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ABC Gas (International) Ltd.

BSE: 513119 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE173M01012
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NSE 05:30 | 01 Jan ABC Gas (International) Ltd
OPEN 24.40
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VOLUME 500
52-Week high 27.05
52-Week low 22.35
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
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Sell Price 0.00
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OPEN 24.40
CLOSE 24.40
VOLUME 500
52-Week high 27.05
52-Week low 22.35
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

ABC Gas (International) Ltd. (ABCGASINT) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

ABC GAS (INTERNATIONAL) LTD

Report on the Financial Statements

We have audited the accompanying financial statements of ABC GAS (INTERNATIONAL) LTD('the Company') which comprise the Balance Sheet as at 31st March 2017 the statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant 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 preparationand presentation of the financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on the 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 and the Order under section 143 (11)of the Act.

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 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 basisfor 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 aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2017 and its loss and its cash flows for the year ended on that date.

Emphasis of Matter:

We would like to draw the attention on the Company's policy of providing for gratuityand other longterm employee benefits on the payment basis and noton the actuarialvaluation as per AS 15. The same has been stated in Note No. 22. Further we would alsolike to draw attention to Note No. 29 regarding Inter - Corporate Deposits amounting toRs. 8 Lacs to a party which is overdue for recovery and in respect of which company hasinitiated legal proceedings. The management is of the view that the entire amount is goodfor recovery and therefore no provision has been created at this stage.

Our opinion is not modified in respect of above matters.

Report on Other Legal and Regulatory Requirements 1. 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) in our opinion proper books of account as required by law have been kept by theCompany so far as itappears 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 except for as stated in Emphasis OF Matter above;

(e) on the basis of the written representations received from the directors as on 31 stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st 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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting;

(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 tothe explanations given to us:

(i) the Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 26 on Contingent Liabilities of thefinancial statements;

(ii) the Company does not see any foreseeable losses on long-term contracts as on thebalance sheet date and the Company has not entered into any derivative contractstherefore no provision has been made in relation to the same;

(iii) the Company has not declared any dividends either in the current year or duringany of the previous years and therefore transferring of the amounts in the InvestorEducation and Protection Fund by the Company does not arise. However the company has apending balance of Rs. 9500 in respect to refund of shares application money.

2. 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 "B" a statement on the matters specified in theparagraph 3 and 4 of the Order.

For Bhuwania & Agrawal Associates
(Chartered Accountants)
Firm Registration No. 101483W
Niranjankumar Agrawal
Partner
Place: Mumbai Membership No. 34659
Date: 30.05.2017

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 (f) under 'Report on Other Legal and RegulatoryRequirements' of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ABC GAS(International) Limited ("the Company") as of March 312017 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 controlsbased 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 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.

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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 controlsoverfinancial 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 judgement 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 basisfor 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 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 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 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 312017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia".

For Bhuwania & Agrawal Associates
(Chartered Accountants)
Firm Registration No. 101483W
Niranjankumar Agrawal
Partner
Place: Mumbai Membership No. 34659
Date: 30.05.2017

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'of our report of even date)

Report on the statement on the matters specified in the paragraph 3 and 4 of theCompanies (Auditor's Report) Order 2016:

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

b) The Company has a programme of physical verification of its fixed assets by whichfixed assets are verified. In accordance with this programme fixed assets were verifiedduring the year and no material discrepancies were noticed on such verification. In ouropinion the periodicity of physical verification is reasonable having regard to the sizeof the Company and the nature of its assets.

c) The title deeds of immovable properties were found to be held in the name of thecompany.

(ii) In respect of the inventories:

a) As per the information furnished the inventories have been physically verifiedduring the year by the management. In our opinion having regard to the nature andlocation of stocks the frequency of the physical verification is reasonable.

b) In our opinion and according to the information and explanations given to usprocedures of physical verification of inventory followed by the management are reasonableand adequate in relation to the size of the company and nature of its business.

c) The company has maintained proper records of inventory. In our opiniondiscrepancies noticed on physical verification of stocks were not material in relation tothe operations of the Company and the same have been properly dealt with in the books ofaccount.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under section 189 of the Companies Act and thus paragraph 3(iii)of the Order is not applicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loan making investments and providing guarantees andsecurities as applicable except that in case of a loan where the Company has not chargedthe interest as has also been referred under Note No 29.

(v) The Company did not accept any deposits during the year and therefore compliancewith the directives issued by the Reserve Bank of India and the provisions of sections 73to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthereunder may not be applicable to the Company.

(vi) The Central Government has prescribed maintenance of the cost records undersection 148(1) of the CompaniesAct 2013 in respect of manufacturing/ extrusion activityof the company. We have broadly reviewed the books of accounts and record maintained bythe company in this connection and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have however not made a detailexamination of the records with a view to determining whether they are accurate orcomplete.

(vii) a) According to the information and explanations given to us and on the basis ofour examination of the records of the

Company the Company has been found to be regular in depositing undisputed statutorydues such as provident fund income tax sales tax duty of customs and other statutorydues as applicable.

b) According to the records of the Company and information and explanations given tous there are no dues of income tax sales tax service tax customs duty excise dutyvalue added tax which has not been deposited on account of disputes except as under:

Statute Nature of the dues Amount (Rs. Lacs) Period Forum at which dispute/ demand is pending
Income Tax Act 1961 Income Tax 2.10 A.Y. 2008-2009 Matter pending with ITO-6(1)(1)

(viii) As per the information and explanations given to us and based on our audit theCompany has not defaulted in repayment of dues to financial institution or bank.

(ix) The Company has not raised any money byway of initial public offeror by furtherpublic offer (including debt instruments). Further in our opinion and according to theinformation and the explanations given to us the term bans availed by the Company wereprima facie applied by the Company during the year for the purposes for which the loanswere obtained.

(x) According to the information and explanations given to us no material fraud by oron the Company by its officers or employees has been noticed or reported during the courseof our audit.

(xi) The managerial remuneration has been found to be paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with Clause(d) of section III of part II of Schedule V of the Companies Act. 2013.

(xii) The Company is not the Nidhi Company and therefore paragraph 3(xii) of the Orderis not applicable to the Company.

(xiii) In our opinion and according to the information and the explanations given tous the transactions with the related parties were in compliance with Sec 177 and 188 ofthe Companies Act and the details of the same have been dsclosed in Note 24 of theFinancial Statements in conformity with Accounting Standard 18.

(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review undersection 42 of the Companies Act 2013 and therefore paragraph 3(xiv) of the Order is notapplicable to the Company.

(xv) The Company has not entered into any non cash transactions with the directors orpersons connected wth him and therefore paragraph 3(xv) of the Order is not applicable tothe Company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and therefore paragraph 3(xvi) of the Order is not applicable tothe Company.

For Bhuwania & Agrawal Associates
(Chartered Accountants)
Firm Registration No.101483W
Niranjankumar Agrawal
Partner
Place: Mumbai Membership No. 34659
Date: 30.05.2017