The Members of Anjani Portland Cement Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Anjani Portland Cement Limited("the Company") which comprise the Balance Sheet as at 31st March 2016 theStatement of Profit and Loss and the Cash Flow Statement for the year ended and a summaryof the significant accounting policies and other explanatory information.
Managements Responsibility for the 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 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; andeffectively design implementation and maintenance of adequate internal financialcontrols that were operating 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.
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 andthe disclosures in the financial statements. The procedures selected depend on theauditors 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 Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Companys management andboard of 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 financial statements.
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 profit and its cash flows for the period ended on that date.
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 sub-section (11) ofsection 143 of the Act we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143 (3) of the Act we further 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) 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 and 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 controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "An-nexure B"; and
(g) 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 vide Note No. 30.1 to the financial statements;
ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
| ||For Ramanatham & Rao |
| ||Chartered accountants |
| ||Firm Registration No.S-2934 |
| ||C. Kameswara Rao |
|Place: Chennai ||Partner |
|Date : 27th May 2016 ||Membership No.24363 |
Annexure - A to the Auditors Report
The Annexure referred to in our report to the members of Anjani Portland Cement Limitedfor the year ended on 31st March 2016. We report that: 1.1 The Company has maintainedproper records showing full particulars including quantitative details and situation offixed assets.
1.2 According to the information and explanations given to us and the records of theCompany examined by us the fixed assets have been physically verified by the managementin a periodical manner which in our opinion is reasonable having regard to the size ofthe Company and the nature of its business. No material discrepancies were noticed on suchphysical verification.
1.3 According to the information and explanations given to us the title deeds ofimmovable properties are held in the name of the company.
2.1 The inventories have been physically verified during the period by the management.In our opinion the frequency of verification is reasonable. The discrepancies noticed onverification between the physical stocks and book records were not material.
3.1 During the year the company has not granted any loans secured or unsecured toparties covered in the register maintained under section 189 of the Act. Hence paragraph3(iii) of the Order is not applicable to the company.
4.1 In our opinion and according to the information and explanations given to usduring the year company has not given any loans made investments given guarantees orgiven security to parties covered under provisions of section 185 and 186 of the CompaniesAct 2013. Hence paragraph 3(iv) of the Order is not applicable.
5.1 During the year company has not accepted any deposits nor any deposits areoutstanding as on balance sheet date where provisions of sections 73 to 76 or any otherrelevant provisions of the Act are applicable. We are informed that no order has beenpassed by the Company Law Board or National Company Law Tribunal or Reserve Bank of Indiaor any court or any other tribunal.
6.1 In our opinion and according to the information and explanations given to us theCompany has made and maintained accounts and records prescribed by the Central Governmentunder subsection (1) of section 148 of the Act.
7.1 According to the information and explanations given to us and the records of theCompany examined by us the Company is regular in depositing undisputed statutory duesincluding provident fund employees state insurance income-tax sales-tax valueadded tax service tax customs duty excise duty cess and any other statutory dues asapplicable with the appropriate authorities and there are no arrears of outstandingstatutory dues as at year ended concerned for a period of more than six months from thedate they became payable.
7.2 According to the information and explanations given to us and records of theCompany examined by us particulars of income tax sales tax valued added tax servicetax customs duty excise duty or cess as at 31st March 2016 which have not beendeposited on account of any dispute pending are as under:
|Name of the Statute ||Nature of the Dues ||Amount (Rs. In Lakhs) ||Period to which the amount relates ||Forum where dispute is pending |
|Central Excise Act 1944 ||Excise Duty ||180.32 ||2006 to 2010 ||CESTAT Bangalore remanded back to Commissioner Hyderabad. |
|Customs Act 1962 ||Customs Duty ||89.91 ||July Oct & Nov 2012 ||CESTAT Bangalore |
|Customs Act 1962 ||Customs Duty ||16.88 ||Nov 2013 & Jan 2014 ||Commissioner of Customs (Appeals) Vishakapatnam |
|Customs Act 1962 ||Customs Duty ||9.16 ||Mar 2012 ||Commissioner of Customs (Appeals) Vishakapatnam |
|Service Tax ||CENVAT availed on Keyman Insurance premium paid ||1.01 ||2012 ||CESTAT Bangalore |
|Service Tax ||CENVAT availed on Keyman Insurance premium paid ||2.35 ||2013 & 2014 ||Commissioner of Customs Central Excise & Service Tax (Appeals) Hyderabad |
8.1 According to the information and explanations given to us company has notdefaulted in repayment of dues to a financial institutions banks or debenture holders.
9.1 The company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments). Term Loans are utilised for the purposes for whichthey were obtained.
10.1 To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company or by its officers or employeeswas noticed or reported during the period.
11.1 Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the CompaniesAct 2013.
12.1 Company is not a Nidhi Company; hence paragraph 3(xii) of the Order is notapplicable to the company.
13.1 According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the Financial Statements asrequired by the applicable accounting standards.
14.1 During the year company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures hence paragraph 3(xiv) ofthe Order is not applicable to the company.
15.1 To the best of our knowledge and belief and according to the information andexplanations given to us company has not entered into any non-cash transactions withdirectors or persons connected with them hence paragraph 3(xv) of the Order is notapplicable to the company.
16.1 To the best of our knowledge and belief and according to the information andexplanations given to us the company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.
For Ramanatham & Rao
Firm Registration No.S-2934
C. Kameswara Rao
Date: 27th May 2016
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 AnjaniPortland Cement Limited ("the Company") as of 31 March 2016 in conjunction withour audit of the 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 the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the companys assets that could havea 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 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 Ramanatham & Rao
Firm Registration No.S-2934
C. Kameswara Rao
Place : Chennai
Date : 27th May 2016