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Alliance Integrated Metaliks Ltd.

BSE: 534064 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE123D01024
BSE 00:00 | 06 Dec 46.25 1.75
(3.93%)
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NSE 05:30 | 01 Jan Alliance Integrated Metaliks Ltd
OPEN 44.45
PREVIOUS CLOSE 44.50
VOLUME 540383
52-Week high 51.50
52-Week low 2.13
P/E
Mkt Cap.(Rs cr) 537
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 44.45
CLOSE 44.50
VOLUME 540383
52-Week high 51.50
52-Week low 2.13
P/E
Mkt Cap.(Rs cr) 537
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Alliance Integrated Metaliks Ltd. (ALLIANCEINTEG) - Auditors Report

Company auditors report

To the Members of

Alliance Integrated Metaliks Limited

Report on the Audit of the Financial Statements

Qualified Opinion

We have audited the financial statements of Alliance Integrated Metaliks Limited ( TheCompany ) which comprises the Balance Sheet as at 31 March 2021 and the Statement ofProfit and Loss (including other comprehensive income) Statement of Changes in Equity andStatement of Cash Flows for the year then ended and notes to the Financial statementsincluding a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as the Financial Statements ).

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion section of our report the aforesaid Financial Statements give the informationrequired by the Companies Act 2013 ( the Act ) in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31 March 2021 and the loss and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Qualified Opinion

As referred to in Note no 3.39 of the Financial Statements the trade payables tradereceivables and other loans and advances given or taken are subject to reconciliation /confirmation. Further term loan accounts with the banks are also subject toreconciliation / confirmation. The effect of consequential adjustment upon suchconfirmation/ reconciliation if any on the Financial Statements is not ascertainable.

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143 (10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor s Responsibilities section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the Financial Statements under the provisions of the Act and the Rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our qualified opinion on the Financial Statements.

Material Uncertainty Related to Going Concern

The Company incurred a net loss of Rs.9906.02 Lakhs during the year its accumulatedlosses as on March 31 2021 stood at Rs.89972.92 Lakhs and its net worth was negative atRs.33366.47 Lakhs. Further the Company s current liabilities (excluding bank borrowings)exceeded its total current assets by Rs.2401.28 Lakhs. Also the entire bank borrowingscomprising of term loans and working capital loans aggregating to Rs.48202.73 Lakhs havebeen classified as Non-Performing Assets (NPAs) by the lenders. These events orconditions along with other matters as set forth in the Note 3.31 of the FinancialStatements indicate that a material uncertainty exists that may cast significant doubt onthe Company s ability to continue as a going concern. Our opinion is not modified inrespect of this matter.

Emphasis of Matter (EOM)

1. Bank Borrowings

a. The Company has outstanding working capital loan of Rs.8452.65 Lakhs (as referred toin Note: 3.15 of the Financial Statements) and term loans aggregating to Rs.39750.08 Lakhsincluding interest accrued and due thereon (as referred to in Note: 3.17 of the FinancialStatements) from Banks which have been declared as non-performing assets (NPA) by theselenders in earlier years as the repayments against these loans have become overdue. Aspart of their process. The lenders have taken symbolic possession of the assets of theCompany on 19/02/2021 and contemplating follow on processes.

b. As indicated by the Company the figures of interest accrued and due on term loansare estimated as the same are not made available from the term lenders.

c. The Company has classified above referred overdue term loans together with interestaccrued and due thereon as Other Financial Liabilities as referred to in Note:3.17 of theFinancial Statements.

Our opinion is not modified in respect of matters mentioned at para 1 (a) to 1 (c)above.

2. Old Balances

Advances from Customers of Rs.5361.65 as referred to in Note:3.18 of Other CurrentLiabilities of the Financial Statements include a sum of Rs.5286.01 Lakhs from partieswith whom no business transaction has taken place in the current financial year.

Our opinion is not modified in respect of this matters.

Key Audit Matters

Key audit matters ( KAM ) are those matters that in our professional judgment were ofmost significance in our audit of the Financial Statements of 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 that there are no key audit matters to communicate in our auditreport.

Other Information

The Company s management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company sannual report but does not include the Financial Statements and our auditors reportthereon.

Our opinion on the Financial Statements does not cover the other information and we donot express any form of assurance 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 in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other informationthen we are required to report that fact. We have nothing to report in this regard.

Management s Responsibility for the Financial Statements

The Company s management and Board of Directors are Responsible for the matters statedin Section 134 (5) of the Act with respect to the preparation of these FinancialStatements that give a true and fair view of the state of affairs profit & losschanges in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; 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 the Financial Statements Management and Board of Directors areresponsible 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: l Identify and assess therisks of material misstatement of the Financial Statements whether due to fraud or errordesign and perform audit procedures responsive to those risks and obtain audit evidencethat is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resultingfrom error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. l Obtain an understanding ofinternal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under Section 143(3)(i) of the Act we are alsoresponsible for expressing our opinion on whether the company has adequate internalfinancial controls with reference to financial statements in place and the operatingeffectiveness of such controls. l Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates and related disclosures made by management.l Conclude on the appropriateness of management s use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor s report to the related disclosures inthe 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. l 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.

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 ourauditors 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 the Companies (Auditors Report) Order 2016 ( the Order ) issued bythe Central Government of India in terms of Section 143(11) of the Act we give in theAnnexure A a statement on the matters specified in paragraphs 3 and 4 of the Order to theextent applicable.

2. As required by Section 143(3) of the Act we report that:

i. 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.

ii. 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.

iii. The Balance Sheet the Statement of Profit and Loss the Statement of Changes inEquity and the Statement of Cash Flows dealt with by this Report are in agreement with thebooks of account.

iv. In our opinion the aforesaid Financial Statements comply with the Ind AS specifiedunder Section 133 of the Act.

v. On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164(2) of the Act.

vi. With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in Annexure B .

vii. With respect to the other matters to be included in the Auditors 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:

a. The Company has disclosed pending litigations as at 31 March 2021 as referred to inNote 3.43 of the Financial statements which may have an impact on its financial position;

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

c. The Company did not have any amount required to be transferred to the InvestorEducation and Protection Fund by the Company;

3. With respect to the matter to be included in the Auditors Report under Section197(16) of the Act:

In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

For Arora & Choudhary Association
Chartered Accountants
FRN: 003870N
(Vijay K. Choudhary)
Partner
M. No. 081843
UDIN: 21081843AAAADJ7550
Place : New Delhi
Date : 14th July 2021

Annexure A to the Independent Auditors Report

With reference to the Annexure A referred to in the Independent Auditors Report to themembers of ALLIANCE INTEGRATED METALIKS LIMITED on the Financial Statements for the yearended 31st March 2021 we report the following:

i. (a) According to the information and explanations given to us the Company hasgenerally maintained proper records showing full particulars including quantitativedetails 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. According to the information and explanations given to us the inventories havebeen physically verified during current financial year by the Management. The frequency ofphysical verification in our opinion is reasonable having regard to the size of thecompany and nature of its business.

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. 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 irregular 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 2021 for aperiod of more than six months from the date they became payable.

According to the information and explanations given to us there are no dues of Incometax or Sales tax or service tax or Goods and Services tax or duty of Customs or duty ofExcise or Value added tax which have not been deposited by company on account of disputes.

viii. The Company has outstanding loans or borrowings from various banks aggregating toRs. 48202.73 Lakhs including interest accrued and due thereon which have been declared asnon-performing assets (NPA) by these lenders as the repayment against these loans hasbecome overdue. The Company has therefore defaulted on account of repayment of loans andinterest thereon to this extent.

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 arecomplying with sections 177 and 188 of Companies Act 2013 where applicable and details ofsuch 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) of the Order are not applicable to theCompany.

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

For Arora & Choudhary Association
Chartered Accountants
FRN: 003870N
(Vijay K. Choudhary)
Partner
M. No. 081843
UDIN: 21081843AAAADJ7550
Place : New Delhi
Date : 14th July 2021

Annexure B to the Independent Auditors Report on the Financial Statements of ALLINACEINTEGRATED METALIKS LIMITED

Report on the internal financial controls with reference to the aforesaid FinancialStatements under clause (i) of subsection 3 of section 143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of AllianceIntegrated Metaliks Limited ( the Company ) as of March 31 2021 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company s policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

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 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 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.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Arora & Choudhary Association
Chartered Accountants
FRN: 003870N
(Vijay K. Choudhary)
Partner
M. No. 081843
UDIN: 21081843AAAADJ7550
Place : New Delhi
Date : 14th July 2021

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