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ABC Gas (International) Ltd.

BSE: 513119 Sector: Others
NSE: N.A. ISIN Code: INE173M01012
BSE 00:00 | 30 Sep 61.20 -3.20
(-4.97%)
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NSE 05:30 | 01 Jan ABC Gas (International) Ltd
OPEN 61.20
PREVIOUS CLOSE 64.40
VOLUME 984
52-Week high 153.50
52-Week low 10.66
P/E
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 61.20
CLOSE 64.40
VOLUME 984
52-Week high 153.50
52-Week low 10.66
P/E
Mkt Cap.(Rs cr) 12
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) LIMITED Report on the Audit of theStandalone Financial Statements Opinion

We have audited the accompanying Standalone Financial Statements of ABC GAS(INTERNATIONAL) LIMITED ("the Company") which comprise the Balance Sheet asat March 31 2021 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of significant accounting policies and other explanatory information(herein referred to as "the standalone financial statements") In our opinion andto the best of our information and according to the explanations given to us theaforesaid standalone financial statements give the information required by the CompaniesAct 2013 ("the Act") in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 and its loss total comprehensive income itscash flows and changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of Standalone Financial Statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013.Our responsibilities under those SAs are further described in the Auditor'sresponsibilities for the audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the Standalone Financial Statements under the provisionsof the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone financial statements.

Emphasis of Matter

We draw attention to the following matters: a) Note No 33(A) of the accompanyingstandalone financial statements regarding non-compliance of filing the requisite returnswithin due date for claiming GST Input credit in respect of Special Additional Duty ofRs.1681926/-. b) The company is holding inventory of Products made of metals since longand no major movement in inventory were there during the year under consideration.However as per the management the products are marketable and the market value of thesame is higher than the carrying amount as on the balance sheet date. c) Non-compliance offollowing statutory requirements: i. The company have not appointed Internal Auditor asrequired under section 138 of the companies act 2013. ii. The company have not createdWebsite and uploaded the required documents as specified in SEBI (LODR) Regulation 46.iii. The company have not published its notices/advertisements in newspaper as required bySEBI (LODR) Regulation 47. iv. The company have not dematerialized the promoter'shareholding in full as required by SEBI (LODR) Regulation 31(2).

Our opinion is not modified in respect of these above matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report:

Sr. Key Audit Matter Auditor's Response
1 Impairment of financial assets including write-offs using Expected Credit Losses (ECL) model Principal Audit Procedures
As described in the notes to the standalone financial statements the impairment losses have been determined in accordance with Ind AS 109 Financial Instruments requiring considerable judgment and interpretation in its implementation which also involved significant judgement by management in measuring the expected credit losses. Key areas of judgment included:c We assessed the appropriateness of the Company's policy on Expected Credit Loss recognition on financial instruments with reference to the applicable accounting standards.
Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing:
Determining the criteria for a significant increase in credit risk (RsSICR') Techniques used to determine the Probability of Default (PD) and Loss Given Default (RsLGD') Further the economic and business consequences of the COVID-19 pandemic as described in Note 2.4 to the financial statements significant social disruption and disturbance and slowdown of economic activity can have possible implications on the judgements and estimates used in the measurement.c We evaluated and tested the design and tested the operating effectiveness of Company's controls over the data used to determine the impairment reserve internal credit quality assessments and methodology followed for computation of ECL.
For Expected Credit Losses computed by the management we performed the following procedures: Assessed the reasonableness of assumptions and judgement made by management on model adoption and parameters selection;
Assumptions used in the expected credit loss model such as the financial condition of the counterparty expected future cash flows etc. Refer Notes 2.4 to the standalone financial statements. Examined the key data inputs to the ECL model on a sample basis to assess their accuracy and completeness; Evaluated and tested on sample basis the appropriateness of staging including determination of significant increase in credit risk.
Assessed the Company's methodology for ECL provisioning Classification and Measurement;
We analyzed and understood results of stress tests performed in the provisioning considering the overall impact on the estimates used for ECL estimation of financial assets on account of the COVID-19 pandemic. We enquired with the management regarding significant judgments and estimates involved in the impairment computation and additional management overlay provision arising from the effects of the COVID-19 pandemic and evaluated the reasonableness thereof.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information in the Management Discussion and Analysis Board'sReport including Annexure to the Board's Report and Corporate Governance but does notinclude the standalone financial statements and our auditor's report thereon.

Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgements and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. Those Board of Directors are also responsible foroverseeing the Company's financial reporting process.

Auditors' Responsibilities for the Audit of the Standalone Financial Statements:

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.As part of an audit in accordance with SAs we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

? Identify and assess the risks of material misstatement of the Standalone FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

? Obtain an understanding of internal financial control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.

? Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

? Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Standalone Financial Statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Standalone Financial Statements. We communicate withthose charged with governance regarding among other matters the planned scope and timingof the audit and significant audit findings including any significant deficiencies ininternal control that we identify during our audit. We also provide those charged withgovernance with a statement that we have complied with relevant ethical requirementsregarding independence and to communicate with them all relationships and other mattersthat may reasonably be thought to bear on our independence and where applicable relatedsafeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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 Companies Act 2013 we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c) The Balance Sheet the Statement of Profit and Lossincluding the Statement of Other Comprehensive Income the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account; d) In our opinion the aforesaid Standalone Financial Statements comply withthe Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended except non-provision of long-termemployee benefits as per Ind AS 19 as on 31.03.2021; e) On the basis of the writtenrepresentations received from the directors as on March 31 2021 taken on record by theBoard of Directors none of the directors is disqualified as on March 31 2021 from beingappointed as a director in terms of Section 164 (2) of the Act. f) With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate Report in "AnnexureB". g) With respect to the other matters to be included in the Auditor's Reportin accordance with the requirements of section 197(16) of the Act as amended: In ouropinion the managerial remuneration for the year ended March 31 2021 has been paid /provided by the Company to its directors in accordance with the provisions of section 197read with Schedule V to the Act; h) With respect to the other matters to be included inthe Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us: i. The Company has disclosed the impact of pending litigationson its financial position in its standalone financial statements; ii. The Company did nothave any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses; iii. There has been no delay in transferring the amountrequired to be transferred to the Investor Education and Protection Fund by the companyexcept Rs.9500 in respect of share application money pending for refund.

For Jhunjhunwala Jain & Associates LLP
Chartered Accountants
Firm Registration No: 113675W
(CA Randhir Kumar Jhunjhunwala)
Partner
Place : Mumbai Membership No. : 047058
Date : June 30 2021 UDIN : 21047058AAAABR6101

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT – MARCH 31 2021

Referred to in paragraph 1 of the Independent Auditors' Report of even date to themembers of ABC GAS (INTERNATIONAL) LIMITED on the standalone financial statements for theyear ended March 31 2021. i. In respect of its property plant and equipment a) TheCompany has maintained proper records showing full particulars including quantitativedetails and situation of Property Plant and Equipment. b) Property Plant and Equipmentare physically verified by the Management according to a phased periodic manner which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the Property Plant and Equipment has beenphysically verified by the Management during the year and no material discrepancies havebeen noticed on such verification. c) According to the information and explanations givento us and on the basis of our examination of the records of the Company we report thatthe title deeds of immovable property are held in the name of the Company. ii. (a)According to the information and explanations given to us physical verification ofInventories has been conducted at reasonable intervals by the management.

(b) We are informed that no material discrepancies have been noticed on such physicalverification. iii. According to the information and explanations given to us the Companyhas not granted any loans secured or unsecured to companies covered in the registermaintained under Section 189 of the Act and thus the provisions of clause 3 (iii) (a) to(c) of the Order are not applicable to the Company and hence not commented upon. iv. Inour opinion and According to the information and explanations given to us the Company hascomplied with the provisions of section 185 and 186 of companies Act 2013 in respect ofgrant of loans making investment and providing guarantees and securities as applicableexcept in case of one loan outstanding of Rs.8.00 Lakhs. The company has not chargedinterest due to doubtful recovery of the same. The company have also made the provisionfor impairment of Rs.8.00 Lakhs in the earlier years. v. According to the information andexplanations given to us the Company has not accepted any deposit from the public inaccordance with the provisions of Sections 73 to 76 or any other relevant provisions ofthe Act and the rules framed thereunder. Accordingly paragraph 3(v) of the Order is notapplicable to the Company. However the company is having long due share application moneyof Rs.9500 which is pending for refund. vi. As informed to us the maintenance of CostRecords is not applicable to the company due to monetary limits specified by the CentralGovernment under sub-section (1) of Section 148 of the Act in respect of the activitiescarried on by the company. vii. According to the information and explanations given to usand according to the books and records as produced and examined by us in our opinion: a)According to the information and explanation given to us the statutory dues have beenregularly deposited during the year by the company with the appropriate authorities. Thereare no undisputed amounts payable in respect of Income Tax Sales Tax Wealth Tax GSTCustom Duty Service Tax Investor Education and Protection Fund Excise Duty Cess andany other statutory dues as at March 31 2021 for a period of more than six months fromthe date of becoming payable except GST payable of Rs.51273 CST assessment dues ofRs.260924 and MVAT assessment dues of Rs.196425 for FY 2013-14 which are neitherrecognised by the company as undisputed liability in the books nor disputed by filing anyappeal against such order. b) According to the information and explanation given to usthere were no statutory dues in respect of Sales Tax Wealth Tax GST Custom DutyService Tax Investor Education and Protection Fund Excise Duty Cess which have not beendeposited as on March 31 2021 on account of any dispute except as mentioned below:

Name of Statute Natureof Dues Forum where the dispute is pending Period towhich theamount relates Amount involved (Rs. In Lacs) Part Payment (Rs. In Lacs)
Income Tax Act 1961 Income Tax ITO 6(1)(1) Mumbai FY 2007-08 2.10 -
MVAT Act 2002 MVAT JC Nodal Div-4Mumbai FY 2012-13 22.52 4.44

viii. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues towards banks or financial institutions anddues in respect of debentures. ix. The Company has not raised any moneys by way of initialpublic offer further public offer (including debt instruments) and term loans.Accordingly the provisions of Clause 3(ix) of the Order are not applicable to theCompany. x. 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 or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement. xi. Based on our audit procedures performed for the purpose of reporting thetrue and fair view of the financial statements and according to the information andexplanations given by the management we report that the managerial remuneration has beenpaid / provided in accordance with the provisions of Section 197 read with Schedule V tothe Companies Act 2013. xii. As the Company is not a Nidhi Company and the Nidhi Rules2014 are not applicable to it the provisions of Clause 3(xii) of the Order are notapplicable to the Company. xiii. According to the information and explanations given to usand based on our examination of the records of the Company all transaction with relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the notes to the standalone financialstatements as required by the applicable accounting standards. xiv. The Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. Accordingly the provisions of Clause3(xiv) of the Order are not applicable to the Company. xv. The Company has not enteredinto any non cash transactions with its directors or persons connected with him.Accordingly the provisions of Clause 3(xv) of the Order are not applicable to theCompany. xvi. The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934.

For Jhunjhunwala Jain & Associates LLP
Chartered Accountants
Firm Registration No: 113675W
(CA Randhir Kumar Jhunjhunwala)
Partner
Place : Mumbai Membership No. : 047058
Date : June 30 2021 UDIN : 21047058AAAABR6101

ANNEXURE ‘B' TO THE INDEPENDENT AUDITORS' REPORT – MARCH 31 2021

Report on the Internal Financial Controls with reference to the aforesaid StandaloneFinancial Statements under Clause (i) Sub-section 3 of Section 143 of the Companies Act2013 ("the Act") (Referred to in paragraph (2) (f) under ‘Report on OtherLegal and Regulatory Requirements' section of our report of even date)

We have audited the internal financial controls over financial reporting of ABC GAS(INTERNATIONAL) LIMITED ("the Company") as of March 31 2021 in conjunctionwith our audit of the Standalone Financial Statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal controls with referenceto Standalone Financial Statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note. 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 company's policies the safeguarding ofits 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 internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. 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 was established and maintained and if suchcontrols 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 judgement including the assessment of the risks ofmaterial misstatement of the Standalone Financial Statements whether due to fraud orerror.

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 over financialreporting with reference to these standalone financial statements.

Meaning of Internal Financial Controls with reference to Standalone FinancialStatements

A company's internal financial controls with reference to Standalone FinancialStatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Standalone Financial Statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to Standalone Financial Statements include thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of Standalone Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; 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 Standalone Financial Statements .

Inherent Limitations of Internal Financial Controls with reference to StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference toStandalone Financial Statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to Standalone Financial Statements to future periods are subjectto the risk that the internal financial control with reference to Standalone FinancialStatements may become inadequate because of changes in conditions or that the degree ofcompliance 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 31 2021 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 Jhunjhunwala Jain & Associates LLP
Chartered Accountants
Firm Registration No: 113675W
(CA Randhir Kumar Jhunjhunwala)
Partner
Place : Mumbai Membership No. : 047058
Date : June 30 2021 UDIN : 21047058AAAABR6101

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