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Akashdeep Metal Industries Ltd.

BSE: 538778 Sector: Financials
NSE: N.A. ISIN Code: INE149Q01013
BSE 00:00 | 16 Aug 88.60 0.75
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NSE 05:30 | 01 Jan Akashdeep Metal Industries Ltd
OPEN 90.50
PREVIOUS CLOSE 87.85
VOLUME 72523
52-Week high 98.00
52-Week low 33.30
P/E 201.36
Mkt Cap.(Rs cr) 93
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 90.50
CLOSE 87.85
VOLUME 72523
52-Week high 98.00
52-Week low 33.30
P/E 201.36
Mkt Cap.(Rs cr) 93
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Akashdeep Metal Industries Ltd. (AKASHDEEPMETAL) - Auditors Report

Company auditors report

To The Members of

AKASHDEEP METALS INDUSTRIES LIMITED

Report on the Audit of the Standalone financial statements

Opinion

We have audited the accompanying Standalone financial statements ofAKASHDEEP METAL INDUSTRIES LIMITED which comprise the Standalone Balance Sheet as at 31stMarch 2021 and the Standalone Statement of Profit and Loss (including OtherComprehensive Income) the Standalone Statement of Cash Flows for the year ended andnotes to the Standalone financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 (the "Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31stMarch 2021 and its Profit total comprehensive income its cash flows and the changes inequity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Standalone financial statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters ("KAM") are those matters that in ourprofessional judgment were of most significance in our audit of the Ind AS standalonefinancial statements for the financial year ended March 31 2021. These matters wereaddressed in the context of our audit of the Ind AS standalone financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. For each matter below our description of how our audit addressed thematter is provided in that context.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the Ind AS standalone financialstatements section of our report including in relation to these matters. Accordingly ouraudit included the performance of procedures designed to respond to our assessment of therisks of material misstatement of the Ind AS standalone financial statements. The resultsof audit procedures performed by us and by other auditors of components not audited by usas reported by them in their audit reports furnished to us by the management includingthose procedures performed to address the matters below provide the basis for our auditopinion on the accompanying Ind AS standalone financial statements.

Key audit matters How our audit addressed the key audit matter
(a) IT systems and controls
Financial accounting and reporting processes especially in the financial services sector are fundamentally reliant on IT systems and IT controls to process significant transaction volumes hence we identified IT systems and controls over financial reporting as a key audit matter for the Company. Automated accounting procedures and IT environment controls which include IT governance general IT controls over program development and changes access to programs and data and IT operations are required to be designed and to operate effectively to ensure reliable financial reporting. • We tested the design and operating effectiveness of the Company's IT access controls over the information systems that are important to financial reporting and various interfaces configuration and other identified application controls.
• We tested IT general controls (logical access changes management and aspects of IT operational controls). This included testing requests for access to systems were reviewed and authorized.
• We tested the Company's periodic review of access rights. We also tested requests of changes to systems for approval and authorization.
• In addition to the above we tested the design and operating effectiveness of certain automated controls that were considered as key internal controls over financial reporting.

Information other than the Standalone financial statements and AuditorsReport Thereon

The Company's Board of Directors is responsible for other information.The other Information comprises the information included in the Management Discussion andAnalysis Board's Report including Annexure to Board's Report Chairman's Statement andShareholder's Information but does not include the standalone financial statements andour auditor's report thereon. The Board's Report including Annexure to Board's ReportChairman's Statement and Shareholder's Information is expected to be made available to usafter the date of this auditor's report.

Our Opinion on the standalone financial statements does not cover theother Information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the course of our audit or otherwise appears to be materiallymisstated.

Management's Responsibility for the Standalone financial statements

The Company's Board of Directors is responsible for the matters statedin section134 (5) of the Act with respect to the preparation of these standalone financialstatements that give a trueand fair view of the financial position financial performanceincluding other comprehensive income cash flows of the Company in accordance with the IndAS and other accounting principles accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; 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 standalone financial statement that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management 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.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone financialstatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. 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 professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3) (i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin

(i) planning the scope of our audit work and in evaluating the resultsof our work; and

(ii) to evaluate the effect of any identified misstatements in thestandalone financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by section 197(16) of the Act we report that theCompany has paid remuneration to its directors during the year in accordance with theprovisions of and limits laid down under section 197 read with Schedule V to the Act.

2. As required by The Companies (Auditors Report) order 2016 theorder issued by Central government of India in terms of sub section (11) of section 143 ofthe Act we give in the "Annexure-A" a statement the matters specifiedin paragraph 3 and 4 of the said Order.

3. As required by Section143(3)of the Act based on our audit wereport to the extent applicable that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

c) The Standalone Balance Sheet the Standalone Statement of Profitand Loss including Other Comprehensive Income the Standalone Statement of Cash Flowsdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statementscomply with the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164(2) of the Act.

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". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company'sinternal financial controls over financial reporting.

g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

i. The Company has no pending litigations.

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.

Annexure-A to the Independent Auditor's Report of Even Date on theStandalone financial statements of AKASHDEEP METAL INDUSTRIES LIMITED

A statement as required on the matter specified in the paragraph 3& 4 of The Companies (Auditors Report) Order 2016 the order issued by Centralgovernment of India in terms of sub section (11) of section 143 of the Act

(i) (a). The company has maintained proper records showing fullparticulars Including quantitative details & situation of its fixed assets.

(b) . All the assets have been physically verified by themanagement during the year which in our opinion is reasonable having regard to the sizeof the company & the nature of its assets. No discrepancy was noticed on suchverification.

(c) . According to the information and explanations given to usthe records examined by us and based on the examination of the conveyance deeds/registeredsale deed provided to us we report that the title deeds comprising all the immovableproperties of land and buildings which are freehold are held in the name of the companyas at the balance sheet date.

(ii) As the company is a finance company primarily renderingfinancial services and does not have any physical inventories. Accordingly reportingunder clause 3(ii) of the order is not applicable to the Company.

(iii) According to the information & explanation given to us& based on audit procedures conducted by us the Company has not granted any loans toany party covered in the register maintained under section 189 of the Companies Act 2013(‘the Act).

(iv) According to the Information & explanation given to us andbased on the audit procedure conducted by us we are of the opinion that company hascomplied with the provisions of Section 185 of the companies Act 2013. However being aNon-Banking Finance Company section 186 is not applicable to the Company.

(v) As per the information and explanation given to us the Companyis a Non-Banking Finance Company. Hence provisions of sections 73 to 76 of the Act or anyother relevant provision of the Companies Act 2013 and rules made there under are notapplicable to the Company.

(vi) According to the information and explanations given to us theCentral Government has not prescribed the maintenance of cost records u/s 148 of the Actin respect of services carried out by the company.

(vii) (a) The company is regular in depositing withappropriate authorities undisputed statutory dues including provident fund EmployeesState Insurance Income Tax Sales-Tax Goods and Service Tax duty of customs Duty ofExcise Value Added Tax Cess & any other statutory dues applicable to it & thereare no undisputed dues outstanding as on 31.03.2021 for a period of more than sixmonths from the date they became payable.

(b) According to the information & explanations given to us andbased on the audit procedure conducted by us we are of the opinion that there were nodues of Income Tax Sales Tax or Goods and Service Tax or Duty of customs or Duty ofexcise or Value Added Tax that have not been deposited on account of any dispute except offollowing.

Nature of Statute Nature of Dues Amount (in Rs.) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 4290/- AY 2019-20 CPC
Income Tax Act 1961 Income Tax 438530/- AY 2018-19 CPC

(viii) In our opinion & according to the information &explanation given to us and based on the audit procedure conducted by us the company hasnot defaulted in the repayment of Loans or Borrowings from banks or Financial Institution.The company has not taken any loan from Government nor issued any debenture.

(ix) In our opinion & according to the information &explanation given to us the company has not taken any term loan during the year and thecompany has not made any public offer during the year.

(x) To the best of our knowledge and according to the information& explanations given to us no fraud by the company or no fraud on the company by itsofficer or employees has been noticed or reported during the year.

(xi) In our opinion and according to the information andexplanations given to us the Company has paid/provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) The company is not a Nidhi Company; as such the clause is notapplicable.

(xiii) In our opinion and according to the information &explanation given to us the company has complied with section 177 and 188 of theCompanies Act 2013 where applicable for all transactions with the related parties andthe details of related party transactions have been disclosed in the Standalone financialstatements as required by the applicable accounting standards.

(xiv) The company has not made any preferential allotment/ privateplacement of shares or partly Convertible debenture during the year under review.

(xv) According to the information and explanation given to us andbased on the audit procedure conducted by us we are of the opinion that the company hasnot entered into any non-cash transaction with directors or persons connected with him.

(xvi) The company is Non-Banking Financial Co. and as such isregistered u/s 45 IA of the Reserve Bank of India Act 1934. Company has obtainedregistration vide Reg. Cert. No. B-14.00270 dated 04/03/1998 issued by RBI.

Annexure-B to the Independent Auditor's Report of Even Date on theStandalone financial statements of AKASHDEEP METAL INDUSTRIESLIMITED

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

To The Members of AKASHDEEP METAL INDUSTRIESLIMITED

We have audited the internal financial controls over financialreporting of AKASHDEEP METAL INDUSTRIES LIMITED as of 31st March2021 in conjunction with our audit of the Standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting 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 safeguardingof its 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 Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud or error.We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material aspects an adequateinternal financial controls system over financial reporting and such financial controlsover financial reporting were operating effectively as at 31st March 2021 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.

Annexure- C

AUDITOR'S REPORT

To

The Board of Directors of

AKASHDEEP METAL INDUSTRIES LIMITED

We have examined the books of accounts and other relevantdocuments/records of AKASHDEEP METAL INDUSTRIES LIMITED as on 31.03.2021 for thepurpose of audit and report on the basis of explanation and information given to us and interms of NonBanking financial Companies Auditors Report (Reserve Bank) Directions 2008 onthe following matters:

i. The Company has been incorporated on December 20 1983and hasapplied for the registration as provided in section 45-IA of the Reserve Bank of India Act1934.

ii. The company is holding certificate of registration vide Reg. Cert.No. B-14.00270 dated 04/03/1998 issued by RBI and is entitled to continue to hold suchcertificate as on 31st March 2021.

iii. The Company is meeting the requirement of Net Owned Fund asspecified by RBI.

iv. The company has passed the Board Resolution for non-acceptance ofany public deposit on 21st April 2020.

v. The company has not accepted any public deposit during the financialyear 20202021.

 

Exception: The Company due to ignorance of law had accepted a loan fromLuv Films LLP. However the loan was later on repaid once the default was discovered.

vi. The Company has complied with the Prudential Norms relating toincome recognition accounting standards asset classification provisioning for bad anddoubtful debts and concentration of credit/investments as applicable to it in terms of thedirections issued by the Reserve Bank of India in terms of Non-Banking Financial Companies(NBFC) Prudential Norms (Reserve Bank) Directions 1998. (Revised on 22nd Feb 2007 videnotification no. DNBS. 192/DG (VL)-2007).

FOR M/s T.K GUPTA AND ASSOCIATES
CHARTERED ACCOUNTANTS
FRN.NO : 011604N
Place: New Delhi Date: 09.06.2021 CA. KRITI BINDAL
(PARTNER) M. No. 516627
UDIN:

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