To the Members of Alliance Integrated Metaliks Limited
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of AllianceIntegrated Metaliks Limited ("the Company") which comprise the Balance sheet asat March 31 2019 the Statement of Profit and Loss including the Statement of OtherComprehensive Income the Statement of Changes in Equity and the Statement of Cash Flowfor the year then ended and Notes to the Financial Statements including a Summary ofSignificant Accounting Policies and other explanatory information (hereinafter referred toas "the Ind AS standalone financial statements).
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Companies Act 2013 as amended ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with Companies (Indian Accounting Standard) Rules 2015and other accounting principles generally accepted in India of the state of affairs ofthe Company as at March 31 2019 its loss including other comprehensive income thechanges in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements' section ofour report. We are independent of the Company in accordance with the Code of Ethics'issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the standalone Ind AS financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the standalone Ind AS financial statements.
Emphasis of Matter
We draw attention to the following matters in the notes to accounts to standalone IndAS financial statements of the company:-
a) The Company's accumulated losses as on 31/03/2019 have resulted in complete erosionof its net worth. Further as on that date the Company's current liabilities substantiallyexceeded the current assets. These factors raise a substantial doubt about the Company'sability to continue as a going concern in the foreseeable future. However the Company'sstandalone financial statements have been prepared on going concern basis as per themanagement opinion disclosed in the said note.
b) The Company has classified all its borrowings from banks as current liabilities asthe lenders of the Company have classified the Company as Non Performing Assets (NPA).
c) In the absence of pending confirmation of balances from Trade Payable TradeReceivable and from parties to/from whom loan and advances are given/ taken andoutstanding as on 31/03/2019 provisions for any adverse variation in the balances is notquantified.
d) The Company has not carried out evaluation of impairment of assets and no provisionsfor impairment has been recorded as required by Ind- AS 36.
Our opinion is not modified in respect of the 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 Ind AS financial statements for the financialyear ended March 31 2019. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters.
We have determined that there are no key audit matters to communicate in our report.
"Information Other than the Standalone Ind AS Financial Statements and Auditor'sReport Thereon"
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard's Report including Annexures to Board's Report Business Responsibility ReportCorporate Governance and shareholder's information but does not include the standalone IndAS financial statements and our auditor's report thereon.
Our opinion on the standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained during the course of audit or otherwise appears to bematerially 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 for the Standalone Ind AS 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 standalone Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income changes in equity and cash flows of the Company inaccordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone Ind AS 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.
The Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial 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 canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone Ind AS 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 standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch 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 standalone Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
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 standalone Ind AS financialstatements for the financial year ended March 31 2019 and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
The standalone Ind AS financial statements of the Company for the year ended March 312018 included in these standalone Ind AS financial statements have been audited by thepredecessor auditor who expressed an unmodified opinion on those statements on June 13th2018.
Our opinion is not modified in respect of aforesaid matters.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books
(c) The Balance Sheet the Statement of Profit and Loss including the OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the books of account
(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Ind AS specified under Section 133 of the Act read with relevant rules read thereunder;
(e) The matter described in Emphasis of Matter paragraph above in our opinion mayhave an adverse effect on the functioning of the Company;
(f) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164(2) of theAct;
(g) With respect to matters to be included in the Auditor's Report in accordance withrequirements of section-197(16) of the Act as amended: In our opinion and to the best ourinformation and according to the information and according to the explanations given tous the remuneration has been paid by the Company.
(h) 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; Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.
(i) 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 given tous:
i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements Refer Note 37 to thestandalone Ind AS financial statements;
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts Refer Note 23 to the standalone Ind AS financial statements;
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order.
For Arora & Choudhary Associates
Firm Registration Number: 003870N
(Vijay K Choudhary)
Membership Number: 
Place: New Delhi
Date: 14th June 2019
"ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT"
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act").
We have audited the internal financial controls over financial reporting of AllianceIntegrated Metaliks Limited ("the Company") as of March 31 2019 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended 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 Financial Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
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 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 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 selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Ind AS 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
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 2019 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 Arora & Choudhary Associates
Firm Registration Number: 003870N
(Vijay K Choudhary)
Membership Number: 
Place: New Delhi
Date: 14th June 2019
"Annexure B" to the Independent Auditors' Report
Referred to in para 2 under the heading Report on Other Legal & RegulatoryRequirement' of our report of even date to the standalone Ind AS financial statements ofthe Company for the year ended March 31 2019:
i. a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of property plant and equipment.
b) As explained to us the property plant and equipment according to the practice ofthe Company have been physically verified during the year by the management at reasonableintervals. In our opinion the frequency of physical verification of property plant andequipment is reasonable having regard to the size of the Company and nature of its assets.According to the information and explanation given to us no material discrepancies werenoticed on such physical verification.
c) As per information and explanation provided to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the company.
ii. We have been informed that the inventories have been physically verified duringcurrent financial year by an external firm of Chartered Accountants. The frequency ofphysical verification in our opinion is reasonable having regard to the size of thecompany and nature of its business. No material discrepancies were reported by the firm ofChartered Accountants who physically verified the inventories the issues/ discrepanciesstated in the report needs to be addressed/ reconciled/ adjusted immediately by theCompany.
iii. The Company during the year has not granted any loans secured or unsecured tocompanies firms limited liability partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013 (the Act'). Accordinglyparagraph 3(iii) of the Order is not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of grant of loans making of investments providing guarantees and securities.
v. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under. Thusparagraph 3(v) of the Order is not applicable to the company.
vi. According to the information and explanation given to us maintenance of costrecords has not been prescribed by the Central Government under sub-section (1) of Section148 of the Companies Act 2013 for any of the activities of the Company.
vii. a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company is generally regular indepositing undisputed statutory dues including Provident Fund Employees State InsuranceIncome-Tax Goods and Services Tax Sales tax Service Tax Duty of Customs Duty ofExcise Value added Tax Cess and any other statutory dues with the appropriateauthorities.
According to the information and explanation given to us no undisputed amounts payablein respect of provident fund employees state insurance income tax sales tax servicetax duty of customs duty of excise value added tax Goods and Service Tax Act cess andother material statutory dues were in arrears as at 31st March 2019 for aperiod of more than six months from the date they became payable.
b) According to the information and explanation given to us the statutory dues thathave not been deposited on account of matters pending before appropriate authorities aredetailed below:
|S. No. ||Name of Statute ||Period to which it pertains ||Forum where dispute is pending ||Amount (Rs. In Lakh) |
|1 ||Income Tax Act 1961 ||2004 to 2014 ||ACIT ||204.91 |
| ||Total || || ||204.91 |
viii. According to the information and explanations given to us and as per ourverification of the records of the Company there had been delays in payment ofinstallments and interest of term loans and foreign currency loans to the banks during theyear under audit. In view of the persisting defaults entire term loans amounting to Rs.33993.98 Lakhs (including interest due thereon) is under default.
ix. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term loans during the year.Accordingly the provisions of clause 3 (ix) of the Order are not applicable to theCompany.
x. According to the information and explanations given to us and represented by themanagement and based on our examination of books and records of the Company we have beeninformed that no case of fraud committed by the company or any fraud on the company by itsofficers or employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V of the Act.
xii. According to information and explanations given to us the Company is not a NidhiCompany. Therefore the provisions of clause 3 (xii) of the Order is not applicable to theCompany.
xiii. According to the information and explanations provided to us and based on ourexamination of the records of the company all transactions with related parties are incompliance with sections 177 and 188 of Companies Act 2013 where applicable and detailsof such transactions have been disclosed in the Ind AS financial statement as required byapplicable Indian Accounting Standards.
xiv. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company.
xv. 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. xvi. In our opinion the company is notrequired to be registered under section 45 IA of the Reserve Bank of India Act 1934 andaccordingly the provisions of clause 3 (xvi) of the Order are not applicable to theCompany.
For Arora & Choudhary Associates
Firm Registration Number: 003870N
(Vijay K Choudhary) Partner
Membership Number: 
Place: New Delhi
Date: 14th June 2019