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Alfa Transformers Ltd.

BSE: 517546 Sector: Engineering
NSE: N.A. ISIN Code: INE209C01015
BSE 00:00 | 23 Sep 9.20 0
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NSE 05:30 | 01 Jan Alfa Transformers Ltd
OPEN 9.20
PREVIOUS CLOSE 9.20
VOLUME 100
52-Week high 17.20
52-Week low 8.72
P/E
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.20
CLOSE 9.20
VOLUME 100
52-Week high 17.20
52-Week low 8.72
P/E
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Alfa Transformers Ltd. (ALFATRANSFORMER) - Auditors Report

Company auditors report

To the Members of ALFA TRANSFORMERS LIMITED

Report on the Financial Statements OPINION

We have audited the accompanying Ind AS financial statements of ALFA TRANSFORMERSLIMITED ("hereinafter referred to as the Company") comprise the Balance Sheet asat March 312021 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements gives the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 312021 the profit/Loss and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made there underand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained are sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of utmostsignificance in our audit of the financial statements for the current period. Thesematters were addressed in the context of our audit of the financial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters. We have determined the matters described below to be the key audit matters to becommunicated in our report.

Sr. No Key Audit Matters Auditor's Response
1 Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 We have assessed the Company's process to identify the impact of adoption of the revenue accounting standard.
Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
(i) Verification of purchase order with respect to quantity rate etc.
(ii) Delivery of the material Collection with respect to the bill etc.
(iii) Recognition of future obligation towards warranty repairing liability based on the past trend as measured by the management .
2 Valuation of the Inventory in view of adoption of AS 2 "Inventories" We have assessed the Company's process to identify the impact of adoption of the inventory accounting standard.
Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
(i) Verifying the records available with the company for movement of stocks.
(ii) Obtaining valuation certificate from the company.
(iii) Relying on the Internal Audit Report .
(iv) Relying on the quantitative balance as per books of accounts of company in the absence of physical verification report for Bhubaneswar Unit due to this Covid 19.
3 Recognition and Confirmation of Balances of Sundry Debtors We have assessed the Company's process to identify the balance of Sundry Debtors in Books of Accunts.
Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
(i) We have relied on the accounting and figures as provided to us for audit.

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 Shareholder's Information but does notinclude the financial statements and our auditor's report thereon. Our opinion on thefinancial statements does not cover the other information and we do not express any formof assurance conclusion thereon. In connection with our audit of the financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated. 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 Standalone Financial 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 financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally 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 financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error. In preparing thefinancial statements management is responsible for assessing the Company's ability tocontinue as going concern disclosing as applicable matters related to going concern andusing the going concern basis of accounting unless management either intends to liquidatethe Company or to cease operations or has no realistic alternative but to do so. TheBoard of Directors are responsible for overseeing the Company's financial reportingprocess.

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 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 controls relevant to the audit inorder to 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 reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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 haveconsidered quantitative materiality and qualitative factors in (i) planning the scope ofour audit work and in evaluating the results of our work; and (ii) to evaluate the effectof any identified 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.

Other Matters :

1. Uncertainty Related to Going Concern:

The Company's net worth is eroded substantially due losses incurred by the company andthe management is also in consideration of sale of Vadodara Unit.

We were informed by the management that the company's inflow of fund from sale ofVadodara Unit and operating income from Bhubaneswar Unit shall be sufficient for futuresurvival and running of the Company in Future.

2. Confirmation of Debtors and Creditors :

In some of the cases the party conformation from Sundry Debtors and creditorsspecifically from Gujurat Power sector companies are yet to be received as on 31 -03-2021due to lock down and Covid-19 situation as explained to us by the management. The Debtors/creditors balances have been considered as per the figures appearing in the books ofaccounts of the Company.

Our opinion is not qualified in respect of these 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 purpose of our audit.

b. in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c. the Balance Sheet the Statement of Profit and Loss including the statement ofconsolidated Other Comprehensive income the Cash Flow Statement and statement of changesin Equity dealt with by this Report are in agreement with the books of account.

d. in our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 Companies (Indian Accounting Standards) Rules2015 as amended.

e. On the basis of written representations received from the directors of the holdingcompany as on March 312021 taken on record by the Board of Directors of the company noneof the directors of the company is disqualified as on March 312021 from being appointedas a director in terms of Section 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 A" to this report.

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 to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There is no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Holding Company and its subsidiary Company.

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

Bhubaneswar
Date : 30th June 2021
For PAMS & ASSOCIATES
CHARTERED ACCOUNTANTS
Sd/-
Satyajit Mishra
Membership No. 057293
Firm Registration No. 316079E (ICAI)
UDIN : 21057293AAAAGU1870

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT

"Annexure A" to the Independent Auditor's Report of even date on thestandalone Financial Statements of ALFA TRANSFORMERS LIMITED Report on the InternalFinancial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act")

We have audited the internal financial controls over financial reporting of ALFATRANSFORMERS LIMITED ("the Company") as of March 31 2021 in conjunction withour audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on "the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Group's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. 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 financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial 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 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 authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 and such internal financial controlsover financial reporting were operating effectively as at March 312021 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For PAMS & ASSOCIATES
CHARTERED ACCOUNTANTS
Sd/-
Satyajit Mishra
Bhubaneswar Membership No. 057293
Date : 30th June 2021 Firm Registration No. 316079E (ICAI)
UDIN : 21057293AAAAGU1870

"ANNEXURE B" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 of Report on Other Legal and Regulatory Requirements of ourreport of even date).

Referred to in paragraph 2 under the heading ‘Report on Other Legal &Regulatory Requirement' of our report of even date to the financial statements of theCompany for the year ended March 312021:

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

(b) The Company has a program of verification its fixed assets in a phased mannerwhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. Pursuant to the program certain fixed assets were physicallyverified by the management during the year. According to the information and explanationsgiven to us discrepancies noticed on such verification have been adjusted in accounts.

(c) According to the information and explanations given to us the records examined byus and based on the examination of the conveyance deeds provided to us we report thatthe title deeds comprising all the immovable properties of land and buildings are held inthe name of the Company as at the balance sheet date. In respect of immovable propertiesof land and building that have been taken on lease and disclosed as fixed assets in thefinancial statements the lease agreements are in the name of the Company.

2) As explained to us the inventories were physically verified during the year by themanagement at a reasonable interval and discrepancies found on such verification has beenadjusted in the books of accounts. Based on this we have relied the closing figure ofinventory as per books of accounts of company and we have not made any physicalverification of inventory due to the Covid 19 situation.

3) According to the information and explanation given to us the company has notgranted any loan secured or unsecured to parties covered in the register maintained undersection 189 of the companies Act 2013 ("the Act"). Accordingly the provision ofclause 3(iii)(b)(c) of the order not applicable to the company and hence not commentedupon.

4) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of loans investments guarantees and security.

5) The Company has not accepted deposits during the year and does not have anyunclaimed deposits as at March 312021 and therefore the provisions of the clause 3 (v)of the Order are not applicable to the Company.

6) We have reviewed that the cost records maintained by the company includes therecords prescribed by the Central Government under section 148(1) of the Act. for theproducts of the company and are of the opinion that prima facie the prescribed costrecords have been made and maintained. We have however not made a details examination ofthe cost records with a view to determine whether they are accurate or complete.

7) (a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax GST Customs DutyExcise Duty Cess and other material statutory dues applicable to it with the appropriateauthorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income Tax GST Excise Duty Cess and other material statutory dues inarrears as at March 312021 for a period of more than six months from the date they becamepayable.

(c) Details of dues of Income Tax Sales Tax Service Tax Excise Duty and Value AddedTax which have not been deposited as at March 312020 on account of dispute are givenbelow:

Name of the Statute Financial Year Dispute (in brief) Disputed Amount Rs. Forum where dispute is pending
Income Tax Act1961 1994-95 Deduction U/S 80 I disallowed in assessment 277227 High Court of Orissa
Central Sales Tax1956 1991-92 Disallowance of CST exemption 1550740 Sales Tax Tribunal
The Orissa Entry Tax Act 1999 2005- 06 2006- 07 2007- 08 Demand on Purchase of Raw Materials 8706714 Orissa High Court Cuttack
TOTAL 10534681

8) The Company has not defaulted in repayment of dues to any financial institutionsbanks and debenture holders.

9) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3 (ix)of the Order is not applicable to the Company.

10) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

11) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

12) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

13) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14) As per information and explanations given to us the company not has madepreferential allotment of shares which is duly disclosed in the financial statement of thecompany and has not issue any fully or partly convertible debentures during the year.

15) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

16) In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For PAMS & ASSOCIATES
CHARTERED ACCOUNTANTS
Sd/-
Satyajit Mishra
Bhubaneswar Membership No. 057293
Date : 30th June 2021 Firm Registration No. 316079E (ICAI)
UDIN : 21057293AAAAGU1870

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