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Archit Organosys Ltd.

BSE: 524640 Sector: Industrials
NSE: N.A. ISIN Code: INE078I01011
BSE LIVE 15:24 | 17 Nov 50.25 -2.60
(-4.92%)
OPEN

53.00

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53.40

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 53.00
PREVIOUS CLOSE 52.85
VOLUME 26665
52-Week high 88.85
52-Week low 28.61
P/E
Mkt Cap.(Rs cr) 76
Buy Price 0.00
Buy Qty 0.00
Sell Price 50.25
Sell Qty 26754.00
OPEN 53.00
CLOSE 52.85
VOLUME 26665
52-Week high 88.85
52-Week low 28.61
P/E
Mkt Cap.(Rs cr) 76
Buy Price 0.00
Buy Qty 0.00
Sell Price 50.25
Sell Qty 26754.00

Archit Organosys Ltd. (ARCHITORGANOSYS) - Auditors Report

Company auditors report

To

The Members

ARCHIT ORGANOSYS LIMITED

Ahmedabad.

Report on the Financial Statements

We have audited the accompanying financial statements of ARCHIT ORGANOSYS LIMITED ("theCompany") which comprise the Balance Sheet as at March 31 2017 the Statement ofProfit and Loss and 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 provision of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

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 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 anddisclosures in the financial statements. The procedures selected depend on theauditor’s 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 Company’spreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by 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 qualified audit opinion on financial statements.

Basis for Qualified Opinion

The company had entered into derivative contract for sale of foreign currency with HDFCBank Ltd. in financial year 2008-2009 which has resulted into loss to the tune of Rs.19752367/- against which the sum of Rs. 5506598/-has already been paid to HDFC BankLtd. and charged to Statement of Profit and Loss in the aforesaid financial year.Consequent upon adjustment of fixed deposits amounting to Rs. 2364200/- against thebalance loss of Rs. 14245769/- the liability on account of aforesaid loss as per bankstatement provided up to 31st January 2013 stands to Rs. 14707069/- includinginterest which has not been provided for by the company. Such non provision of liabilityhas resulted into non compliance of Accounting Standard 29 issued by Institute ofChartered Accountants of India and also resulted into understatement of currentliabilities. Since the interest/charges if any for the period from 1st February 2013 to31st March 2017 has not been intimated to company the impact thereof on profit for theyear under review could not be ascertained.

Had the observations made by us in Para above been considered there would have beenprofit for the year amounting to Rs. 884085/- as against reported profit of Rs.15591154 /- current liabilities would have been Rs. 182206809/-as against reportedcurrent liabilities of Rs. 167499740/-.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the matter described in the basis for Qualified Opinionparagraph 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 2017 and its profit and its cash flows 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 ("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 thematters specified in paragraphs 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) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

(d) Except for the matter described in the basis for Qualified Opinion paragraphin our opinion the aforesaid financial statements comply with the Accounting Standardsspecified 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 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.

(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"; 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 and to our bestof 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 - Refer notes 29 and 30 to the financial statements.

(ii) The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

(iv) The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the company. Refer Note 40 to the financial statements.

For G. K. Choksi & Co.
Chartered Accountants
[Firm Registration No. 101895W]
(SANDIP PARIKH)
Date : 12th May 2017 Partner
Place : Ahmedabad Membership No. 40727

Annexure - A to the Independent Auditors’ Report of even date on financialstatements

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) The fixed assets have been physically verified by the management at reasonableintervals having regard to size of company and nature of its assets. According toinformation and explanation given to us no material discrepancies were noticed on suchverification.

(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 areheld in the name of the Company.

(ii) According to information and explanation given to us the Management of theCompany has conducted physical verification of inventory at reasonable intervals and nomaterial discrepancies were noticed on such physical verification during the year.

(iii) The Company has not granted any secured / unsecured loan to any parties coveredin the register maintained under section 189 of the Companies Act 2013. Accordingly theprovisions of Clause 3(iii) of the Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans investments guarantees and securities. (v) According to information andexplanations given to us the Company has not accepted any deposits as defined in TheCompanies (Acceptance of Deposits) Rules 2014. Accordingly the provisions of Clause 3(v)of the Order are not applicable to the Company.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant torules made by the Central Government. We are of the opinion that prima facie theprescribed accounts and records have been maintained and being made. We have not howevermade a detailed examination of these records with a view to determine whether they areaccurate or complete.

(vii) (a) According to the information given to us the Company is generally regular indepositing with appropriate authorities undisputed statutory dues and Company had noarrears of such outstanding statutory dues as at 31st March 2017 for a period more thansix months from the date they became payable.

(b) According to the information and explanations given to us the company has nodisputed outstanding statutory dues as at 31st March 2017 other than stated below:

Name of the Statute Nature of Dues Amount in Rs. Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 484820 F.Y. 2012-2013 CIT(A) Ahmedabad

(viii) According to the information and explanations given to us the Company has notdefaulted in the repayment of loans and borrowings to financial institutions banksgovernment or dues to debenture holders during the year. (ix) The Company has raisedmoneys by way of further public offer i.e Right offer (including debt instruments) andterm loans during the year.

(x) According to the information and explanations given to us no fraud by company orany fraud on the company by its officers and employees have been noticed or reportedduring the year.

(xi) According to the information and explanations give to us the Company haspaid/provided for managerial remuneration in accordance with the provisions of section 197read 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 transactions with therelated parties are in compliance with sections 177 and 188 of the Act and details oftransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give 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 the Company has notentered into non-cash transactions with directors or persons connected with him.Accordingly paragraph 3(xv) of the Order is not applicable. (xvi) The Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For G. K. Choksi & Co.
Chartered Accountants
[Firm Registration No. 101895W]
(SANDIP PARIKH)
Date: 12th May 2017 Partner
Place: Ahmedabad Membership No. 40727

Annexure - B to the Independent Auditors’ Report of even date on the FinancialStatements Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting ARCHITORGANOSYS LIMITED ("the Company") as of 31 March 2017 in conjunction withour audit of the 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 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 company’s 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.

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 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 auditor’s 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s 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 company’s 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 31st March 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 G. K. Choksi & Co.
Chartered Accountants
[Firm Registration No. 101895W]
(SANDIP PARIKH)
Place: Ahmedabad Partner
Date: 12th May 2017 Membership No. 40727