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Alliance Integrated Metaliks Ltd.

BSE: 534064 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE123D01016
BSE 00:00 | 02 Aug Alliance Integrated Metaliks Ltd
NSE 05:30 | 01 Jan Alliance Integrated Metaliks Ltd
OPEN 19.40
PREVIOUS CLOSE 19.40
VOLUME 90000
52-Week high 19.40
52-Week low 13.00
P/E
Mkt Cap.(Rs cr) 23
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 19.40
CLOSE 19.40
VOLUME 90000
52-Week high 19.40
52-Week low 13.00
P/E
Mkt Cap.(Rs cr) 23
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("The Company") which comprises the Balance Sheet as at 31 March 2020 and theStatement of Profit and Loss (including other comprehensive income) Statement of Changesin Equity and Statement of Cash Flows for the year then ended and notes to the Financialstatements including a summary of the significant accounting policies and otherexplanatory information (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 andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at 31 March 2020 and the loss andother comprehensive income changes in equity and its cash flows for the year ended onthat date.

Basis for Qualified Opinion

As referred to in Note: 3.38 of the Financial Statements the trade payables tradereceivables and other loans and advances are subject to reconciliation / confirmation.Further some of the term loan accounts with the banks are also subject to reconciliation/ confirmation. The effect of consequential adjustment upon such confirmation/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.11482.63 Lakhs during the year its accumulatedlosses as on March 31 2020 stood at Rs.80066.88 Lakhs and its net worth was negative atRs.23465.46 Lakhs. Further the Company's current liabilities exceeded its total currentassets by Rs. 43801 Lakhs. The entire bank borrowings including term loans aggregating toRs.43545.61 Lakhs have been classified as Non-Performing Assets (NPAs). 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. COVID-19 Developments

The developments surrounding the Wuhan virus (Covid-19) have had a profound impact onpeople's health and on our society as a whole as well as on the operational and financialperformance of organizations. The situation changes on a daily basis giving rise toinherent uncertainty. The Company is confronted with this uncertainty as well which hasbeen referred to in Note: 3.33 of the Financial statements together with its evaluationthereof. We draw attention to these disclosures. Our opinion is not modified in respect ofthis matter.

2. Bank Borrowings

(b) The Company has outstanding working capital loan of Rs.7763.46 Lakhs (as referredto in Note: 3.15 of the Financial Statements) and term loans aggregating to Rs.35782.16Lakhs including interest accrued and due thereon (as referred to in Note: 3.17 of theFinancial Statements) which have been declared as non-performing assets (NPA) by theselenders as the repayments against these loans have become overdue. Our opinion is notmodified in respect of this matter.

(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: 3.17of the Financial Statements. Our opinion is not modified in respect of this matter.

3. Old Balances

(b) The Company has written back old balances of current liabilities to an extent ofRs. 1369 Lakhs which in the opinion of the management are not payable as referred to inNote: 3.26 of the Financial Statements. Our opinion is not modified in respect of thismatter.

(c) Advances from Customers as referred to in Note: 3.18 of ‘Other CurrentLiabilities' of the Financial Statements include (i) a sum of Rs.5057.93 Lakhs and (ii) asum of Rs.228.10 Lakhs received from various parties with whom no business transaction hastaken place in the current financial year. Our opinion is not modified in respect of thismatter.

4. Impairment of Inventory

The Company has appointed a firm of Chartered Accountants to conduct an Inventoryverification and valuation and as per their reports carried out impairment of inventory tothe extent of Rs.3949 Lakhs as required by Ind AS 36 and referred to in Note: 3.26 of theFinancial Statements. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters ("KAM") are those matters that in our professionaljudgment were of most significance in our audit of the Financial Statements of thecurrent period. These matters were addressed in the context of our audit of the FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

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:

• 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 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 with reference to financial statements in place andthe operating effectiveness 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.

• 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

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

A. 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 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 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".

B. 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:

i. The Company has disclosed pending litigations as at 31 March 2020 as referred to inNote:3.42 of the Financial statements which may have an impact on its financial position;

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

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

C. 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: 20081843AAAAEO9850

Place : New Delhi

Date : 23rd September 2020

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 2020 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 an external firm of CharteredAccountants. The frequency of physical verification in our opinion is reasonable havingregard to the size of the company and nature of its business. Discrepancies reportedarising out of impairment in the values of inventories to an extent of Rs.3949 Lakhs havebeen suitably dealt with in the books of accounts.

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 2020 for aperiod of more than six months from the date they became payable.

According to the information and explanations givens 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.43545 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) ofthe Order are not applicable to the Company.

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: 20081843AAAAEO9850

Place : New Delhi

Date : 23rd September 2020

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 2020 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with 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.

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 2020 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: 20081843AAAAEO9850

Place : New Delhi

Date : 23rd September 2020.

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