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Amforge Industries Ltd.

BSE: 513117 Sector: Financials
NSE: AMFORGEIND ISIN Code: INE991A01020
BSE 00:00 | 27 Nov 1.62 0.07
(4.52%)
OPEN

1.48

HIGH

1.62

LOW

1.48

NSE 05:30 | 01 Jan Amforge Industries Ltd
OPEN 1.48
PREVIOUS CLOSE 1.55
VOLUME 11879
52-Week high 2.40
52-Week low 0.50
P/E 5.23
Mkt Cap.(Rs cr) 2
Buy Price 1.52
Buy Qty 500.00
Sell Price 1.55
Sell Qty 9460.00
OPEN 1.48
CLOSE 1.55
VOLUME 11879
52-Week high 2.40
52-Week low 0.50
P/E 5.23
Mkt Cap.(Rs cr) 2
Buy Price 1.52
Buy Qty 500.00
Sell Price 1.55
Sell Qty 9460.00

Amforge Industries Ltd. (AMFORGEIND) - Auditors Report

Company auditors report

To the Members of Amforge Industries Limited

Report on the Audit of Financial Statements:

We have audited the accompanying financial statements of Amforge Industries Limited("the Company") which comprise the Balance Sheet as at 31stMarch 2019 and the Statement of Profit and Loss (including Other Comprehensive Income)Statement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information. In our opinion and to the best of our information andaccording to the explanations given to us the aforesaid financial statements give theinformation required by the Companies Act 2013 ("the Act") in the mannerso required and give a true and fair view in conformity with the Indian AccountingStandards ("Ind AS") prescribed under section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules 2015 as amended and theaccounting principles generally accepted in India of the state of affairs of the Companyas at March312019 loss and total comprehensive income Changes in Equity and its cashflows for the year ended on that date.

Basis for Opinion:

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards on Auditingare further described in the Auditor's Responsibilities for the audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the financial statements.

Key Audit Matters:

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

We have determined that there are no key audit matters to communicate in our report.

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 Ind AS financial statementsthat give a true and fair view of the financial position financial performance (Changein equity) and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Act. is responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; the selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error. In preparing the financial statements themanagement of the Company is responsible for assessing the Company's ability to continueas a going concern disclosing as applicable matters related to going concern andusing the going concern basis of accounting unless management either intends to liquidatethe Company or to cease operations or has no realistic alternative but to do so.

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

Auditors' Responsibilities for the Audit of the Financial Statements:

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor's Report) Order2016 ("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 - B 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 the Company has kept proper books of account as required by law asfar as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss the Statement of Change inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid financial statements comply with the ind AS specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director interms of Section 164(2) of the Act.

(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".

(g) In our opinion the managerial remuneration for the year ended 31st March 2019 hasbeen paid so 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 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 refer Note -18 to the 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.

For J Singh & Associates
Chartered Accountants
(Firm Reg. No. 110266W)
(CA. S. P. Dixit)
(Partner)
(Membership No. 041179)
Place: Mumbai
Date : 24th May 2019

Annexure "A" to the Independent Auditors' Report

The Annexure referred to in paragraph (2) (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 2019 inconjunction with our audit of the 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 the safeguardingof its 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 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 ofChartered Accountants of India and the Standards on Auditing prescribed under Section143(10) of the Act 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 controls based on the assessed risk. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thefinancial 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 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. At 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 authorisations of themanagement 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 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 2019 based on thecriteria for internal financial controls over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For J Singh & Associates
Chartered Accountants
(Firm Reg. No. 110266W)
(CA. S. P. Dixit)
(Partner)
(Membership No. 041179)
Place: Mumbai
Date : 24th May 2019

Annexure "B" to the Independent Auditors' Report

The Annexure referred to in paragraph (I) 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 the Managementduring the year physically verified certain fixed assets. According to the information andexplanations 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
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 Act.

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 Service TaxCustoms Duty Excise Duty Value Added Tax Goods and Service Tax cess and other materialstatutory dues applicable to it to the appropriate authorities.

b) ere were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income-tax Sales-tax Service Tax Customs Duty Excise Duty ValueAdded Tax Goods and Service Tax Cess and other material statutory dues in arrears as at31st March 2019 for a period of more than six months from the date they becamepayable. c) Details of dues of Sales Tax and Excise Duty which have not been deposited asat 31st March 2019 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 (Rs. 000's)
Central Excise Act 1944. Excise Duty F.Y. 2003-04 CESTAT Mumbai Asst./ Addl./ Joint Commissioner of Central Excise 46524.00
Central Sales Tax Act 1956. Sales Tax F.Y. 2005-06 Commissioner of Appeals (Sales Tax) 2057.00
Central Sales Tax Act 1956. Sales Tax F.Y. 2005-06 Joint Commissioner of Sales Tax 11175.00

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 comply with section 177 and 188 of the Act where applicable and thedetails have been disclosed in the Financial Statements as required by the applicableIndian 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 Act 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 Act are notapplicable 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)
(CA. S. P. Dixit)
(Partner)
(Membership No. 041179)
Place: Mumbai
Date : 24th May 2019

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