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Ayepee Lamitubes Ltd.

BSE: 523168 Sector: Others
NSE: N.A. ISIN Code: INE257X01010
BSE 05:30 | 01 Jan Ayepee Lamitubes Ltd
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Ayepee Lamitubes Ltd. (AYEPEELAMITUBES) - Auditors Report

Company auditors report

To

The members of

Ayepee Lamitubes Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Ayepee Lamitubes Limited ("theCompany")which comprise the Balance Sheet as at 31 March 2017 the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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 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 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 internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances An audit also includes evaluating the appropriatenessof accounting policies used and the reasonableness of the accounting estimates made byCompany's 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 on the financial statements.

Basis for Qualified Opinion

Attention is drawn to the note ‘21' regarding the Company not carrying out anymanufacturing Operations and has substantial accumulated losses. The net worth of theCompany has been fully eroded due to the accumulated losses. In view of the above thecompany may not be a going concern. However the accounts have been prepared on the goingconcern basis as the management is exploring possible steps to revive operations of theCompany.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the Basis forQualified Opinion paragraph the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state affairs of theCompany as at 31 March 2017 and its Profit and its Cash Flows for the year ended on thatdate.

Report on other Legal and Regulatory Requirements

(I) As required by the Company (Auditor's Report) Order 2016 issued by the CentralGovernment of India of subsection (11) of section 143 of the Act (hereinafter referred toas the Order) and on the basis of such checks of the books and records of the Company aswe considered appropriate and according to the information and explanations given to uswe give in Annexure ‘A' a statement on the matters specified in paragraphs 3 and 4 ofthe Order as may be applicable.

(II) 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 matter described in the Basis for QualifiedOpinion paragraph above in our opinion proper books of account as required by lawhave been kept by the Company so far as 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) Except for the effects of the matter described in the Basis for QualifiedOpinion paragraph above in our opinion the aforesaid financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

(e) The matter described in the Basis for Qualified Opinion paragraph above inour opinion may have an adverse impact on the functioning of the Company.

(f) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.

(g) With respect to the adequacy of internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in Annexure ‘B'. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

(h) With respect to the other matters to be included in the Independent Auditors'Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements refer note ‘15' 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 the financial statements asregards holding and dealings in Specified Bank Notes as defined in the NotificationS.O.3407(E) dated the 8th November 2016 of the Ministry of Finance during the periodfrom 8th November 2016 to 30th December 2016.

Based on audit procedures performed and the representations provided to us by themanagement we report that the disclosures are in accordance with the books of accountmaintained by the Company and as produced to us by the Management.

For J Singh & Associates

Chartered Accountants

(Firm Reg. No. 110266W)

S. P. Dixit

(Partner)

Membership No. 041179

Place : Mumbai

Dated : 30 May 2017.

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in paragraph (I) under the heading of "Report onOther Legal and Regulatory Requirements" of our report of even date to the members ofAyepee Lamitubes Limited on the financial statements for the year ended 31 March2017 we report that:

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

(b) All the fixed assets of the Company have been physically verified by themanagement during the year. In our opinion this periodicity of physical verification isreasonable having regard to size of the Company and the nature of its assets. As informedto us no discrepancies were noticed on such verification.

(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.

2. Due to closure of commercial operations the Company does not have any inventoryduring the year and hence Clause ii of the Order is not applicable.

3. According to the information and explanation 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.

4. 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 Companies Act 2013with respect to the loans given. The company has not provided any guarantee or madeinvestments or provided any securities during the year.

5. The Company has not accepted any deposits from the public within the meaning ofSections 73 to 76 of the Companies Act 2013 and the rules framed thereunder.

6. In view of the closure of manufacturing activities the report on maintenance ofcost records as prescribed by the Central Government under section 148(1) of the Act isnot required.

7. According to the records of the Company examined by us and information andexplanations given to us: (a) Undisputed statutory dues including Income-tax Sales-taxService Tax duty of customs duty of excise Value Added Tax cess and other statutorydues as applicable have generally been regularly deposited with the appropriateauthorities except delay in significant cases. There are no undisputed amounts payable inrespect of aforesaid dues outstanding as at 31 March 2017 for a period of more than sixmonths from the date of they became payable.

(b) There are no dues of Sales tax duty of Excise duty of Customs and value addedtax which have not been deposited on account of any dispute. The disputed dues of incometax which have not been deposited are as under:

Name of the statute Nature of dues Period to which the amount relates Forum where dispute is pending Amt. in Rs.
The Income Tax Act 1961 Income Tax F.Y. 2002-03 Assistant Commissioner of Income Tax 1075551
F.Y. 2007-08 Commissioner of Income Tax 481920
F.Y. 2008-09 (Appeals) Mumbai 376450

8. The Company has not taken any loan from bank / financial Institution / Government orissued debentures during the year.

9. In our opinion and according to the information and explanations given to us theCompany has not raised any money by way of initial public offer or further public offer(including debt instruments) or loan during the year.

10. 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 andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the company by its officers/employeesnoticed or reported during the year nor have been informed of any such instance by theManagement.

11. According to the records of the Company examined by us and information andexplanations given to us the Company has not paid any managerial remuneration during theyear. Hence Clause xi of the Order is not applicable.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and the Nidhi Rules 2014 are not applicable to it.

13. In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company transactions with related partiesare in compliance with section 177 and 188 of Companies Act 2013 and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the records of the Company examined by us and information andexplanations given to us the Company has not made any private placement/ preferentialAllotment of shares or fully or partly Convertible debentures during the year.

15. According to the records of the Company examined by us and information andexplanations given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with him.

16. The Company is not required to be registered under section 45 -IA of the ReserveBank of India Act 1934.

For J Singh & Associates

Chartered Accountants

(Firm Reg. No. 110266W)

S. P. Dixit

(Partner)

M. No. 041179.

Place : Mumbai

Dated : 30 May 2017.

ANNEXURE ‘B' TO THE INDEPENDENCE AUDITORS' REPORT

The Annexure referred to in paragraph (I) under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date

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 AYEPEELAMITUBES LIMITED (‘the Company') as of 31stfiMarch 2017 in conjunction with ouraudit 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 eficientconduct of its business including adherence to the 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 deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Company's internal financial controls system over 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 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 of theManagement 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 31fiMarch 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 J Singh & Associates

Chartered Accountants

(Firm Reg. No. 110266W)

S.P. Dixit

(Partner)

M. No. 041179.

Place : Mumbai

Dated : 30 May 2017.