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Ambalal Sarabhai Enterprises Ltd.

BSE: 500009 Sector: Health care
NSE: AMBASARABH ISIN Code: INE432A01017
BSE 16:01 | 19 Feb 18.75 0.85
(4.75%)
OPEN

18.35

HIGH

18.75

LOW

18.35

NSE 05:30 | 01 Jan Ambalal Sarabhai Enterprises Ltd
OPEN 18.35
PREVIOUS CLOSE 17.90
VOLUME 15492
52-Week high 21.60
52-Week low 9.05
P/E 50.68
Mkt Cap.(Rs cr) 144
Buy Price 18.75
Buy Qty 480.00
Sell Price 18.75
Sell Qty 297.00
OPEN 18.35
CLOSE 17.90
VOLUME 15492
52-Week high 21.60
52-Week low 9.05
P/E 50.68
Mkt Cap.(Rs cr) 144
Buy Price 18.75
Buy Qty 480.00
Sell Price 18.75
Sell Qty 297.00

Ambalal Sarabhai Enterprises Ltd. (AMBASARABH) - Auditors Report

Company auditors report

To the Members of

Ambalal Sarabhai Enterprises Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of AmbalalSarabhal Enterprises Limited ("the Company") which comprise the Balance Sheetas at 31 st March 2018 and the Statement of Profit and Loss (including OtherComprehensive Income) the Cash flow Statement and the Statement of Change in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Ind As 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 of thesestandalone Ind As 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 accounting principles generallyaccepted in India including the Indian Accounting Standards ( IND AS) prescribed underSection 133 of the Act.

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 standalone IndAS financial 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 Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs of the Company as at 31st March 2018 and its profit (including othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.

Other Matter

The comparative financial information of the Company for the year ended 31st March2018 and the transition date opening balance sheet as at 1st April 2016 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 (as amended) which were audited by other chartered accountants whose reportfor the year ended 31st March 2017 and 31st March 2016 dated 30th May 2017 and 31stMay 2016 respectively expressed an unmodified opinion on those standalone financialstatements as adjusted for the differences in the accounting principles adopted by theCompany on transition to the Ind AS which have been audited by us. Our opinion is notmodified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. 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 A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

2. 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 appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid standalone Ind AS Financial Statements comply withthe Indian Accounting Standards prescribed under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (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".

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 1 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 standalone Ind ASfinancial position in its standalone Ind AS financial statements;

ii. Provision has been made in the standalone Ind AS financial statementsl as requiredunder the applicable law or accounting standards for material foreseeable lossesl if anyon long-term contracts including derivative contracts.

iii There has been no delay in transferring amountl required to be transferred l to theInvestor Education and Protection Fund by the Company.

For Khandhar & Associates
Chartered Accountants
Firm Registration No. 118940W
CA. Vipul B. Khandhar
Date : 25-05- 2018 Partner
Place : Ahmedabad Membership No.105986

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

Re: AMBALAL SARABHAI ENTERPRISES LIMITED

Referred to in' Paragraph 1 under the heading "Report on other legal andregulatory requirements" of our Independent Auditor1s Report of even date

(i) (a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of its fixed assets.

(b) As explained to us the fixed assets have been physically verified by themanagement during the year in accordance with a phased programme of verification which inour opinion provides for physical verification of all the fixed assets at reasonableintervals. We are informed that no material discrepancies were noticed on suchverification.

(c) The title deeds of immovable properties other than self-constructed immovableproperty (buildings) as disclosed in fixed assets to the financial statements are heldin the name of the Company.

(ii) As explained to us physical verification of inventory has been conducted atreasonable intervals by the management and the discrepancies noticed on verificationbetween the physical stocks and the book records were not material having regard to thesize of the Company and the same have been properly dealt with in the books of account.

(iii) The Company has not granted secured / unsecured loans to Companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Consequently requirements of clause (iii) of paragraph 3 of theorder are not applicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has not advanced any loan or given any guarantee or provided any security or madeany investment covered under section 185 of the Act. However the Company has advancedloans or given guarantees or provided security or made investments covered under section186 of the Act. We are of the opinion that provisions of section 186 of the Act have beencomplied with.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted'any deposits from the public within the meaning of Sections 73 to76 or any other relevant provisions of the Act and rules framed thereunder. No order hasbeen passed by the Company Law Board or National Company Law Tribunal or Reserve Bank ofIndia or any Court or any other Tribunal.

(vi) We have broadly reviewed the cost records maintained by the Company as specifiedby the Central Government under sub-section (1) of Section 148 of the Companies Act 2013and are of the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete

(vii)(a) The Company is not regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund Employeesl State Insurance IncomeTax Wealth Tax Sales Tax Service Tax Duty of Custom Duty of Excise Value added taxCess and other material statutory dues applicable to it. According to the information andexplanations given to us following undisputed amounts payable in respect of outstandingstatutory dues were in arrears as at March 31 2018 for a period of more than six monthsfrom the date they became payable

Particulars Rs. in Lakh
Income Tax 34.79
Sales Tax 1361.53
ESIC 76.32
PF 104.97
Service Tax 39.44
Professional Tax 69.51

(b)Following amounts have not been deposited as on March 31 2018 on account of anydispute:

Nature of the Statute Nature of the dues Rs. in Lakh Period to which the amount relates Forum where matter is pending
Sales Tax Act Sales Tax 223.39 1985-1986 Appellate Tribunal / Commissioner
1989-1990
1999-2000
2000-2001
2003-2004
2004-2005
2005-2006
Central Excise Act Excise Duty 54.36 1985-1986 CESTAT
1986-1987
1987-1988
1988-1989
8.62 2003-2004 Jt. DGFT
Finance Act Service Tax 70.84 2006-2007 CESTAT
2007-2008
2008-2009
2009-2010
Income Tax Act Income Tax 1632.51 2008-2009 High Court
2009-2010
259.65 2010-2011 ITAT
134.47 2012-2013 CIT (A)

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to financial institutions and banks.

(ix) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not raised moneys by way of initial public offeror further public offer. However the term loans obtained during the year were primafacie applied by the Company for the purpose for which they were raised other thantemporary deployment pending application.

(x) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

(xi) To the best of our knowledge and belief and according to the information andexplanations given to us managerial remuneration has been paid/provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Act.

(xii) The Company is not a Nidhi Company. Consequently requirements of clause (xii) ofparagraph 3 of the order are not applicable.

(xiii) To the best of our knowledge and belief and according to the information andexplanations given to us all transactions with the related parties are in compliance withsection 177 and 188 of the Act where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.

(xiv) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Consequently requirements of clause (xiv) of paragraph 3 of the order are notapplicable.

(xv) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with him.

(xvi) According to the nature of the business the Company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934.

For Khandhar & Associates
Chartered Accountants
Firm Registration No. 118940W
CA. Vipul B. Khandhar
Date : 25-05- 2018 Partner
Place : Ahmedabad Membership No.105986

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE IND AS FINANCIAL STATEMENTS OF AMBALAL SARABHAI ENTERPRISES LIMITED

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 AmbalalSarabhai Enterprises Limited ("the Company") as of March 31 2018 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 (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 Act.

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 includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the standalone lnd AS financial statements whether due to fraudor 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 standalone Ind AS financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standaloneInd AS financial statements in accordance with generally accepted accounting principlesand that receipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the standaloneInd AS financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For Khandhar & Associates
Chartered Accountants
Firm Registration No. 118940W
CA. Vipul B. Khandhar
Date : 25-05- 2018 Partner
Place : Ahmedabad Membership No.105986