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AMD Industries Ltd.

BSE: 532828 Sector: Industrials
NSE: AMDIND ISIN Code: INE005I01014
BSE 00:00 | 13 Nov 17.35 -4.30
(-19.86%)
OPEN

18.20

HIGH

19.05

LOW

17.35

NSE 00:00 | 13 Nov 17.25 -4.25
(-19.77%)
OPEN

19.10

HIGH

19.20

LOW

17.20

OPEN 18.20
PREVIOUS CLOSE 21.65
VOLUME 17153
52-Week high 28.40
52-Week low 12.00
P/E 5.10
Mkt Cap.(Rs cr) 33
Buy Price 17.40
Buy Qty 20.00
Sell Price 17.35
Sell Qty 998.00
OPEN 18.20
CLOSE 21.65
VOLUME 17153
52-Week high 28.40
52-Week low 12.00
P/E 5.10
Mkt Cap.(Rs cr) 33
Buy Price 17.40
Buy Qty 20.00
Sell Price 17.35
Sell Qty 998.00

AMD Industries Ltd. (AMDIND) - Auditors Report

Company auditors report

To the Members of

AMD Industries Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statementsof AMD Industries Limited ("the Company") which comprise the BalanceSheetasatMarch312018 Profitand Loss (including Other Comprehensive Income) thetheStatement Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone Ind AS financial statements that give a true and fair viewof the financial position financial performance including other comprehensive incomecash flows and changes in equity of the Company in accordance with the Indian

Accounting Standards (Ind AS) prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended and otheraccounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinionon these standalone Ind ASfinancial statements based on our audit.In conducting our audit we have taken intoaccount the provisions of the Act the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and theRules made thereunder and the Order issued under section 143(11) of the Act.

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under Section

143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts 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 standalone Ind AS financial statements whether due to fraudor error. In making those risk assessments the auditor considers internal financialcontrol relevant to the Company's preparation of the standalone Ind AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of the standaloneInd AS financial statements.

We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the standalone Ind AS financialstatements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS 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 2018 and its loss total comprehensive income thechanges in equity and its cash flows for the year ended on that date.

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 of the Act we give in the Annexure A a statement on the mattersspecifiedin the paragraph 3 and

4 of the Order.

2. As required by Section 143(3) of the Act based on our audit wereport that: a) we have sought and obtained all the information and explanations which tothe best of 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 beenkept by the Company so far as it appears from our examination of those books. c) theBalance Sheet the Statement of Profit and Loss including Other Comprehensive IncomeStatement of Changes 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 Ind ASfinancial statements comply with the Indian Accounting Standards prescribed under section133 of the Act read with relevant rules issues thereunder. e) on the basis of the writtenrepresentations received from the directors of the Company as on March 31 2018 taken onrecord by the Board of Directors nne of the directors is disqualified as on March 312018 from being appointed as a director in terms of Section 164(2) of the Act. f) withrespect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls refer to our separate Report in"Annexure B". Our report expresses an unmodified opinion on the adequacy andoperating effectiveness of the Company's internal financial controls over financialreporting. 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 as amended inour opinion and to the best of our information and according to the explanations given tous: i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - refer note 38 to the standaloneInd AS financial statements. ii. There are no material foreseeable losses on long termcontracts including derivative contracts therefore no such provision is required to bemade. iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Goyal Nagpal & Co.

FRN: 018289C Chartered Accountants

Sd/-

(CA Virender Nagpal) Partner M. No. 416004

Date : 25.05.2018 Place : New Delhi

Annexure A to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to themembers of the Company on the standalone Ind AS financial statements for the year ended31st March 2018 we report that:

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The Company has a regular program of physical verification of itsfixed assets by which fixedassets are verified in a phased manner. In accordance with thisprogram certain fixed assets were verified during the year and no material discrepancieswere noticed on such verification. In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets. (c) According to the information and explanation given to us and on the basis ofour examination of the records of the company the title deeds of the immovable propertiesare held in the name of the company.

(ii) (a) The management of the Company has conducted the physicalverification of inventory at reasonable intervals during the year.

(b) The procedure of physical verification of inventory followed by themanagement is reasonable and adequate in relation to the size of the Company and nature ofits business.

(c) The Company has maintained proper records of inventory and nomaterial discrepancies were noticed on physical verification.

(iii) The Company has not granted any loans to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013 (‘the Act').

(iv) The company has not granted any loans under provisions of section185 and has complied with provisions of section 186 of the Companies Act 2013 in respectof loans investments guarantees and security.

(v) The Company has not accepted any deposits from the public underprovisions of sections 73 to 76 or any other relevant provisions of the Companies Act'2013.

(vi) The Central Government has not prescribed the maintenance of costrecords under section 148(1) of the Act.

(vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company the company is regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added taxcess GST and other material statutory dues with the appropriate authorities.

(b) According to the information and explanations given to us belowgiven dues of income tax sales tax service tax excise duty value added tax and cesshave not been deposited with the appropriate authorities on account of disputes:

r>
Period of Demand

Amount Involved

Particulars of demand Appeal pending before
1 F.Y. 1999-00 to 2006-07

Rs.950962/-

Local Sales Tax raised by UP Local Sales Tax Authorities. Supreme Court
2. F.Y. 1999-00 to 2006-07

Rs.3118745/-

Central Sales Tax raised by UP Trade tax Authorities. Supreme Court
3 F.Y. 2003-04

Rs.358400/-

Demand raised by Assessing Authority u/s 21 we have filed appeal against above order. Tribunal Court Ghaziabad
4 F.Y. 2001-02

Rs.1145102/-

Entry tax raised by UP Trade Tax Authorities Tribunal Court Ghaziabad
5. F.Y. 2002-03

Rs.1140307/-

Entry tax raised by UP trade tax Authorities. Supreme Court
6. FY 2004-05

Rs.1637643/-

Entry tax raised by UP trade tax Authorities. Allahabad High Court
7. F Y 2001-02

Rs.200000/-

Labour Dispute Labour Court-I Ghaziabad
8. F.Y. 2005-06

Rs.447623/-

Sales Tax Demand raised by UP trade tax Authorities Addl. Commissioner Appeal (Trade Tax)-I Ghaziabad
9. F. Y 2005-2006

Rs.220397/-

Entry tax raised by UP trade tax Authorities. Supreme Court
10. F.Y 2007-2008

Rs.3809702/-

Demand raised by Trade Tax Department. Hon'ble High Court
Allahabad
11. 2008-09 & 2009-10

Rs. 29718848/-

Demand raised by Trade Tax Department. Tribunal court Ghaziabad

(viii) In our opinion and according to the information and theexplanations given to us the company has not defaulted in repayment of loans or borrowingto a financial institution bank Government or dues to debenture holders.

(ix) In our opinion and according to the information and theexplanations given to us the company has not raised any moneys by way of initial publicoffer or further public offer (including debt instruments) and term loans were applied forthe purposes for which those are raised.

(x) In our opinion no material fraud by the company or on the Companyby its officers or employees has been noticed or reported during the year under review.(xi) In our opinion and according to the information and the explanations given to us andbased on examination of records of the company the company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act.

(xii) In our opinion and according to information given to us thecompany is not a nidhi Company. Accordingly paragraph 3(xii) of the order is notapplicable.

(xiii) In our opinion and according to the information and theexplanations given to us and based on our examination of the records of the company alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where ever applicable and the details of such transactions have beendisclosed in the notes to the standalone Ind AS financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us andbased on our examination of the records of the company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. (xv) According to the information and the explanations givento us the company has not entered into any non-cash transactions with directors or personsconnected with him under the provisions of section 192 of Companies Act 2013 (xvi)According to the information and the explanations given to us the company is not requiredto be registered under section 45-IA of the Reserve Bank of India Act 1934

For Goyal Nagpal & Co.

FRN: 018289C Chartered Accountants

Sd/-

(CA Virender Nagpal) Partner M. No. 416004

Date : 25.05.2018 Place : New Delhi

Annexure - B to the Independent Auditor's Report of even date on theStandalone Ind AS financial statements of AMD Industries Limited

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013

We have audited the internal financial controls over financial inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financialcontrols based on "the internal control over financialreporting criteria established by the Company considering the essential components

Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of

India(‘ICAI'). These responsibilities include the designimplementation and maintenance of adequate internal financialcontrols that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompaniesAct 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the

"Guidance Note") and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Companies

Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we 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.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial 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 financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies that andprocedures

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to control over financialreporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion the company has in all material respects an adequateinternal financialcontrols system over financial reporting and such internal financialcontrols over financialreporting were operating effectively as at March 31 2018 based onthe internal control over reporting criteria established by the Company considering theessential components of internal control stated in the Guidance financial

Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India.

For Goyal Nagpal & Co.

FRN: 018289C Chartered Accountants

Sd/-

(CA Virender Nagpal) Partner M. No. 416004

Date : 25.05.2018

Place : New Delhi