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ANG Industries Ltd.

BSE: 530721 Sector: Auto
NSE: ANGIND ISIN Code: INE017D01010
BSE LIVE 15:54 | 27 Feb 10.27 -0.46
(-4.29%)
OPEN

10.55

HIGH

10.64

LOW

10.20

NSE LIVE 15:31 | 27 Feb 10.30 -0.30
(-2.83%)
OPEN

10.80

HIGH

10.80

LOW

10.15

OPEN 10.55
PREVIOUS CLOSE 10.73
VOLUME 12322
52-Week high 41.90
52-Week low 9.61
P/E
Mkt Cap.(Rs cr) 16.52
Buy Price 10.27
Buy Qty 207.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.55
CLOSE 10.73
VOLUME 12322
52-Week high 41.90
52-Week low 9.61
P/E
Mkt Cap.(Rs cr) 16.52
Buy Price 10.27
Buy Qty 207.00
Sell Price 0.00
Sell Qty 0.00

ANG Industries Ltd. (ANGIND) - Auditors Report

Company auditors report

To the Members of

ANG INDUSTRIES LIMITED

(FORMERLY KNOWN AS ANG AUTO LIMITED)

Report on the Financial Statements

We have audited the accompanying (Standalone) financial statements of ANG INDUSTRIESLIMITED (FORMERLY KNOWN AS ANG AUTO LIMITED) ("the Company") which comprise theBalance Sheet as at March 31 2016 the Statement of Profit and Loss Cash Flow Statementfor the year then ended and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the (Standalone) 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 (Standalone) financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. 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.

Auditor's Responsibility

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 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 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 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's 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

Basic for Qualified Opinion

Inventories worth Rs. 291899398/- included under the Head 'Inventories' have beenidentified as some rejected slow and NonMoving Inventories due to cancellation of certainorders and discontinuation of certain operations of the company lying unused.Even Thoughthe Management is itself not sure of utilisation of the material in future and this amounthave not been treated as old and obsolete by the company. Non use of such inventories anddispose off of the same as scrap (value not determined) will have financial impact on thefinancials of the company and the above amount (net of realised value) will renderreduction in profit with the above amount.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for qualifiedopinion paragraph above the aforesaid(Standalone) financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2016 and its loss and its cash flows for the yearended on that date.

Emphasis of Matters

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

a) The financial results shows that the company had made a provision of Rs.1262213/-in their books of account for payment of the premium to Life Insurance Corporation ofIndia on account of New Group Gratuity Cash Accumulation Plan during the financial year2015-16 as the Company has not paid the premium to the LIC in the year.

b) The operations of Sitarganj Plant of the Company were badly affected during thefourth quarter of the financial year 201516 due to the order of the National GreenTribunal (NGT) due to Environmental Issues. NGT levied a penalty of Rs.30 lacs on company.

c) The company had an overdue interest and principle amounting to Rs.155.10lacs as on31.03.2016

Our opinion is not modified in respect of these matters.

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 sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 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 purpose 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 written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2016 from being appointed as a director in terms of Section 164 (2) of theAct.

f. 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".

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialstatements- Refer notes related to 'Contingent Liabilities'

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There is no amount due to be transferred to the Investor Education and ProtectionFund by the Company.

For SANDESH JAIN & CO.
CHARTERED ACCOUNTANTS
(SANDESH JAIN)
Partner
Place : New Delhi Membership No. : 087316
Date : 27-05-2016 FRN: 008548N

"ANNEXURE A" TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1 under the heading 'Report on Other Legal & RegulatoryRequirement' of our report of even date to the financial statements of the Company for theyear ended March 31 2016:

On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we further state as under:

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

(b) As explained to us all the Fixed Assets have been physically verified by themanagement at reasonable intervals which in our opinion is reasonable having regard tothe size of the company and nature of its business. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) i. The title deeds of immovable property150 NSEZ Noida are still held in the oldname of the company i.e. ANG Auto Ltd.

ii. Immovable propertysituated at A-197 SIDCUL Industrial Park Sitarganj Uttarakhandis on lease and the same is in the name of M/s. ANG Autotech Pvt. Ltd. which was mergedwith the company in the year 2008.

The Company has filled the application for the change of namewith the concernedAuthorities.

2) (a) As explained to us inventories were physically verified during the year by themanagement at reasonable intervals.

In our opinion and according to the information and explanations given to us nomaterial discrepancies were noticed on physical verification of the inventories by themanagement as compared to books records.

3) (a) The Company has not grantedany loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act except the following:

Opening Balance Debit Credit Closing Balance
Premjit Singh 32.41(Dr.) 45.87 62.81 15.47(Dr.)
ANG Logistics Private Limited Nil 40.21 40.21 0.00 (Dr.)

(b) According to information furnished to us and in the opinion of the management theterms and conditions of the grant of such loans are not prejudicial to the company'sinterest.

(c) The Principal are receivable at the discretion of the company.

(d) There are no overdue amounts of the loans granted.

4) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of grant of loans investments guarantees and security. The detail oftransaction during the year and balance outstanding as at year end are given in Point no.3(a)

5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under does notarise.

6) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.

7) According to information and explanations given to us and on the basis of ourexamination of the books of account and records

(a) The Company was generally irregular in depositing undisputed statutory duesincluding Provident Fund employees State Insurance Income-Tax Sales tax Service TaxDuty of Customs Duty of Excise Value added Tax Cess and any other statutory dues withthe appropriate authorities.

According to the information and explanations given to us undisputed amounts payablein respect of the above which were in arrears as at March 31 2016 for a period of morethan six months from the date on when they become payable as detailed below:

Nature of Statutory Dues Amount (Rs.) Not paid since
Tax Deducted at source 1439349 May-2015
Service Tax 455506 May-2015
Entry Tax 58108 Sep-2015
Sales Tax 9656269 April-2015
EPF 826884 Aug-2015

b) According to the information and explanation given to us detail of income taxsales tax value added tax outstanding on account of any dispute as at March 31st2016 are given below:

Particulars Period to which Amount relates Forum where matter is pending Amount (Rs.in lacs)
Stamp Duty Fin. Year 2007-08 Revenue Board Allahabad(U.P) 12.73
Entry Tax Fin. Year 2005-06 Deputy Commissioner of Commercial tax Jaipur 0.40
Entry Tax Fin. Year 2006-07 Deputy Commissioner of Commercial tax Jaipur 7.84
Entry Tax Fin. Year 2007-08 Deputy Commissioner of Commercial tax Jaipur 7.06
Entry Tax Fin. Year 2008-09 Deputy Commissioner of Commercial tax Jaipur 3.74
Entry Tax Fin. Year 2009-10 Deputy Commissioner of Commercial tax Jaipur 2.10
Income Tax Demand Assessment Year 2010-11 CIT(A)-IV New Delhi 8.71
Income Tax Demand Assessment Year 2011-12 CIT(A)- Circle 292) New Delhi 7.68
Income Tax Demand Assessment Year 2013-14 CIT(A)-I New Delhi 11.61
Sales Tax Assessment Year 2008-09 2009-10 & 2010-11 Commissioner Vat (Appeals) Kol 25.31
Sales Tax Assessment Year 2009-10 Joint Commissioner SalesTax (Khatima) Uttarakhand 10.21
Sales Tax Assessment Year 2010-11 Joint Commissioner SalesTax (Khatima) Uttarakhand 6.61

8) In our opinion and according to the information and explanations given to us theCompany has defaulted in the repayment of dues to banks and financial institutions asdetail given below:

Name of Bank Amount (Rs. In Lacs) Period of default
State Bank of Inida 42.14 Jan-16 & feb-16
Bank of Baroda 18.66 Jan-16 & feb-16
Development Credit Bank 22.79 Jan-16 &feb-16
Yes Bank Ltd 66.51 Jan-16 & feb-16
Citi Bank 5.00 Jan-16 & feb-16

However there were no debenture holders and loans or borrowings from government at anytime during the year.

9) Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans were applied for thepurposes for which those were raised.

10) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

11) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013;

12) The Company is not a Nidhi Company and hence reporting under clause (xii) of theCARO 2016 Order is not applicable.

13) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

14) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company.

15) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company.

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

For SANDESH JAIN & CO.
CHARTERED ACCOUNTANTS
(SANDESH JAIN)
Partner
Place : New Delhi Membership No. : 087316
Date : 27-05-2016 FRN: 008548N

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of subsection 3 of Section143 of the Companies Act 2013 ('the Act')

We have audited the internal financial controls over financial reporting of ANGINDUSTRIES LIMITED (FORMERLY KNOWN AS ANG AUTO LIMITED) ("the Company") as of 31March 2016 in conjunction with our audit of the standalone financial statements of theCompany 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'). 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 the Company's policies the safeguarding of its assetsthe prevention 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 were 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 auditors' 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 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 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 SANDESH JAIN & CO.
CHARTERED ACCOUNTANTS
(SANDESH JAIN)
Partner
Place : New Delhi Membership No. : 087316
Date : 27-05-2016 FRN:008548N