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A & M Febcon Ltd.

BSE: 540697 Sector: Engineering
NSE: N.A. ISIN Code: INE319X01018
BSE 00:00 | 14 May 1.65 0.07
(4.43%)
OPEN

1.61

HIGH

1.65

LOW

1.58

NSE 05:30 | 01 Jan A & M Febcon Ltd
OPEN 1.61
PREVIOUS CLOSE 1.58
VOLUME 37655
52-Week high 9.14
52-Week low 1.09
P/E 5.89
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.61
CLOSE 1.58
VOLUME 37655
52-Week high 9.14
52-Week low 1.09
P/E 5.89
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

A & M Febcon Ltd. (AMFEBCON) - Auditors Report

Company auditors report

To The Members

A & M FEBCON LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of the A & M FEBCON LIMITEDwhich comprise of the Balance Sheet as at 31st March 2019 the Statement of Profit andLoss for the year ended Cash Flow Statement Statement of changes in equity for the yearended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Ind As 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 Ind AS financial statements that give a true and fair view ofthe financial position financial performance and cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards specified under Section 133 of the Act.

This responsibility also 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; 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 Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We conducted our audit in accordance with the Standards on Auditing issuedby the Institute of Chartered Accountants of India as specified u/s 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 Ind AS financial statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS 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 control relevant to the Company’s preparation and fairpresentation of the Ind AS financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onthe effectiveness of the entity’s internal control. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of the Ind ASfinancial statements.

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 Ind AS financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: i. in the case of the balance sheet of the stateof affairs of the Company as at

31st March 2019; ii. in the case of the statement of profit and loss of the profit forthe year ended on that date. iii. in the case of the statement of Cash Flow for the yearended on that date. iv. in the case of change in Equity for the year ended on that date.

Other Matter:

The comparative financial information of the Company for the year ended 31st March 2018and the transition date opening Balance Sheet at 1st April 2017 prepared in accordancewith Ind AS included in these Ind AS financial statements have been audited by us and haveexpressed an unmodified opinion.

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 subsection (11) ofsection 143 of the Act we give in the Annexure A a statement on the matters specified inthe paragraph 3 and 4 of the order.

2. As required by section 143(3) of the Act we report that:

a. we have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit; b. In our opinion properbooks of account as required by law have been kept by the Company so far as appears fromour examination of those books. c. The Balance Sheet The Statement of Profit and LossThe statement of change in equity and The statement of Cash Flow dealt with by this Reportare in agreement with the books of account. d. in our opinion the aforesaid Ind ASFinancial Statements comply with the Indian Accounting Standards Specified under Section133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014;e. on the basis of written representations received from the directors as on 31st March2019 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31stMarch 2019 from being appointed as a director in terms of Section 164(2) of theCompanies Act 2013. f. with respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in ‘Annexure B’; and g. with respect to the othermatters to be included in the 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. II. The Company has made provision as requiredunder the applicable law or accounting standards for material foreseeable losses if anyon long-term contracts including derivative contracts. III. The Company is not required totransfer the amount to the Investor

Education and Protection Fund and As per our report of even date

For Parekh Parekh & Associates

Chartered Accountants

FRN: 132988W

SD/-

CA Sunny P Parekh

Partner

M.No- 131188

Place: Ahmedabad

Date: 30/05/2019

ANNEXURE A TO THE AUDITOR’S REPORT

Referred to in paragraph 1 under the heading `Report on other legal and regulatoryrequirements’ of our report of even date to the financial statements of the Companyfor the year ended on March 31 2019

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:

(a)We are unable to comment whether Company is maintaining proper records showing fullparticulars including quantitative Details and situation of fixed assets in absence ofdocuments provided to us and we relied upon management Representation for the same.

(b) These fixed assets have been physically verified by the management at reasonableIntervals; we have further informed that no material discrepancies were noticed on suchVerification. We have not verified the same and relied upon Management Representation.

(‘c) Title deeds of all immovable properties are held in the name of companyexcept Industrial Land which the company has taken over from V P Corporation under SlumpSale Agreement on 29.03.2017. The Process of Name transfer is in process.

(i) (a) Physical verification of inventory has been conducted at reasonable intervalsby the management;

(b) We are unable to comment whether the company is maintaining proper records ofinventory and any material discrepancies in absence of documents provided to us and werelied upon management Representation for the same.

(ii) The company has not granted any loans secured or unsecured to companies firmsLLP’s or other Parties covered in the register maintained under section 189 of theCompanies Act except those in the nature of contractual obligations.

(iii) The Company has not provided loan Guarantees and Securities in respect of whichthe provisions of Section 185 and 186 of the companies act 2013 are applicable. Thecompany has complied with the provision of section 185 and 186 of companies act 2013 withrespect to loan and investment made.

(iv) In our opinion and according to information and management representation given tous it seems that the company has not taken any deposit pursuant to provision of Section 73to 76 of the Companies act 2013 though we have not verified any documents for the sameand relied upon management representation only. However the company has unsecured loan ofRs. 16168919/- as on 31st March 2019.

(v) We have broadly reviewed the cost records maintained by the company pursuant tosection 148 of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been maintained. We have however not made a detailedexamination of the cost records whether they are complete or accurate.

(vi) (a) Based on the records produced before us the company is regular in depositingundisputed statutory dues like providend fund ESIC income-tax GST duty of customsduty of excise value added tax cess and any other statutory dues except Income Tax ofRs. 157110 for the F.Y. 2014-15.

(b) According to information and explanation given to us there is no dues of providendfund ESIC income tax or sales tax or GST or wealth tax or service tax or duty of customsor duty of excise or value added tax or cess which have not been deposited on account ofany dispute.

(vii) The company has not defaulted in repayment of dues to a financial institution orbank. We have been informed that the company has not issued any Debenture during the year.

(viii) According to the informations & explanations given to us term loans in thebooks of account were used for the purpose it was taken.

(ix) According to the informations & explanations given to us no fraud by thecompany or any fraud on the Company by its officers or employees has been noticed orreported during the year.

(x) Provisions of section 197 read with Schedule V to the Companies Act 2013 relatedto managerial remuneration is applicable to company. The company has not paid managerialremuneration during the year.

(xi) Provisions specified in Nidhi Rules 2014 are not applicable to company.

(xii) According to the informations & explanations given to us all transactionswith the related parties are in compliance with sections 177 and 188 of Companies Act2013 and the details have been disclosed in the Financial Statements etc. as required bythe applicable accounting standards.

(xiii) According to the informations & explanations given to us the company has notmade preferential allotment or private placement of shares or fully or partly convertibledebenture during the year under review.

(xiv) According to the informations & explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him sothe provisions of section 192 of Companies Act 2013 are not applicable to company.

(xv) Provisions of section 45-IA of the Reserve Bank of India Act 1934 are notapplicable to company.

Place: Ahmedabad For Parekh Parekh & Associates
Date: 30/05/2019 Chartered Accountants
FRN -132988W
SD/-
CA Sunny Parekh
Partner
M.No- 131188
Place: Ahmedabad
Date: 30/05/2019

ANNEXURE B TO THE AUDITOR’S 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 A & MFebcon Limited (‘the Company’) as of 31 March 2019 in conjunction with our auditof 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 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.

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 auditors’ 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 authorizations ofthe management and directors of the company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the company’s assets that could have a material effect on the financialstatements.

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 2019 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.

Place: Ahmedabad For Parekh Parekh & Associates
Date: 30/05/2019 Chartered Accountants
FRN -132988W
SD/-
CA Sunny Parekh
Partner
M.No- 131188
Place: Ahmedabad
Date: 30/05/2019

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