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Andhra Petrochemicals Ltd.

BSE: 500012 Sector: Industrials
NSE: ANDHRAPET ISIN Code: INE714B01016
BSE LIVE 12:37 | 26 Jul 27.00 -0.20
(-0.74%)
OPEN

27.50

HIGH

27.50

LOW

26.60

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 27.50
PREVIOUS CLOSE 27.20
VOLUME 12516
52-Week high 34.50
52-Week low 11.57
P/E
Mkt Cap.(Rs cr) 229
Buy Price 26.95
Buy Qty 2000.00
Sell Price 27.00
Sell Qty 83.00
OPEN 27.50
CLOSE 27.20
VOLUME 12516
52-Week high 34.50
52-Week low 11.57
P/E
Mkt Cap.(Rs cr) 229
Buy Price 26.95
Buy Qty 2000.00
Sell Price 27.00
Sell Qty 83.00

Andhra Petrochemicals Ltd. (ANDHRAPET) - Auditors Report

Company auditors report

To

The Members of The Andhra Petrochemicals Limited Tanuku.

Report on the Financial Statements:

We have audited the accompanying financial statements of The Andhra PetrochemicalsLimited Tanuku which comprise the Balance Sheet as at March 31 2016 and the Statementof Profit and Loss the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

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 preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities selection and application of appropriateaccounting policies making judgments and estimates that are reasonable and prudent anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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:

1. Our responsibility is to express an opinion on these financial statements based onour audit.

2. 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.

3. 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.

4. An audit involves performing procedures to obtain audit evidence about the amountsand the 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.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statement.

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 of affairs of the Company as at 31stMarch 2016 and its losses and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 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 andobtained all the information and explanations which to the best of our knowledge andbelief 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 Cash Flow statement dealtwith by 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 the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act. f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B". g) With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us: i. The Company does not have any pendinglitigations that would impact its financial position. ii. The Company did not have anylong-term contracts including derivative contracts for which there were any materialforeseeable losses. iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

for BRAHMAYYA & CO.
Chartered Accountants
Camp : Hyderabad Firm Regn. No. 000513S
Date : 20.5.2016 C V Ramana Rao
Partner
Membership No.018545

Annexure A to the Independent Auditor's Report:

The Annexure A referred to in our Independent Auditor's report of even date to themembers of THE ANDHRA PETROCHEMICALS LIMITED TANUKU for the year ended 31 March 2016. Wereport that:

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 during the year.According to the information furnished to us no material discrepancies have been noticedon such verification.

c) The title deeds in respect of all immovable properties are held in the name of thecompany.

ii) Physical verification of inventory has been conducted during the year by themanagement at reasonable intervals. The discrepancies noticed on such verification betweenthe physical stocks and the book records were not material.

iii) The Company has not granted any loans secured or unsecured to Companies FirmsLimited liability partnerships or Other parties covered in the register maintained undersection 189 of the Companies Act 2013. Consequently clauses 3 (iii) (a) (b) and (c) ofthe Order are not applicable.

iv) The company has neither given any loans to the directors or any other persons inwhom the director is interested nor given/ provided any guarantee/security in connectionwith any loan taken by directors or such other persons as per the provisions of section185 of the Companies Act 2013. The investment made by the company in an earlier year doesnot exceed the limits prescribed under section 186 of the Companies Act 2013.

v) The Company has not accepted any deposits from the public. Consequently the clause3(v) of the order is not applicable to the Company.

vi) We have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the Company pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under sub-section (1) of section 148 of theCompanies Act 2013 and we are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. However we have not made a detailed examination ofthe records.

vii) a) According to the information and explanations given to us and on the basis ofexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues have been regularly deposited during theyear by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amounts arepayable in respect of income tax sales tax service tax duty of customs duty of excisevalue added tax or cess and other material statutory dues which were in arrears as at 31stMarch 2016 for a period of more than six months from the date they became payable.

b) As at 31st March 2016 there have been no disputed dues which have not beendeposited with the respective authorities in respect of Income tax Service tax duty ofcustoms duty of excise value added tax and Cess except the following:

Sr. No. Name of the Statute Nature of the Dues Amount * (Rs. in lakhs) Period to which the amount relates Forum where dispute is pending
1. The Income Tax Act 1961 Tax Deduction at Source 1.72 Assessment Year 2006-07 Income Tax Appellate Tribunal Visakhapatnam.
2. The Income Tax Act 1961 Income Tax 4.39 Assessment Year 2008-09 Deputy Commissioner of Income Tax Circle - 1 Visakhapatnam.
3. The Income Tax Act 1961 Fringe Benefit Tax 2.28 Assessment Year 2008-09 Commissioner of Income Tax (Appeals) Visakhapatnam.
4. The Income Tax Act 1961 Tax Deduction at Source 15.68 Assessment Years 2008-09 & 2009-10 Commissioner of Income Tax (Appeals) Visakhapatnam.
5. Value Added Tax Disallowance of Input tax credit 10.45 Assessment Year 2009-10 Appellate Deputy Commissioner (CT) Vijayawada
6. Central Excise Act 1944 Ineligible cenvat credit on Service tax paid on certain services 9.60 Period from Dec. 2011 to Sep. 2015 Commissioner of Central Excise (Appeals) Visakhapatnam

* Net of Pre deposits made. viii) The Company has not defaulted in repayment of anyloan installments in respect of term loans from financial institutions and banksconsequent to the reschedulement of term loan installments by IDBI Bank. ix) In ouropinion the Term Loans obtained during the financial year under report and in earlieryears have been applied for the purposes for which they were raised. x) According to theinformation and explanations given to us no fraud on or by the Company has been noticedor reported during the course of our audit. xi) The company has neither paid nor providedfor any managerial remuneration during the financial year under report. Consequently theclause 3(xi) of the order is not applicable. xii) In our opinion the company is not aNidhi Company. Consequently the clause 3(xii) of the order is not applicable. xiii)According to the information and explanations given to us and on overall examination ofthe records of the Company we report that all transactions with related parties are incompliance with the provisions of sections 177 and 188 of the Companies Act 2013 and therelated party disclosures as required by relevant Accounting Standards are disclosed inthe financial statements.

xiv) The Company has not made any preferential allotment or private placement of sharesor fully/partly convertible debentures during the year under review. Consequently theclause 3(xiv) of the order is not applicable. xv) The Company has not entered into any noncash transactions with the directors or persons connected with them during the year underreport. Consequently the clause 3(xv) of the order is not applicable. xvi) The Company isnot required to be registered under section 45-IA of the Reserve Bank of India Act 1934.Consequently the clause 3(xvi) of the order is not applicable.

for BRAHMAYYA & CO.
Chartered Accountants
Camp : Hyderabad Firm Regn. No. 000513S
Date : 20.5.2016 C V Ramana Rao
Partner
Membership No.018545

The Annexure B referred to in our Independent Auditor's report of even date on thefinancial statements of THE ANDHRA PETROCHEMICALS LIMITED TANUKU.

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 The AndhraPetrochemicals Limited Tanuku ("the Company") as of March 31 2016 inconjunction with our audit of the financial statements of the Company for the year endedon 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 was established andmaintained and if such controls 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 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 andexpenditures of the company are being made only in accordance with authorizations ofmanagement 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 31st March 2016 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

for BRAHMAYYA & CO.
Chartered Accountants
Camp : Hyderabad Firm Regn. No. 000513S
Date : 20.5.2016 C V Ramana Rao
Partner
Membership No.018545