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Alps Industries Ltd.

BSE: 530715 Sector: Industrials
NSE: ALPSINDUS ISIN Code: INE093B01015
BSE 13:46 | 20 Feb 0.94 -0.04
(-4.08%)
OPEN

0.95

HIGH

0.95

LOW

0.94

NSE 13:37 | 20 Feb 0.90 -0.05
(-5.26%)
OPEN

0.90

HIGH

0.95

LOW

0.90

OPEN 0.95
PREVIOUS CLOSE 0.98
VOLUME 3500
52-Week high 3.47
52-Week low 0.81
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.94
Buy Qty 990.00
Sell Price 0.94
Sell Qty 1800.00
OPEN 0.95
CLOSE 0.98
VOLUME 3500
52-Week high 3.47
52-Week low 0.81
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.94
Buy Qty 990.00
Sell Price 0.94
Sell Qty 1800.00

Alps Industries Ltd. (ALPSINDUS) - Auditors Report

Company auditors report

To

The Members of ALPS INDUSTRIES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of ALPS INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at 31st March 2019the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Cash Flow Statement for the year then ended and a summary ofthe significant accounting policies and other explanatory information.

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 Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (INDAS) prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and 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 standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under and the Order issued undersection 143(11) of the Act. We conducted our audit in accordance with the Standards onAuditing specified under Section 143(10) of the Act and other applicable authoritativepronouncements issued by Institute of Chartered Accountants of India. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the standalone financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers the internal financial controlrelevant to the Company's preparation of the standalone financial statements that give atrue and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our qualified opinion on the standalone financial statements.

Basis for Qualified Opinion

Refer to note no. 38 to the notes on accounts the Company has not provided for itsliability towards interest & part of principal loan waived earlier and impact ofretained earnings in terms of draft rehabilitation scheme and now revoked by its consentedlenders amounting to Rs. 133933.35lakh accordingly the loss for the year and loanliability would have been increased and shareholder's fund would have been reduced to thatextent.

Qualified Opinion

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 paragraph above the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2019 and its loss total comprehensive income thechanges in equity and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to Financial Statements:

To note no 38 related to preparation of financial statement on going concern basis onthe expectation of the company to get the necessary resolution forrestructuring/settlement of debts and to meet its financial obligation and continuation ofgiving effect to earlier consented scheme though now revoked.

Report on Other Legal and Regulatory Requirements

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

1) As required by Section 143 (3) of the Act based on our audit 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 Sheetthe Statement of Profit and Loss including Other Comprehensive Income Statement ofChanges in Equity and the Statement of Cash Flow dealt with by this Report are inagreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31stMarch 2019 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms ofSection 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 B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.`

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

(h) 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- Refer Note No. 36 & 37 to the financialstatements;

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

iii. There were no amount which were required to be transferred to the InvestorEducation and

Protection Fund by the Company.

For R. K. Govil & Co.
Chartered Accountants
(Firm Reg. No. : 000748C)
Place : Ghaziabad (R. K. Govil)
Date : May 30 2019 Membership No. : 013632

ANNEXURE "A" TO INDEPENDENT AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31 March 2019 we report that:

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

(b) As explained to us the management has physically verified all the fixed assetsduring the year except the assets lying at erstwhile Jaspur Kashipur and Puducherry unitswhich are not in its possession in a phased periodical manner which in our opinion isreasonable having regard to the size of the Company. We have been informed that nomaterial discrepancies were noticed on such physical verification during the year. (c)According to the information and explanations given 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.

(2) (a) The inventory has been physically verified during the year by the management inphased manner.

(b) In our opinion and according to the information and explanations given to us theprocedure of physical verification of inventory followed by the management is reasonableand adequate in relation to the size of the Company and the nature of its business.

(c) The Company has maintained proper records of inventories. As explained to us thediscrepancies noticed on physical verification as compared to book records were notmaterial and have been dealt with in the books of account.

(3) According to the information and explanation given to us the company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register required to be maintained under section 189 of the Act. Accordingly paragraph3 (iii) of the order is not applicable.

(4) 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 Act with respectto the loans and investments made.

(5) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public.

(6) We were informed that company has maintained cost records pursuant to Companies(Cost Records and Audit) Rules 2014 as amended and prescribed by the Central Governmentunder section 148(1) of the Companies Act 2013 and we are of the opinion that primafacie the prescribed cost records have been maintained. We have however not made adetailed examination of the records with a view to determine whether they are accurate andcomplete.

(7) (a) The Company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-tax Sales tax Service TaxDuty of Custom Duty of Excise Value Added Tax Cess and any other statutory duesapplicable to it with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Income-tax Service Tax Sales-tax Duty of Custom Duty of ExciseCess Goods and Service Tax and other aforesaid statutory dues were outstanding as at 31stMarch 2019 for a period of more than six months from the date they became payable.

(b) The disputed statutory dues aggregating to Rs 130.54 Lakh as on 31st March 2019have not been deposited on account of matters pending before appropriate authorities areas under:

Name of the Statute Nature of Dues Amount Forum where Dispute is Pending
Nagar Nigam Act Sewerage Tax Rs. 8.15 Lac Ld. Commisioner Nagar Nigam Gzb.
Commercial Tax Act Commercial Tax Rs.12.87 Lac Ld. Addl. Commissioner Gzb
Income Tax Act Income Tax Rs.109.52 Lakh Ld. CIT (Appeals) Gzb

(8) During last year the consent to the DRS interalia containing the restructuring ofthe debts of the company have been revoked by the consented secured lenders and demandraised for the dues outstanding in terms of their original sanctions. The company hasprotested to the said revocation and also submitted a revised restructuring/settlementscheme which is pending consideration with them (refer note no. 38) we are unable toexpress any opinion about the default of Principal / Interest and period of default ifany.

(9) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(10) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

(11) According to the information and explanations give 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 to the Companies Act 2013.

(12) In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

(13) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(14) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(15) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(16) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(17) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For R. K. Govil & Co.
Chartered Accountants
(Firm Reg. No. : 000748C)
(R. K. Govil)
Place : Ghaziabad Partner
Date : May 30 2019 Membership No. : 013632

ANNEXURE "B" TO INDEPENDENT AUDITORS' 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 ALPSINDUSTRIES LIMITED ( the Company ) as of 31 March 2019 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended 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 (‘ICAI'). 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 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit 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 financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 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 31 March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For R. K. Govil & Co.
Chartered Accountants
(Firm Reg. No. : 000748C)
(R. K. Govil)
Place : Ghaziabad Partner
Date : May 30 2019 Membership No. : 013632