To the Members of M/s. ANUP MALLEABLES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. Anup MalleablesLimited which comprise the Balance Sheet as at 31s1 March 2017 theStatement of Profit and Loss for the year then ended and a summary of the significantaccounting 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 statement that give a true and fair view of the financial positionfinancial performance of the Company in accordance with accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes maintenance of adequate accounting record in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Aet 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 accordancewith the Standards on Auditing issued by the Institute of Chartered Accountants of Indiaas specified under Section 143(10) of the Act. Those Standards require that we comply withthe ethical requirements and plan and perforin the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders the internal financial control relevant to the Company's preparation and fairpresentation 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 and adequate internal financialcontrols system over financial reporting and the effectiveness of such controls. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us. the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the stale of affairs of the Company as at 31stMarch 2017 its Profit and its cash flow 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.
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 Statement of Profit and Loss and Cash Flow Statement dealt withby 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 written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of section164(2) of the Act;
(!) 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
(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 pending litigation which would impact its financialposition in note No. 26(ii).
ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii) There are no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv) The Company has provided requisite disclosures in the standalone financialstatements as regards its holding and dealings in Specified Bank Notes during the periodfrom November 8 2016 to December 30 2016. Based on audit procedures performed and therepresentations provided to us by the management we report that the disclosures are inaccordance with the books of account maintained by the Company and as produced to us bythe Management.
For Ashok Kedia & Company Chartered Accountants Firm Regn. No. 323330E
4 Gangadhar Babu Lane
Kolkata - 700 012.
Dated the 20th day of May 2017.
Annexure - A to the Auditors' Report
Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' of our Report of even date to the
members of M/s. Anup Malleables Limited on the accounts of the company for theyear ended 31st March 2017.
i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.
(b) As explained to us fixed assets have been physically verified by the managementduring the year in accordance with the phased program of verification adopted by themanagement which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. According to the information and explanations given to usno material discrepancies were noticed on such verification.
(c) All the title deeds of all immovable properties are in the name of the companyexcept two properties of land Amount (Rs.) 765000/- for which only agreement for sale isavailable. Building has been constructed by the company.
ii) (a) As explained to us the inventories of finished goods semi-finished goodsstores spare parts and raw
materials were physically verified at regular intervals/ (at the end of the year) bythe Management.
(b) In our opinion and according to the information and explanation given to us theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification of stocks as compared to book records.
iii) According to the information and explanations given to us the Company has notgranted unsecured loans to companies firm Limited liability partnerships or otherparties covered in the register maintained under section 189 of Act. Therefore theprovisions of clause 3(iii)(iii) (a) (iii) (b) and (iii) (c) of the said order are notapplicable to the company.
iv) The company has not granted any loans or provide any guarantees or security anyparty during the year. Hence provision of section 185 & 186 of the Act are notapplicable to the company
v) The company has not accepted any deposits from public
vi) As informed to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of Section 148 of the Act in respect of the activitiescarried on by the Company.
vii) (a) According to the records of the company and information and explanations givento us the Company has
generally been regular in depositing undisputed statutory dues including ProvidentFund employees state insurance (ESI) Investor Education and Protection Fund Income-taxTax deducted at sources Tax collected at source Professional Tax Sales Tax value addedtax (VAT) Wealth Tax Service Tax Custom Duty Excise Duty Cess and other materialstatutory dues applicable to it with the appropriate authorities. However there were someminor delays. No undisputed statutory dues were outstanding as at 31 March 2017 for aperiod of more than six months from the date they became payable.
(b) The particulars of dues of income tax as at March 31 2017 which have not beendeposited on account of a dispute are as follows :-
|Name of the statute ||Nature of dues ||Amount (Rs.) ||Amount paid under protest (Rs.) ||Period to which the amount relates ||Forum where the dispute is pending |
|The Income Tax Act 1961 ||Income tax ||448770/- || ||A.Y. 2012-13 ||Dy. Commissioner of Income Tax (Appeal) |
|The Income Tax Act 1961 ||Income tax ||6917436 /- || ||A.Y 2014-15 ||Commissioner of Income Tax (Appeal) |
|J Vat 2005 ||Sales Tax ||4204690 || ||PY 2011-12 ||Commissioner of Commercial Tax Dhanbad (Circle) |
viii) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion the company has not defaulted in repayment of dues toa financial institution bank Government or dues to debenture holders.
ix) According to the information and explanations given to us during the year the termloan has been raised by the Company and the same has been applied by the Company for thepurposes for which they were obtained.
x) To the best of our knowledge and according to the information and explanations givento us no fraud by the Company and no material fraud on the Company has been noticed orreported during the year.
xi) Company has not paid any managerial remuneration during the year.
xii) The company is not a Nidhi Company hence this clause is not applicable.
xiii) According to the information and explanations given to us the transaction withrelated parties has been entered as per arm's length price and therefore the provisionssection 188 are not applicable. However provision subsection 177 are applicable and areduly complied with.
xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause(xiv) of Paragraph 3 of the Order is not applicable to the Company.
xv) The company has not entered into any non-cash transactions with directors orpersons connected with him.
xvi) The company is not required to be registered under section 45-1A of the ReserveBank of India Act 1934.
For Ashok Kedia & Company Chartered Accountants Firm Regn. No. 323330E
4. Gangadhar Babu Lane
Kolkata - 700 012.
Dated the 29th day of May 2017.
Anncxure - 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. AnupMalleables Limited as of 31st March 2017 in conjunction with our audit of thestandalone financial 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 controls. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
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 168 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence I/we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.
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 lnternal 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 31SI March 2017.
For Ashok Kedia & Company
Firm Regn. No. 323330E
4 Gangadhar Babu Lane
Kolkata - 700 012.
Dated the 29th day of May 2017.