|BSE: 532910||Sector: Others|
|NSE: N.A.||ISIN Code: INE125E01019|
|BSE 00:00 | 04 Mar||Anil Ltd|
|NSE 05:30 | 01 Jan||Anil Ltd|
|BSE: 532910||Sector: Others|
|NSE: N.A.||ISIN Code: INE125E01019|
|BSE 00:00 | 04 Mar||Anil Ltd|
|NSE 05:30 | 01 Jan||Anil Ltd|
The Members of ANIL LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of ANIL LIMITED("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and the Cash flow statement for the year ended and a summaryof significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Financial Statements
The Companys 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 standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of these Standalone Financial Statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
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 there under.
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 Standalone Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Standalone Financial Statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe Standalone Financial Statements whether due to fraud or error. In making those riskassessments the auditor considers internal control relevant to the Companyspreparation and fair presentation of the Standalone Financial Statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by theCompanys Directors as well as evaluating the overall presentation of the FinancialStatements.
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.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2016 and its profit and its cash flows for the year ended on that date.
Emphasis of Matters
1. Attention is invited to Note 39 of the Standalone Financial Statements whichstates that the balance confirmation from the suppliers customers as well as to variousloans or advances given have been called for but the same are awaited till date. In viewof the same it is to be stated that the balances of receivables trade payables as wellas loans and advances have been taken as per the books of accounts submitted by thecompany and are subject to confirmation from the respective parties.
Our opinion is not qualified on the above matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016("theOrder") issued by the Central Government of India in terms of section 143(11) ofsection the Act we give in the Annexure "A" statement on the matters specifiedin the paragraph 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;
d) The matter described under the Emphasis of Matters paragraph above in our opinionmay have an adverse effect on the functioning of the Company
e) 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.
f) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) theAct;
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 matters to be included in the Auditors 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 financialposition in its financial statements as referred to in Note no.27 to the financialstatements;
II. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses and III. During the year there has beenno delay in transferring amounts required to be transferred to the Investor Educationand Protection Fund by the company.
ANNEXURE A - ANNEXURE TO INDEPENDENT AUDITORS REPORT
The Annexure referred to in Independent Auditors Report to the members of theCompany on the financial statements for the year ended 31 March 2016 we report that:
i) (a) The Company is in the process of updating its Fixed Assets records to showfull particulars including quantitative details and situation of fixed assets. In view ofpending updation we are unable to comment about full particulars of Fixed Assetsquantitative details and Situation of Fixed assets.
(b) According to the information and explanations given to us the fixed assets areverified by the management during the year in a phased periodical manner which in ouropinion is reasonable having regard to the size of the Company and nature of its assets.No material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties are inthe name of the Company.
ii) As explained to us the inventories have been physically verified by the managementat reasonable intervals during the year. The discrepancies noticed on verification betweenphysical stocks and the books of accounts are not material.
iii) (a) The Company has granted unsecured loans to two body corporates [i.e. 100%subsidiary companies] covered in the register maintained under section 189 of theCompanies Act2013 ("The Act"):
(b) i. In our opinion the rate of interest &other terms and conditions on whichthe loan had been granted to the one of the body corporate (M/s Anil Mega Food Park P Ltda 100% subsidiary) listed in the register Maintained under section 189 of the Act werenot Prima Facie Prejudicial to the interest of the Company.
ii. The Loan granted during the earlier year to the party i.e.(Anil Life Science Ltd a100% subsidiary) covered in the register maintained under section 189 of the CompaniesAct 2013 (the Act) is interest free.
iii. The terms of arrangements do not stipulate any repayment schedule and the loan isrepayable on demand.
Accordingly Paragraph 3(iii)(b) of the order is not applicable.
(c) In respect of said loans there is no overdue amounts.
iv) On the basis of information and explanation given to us the company has broadlycomplied with the provisions of section 185 and 186 with respect to the investment madeloans granted and guarantee given except for the interest free loan granted to M/S AnilLife science Ltd 100% subsidiary company and thus the provisions of Section 186(7) arenot complied with.
v) The company has not accepted any deposits from the public during the year.
vi) As explained to us the Central Government has not prescribed the maintenance ofCost records under subsection (1) of Section 148 of the Act.
vii) a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Employees StateInsuranceprovident fund income-tax sales tax value added tax duty of customs duty ofexcise service tax cess and other material statutory dues have been generally regularlydeposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax duty ofcustoms duty of excise service tax cess and other material statutory dues were inarrears as at 31st March 2016 for a period of more than six months from the date theybecame payable except Tax on Dividend of Rs 102.95 Lakhs outstanding for a period ofmore than Six months.
b) According to the information and explanations given to us there are no materialdues of service tax which have not been deposited with the appropriate authorities onaccount of any dispute However according to information and explanations given to usthe following dues of Sales Tax Income Tax Duty of Customs and Duty of Excise have notbeen deposited by the company on account of Dispute:
viii) According to information & explanations given to us the company hasexcept for few instances of delay of Interest of Rs 1577.42 Lakhs Ranging From 2 to 46days & Installment of Rs 779.45 Lakhs Ranging from 26 to 48 days in respect of few ofthe Banks the Company has generally not defaulted in repayment of its dues to Banks orFinancial institutions. The company does not have any borrowings from debenture holders orGovernment.
ix) According to the information & explanations given to us the Company did notraise any money by way of initial public offer or further public offer (including debtinstruments) during the year under review. However the term loans raised during theyear has been generally applied for the purpose for which they were raised except loan ofRs.45 Cr raised from IFCI Ltd which was not utilized for purpose for which it was raised.
x) According to the information and explanations given to us no fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.
xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
ANNEXURE B TO THE AUDITORS REPORT
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/s ANILLIMITED ("the Company") as at 31 March 2016 in conjunction with our audit ofthe financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys 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 companys 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.
Our responsibility is to express an opinion on the Companys 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 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 Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys 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 companys 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 ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompanys 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.
In our opinion to the best of our information & according to the explanationsgiven to usthe Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2016 based onthe 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.