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Arcotech Ltd.

BSE: 532914 Sector: Metals & Mining
NSE: ARCOTECH ISIN Code: INE574I01027
BSE LIVE 15:40 | 08 Dec 411.75 1.85
(0.45%)
OPEN

445.00

HIGH

445.00

LOW

403.80

NSE LIVE 15:40 | 08 Dec 408.30 -1.75
(-0.43%)
OPEN

408.80

HIGH

416.70

LOW

404.10

OPEN 445.00
PREVIOUS CLOSE 409.90
VOLUME 39233
52-Week high 451.00
52-Week low 290.00
P/E 23.47
Mkt Cap.(Rs cr) 864.68
Buy Price 0.00
Buy Qty 0.00
Sell Price 411.75
Sell Qty 45.00
OPEN 445.00
CLOSE 409.90
VOLUME 39233
52-Week high 451.00
52-Week low 290.00
P/E 23.47
Mkt Cap.(Rs cr) 864.68
Buy Price 0.00
Buy Qty 0.00
Sell Price 411.75
Sell Qty 45.00

Arcotech Ltd. (ARCOTECH) - Auditors Report

Company auditors report

TO THE MEMBERS OF ARCOTECH LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Arcotech Limited("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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 and Companies (Accounting Standards) Amendment Rules 2016. 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 standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing 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 evidenceabout the amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the 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 audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

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 March 31 2016 and 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 Companies Act 2013 we give in the Annexure a statement on the matters specified inparagraphs 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 purpose 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 and Companies (Accounting Standards) Amendment Rules2016.

e. on the basis of the written representations received from the directors as on March31 2016 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) of theAct.

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 A".

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 does not have any pending litigations which would impact its financialposition.

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 to theInvestor Education and Protection Fund by the Company.

For SHWETANK JOSHI & CO.

Chartered Accountants

Firm’s Registration Number 315093E

SHWETANK JOSHI

PROPRIETOR

Membership Number : 52238

Place: New Delhi

Date: 30.05.2016

Annexure to the Auditor's Report on the accounts of Arcotech Limited for the year endedMarch 31 2016 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 Companies Act 2013

(i) a. The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets. b. Fixed assets have been physicallyverified by the management at reasonable intervals during the year and there is aprogramme of verification which in our opinion is reasonable having regard to the sizeof the company and the nature of its assets. The discrepancies noticed on suchverification were not material. c. According to the information and explanations given bythe management the title deeds of the immovable properties are held in the name of theCompany.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

(iii) According to the information and explanations given to us the company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Consequently clauses (iii) (a)(iii)(b) and (iii)(c) of paragraph 3of the order are not applicable.

(iv) According to the information and explanation given to us the provisions ofsection 185 and 186 of the Companies Act 2013 have been complied with in respect ofloans investments guarantees and security wherever applicable.

(v) The Company has not accepted deposits during the year within the meaning ofsections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed there under. Consequently clause 3(v) of paragraph 3 of the order is notapplicable.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Records and Audit) Rules 2014 prescribed by the Central Governmentunder section 148(1) of the Companies Act 2013 and are of the opinion that prima faciethe prescribed cost records have been maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete (vii)

a. According to the information and explanations given to us and the records of theCompany examined by us in our opinion the company is generally regular in depositing thestatutory dues including provident Fund employees state insurance income tax valueadded tax sales tax wealth tax service tax customs duty excise duty cess and othermaterial statutory dues as applicable with appropriate authorities

b. According to the information and explanations given to us no undisputed amountspayable in respect thereof were in arrears as at 31.03.2016 for a period of more than sixmonths from the date they became payable except Income Tax payable for A/Y 2015-16amounting to Rs.154366481/-.

c. According to the information and explanations given to us the dues outstanding ofincome tax value added tax sales tax wealth tax service tax custom duty excise dutyand cess as at March 312016 on account of any dispute are as follows;

Name of the Statute Nature of Dues Amount Period to which the amount relates Forum where disputeis pending
(Rs in Lacs)
Income Tax Act 1961 Income Tax Demand 519.58 AY 2013-14 CIT(Appeals) New Delhi

(viii) According to the information and explanations given to us we are of the opinionthat the company has not defaulted in repayment of dues to any bank or financialinstitution. Further the Company does not have any debentures and loan from government.

(ix) a. According to the information and explanations given to us the company has notraised any money by way of initial public offer or further public offer including debtinstruments during the year. b. According to the information and explanations given to usterm loans raised during the year were applied for the purpose for which those are raised.

(x) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India we haveneither come across any instance of fraud on or by the company by its officers oremployees noticed or reported during the year.

(xi) According to the information and explanations given to us we report that themanagerial remuneration has been paid/ provided in accordance with requisite approvalsmandated by the provisions of the section 197 read with Schedule V to the Companies Act2013.

(xii) In our opinion the company is not a Nidhi Company. Consequently the provisionsof clause 3(xii) of paragraph 3 of the order are not applicable to the company.

(xiii) According to the information and explanations given to us all transactions withrelated parties during the year are in compliance with the provisions of section 177 and188 of the Companies Act 2013 where applicable and the details have been disclosed in thenotes to the financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the period under review. Consequently clause 3(xiv) ofparagraph 3 of the order is not applicable.

(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.Consequently clause 3(xv) of paragraph 3 of the order is not applicable.

(xvi) According to the information and explanations given to us the company is notrequired to be registered under section 45-1A of the Reserve Bank of India Act 1934.

For SHWETANK JOSHI & CO.

Chartered Accountants

Firm’s Registration Number 315093E

SHWETANK JOSHI

PROPRIETOR

Membership Number : 52238

Place: New Delhi

Date: 30.05.2016

ANNEXURE-'A' TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS OF ARCOTECH LIMITED

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 ArcotechLimited.("the Company") as of March 31 2016 in conjunction with our audit ofthe standalone 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. 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 reliable financial information as required underthe 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 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 includeobtaining 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 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 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 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 SHWETANK JOSHI & CO.

Chartered Accountants Firm’s Registration Number 315093E

SHWETANK JOSHI PROPRIETOR

Membership Number : 52238

Place: New Delhi

Date: 30.05.2016

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