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Amforge Industries Ltd.

BSE: 513117 Sector: Financials
NSE: AMFORGEIND ISIN Code: INE991A01020
BSE 00:00 | 20 Nov 1.01 -0.05
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NSE 05:30 | 01 Jan Amforge Industries Ltd
OPEN 1.01
PREVIOUS CLOSE 1.06
VOLUME 100
52-Week high 1.80
52-Week low 0.75
P/E 5.05
Mkt Cap.(Rs cr) 1
Buy Price 1.01
Buy Qty 13.00
Sell Price 1.01
Sell Qty 13.00
OPEN 1.01
CLOSE 1.06
VOLUME 100
52-Week high 1.80
52-Week low 0.75
P/E 5.05
Mkt Cap.(Rs cr) 1
Buy Price 1.01
Buy Qty 13.00
Sell Price 1.01
Sell Qty 13.00

Amforge Industries Ltd. (AMFORGEIND) - Auditors Report

Company auditors report

Independent Auditor’s Report

To the Members of Amforge Industries Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of AmforgeIndustries Limited ("the Company") which comprise the Balance Sheet as at31st March 2018 the Statement of Profit and Loss (including 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.

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 ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act

This responsibility also includes maintenance of adequate accounting records inaccordance with the provision 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.

Auditors’ Responsibility:

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions 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 auditors’ 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 controlsrelevant to the Company’s preparation of the standalone Ind AS financial statementsthat give true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company’sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence obtained by us 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 Ind AS and accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2018 and its Profit total comprehensive incomeits cash flows and the changes in equity for the year ended on that date.

Emphasis of Matters:

Without qualifying our report we draw attention to the following matters in the Notesto the financial statements:

1) Refer Note 18(3) which describes exceptional items includes the income of Rs.24269 thousand during the year

pertaining to the court settlement on account of the long drawn litigation of intercorporate deposit given to a company.

Report on Other Legal and Regulatory Requirements:

(I) As required by section 143(3) of the Act based on our audit we report to theextent applicable 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 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 relevant 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 written representations received from the directors as on 31 March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2018 from being appointed as a director in terms of Section 164(2) of theAct.

(f) With respect to the adequacy of internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting.

(g) With respect to the other matters to be included in the Independent Auditors’Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

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

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

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

(II) As required by the Companies (Auditors’ Report) Order 2016("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure B" a statement on the matters specified in paragraphs 3 and 4of the Order.

For J Singh & Associates
Chartered Accountants
(Firm Reg. No: 110266W)
S. P. Dixit
(Partner)
Membership No.: 041179.
Place: Mumbai
Dated: 29th May 2018

Annexure "A" to the Independent Auditors’ Report

The Annexure referred to in paragraph (I)(f) under ‘Report on Other Legal andRegulatory Requirements’ section of our report of even date)

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

We have audited the internal financial controls over financial reporting of AmforgeIndustries Limited ("the Company") as of 31st March 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 the Company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information 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 of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditors’ judgment including the assessment of the risks of material misstatement ofthe 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

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 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisations ofthe management and directors of the Company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the Company’s assets that could have a material effect on the financialstatements.

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 31st March 2018 based on the criteria forinternal financial controls 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 J Singh & Associates
Chartered Accountants
(Firm Reg. No: 110266W)
S. P. Dixit
(Partner)
Membership No.: 041179.
Place: Mumbai
Dated: 29th May 2018

Annexure "B" to the Independent Auditors’ Report

The Annexure referred to in paragraph (II) under ‘Report on Other Legal andRegulatory Requirements’ section of our report of even date)

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

b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of three years. Inour opinion this periodicity of physical verification is reasonable having regard to sizeof the Company and the nature of its assets. Pursuant to the program certain fixed assetswere physically verified by the Management during the year. According to the informationand explanations given to us no material discrepancies were noticed on such verification.

c) According to the information and explanations given to us and the records examinedby us including registered title deeds we report that the title deeds comprising allthe immovable properties of the Company are held in the name of the Company except in caseof

Particular of Property Status
3 Residential Flats at Khopoli Maharashtra Titles in the name of the Company but ownership of the Flats are under dispute.

2. The nature of business of the Company does not require it to have any inventory.Hence the requirement of clause (ii) of paragraph 3 of the said Order is not applicableto the Company.

3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.

4. In our opinion and according to information and explanations given to us theCompany has complied with provisions of Section 185 and 186 of the Act in respect of grantof loans making investments and providing guarantees and securities as applicable.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public in accordance with the provisions ofSections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Accordingly paragraph 3(v) of the Order is not applicable to the Company.

6. It has been explained to us that the maintenance of cost records has not beenprescribed under section 148(1) of the Act.

7. According to the information and explanations given to us in respect of statutorydues:

a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income-tax Sales-tax ServiceTax Customs Duty Excise Duty Value Added Tax Goods and Service Tax cess and othermaterial statutory dues applicable to it to the appropriate authorities.

b) There were no undisputed amounts payable in respect of Provident FundEmployees’ State Insurance Income-tax Sales-tax Service Tax Customs Duty ExciseDuty Value Added Tax Goods and Service Tax Cess and other material statutory dues inarrears as at 31st March 2018 for a period of more than six months from the date theybecame payable.

c) Details of dues of Sales Tax and Excise Duty which have not been deposited as at31st March 2018 on account of disputes are given below:

Name of the statute Nature of dues Period to which the amount relates Forum where dispute is pending Amt. in Rs.(‘000)
Central Excise Act 1944 Excise Duty F.Y. 2003-04 CESTAT Mumbai Asst./ Addl./ Joint Commissioner of Central Excise 46524/-
Central Sales Tax Act1956 Sales Tax F.Y. 2005-06 Commissioner of Appeals (Sales Tax) 2057/-
Central Sales Tax Act1956 Sales Tax F.Y. 2005-06 Joint Commissioner of Sales Tax 11175/-
Central Sales Tax Act1956 Sales Tax F.Y. 2006-07 Joint Commissioner of Sales Tax 18727/-
Value Added Tax Maharashtra Sales Tax F.Y. 2006-07 Joint Commissioner of Sales Tax 53934/-

According to the information and explanations given to us and the records of theCompany examined by us there are no dues of customs duty service tax and income taxwhich have not been deposited on account of any dispute.

8. According to the records of the Company examined by us and as per the informationand explanations given to us the Company has not defaulted during the year in repaymentof dues to its financial institutions Bankers and government. The Company did not haveany outstanding debentures during the year.

9. The Company did not have any term loans outstanding during the year. The Company hasnot raised money by way of initial public offer or further public offer (including debtinstruments) or term loans and hence reporting under clause (ix) of the Order is notapplicable.

10. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no fraud on the Company by its officers oremployees has been noticed or reported during the year.

11. According to the information and explanations given to us managerial remunerationhas been paid or provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with schedule V to the Act.

12. According to the information and explanations given to us the Company is not aNidhi Company as prescribed under section 406 of the Act. Accordingly reporting underclause (xii) of the Order is not applicable to the Company.

13. According to the information and explanations given to us all transactions withthe related parties are in compliance with section 177 and 188 of the Act whereapplicable and the details have been disclosed in the Financial Statements as required bythe applicable Indian Accounting Standards.

14. During the year the Company has not made any preferential Allotment or any privateplacement of shares or fully or partly convertible debentures and hence compliance withsection 42 of the Companies Act 2013 is not applicable to the Company during the year.

15. The Company has not entered into any non-cash transactions with directors orpersons connected with him and hence provisions of section 192 of the Companies Act 2013are not applicable to the Company during the year.

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.

For J Singh & Associates
Chartered Accountants
(Firm Reg. No: 110266W)
S. P. Dixit
(Partner)
Membership No.: 041179.
Place: Mumbai Dated: 29th May 2018