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ATN International Ltd.

BSE: 511427 Sector: Financials
NSE: ATNINTER ISIN Code: INE803A01027
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VOLUME 125
52-Week high 0.64
52-Week low 0.25
P/E
Mkt Cap.(Rs cr) 1.14
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.28
Sell Qty 20817.00
OPEN 0.29
CLOSE 0.29
VOLUME 125
52-Week high 0.64
52-Week low 0.25
P/E
Mkt Cap.(Rs cr) 1.14
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.28
Sell Qty 20817.00

ATN International Ltd. (ATNINTER) - Auditors Report

Company auditors report

To the Members of ATN INTERNATIONAL LTD.

Report on the Financial Statements

We have audited the accompanying financial statements of ATN INTERNATIONAL LTD.("the Company") which comprise the Balance Sheet as at March 312016 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 Financial Statements

The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ('the act’) with respect to thepreparation of these 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 Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions 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; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting 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 a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of the accounting estimates made by the Company’s managementand Board 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.

Opinion

in our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financiarstatements give the information required by the Act inthe manner so required and give a true and fairview in conformity with the accountingprinciples generally accepted in India of the state of affairs of the companyas at 31stMarch 2016 and its Loss and its cash flow for the year ended on that date.

Emphasis of Matter

We draw reference to:

I. STATEMENT OF PROFIT AND LOSS :

During the year the Company has not provided for

a) Interest Rs. 94.50 Lakhs payable to Rural Electrification Corporation Ltd {ReferNote No 4.A.2)

b) Diminution in value of Investments Rs. 1028.81 Lakhs (Refer Note 9.1)

c) Loss in value of inoperative Wind Power Project the amount of loss not quantified bymanagements as per AS - 28 and consequently the loss of the Company for the current yearis understated & Reserve & Surplus is overstated by the above amount & has itsresultant effect in overstatement of Investments Loans & Advances and understatementof Current Liabilities.

II. BALANCE SHEET

a) The Company is accounting interest payment on cash basis which has resulted inaccumulated interest liability of Rs. 1825.08 Lakhs to Rural Electrification CorporationLtd. As a resultant effect Secured / Unsecured Loans / Liabilities are understated tothat extent.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Governmentof India in terms of sub-section (11) ofsectionl 43 of the Act we give in the Annexure "A" statement on themattersSpecified in paragraphs 3 and 4 of the Order.

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 purpose 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 and Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account;

d) in our opinion subject to Note No. 9.1 regarding valuation of investment Note No.4.A.2 regarding non-provision of interest & Note No. 23 for non- provision of loss invalue of wind power project the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) on the basis of written representations received from the directors as on March312016 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312016 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"

g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor’s Report in accordance with Rule 11of the Companies (Audit and Auditors)Rules 2014 :

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; assuch the question of commenting on any material foreseeable losses thereon does not arise

iii. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.

For SHAMBHU KEDIA & CO.
Chartered Accountants
Firm Regn. No. 319011E
Place : Kolkata S. K. KEDIA
Proprietor
Dated : 30th May 2016 M. No. 054042

Annexure "A" : Referred to in paragraph 1 under "Report on Other Legaland Regulatory Requirements" of Our Report of even date to the members of ATNINTERNATIONAL LTD for the year ended 31st March 2016.

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

i. (a) The Company has maintained proper records showing full particulars includingquantitative details

and situation of fixed assets ;

(b) As explained to us fixed assets have been physically verified by the managementduring the year at regular intervals which in our opinion is reasonable having regard tothe size of the Company and the nature of its fixed assets; as informed to us no materialdiscrepancies were noticed on such verification.

(c) The title deed of Immovable Properties are held in the name of the Company excepttitle deed of Office Premises of Rs. 957880/- which is not available with the company.

ii. The Company does not have any inventory. Hence the requirement of clause (ii) ofparagraph 3 of the said Order is not applicable to the Company.

iii. According to the information and explanations given to us and on the basis of ourexamination of books of accounts the company has not granted any loans secured orunsecured to companies firms or other parties covered in the register maintained undersection 189 of the Companies Act 2013.

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 in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

v. In view of matured outstanding deposits having been deposited in a separate accountas per order of Company Law Board the Company has complied with the provisions of theCompanies Act 2013 read along with the rules framed under the Non-Banking FinancialCompanies (Reserve Bank) Directions 1998 as regards to the deposits accepted from public.

vi. As informed to us the Central Government has not prescribed maintenance of costrecords under subsection (1) of Section 148 of the Act in respect of activities carriedon by the company.

vii. (a) According to the information and explanations given to us and based on therecords of the company

the company has generally been regular in depositing the undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income-tax Sales-tax WealthTax Service Tax Custom Duty Excise Duty and other material statutory dues asapplicable with the appropriate authorities. According to the information andexplanations given to us there were no outstanding Statutory dues as on 31st March 2016for a period of more than six month from the date they become payable.

(b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of Income Tax Wealth Tax Service TaxSales Tax Customs Duty and Excise Duty which have not been deposited on account of anydisputes.

viii. According to the records of the company examined by us and as per the informationand explanations given to us the company has not made payment against due to financialinstitutions amounting to Rs. 93500000/- and interest thereon except Rs. 20000000/-paid as per courts directives as the matter is sub-judice. The Company has outstandingdebentures amounting to Rs 16.29 Lacs for which amount has been deposited in a separatebank fixed deposit.

ix. The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year.

x. During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe course of our audit nor have we been informed of any such instance by the Management

xi. According to the information and explanations given to us and based on the recordsof the company examined by us the company has complied with the provision related tomanagerial remuneration in compliance with the provisions of section 197 read withSchedule V to the Companies Act 2013.

xii. The Company is not a Nidhi Company so the clause 3(xii) of the order is notapplicable to the Company.

xiii. According to the information and explanations given and based on the records ofthe company examined by us the Company has made all transactions with the related partiesin compliance with the section 177 and 188 of the Companies Act 2013 where applicableduring the year and details have been disclosed in the Financial Statements as required bythe 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 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 duringthe year under review.

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 SHAMBHU KEDIA & CO.
Chartered Accountants
Firm Reg. No. 319011E
S. K. KEDIA
Place : Kolkata Proprietor
Dated : 30th May 2016 M. No. 054042

Annexure "B" : Referred to in paragraph 2(f) under "Report on OtherLegal and Regulatory Requirements" of Our Report of even date to the members of ATNINTERNATIONAL LTD. for the year ended 31st March 2016.

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 ATNINTERNATIONAL LTD. (‘the Company’) as of 31st March 2016 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 controlstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. 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 the Company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of materia! misstatement of the financial statements whether dueto 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 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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes jn accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of recordsthat 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 interna! 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 SHAMBHU KEDIA & CO.
Chartered Accountants
Firm Reg. No. 319011E
S. K. KEDIA
Place : Kolkata Proprietor
Dated : 30th May 2016 M. No. 054042