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Anka India Ltd.

BSE: 531673 Sector: Industrials
NSE: N.A. ISIN Code: INE067C01025
BSE LIVE 12:34 | 03 Aug Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 16.40
PREVIOUS CLOSE 17.05
VOLUME 50
52-Week high 21.70
52-Week low 8.65
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 16.40
Sell Qty 50.00
OPEN 16.40
CLOSE 17.05
VOLUME 50
52-Week high 21.70
52-Week low 8.65
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 16.40
Sell Qty 50.00

Anka India Ltd. (ANKAINDIA) - Auditors Report

Company auditors report

TO THE MEMBERS OF ANKA INDIA LIMITED Report on the Financial Statements

We have audited the accompanying financial statements of Anka India Limited ("theCompany") which comprise the balance sheet as at 31 March 2017 the statement ofprofit and loss the cash flow statement for the year then ended and a summary ofsignificant 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

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 the reunder.

We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial 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. 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 overallpresentation 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 financial statements.

Basis for Qualified opinion:

i. Attention is drawn to Note 17 to the financial statement the Company has not madeprovision for gratuity as defined benefit plan as required by provisions of AS -15"Employee Benefits". The effect for the same has not been quantified by theCompany.

ii. Attention is drawn to Note 24 and Note 9 to the financial statement - "LongTerm Loans and advances - Mat Credit Entitlement" that the Company continues torecognize minimum alternative tax paid in previous years amounting to Rs. 2520258 asasset and expects the same to be adjusted against future tax payments. In our viewconsidering the past history of losses which is resulting into negative net worth of theCompany and overall financial position of the Company it is not prudent on part thecompany to recognize the same as assets and the same is not in consonance with provisionsof "Guidance Note on accounting for credit available in respect of MinimumAlternative Tax under the Income Tax Act 1961".

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 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 2017 and its Loss and its cash flows for the year ended on that date.

Emphasis of Matter:

We refer to Note- 23 to the financial statements regarding Company’s ability tocontinue as Going Concern and managements plan’s to deal with these events orconditions.

The Net worth of the company is negative and the company has past history of losses.There was no business transacted during the financial year 2016-17. These events orconditions indicate that material uncertainty exists and may cast significant doubt onentity’s ability to continue as going concern.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s 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 Annexure ‘A’ a statement on the mattersspecified in the paragraph 3 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 and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

(b) Except for the effects of the matters described in the Basis of Qualified OpinionParagraph above in our opinion proper books of accounts as required by law have beenkept by the Company 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) Except for the effects of the matters discussed in the Basis of Qualified OpinionParagraph above in our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) The matters described in the Basis of Qualified Opinion 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 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act; and

(g) The qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis of Qualified Opinion Paragraph above

(h) 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'.

(i) 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 financialposition in itsfinancial statements - Refer Note 16 to the financial statements;

ii) The Company did not have any long term contracts including derivative contractsfor which 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.

iv) The Company has provided the requisite disclosures in the financial statements asto holdings as well as dealings in specified bank notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with the booksof accounts maintained by the Company and as produced to us by the Management. [Refer note26 of the financial statements.]

For and on behalf of

CNK & Associates LLP

Chartered Accountants

Firm Registration No.: 101961 W/W-100036

Vijay Mehta

Partner

Membership No.: 106533

Place: Mumbai

Date: 30th May 2017

Annexure ‘A’ to the Independent Auditors’ Report

The Annexure referred to in paragraph 1 under ‘Report on the Other Legal andRegulatory

Requirements’ in the Independent Auditors’ Report of even date to the membersof the Company on

the financial statements for the year ended 31 March 2017:

(i) The Company does not have any fixed assets. Thus paragraph 3(i) of the order is notapplicable to the Company.

(ii) The Company does not hold any inventories. Thus paragraph 3(ii) of the order isnot applicable to the Company.

(iii) As informed during the year the Company hasnot granted any loans secured orunsecured to companies firms limited liability partnerships or other parties covered inthe register maintained under section 189 of the Act. Hence clause 3(iii)(a)3(iii)(b)and 3(iii)(c) of the order are not applicable.

(iv) In our opinion and as explained to usin respect of loans investmentsguarantees and security the Company has complied with provisions of section 185 and 186of the Act;

(v) In our opinion and as explained to us the Company has not accepted any depositswith in the provisions of Section 73 to 76 of the Act read with The Companies (Acceptanceof Deposits) Rules 2014 and other relevant provisions of the Act;

(vi) The Central Government has not prescribed the maintenance of Cost records underSection 148 (1) of the Act for the activities carried by the Company during the year.

(vii) (a) According to the information and explanations given to us and the recordsexamined by

us the Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees state insurance income-tax sales-taxservice tax duty of customs duty of excise value added tax cess and other statutorydues. There are no undisputed statutory dues outstanding as at 31st March 2017 for aperiod of more than six months from the date they became payable except payment of Taxdeducted at source ofRs. 20000 which remains unpaid since 1st April 2016 (Duedate of payment on 7th May 2016);

(b) Disputed statutory dues that have not been deposited on account of disputed matterspending before appropriate authorities are as under:

Name of the Statute Nature of the dues Amount (Rs.) Financial year/s to which the amount relates Forum where dispute is pending
Central Excise Act Excise Duty penalty 188319 1997-98 Customs Excise and Service Tax Appellate Tribunal
Customs Act 1962 Custom duty 315664 01-04-2003 Commissioner
Income Tax Act 1962 Income Tax 1320 2011-12 Assessing Officer

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to a financial institution bank orgovernment or dues to debenture holders;

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) during the year. According to information andexplanations given to us during the year the Company has not raised any term loans. Loanstaken from Directors and Related parties towards working capital requirements has not beenconsidered as Term Loan;

(x) According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the course of our audit;

(xi) According to the information and explanations given to us Managerial remunerationhas not been paid or provided by the Company. Thus para 3 (xi) of the order is notapplicable.

(xii) According to the information and explanations given to us the Company is not anidhi company. Accordingly para 3 (xii) of the order is not applicable.

(xiii) According to the information and explanations given to us all transactions withthe related parties are in compliance with Section 177 and 188 of The Companies Act 2013where applicable and the details have been disclosed in the financial statements asrequired by the applicable accounting standard;

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review;

(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 him;

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For and on behalf of CNK & Associates LLP

Chartered Accountants

Firm Registration No.: 101961 W/W-100036

Vijay Mehta

Partner

Membership No.: 106533

Place: Mumbai

Date: 30th May 2017

Annexure ‘B’ to the Independent Auditors’ Report

The Annexure referred to in paragraph 3(h) under ‘Report on Other Legal andRegulatory Requirements' our Independent Auditors' Report to the members of the Company onthe financial statements for the year ended 31 March 2017.

Report on the Internal Financial Control u/s.143 (3)(i) of The Companies Act 2013(‘the Act’)

We have audited the internal financial controls over financial reporting of Anka IndiaLimited (‘the Company') as of March 31 2017 in conjunction with our audit of thefinancial 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 control 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 the reliable financial information as requiredunder the 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 to the extent applicable to anaudit of internal financial control both issued by the Institute of Chartered Accountantsof India. 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 control 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 control over financial reporting includedobtaining and understanding of internal financial control 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 judgement including the assessment of the risks ofmaterial misstatements of the financial statement 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 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 company's assets that could have amaterial 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 March 31 2017 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 and on behalf of

CNK & Associates LLP

Chartered Accountants

Firm Registration No.: 101961 W/W-100036

Vijay Mehta

Partner

Membership No.: 106533

Place: Mumbai

Date: 30th May 2017