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Golkonda Aluminium Extrusions Ltd.

BSE: 513309 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE327C01023
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NSE 05:30 | 01 Jan Golkonda Aluminium Extrusions Ltd
OPEN 3.03
PREVIOUS CLOSE 3.03
VOLUME 1
52-Week high 4.76
52-Week low 2.09
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.03
CLOSE 3.03
VOLUME 1
52-Week high 4.76
52-Week low 2.09
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Golkonda Aluminium Extrusions Ltd. (GOLKONDAALUMIN) - Auditors Report

Company auditors report

To

The Members of

Golkonda Aluminium Extrusions Limited We have audited the accompanying financialstatements of Golkonda Aluminium Extrusions Limited ("the Company")which comprise the Balance Sheet as at 31st March 2017 the Statement of Profit and Lossthe Cash Flow Statement 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 statements that give a true and fair view of the financial positionfinancial performance and cash flowsof the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records inaccordance withthe provisions of the Act for safeguarding of 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 thepreparation and presentation of the financial statements that givea 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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the accompanying financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles ' generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;

(b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Emphasis of Matters

We draw your attention to the following matters in the Notes to the financialStatements

Note No. 2.20 the Company has entered into an Asset Purchase Agreement (APA) with SagarAsia Private Limited for the sale of substantially the whole assets of the Company on lumpsum consideration of Rs. 84 millions on 26th May 2016. Due to this event the Companyceases to have going concern assumption and therefore all assets and liabilities of theCompany have been revalued at Net Realisable Value. Accordingly gain on sale of assetsamounting to Rs. 42.38 millions has been transferred from revaluation reserve andrecognized as Income from exceptional items during the year.

Further no depreciation is charged for the period 01st April 2016 to 26th May 2016 onthe assets sold pursuant to Asset Purchase Agreement (APA) with Sagar Asia PrivateLimited since the assets were revalued on 31st March 2016 at Net Realisable Value basedon Actual Sale consideration as mentioned in APA dated 26th May 2016.

Our opinion is not qualified in respect of this matter.

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 ofouraudit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far a sit 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 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 the 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 in our opinionand to the best of 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 Note 2.21 to the financial statements;

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

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

(iv) The company had provided requisite disclosures in its financial statements asregards its holdings and dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 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 accounts maintained by the company refer Note no. 2.40 and asproduced to us by the management.

For Laxminiwas & Jain
Chartered Accountants
Firm's Registration No. 001859 S
Laxminiwas Sharma
Place : Flyderabad Partner
Date: 29th May 2017 Membership No. 014244

Annexure A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year ended 31 March 2017 we report that:

(i) a. The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b. All the assets have not been physically verified by the Management during the yearbut there is a phased programme of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. However since theproduction is closed since July 2013 and it is unlikely to do the physical verification ona regular interval. Further company has sold substantially whole of its assets.

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) There is no inventory accordingly para 3(ii) of the order are not applicable.

(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. Accordingly para 3(iii) (a) (b) and (c) of the order are notapplicable.

(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 and investments made.

(v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public within the meaning of Section 73 to76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder.

(vi) According to the information and explanation given by the company the Centralgovernment has not specified maintenance of cost records under subsection (1) of section148 of Companies act 2013.Further production is closed since July 2013.Therefore clause(vi) of Paragraph 3 of the order is not applicable

(vii) a. According to the information and explanations given to us and the records ofthe company examined by us the company is generally regular in depositing withappropriate authorities undisputed statutory dues including Provident Fund Employees'State Insurance Income Tax Sales Tax Wealth Tax Service Tax Customs duty Exciseduty Value Added Tax Cess and any other statutory dues applicable to it as on 31 March2017.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income Tax Sales Tax Value Added Tax duty ofcustoms Service Tax cess and other material statutory dues were in arrears as at 31March 2017 for a period of . more than six months from the date they became payable.

b. According to the information and explanations given to us there are no dues ofIncome Tax Sales Tax Wealth Tax Service Tax Customs duty Excise duty Value Added Taxand Cess which have not been deposited with the appropriate authorities on account of anydispute except as under:

(Amount in Rs.)

Relevant Assessment Year Income under dispute (Rs.) Forum where dispute is pending
2003-04 28937712 Income Tax Appellate Tribunal and
2004-05 18256357 Commissioner of Income-Tax (Appeal)
2005-06 33216328 Commissioner of Income-Tax(Appeal)
2010-11 38331381 Commissioner of Income-Tax(Appeal)
2011-12 10990023 Commissioner of Income-Tax(Appeal)
2013-14 15885729 Dispute Resolution Panel

(viii) According to the information and explanation given to us there is no amountrepayable to bank and financial institutions as at balance sheet date. Accordinglyparagraph 3 (viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of ouraudit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read 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 and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions 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 and based on ourexamination of the records of the Company the Company has not entered into noncashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

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

For Laxminiwas & Jain
Chartered Accountants
Firm's Registration No. 001859 S
Laxminiwas Sharma.
Place : Hyderabad Partner
Date: 29th May 2017 Membership No. 014244

Annexure - 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 GolkondaAluminium Extrusions Limited ("the Company") as of 31 March 2017 in conjunctionwith our 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 (TCAT). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 controls systemover 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 financial *reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 31 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 Laxminiwas & Jain
Chartered Accountants
Firm's Registration No. 001859 S
Laxminiwas Sharma
Place : Flyderabad Partner
Date: 29th May 2017 Membership No. 014244