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AI Champdany Industries Ltd.

BSE: 532806 Sector: Industrials
NSE: AICHAMP ISIN Code: INE768E01024
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NSE 05:30 | 01 Jan AI Champdany Industries Ltd
OPEN 16.95
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VOLUME 5
52-Week high 22.65
52-Week low 11.82
P/E
Mkt Cap.(Rs cr) 52
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OPEN 16.95
CLOSE 16.95
VOLUME 5
52-Week high 22.65
52-Week low 11.82
P/E
Mkt Cap.(Rs cr) 52
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

AI Champdany Industries Ltd. (AICHAMP) - Auditors Report

Company auditors report

TO THE MEMBERS OF AI CHAMPDANY INDUSTRIES LIMITED

Report on the Audit of the Standalone Financial Statements of AI Champdany IndustriesLimited Opinion

We have audited the accompanying standalone financial statements of AI ChampdanyIndustries Limited ("the Company") which comprise the Balance Sheet as at 31stMarch2021 the statement of profit and loss (including other comprehensive income) thestatement of changes in Equity and the cash flow statement for the year on that date anda summary of significant accounting policies and other explanatory information(hereinafter referred to as "the financial statement").

In our opinion and to the best of information and according to the explanations givento us the aforesaid 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 Indian Accounting Standards prescribed under section 133 of the Act readwith 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 31st March 2021 it's loss including othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted the audit of standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with independence requirements that arerelevant to our audit of the financial statements under the provisions of the Act and theRules made there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide the basis for ouraudit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing of opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Key audit matter How our audit addressed the key audit matters
A.Revenue Recognition Our key procedures included the following:
Revenue for the company consists primarily of sale of products. a) Assessed the appropriateness of the company's revenue recognition accounting policies including those relating to discounts incentives and rebates by comparing with the applicable accounting standards;
Revenue from the sale of products is recognized at the moment when performance obligation of the underlying products have been completed and is measured net of discounts incentives and rebates given to the customers. b) Tested the operating effectiveness of the general IT control environment and key IT application controls over recognition of revenue calculation of discounts incentives and rebates;
The estimation of discounts incentives and rebates recognized related to sales made during the year is material and considered to be complex and judgmental. Therefore there is a risk of revenue being misstated as a result of inaccurate estimates of discounts incentives and rebates. c) Performed test of details:
i) Agreed samples of sales discounts incentives and rebates to supporting documentation and approvals; and
Further the company focuses on revenue as a key performance measure. Therefore revenue was our area of focus included whether the accruals were misstated and appropriately valued whether rebates and discounts was recorded in the correct period and whether the significant transactions had been accurately recorded in the Statement of Profit and Loss. ii) Obtained supporting documents for sales transactions recorded either side of year end as well as credit notes issued after the year ended to determine whether revenue was recognized in the correct period.
d) Performed focused analytical procedures:
Refer corresponding note for amounts recognized as revenue from sale of products i) Compared the revenue for the current year with the prior year for variance/ trend analysis and where relevant completed further inquiries and testing to corroborate the variances by considering both internal
and external benchmarks overlaying our understanding of industry; and
ii) Compared the discounts incentives and rebates of the current year with the prior year for variance/ trend analysis and where relevant completed further inquiries and testing to corroborate the variances by considering both internal and external benchmarks overlaying our understanding of industry.
e) Considered the appropriateness of the company's description of the accounting policy disclosures related to revenue discounts incentives and rebates and whether these are adequately presented in the financial statement.
B. Litigations and claims provisions and contingent liabilities Our key procedures included the following:
As disclosed in Notes detailing contingent liability and provision for contingencies the company is involved in direct indirect tax and other litigations (‘litigations') that are pending with different statutory authorities. Assessed the appropriates of the company's accounting policies including those relating to provision and contingent liability by comparing with the applicable accounting standards;
Whether a liability is recognized or disclosed as a contingent liability in the financial statements is inherently judgmental and dependent on a number of significant assumptions and assessments. Assessed the company process for identification of the pending litigations and completeness for financial reporting and also for monitoring of significant developments in relation to such pending litigations;
The amounts involved are potentially significant and determining the amount if any to be recognized or disclosed in the financial statements is inherently subjective. Engaged subject matter specialists to gain an understanding of the current status of litigations and monitored changes in the disputes if any through discussions with the management and by reading external advice received by thecompany where relevant to establish that the provisions had been appropriately recognized or disclosed as required;
Assessed the company's assumptions and estimates in respect of litigations including the liabilities or provisions recognized or contingent liabilities disclosed in the financial statements. This involved assessing the probability of an unfavorable outcome of a given proceeding and the reliability of estimates of related amounts;
Performed substantive procedures on the underlying calculations supporting the provisions recorded;
Assessed the management's conclusions through understanding precedents set in similar cases; and Considering the appropriateness of the company's description of the disclosures related to litigations and whether these adequately presented in the financial statements.
C. Valuation of investments and impairment thereof Our key procedures included the following:
I. Non-Current Investments in Unquoted equity instruments. Verified with reference to latest registered valuers report; Valuation report based on simple average of valuation of investee on EBIDTA concept Revaluation concept and Discounted cash flow concept.
II. Current Investments in unquoted mutual funds. Verified with reference to duly declared NAV of the investee.
III. Fixed Deposit with Bank. Verified with reference to banks confirmation and computation of interest accrued thereon.

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

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholders' information but does notinclude the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our 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.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to preparation of these financial statements that give atrue and fair view of the financial position financial performance total comprehensiveincome changes in equity and cashflows of the companies in accordance with the Ind AS andother accounting principles generally accepted in India. The respective Board of Directorsof the companies included in the companies are responsible for maintenance of the adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the companies and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies making judgments andestimates that are reasonable and prudent and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error..

In preparing the financial statements the Board of Directors of the company isresponsible for assessing the company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial controls 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 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 ability ofthe Group to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the financial statements or if such disclosures are inadequate to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date ofour auditor's report. However future events or conditions may cause the company to ceaseto continue as a going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of theentities or business activities within the company to express an opinion on the financialstatements. We are responsible for the direction supervision and performance of the auditof the financial statements of such entities included in the financial statements.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 Section 143(3) of the Act based on our audit 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 of the aforesaidfinancial statements.

b)Inouropinionproperbooksofaccountasrequiredbylawrelatingtopreparationoftheaforesaidfinancialstatements have been kept so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) Statement of Changes in Equity and the Statement of Cash Flows dealt with by thisReport are in agreement with the relevant books of account maintained for the purpose ofpreparation of the financial statements.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms ofSection 164(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 1". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the company's internal financialcontrols over financial reporting.

g) With respect to the other matters to be included in Auditor's Report in accordancewith the requirements of Section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to explanations givento us the remuneration paid by the company to its directors during the year is inaccordance with the provisions of Section 197 of the act read with Schedule-V of the act.

h) 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 as amended inour opinion and to the best of our information and according to the explanations giventous:

i. The financial statements disclose impact of pending litigations on the financialposition of the company in note no. 26of financial statement.

ii. The company has not entered into long term contracts. However company has enteredinto derivatives contracts in respect of which due provision has been made againstforeseeable losses.

iii.There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure 2" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

For G.Basu & Co.
Chartered Accountants
FRN 301174E
G Guha
Partner
Membership No.054702
Place : Kolkata
Date : 28th August 2021
UDIN: 21054702AAAABV4158

Annexure-1

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") referred to in Para V (2) (f) of ourreport of even date.

Opinion

We have audited the internal financial controls over financial reporting of AICHAMPDANY INDUSTRIES LIMITED ("the Company") as of 31st March 2021 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 FinancialReporting" issued by the Institute of Chartered Accountants of India. 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.

Emphasis of Matter

Debt control mechanism needs strengthening.

We hereby report without qualifying the above.

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 ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the 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 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 policiesand 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 in standalone perspective and suchinternal financial controls over financial reporting were operating effectively as at 31stMarch 2021 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For G.Basu & Co.
Chartered Accountants
FRN 301174E
G Guha
Partner
Membership No.054702
Place : Kolkata
Date : 28th August 2021
UDIN: 21054702AAAABV4158

ANNEXURE 2

Report on the matters specified in Paragraphs 3 and 4 of THE COMPANIES (AUDITOR'SREPORT) ORDER 2016 referred to in Para V (1) of our report of even date

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

b. The fixed assets have been physically verified by the management at reasonableintervals. No material discrepancies between book records and the physical inventorieshave been noticed on such verification.

c. The title deeds of immovable properties are held in the name of the Company.

II. The inventories have been physically verified at reasonable intervals during theyear by the management. The discrepancies noticed on physical verification between thephysical stock and book records were not material and have been properly dealt with in thebooks of account.

III. The Company has not granted any Loans Secured or Unsecured to Companies FirmsLimited Liability Partnerships or Other parties covered in the register maintained undersection 189 of the Companies Act 2013.

IV. The Company has complied with the provisions of section 185 and 186 of theCompanies Act 2013 in respect of grant of Loans making Investments and providingguarantees and securities.

V. The Company has not accepted deposits from the public within the meaning of Sections73 to 76 of the Act and the Rules framed thereunder to the extent notified. Accordinglyparagraph 3(V) of the Order is not applicable.

VI. On the basis of records produced we are of the opinion that prima facie costrecords and accounts prescribed by the Central Government under sub section (1) of section148 of the Companies Act 2013 in respect of products of the company covered under therules under said section have been made and maintained. However we are neither required tocarry out nor have carried out any detailed examination of such accounts and records.

VII.a) According to information and explanations given to us the company is generallyregular in depositing with statutory authorities undisputed statutory dues to the extentapplicable to it except for some amount which could not be verified by us.

VII (b) Details of dues of Income Tax Sales Tax Service Tax Customs Duty ExciseDuty VAT Goods & Service tax and others cess which have not been deposited as on31stMarch 2021 on accounts of dispute are furnished below:

Name of the Statute Nature of dues Forum where dispute is pending Amount involved (Rs. in lacs)
Bhatpara Municipality Municipal Tax & Land Revenue Review Board 188.55
ESI Act ESI dues ESI Court 328.01
Central Sales Tax 1956 ACCT 2.10
& West Bengal Sales Sales Tax WBCTA & RB 132.66
Tax Act 1994 SJCCT 18.37
Income Tax Act 1961 Income Tax CIT (Appeal) 1242.13
ITAT 8.37

VIII. Based on our audit procedures and as per the information and explanations givenby the management we are of the opinion that the company has not defaulted in repaymentof dues to any bank financial institution or government. Company has no debenture holderor financial institutional borrowing during the year.

IX. No monies were raised by way of Initial Public Offer or Further Public Offer; TermLoans were applied for the purposes for which they were raised.

X. No fraud by the company or on the company by its officers or employees has beennoticed or reported during the year.

XI. The managerial remuneration has been paid or provided in accordance with theprovisions of section 197 read with Schedule V of the Act.

XII. The Company is not a Nidhi Company and accordingly paragraph 3 (XII) of the Orderis not applicable.

XIII. All transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 and the details of related parties transactions have beendisclosed in the Financial Statements as required by the applicable accounting standards.

XIV. The company has not made any preferential allotment of shares during the year andhence reporting requirements of section 42 of the Companies Act 2013 are not applicableto the company.

XV.The Company has not entered into any non-cash transaction with directors.

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

For G.Basu & Co.
Chartered Accountants
FRN 301174E
G Guha
Partner
Membership No.054702
Place : Kolkata
Date : 28th August 2021
UDIN: 21054702AAAABV4158

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