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Amforge Industries Ltd.

BSE: 513117 Sector: Financials
NSE: AMFORGEIND ISIN Code: INE991A01020
BSE 00:00 | 17 Sep 4.01 0.12
(3.08%)
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4.00

HIGH

4.08

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NSE 05:30 | 01 Jan Amforge Industries Ltd
OPEN 4.00
PREVIOUS CLOSE 3.89
VOLUME 13146
52-Week high 4.79
52-Week low 1.48
P/E 13.83
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.00
CLOSE 3.89
VOLUME 13146
52-Week high 4.79
52-Week low 1.48
P/E 13.83
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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 ("theCompany") which comprises the Balance Sheet as at 31st March 2021 Statement ofProfit and Loss (including other comprehensive income) Statement of Cash Flows andStatement of changes in Equity for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the IndianAccounting Statements prescribed under section 133 of the act read with Companies (IndianAccounting Standards) Rules 2015 as amended ("Ind AS") and the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2021 its profit total comprehensive income and its cash flows and the changes inequity 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 Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's responsibilities for the audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on the financialstatements.

Key Audit Matter:

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These 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.

The auditor determines that there are no Key Audit Matter during the year.

Information other than the Financial Statements and Auditor's Report thereon:

The other information comprises the information included in the Annual Report but doesnot include the financial statements and our auditor's report thereon. e Annual Report isexpected to be made available to us after the date of this auditor's report. Our opinionon the financial statements does not cover the other information and we will not expressany form of assurance conclusion thereon. In connection with our audit of the financialstatements our responsibility is to read the other information identified above when itbecomes available and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. When we read the Annual Report if weconclude that there is a material misstatement therein we are required to communicate thematter to those charged with governance.

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 Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income and cash flows and Changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards specified under Section 133 of the Act .is responsibility also includes maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding the assets of the Company and forpreventing 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 thecompany's financial reporting 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 highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

• Identify and assess the risks of material misstatements of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of the accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of the management's use of going concern basisof accounting 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 we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and the content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We 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 we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

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

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 Companies Act 2013 we give in the Annexure ‘B' a statement on the mattersspecified in paragraphs 3 and 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 (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with RuleCompanies (Accounts) Rules 2014.

(e) On the basis of written representations received from the directors as on 31 March2021 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2021 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".

(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 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 vide Note 18.1 in its 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.

The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

For J Singh & Associates
Chartered Accountants
(Firm Reg. No. 110266W)
CA. S. P. Dixit
Partner
(Membership No. 041179)
UDIN: 21041179AAAADR7398
Place: Mumbai
Date: 28/06/2021

Annexure "A" to the Independent Auditors' Report

The Annexure referred to in paragraph (I) (f) under ‘Report on Other Legaland Regulatory 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 2021 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended 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 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 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. A company's internal financial control over financialreporting 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 authorisations of the 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:

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 2021 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)
CA. S. P. Dixit
Partner
(Membership No. 041179)
UDIN: 21041179AAAADR7398
Place: Mumbai
Date: 28/06/2021

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 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
3 ( Three) 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 Employees' State Insurance Income tax Sales tax Service Tax Customs DutyExcise Duty Value Added Tax Goods and Service Tax cess and other material statutorydues except in case of Provident Fund & Tax Deducted at Source (TDS) applicable to itto the appropriate authorities.

b) There were no undisputed amounts payable in respect of Employees' State InsuranceIncome-tax Sales-tax Service Tax Customs Duty Excise Duty Value Added Tax Goods andService Tax Cess and other material statutory dues in arrears as at 31st March 2021 fora period of more than six months from the date they became payable except Provident Fundof Rupees 53568/- & Tax Deducted at Source (TDS) of Rs. 107992/-. Howeverthe same has been regularised & paid before the year-end.

c) There were no dues of income tax sales tax service tax duty of customs and dutyof excise or value added tax or goods and service tax except dues of sales tax &excise duty which have not been deposited as at 31st March 2021 on account of anydisputes are given below:

Name of the statutory Nature of dues Period to which the amount relates Forum where dispute is pending Amount (Rs. 000's)
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 Joint Commissioner of State Tax Appeals Pune 3126/-
Value Added Tax Act 2002 Sales Tax F.Y. 2005-06 Joint Commissioner of State Tax – Appeals Pune 10041/-

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 loan or borrowing to a financial institution Banks Government or dues to debentureholders. e Company did not have any outstanding debentures during the year.

9. According to the information and explanations given to us the term loans wereapplied for the purposes they were raised during the year. e Company has not raised moneyby way of initial public offer or further public offer (including debt instruments) duringthe year.

10. To the best of our knowledge and according to the information and explanationsgiven to us and based on audit procedures performed no fraud by the Company and no fraudon the Company by its officers or employees has been noticed or reported during the yearnor have we been reported of such case by the management.

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. To the best of our knowledge and according to the information and explanationsgiven to us all transactions with the related parties comply with section 177 and 188 ofthe Act where applicable and the details have been disclosed in the Financial Statementsas required by the applicable Indian Accounting Standards.

14. According to the information and explanations given to us the Company has not madeany preferential Allotment or any private placement of shares or convertible debenturesand hence compliance with section 42 of the Companies Act 2013 is not applicable to theCompany during the year.

15. To the best of our knowledge and according to the information and explanationsgiven to us 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. According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934accordingly the provisions of Clause 3(xvi) of the Order are not applicable to the Companyduring the year.

For J Singh & Associates
Chartered Accountants
(Firm Reg. No. 110266W)
CA. S. P. Dixit
Partner
(Membership No. 041179)
UDIN: 21041179AAAADR7398
Place: Mumbai
Date: 28/06/2021

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