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Ambar Protein Industries Ltd.

BSE: 519471 Sector: Industrials
NSE: N.A. ISIN Code: INE072V01017
BSE 00:00 | 23 Sep 13.12 0.62
(4.96%)
OPEN

13.12

HIGH

13.12

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13.12

NSE 05:30 | 01 Jan Ambar Protein Industries Ltd
OPEN 13.12
PREVIOUS CLOSE 12.50
VOLUME 1
52-Week high 13.12
52-Week low 7.35
P/E 2.12
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 13.12
CLOSE 12.50
VOLUME 1
52-Week high 13.12
52-Week low 7.35
P/E 2.12
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ambar Protein Industries Ltd. (AMBARPROTEIN) - Auditors Report

Company auditors report

to the Members of Ambar Protein Industries Limited

Report on the Financial Statements Opinion

I have audited the accompanying Financial Statements of Ambar Protein IndustriesLimited ("the Company") which comprise the Balance Sheet as at March 31 2020the Statement of Profit and Loss (including the statement of Other Comprehensive Income)the Cash Flow Statement and the statement of changes in Equity for the year then endedand a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the financial statements").

In my opinion and to the best of my information and according to the explanations givento me the Financial Statements give the information required by the Companies Act 2013("the Act") in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including IndianAccounting Standards ("Ind As") specified under section 133 of the Act of thestate of affairs of the Company as at March 31 2020 its profits (including othercomprehensive income) its Cash Flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

I conducted my audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. My responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of my report. I am independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ('ICAI') together withthe ethical requirements that are relevant to my audit of the financial statements underthe provisions of the Act and the rules thereunder and I have fulfilled my other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. I believethat the audit evidence I have obtained is sufficient and appropriate to provide a basisfor my opinion.

Key Audit Matters

Key audit matters are those matters that in my professional judgment were of mostsignificance in my audit of the Financial Statements of the current period. These matterswere addressed in the context of my audit of the financial statements as a whole and informing my opinion thereon and I do not provide a separate opinion on these matters.

I have determined the matters described below to be the key audit matters to becommunicated in my report.

Key Audit Matter Key Audit Matter
Our Audit procedures included and were not limited to the following
The Auditor has identified capitalization of property plant and equipment as a key audit matter. As a part of the new edible oil refinery project the company has acquired new Boilers Acid Oil Plant Refinery and Effluent Treatment Plant so as to meet the global standards in product quality and to make the by- products usable and marketable. Currently all the units of Refinery project have started and are working satisfactorily. 1. Assessing the nature of the costs incurred to install the new refinery to test whether the costs that are incurred specifically for trial runs and meet the recognition criteria of Ind AS 16.
2. Evaluating the assessment provided by third party vendors involved in the construction and testing process to determine whether capitalized ceased when the asset is in the location and condition necessary for it to be capable of operating in the manner intended by the management.
3. Testing the design implementation and operating effectiveness of controls in place in respect of review of capital work in progress particularly in respect of timing of the capitalization with source documentation.

Information other than the financial statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and my auditor's report thereon.

My opinion on the financial statements does not cover the other information and I donot express any form of assurance conclusion thereon.

In connection with my audit of the financial statements my responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or my knowledge obtained in theauditor otherwise appears to be materially misstated. If based on the work I haveperformed I conclude that there is a material misstatement of this other information; Iam required to report that fact. I have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The company's board of directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statement that give atrue and fair view of the financial position financial performance including othercomprehensive Income cash flows and changes in equity of the company in accordance withaccounting principles generally accepted in India including Indian Accounting Standards(Ind AS) specified under section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies makingjudgments and estimates that are reasonable and prudent and the design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to preparationand presentation of the financial statements that give true and fair view and are freefrom material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

My objectives are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes my opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with Standardson Auditing will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements

As part of an audit in accordance with Standards on Auditing I exercise professionaljudgment and maintain professional skepticism throughout the audit. I also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis formy opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theAct I am also responsible for explaining my opinion on whether the Company has adequateinternal financial controls system in place and the operating effectiveness of suchcontrols.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

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 I conclude that a material uncertainty existsI am required to draw attention in my auditor's report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify my opinion. Myconclusions are based on the audit evidence obtained up to the date of my auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

I 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 I identify during my audit.

I also provide those charged with governance with a statement that I have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on my independenceand where applicable related safeguards.

From the matters communicated with those charged with governance I determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. I describe these matters in myauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances I determine that a matter should not becommunicated in my report because the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. 1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the central government of India in terms of sub-section (11) ofsection 143 of the Act & on the basis of such checks of books & records of thecompany as I consider appropriate and according to the information and explanation givento me I give in the "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the order to the extent applicable.

2. As required by section143(3) of the Act I report that:

a. I have sought and obtained all the information and explanations which to the best myknowledge and belief were necessary for the purpose of my audit;

b. In my opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from the examination of those books;

c. The balance sheet the statement of profit and loss including the statement of otherComprehensive Income cash flow statement and statement of changes in Equity dealt withthis Reports are in agreement with the books of accounts;

d. In my opinion the aforesaid Financial Statements comply with accounting Standardsspecified under section 133 of the Act.

e. On the basis of written representations received from the directors as on 31stMarch 2020 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a directors in terms ofsections 164(2) of the act;

f. With respect to the adequacy of the internal financial controls over Financialreporting of the Company and operating effectiveness of such controls refer to myseparate Report in the "Annexure 2" to this report;

g. In our opinion the managerial remuneration for the year ended March 31 2020 hasbeen paid/provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act; h. With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the companies

(Audit And Auditors) Rules 2014 in my opinion and to the best of my Information andaccording to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements:

ii. The Company did not have any material foreseeable losses in long term contractincluding derivative contracts during the year ended March 312020

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection

Fund by the Company.

With reference to the Annexure 1 referred to in the Independent Auditors' Report to themembers of the Company on the Financial Statements for the year ended March 31 2020 Ireport the following:

1. Fixed Assets;

a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of Property Plant & Equipments;

b) As explained to me the fixed assets have been physically verified by the managementduring the year in accordance with a phased programme of verification which in my opinionprovides for physical verification of all the Fixed assets at reasonable intervals. I aminformed that no material discrepancies were noticed on such verification;

c) According to the information and explanations given by the management the titledeeds of Immovable properties included in property plant and equipment are held in thename of the Company.

2. As explained to me the inventory has been physically verified by the managementduring the year. In my opinion the frequency of verification is reasonable. No materialdiscrepancies were noticed on such physical verification.

3. According to the information and explanations given to me the Company has notgranted any loans secured or unsecured to companies firms limited liability partnershipor other parties covered in register maintained under section 189 of companies Act 2013.Accordingly the provision of clause 3(iii)(a) (b) and (c) of the order are notapplicable to the company and hence not commented upon.

4. In my opinion and according to the information and explanations gives to me theCompany has not advanced any loans or made investments given guarantees and provided anysecurities in respect of which provision of section 185 and 186 of The Companies Act 2013are applicable and hence not commented upon.

5. In my opinion and according to the information and explanations gives to me theCompany has not accepted any deposit within the meaning of sections 73 to 76 of the Actand the Companies (Acceptance of deposits) Rules 2014 (as amended) framed thereunder.Accordingly the provisionsof clause 3(v) of the order are not applicable.

6. I have broadly reviewed the books of accounts maintained by the company pursuant tothe rules made by the central government for the maintenance of cost records under section148(1) of the companies Act 2013 and I am of the opinion that prima facie theprescribed cost records have been made and maintained. I have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

7. Statutory Dues

a) The Company is generally regular in depositing undisputed statutory dues includingprovident fund employee's state insurance income tax sales tax goods and service taxservice tax duty of custom duty of excise value added tax cess and other statutorydues applicable to it with the appropriate authorities.

b) According to the information and explanations given to me no undisputed amountspayable in respect of provident fund employee's state insurance income tax service taxsales-tax goods and service tax duty of custom duty of excises value added tax cessand other statutory dues were outstanding as at 31st March 2020 for a period of morethan six months from date they became payable.

c) According to the information and explanations given to me there are no dues ofprovident fund investor education and protection fund employees state insurance incometax sales tax wealth tax service tax goods and service tax excise duty custom dutycess and any other statutory dues which have not been deposited with the appropriateauthorities on account of any disputes.

8. Based on audit procedures and according to the information and explanations given bythe management the company has not defaulted in repayment of loans or borrowing to abank. The Company has not issued any Debentures.

9. To the best of my knowledge and belief and according to the information andexplanations given by the management the Company has not raised any money by way ofInitial public offer / further public offer/debt instruments. However the term loansobtained during the year were prima facie applied by the company for the purpose forwhich they were raised other than temporary deployment pending application.

10. Based on audit procedure performed for the purpose of reporting the true and fairview of the financial statements and according to the information and explanations givento me by the management I report that no fraud by the Company or no fraud /material fraudon the Company by the officer and employees of the Company has been noticed or reportedduring the year.

11. To the best of my knowledge and belief and according to the information andexplanations given to me by the management the managerial remuneration has been paid/provided in accordance with requisite approvals mandated by the provisions of section 197read with schedule V to the Companies Act 2013.

12. As the Company is not a Nidhi Company Consequently the Nidhi Rules 2014 are notapplicable to it the provisions of Paragraph

3 Clause (xii) of the Order are not applicable to the Company.

13. To the best of my knowledge and belief and according to the information andexplanations given to me the Company has entered into transactions with related partiesin compliance with the provisions of Sections 177 and 188 of the Act where applicable.The details of such related party transactions have been disclosed in the FinancialStatements as required under applicable Accounting Standards.

14. To the best of my knowledge and belief and according to the information andexplanations given to me 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.

15. To the best of my knowledge and belief and according to the information andexplanations given to me by the management the Company has not entered into any non-cashtransactions with its Directors or persons connected with him as referred to in section192 of the Companies Act2013. Accordingly the provisions of Clause 3(xv) of the Orderare not applicable to the Company.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

"ANNEXURE 2" to Independent Auditor's Report

Referred to in paragraph 2 (f) of the Independent Auditor's Report of even date to themembers of Ambar Protein Industries Limited on the Financial Statements for the year endedMarch 31 2020.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

1. I have audited the internal financial controls over financial reporting of AmbarProtein Industries Limited ("the Company") as of March 31 2020 in conjunctionwith my audit of the Financial Statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. 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). 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

3. My responsibility is to express an opinion on the Company's internal financialcontrols over financial Reporting based on my audit. I conducted my audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards On Auditing deemed to be prescribedunder section 143(10) of the Act 2013 to the extent applicable to the audit of internalfinancial controls and both issued by the ICAI. Those Standards and the Guidance noterequire that I comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

4. My audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. My 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting with reference to thesestandalone Financial Statements

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and Directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting withreference to these Standalone Financial Statements

7. 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

8. In my 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 2020 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.

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