkt Cap.(Rs cr) 393
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 14.00
CLOSE 13.99
VOLUME 57949
52-Week high 16.02
52-Week low 8.10
P/E
Mkt Cap.(Rs cr) 393
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Andhra Cements Ltd. (ANDHRACEMT) - Auditors Report

Company auditors report

To the Members of

ANDHRA CEMENTS LIMITED

1. Report on the Financial Statements

We have audited the accompanying financial statements of Andhra Cements Limited("the Company") which comprise the Balance Sheet as at March 31 2017 and theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

2. 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards ("IndAS") specified under Section 133 of the Act read with relevant Rules issuedthereunder. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding 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.

3. 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 there under.

We conducted our audit of the financial statement in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the 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 controls 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 evidences we have obtained are sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

4. 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 including the Ind AS of the financial position ofthe Company as at March 31 2017 and its loss (financial performance including othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.

5. Emphasis of matters

We draw attention to Note 38 to the Ind AS financial statements in respect ofpreparation of Ind AS financial statements of the Company on going concern basis for thereasons stated therein. During the year the Company has incurred a net loss of `10279.33 Lakhs resulting into accumulated losses of ` 45032.15 Lakhs against paid upshare capital of ` 29352.44 Lakhs as at March 31 2017. Management of the Companybelieves that the Company would be able to achieve profitable operations and meet itsobligations. Our opinion is not qualified in respect of these matters.

6. Other Matter

The financial information of the Company for the nine months period ended March 312016 and the transition date opening balance sheet as at July 01 2015 included in thesefinancial statements are based on the previously issued audited financial statements forthe nine months period ended March 31 2016 and for the fifteen months period ended June30 2015 prepared in accordance with the Companies (Accounting Standards) Rules 2006which were audited by us on which we expressed an unmodified opinion dated May 29 2016and August 28 2015 respectively. The adjustment for the differences in the accountingprinciples adopted by the Company on transition to the Ind AS which have been audited byus.

7. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of section 143 (11) of theAct we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the 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 (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisreport are in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply with the Indian AccountingStandards specified under section 133 of the Act read with relevant Rules issuedthereunder.

e. The matters described under ‘Emphasis of matter' paragraph above in ouropinion may have an adverse effect on the functioning of the Company.

f. On the basis of the written representations received from the directors as on March31 2017 and taken on record by the Board of Directors none of the director isdisqualified as on March 31 2017 from being appointed as a director in terms of Section164 (2) of the Act.

g. 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 B" and h. With respect to the other mattersto be included in the Auditor's Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinion and to the best of our information and accordingto the information and explanations given to us:

i) The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements; (Refer Note 35 to the Ind AS financialstatement)

ii) The Company has made provision as required under the applicable law or accountingstandards. The Company did not have any long-term contract for which there were anymaterial foreseeable losses.

iii) According to the information and explanation given to us an amount of

` 101.94 lakhs and an amount of ` 193.17 lakhs pertaining to unpaid matured depositsand unpaid matured debenture respectively held with the banks are yet to be transferredto the Investor Education and Protection Fund by the Company as on March 31 2017.Accordingly there has been delay in transfer.

iv) The company has provided requisite disclosures in the financial statementsas to holdings as well as dealings in Specified Bank Notes during the period from November08 2016 to December 30 2016. Based on audit procedures and relying on management'srepresentation we report that disclosures are in accordance with the books of accountmaintained by the Company and as produced to us by the management (Refer note 49 to thefinancial statement).

For CHATURVEDI & PARTNERS

Chartered Accountant Firm Registration No. 307068E

RAVINDRA NATH CHATURVEDI

Noida

Partner

May 27 2017

Membership No. 092087

Annexure A referred to in Independent Auditor's Report of even date to the members ofAndhra Cements Limited ("the Company") on the financial statements for the yearended March 31 2017

(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 during the year by the management ona regular programme of verification which in our opinion is reasonable having regard tothe size of the company and the nature of its assets. According to the information andexplanations given to us and as per our verification the discrepancies noticed were notmaterial and have been properly dealt with in the books of account.

(c) According to information and explanations given to us the title deeds of theimmovable properties have been mortgaged as security with the Banks and FinancialInstitutions for securing the borrowings and loan raised by the Company. On the basis ofour examination of the records of the Company and copy of the title deeds of immovableproperties the title deeds of immovable properties are held in the name of the Company.In respect of immovable properties taken on lease the lease agreement is in the name ofthe Company.

(ii) According to the information and explanations given to us the management hasconducted physical verification of inventory at reasonable intervals during the year. Thediscrepancies noticed on verification between physical inventories and book records werenot material and have been properly dealt with in the books of account.

(iii) According to the information and explanations given to us the Company has notgranted any loan secured or unsecured to companies firms limited liabilitiespartnership or other parties covered in the register maintained under Section 189 of theCompanies Act 2013. Accordingly paragraph 3 (iii)(a) (iii)(b) and (iii)(c) of the Orderare not applicable to the Company.

(iv) According to the information and explanations given to us the Company has notgranted any loan investment guarantee and security in respect of which compliance ofprovisions of section 185 and 186 of the Companies Act 2013 are applicable.

(v) In our opinion and according to the information and explanations given to us TheCompany has not accepted any deposits within the meaning of Section 73 to 76 of the Actand the rules framed thereunder to the extent notified during the year. Further inrespect of deposits accepted by the Company during an earlier year the Company Law Board(Southern Regional Bench) has by its order dated July 07 2001 directed the company torepay the said deposits in accordance with the scheme sanctioned by the BIFR. However theBIFR in its Modified Rehabilitation Scheme dated July 21 2008 directed the fixed depositsholders to accept the outstanding principal amount in four annual installments oninterest free basis. Further no other Order against the Company has been passed by theCompany Law Board or National Company Law Tribunal or Reserve Bank of India or any Courtor any other Tribunal. In respect of these deposits the Company is yet to comply with therequirement of maintaining liquid assets and filing of Return of Deposit.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Rules made by the Central Government under sub-section (1) of Section 148 of the Actand are of the opinion that prima facie the prescribed accounts and records have beenmade and maintained. We have however not made a detailed examination of these recordswith a view to determining whether they are accurate or complete.

(vii) (a) According to information and explanations given to us the Company isgenerally regular in depositing undisputed statutory dues including provident fundemployee's state insurance duty of customs sales tax income tax service tax valueadded tax cess and any other statutory dues except duty of excise which is outstandingfor a period of more than six months from the date it become payable. The details aregiven as under:

Name of the Statute Nature of the Dues Amount (` In Lakhs) Period to which the amount relates Due Date Date of Payment Remarks
Central Excise 201.40 2016-17 September 06 Still pending
Excise Duty 2016
Act1944

(b) According to the information and explanations given to us and the records of theCompany examined by us there were no outstanding dues in respect of income tax salestax service tax duty of customs duty of excise and value added tax which have not beendeposited on account of any dispute except the following:

Name of the Statute Nature of Dues Amount (` in lakhs) Period to which amount relates Forum where dispute is Pending
1 Central Excise Central Excise duty 10.61 2004-05 High Court
Act1944
Central Excise duty 650.96 2006-12 CESTAT
Central Excise duty 371.50 2007-09 CESTAT
Central Excise duty 1.81 2010-11 CESTAT
Central Excise duty 984.70 1995-2013 Apex Court
Central Excise duty 799.53 2013-16 CESTAT
2 Finance Act Service Tax 57.02 2007-10 CESTAT
Service Tax 298.64 2007-10 CESTAT
3 APGST Act/CST Sales Tax 26.96 1995-96 High Court
Act
Sales Tax 8.11 2001-02 Tribunal
Sales Tax (CST) 16.65 1991-92 Tribunal
Sales Tax (CST) 6.53 1992-93 Tribunal
4 Orissa Sales tax Sales Tax (ET) 0.21 2000-01 Tribunal
Act
Sales Tax (ET) 2.77 2003-04 Tribunal
5 Tamil Nadu Sales Sales Tax (CST) 12.30 1988-89 Tribunal
Tax Act
Sales Tax 13.26 1991-92 Tribunal
Sales Tax 5.83 1992-93 Tribunal
Sales Tax 18.93 1996-97 Tribunal
Sales Tax 9.16 1988-89 Commissioner
(Appeals)
Sales Tax 6.09 1989-90 Commissioner
(Appeals)

(viii) According to the information and explanations given to us the Company has nottaken loans or borrowings from the Government or Debenture holders. The Company has notdefaulted in repayment of loans or borrowings to Financial Institutions and banks duringthe year except payment of interest which are given below.

(` in Lakhs)

Lender Amount of
Repayment of Principal Payment of Interest Period of Default (days) Remark
IDFC / EARCL - 320.18 - 354.49 83 - 91 No. of instances 12
HDFC - 392.02 – 364.27 1 – 91 No. of instances 12
Karur Vasya Bank - 46.05 – 50.98 32- 92 No. of instances 12
Andhra Bank - 90.03 – 103.00 86- 90 No. of instances 10

(ix) According to the information and explanations given to us the Company has notraised any money by way of initial public offer or further public offer (including debtinstruments) and term loans have been applied by the Company during the year for thepurposes for which they were obtained.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees have been noticed or reported during theyear.

(xi) According to the information and explanations given to us the managerialremuneration paid/provided during the year is in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act. (xii) In ouropinion and according to the information and explanations given to us the Company is nota Nidhi Company. Therefore the provisions of Para 3 (xii) of the Order are not applicableto the Company.

(xiii) In our opinion and according to the information and explanations given to usall transactions with the related parties are in compliance with sections 177 and 188 ofthe Act wherever applicable and the details have been disclosed in the financialstatements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year.

(xv) According to the information and explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with them.Accordingly the provisions of clause 3 (xv) of the Order are not applicable to thecompany.

(xvi) In our opinion the Company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934. Accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company.

For CHATURVEDI & PARTNERS

Chartered Accountant Firm Registration No. 307068E

Noida

May 27 2017

RAVINDRA NATH CHATURVEDI

Partner

Membership no. 092087

Annexure B to the Independent Auditor's Report on the financial statements of AndhraCements Limited ("the Company") for the year ended March 31 2017

(Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AndhraCements Limited ("the Company") as of March 31 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. 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 Companies Act 2013.

Auditor's 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 issued by ICAI anddeemed to be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both issued by the Institute ofChartered Accountants of India and applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 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 auditor's judgment including the assessment of the risks of materialmisstatement 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 andexpenditures 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 and according to the information and explanations given to us theCompany has in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2017 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

For CHATURVEDI & PARTNERS

Chartered Accountant Firm Registration No. 307068E

RAVINDRA NATH CHATURVEDI

Partner Noida

May 27 2017

Membership No. 092087