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Angel Fibers Ltd.

BSE: 541006 Sector: Industrials
NSE: N.A. ISIN Code: INE339Z01011
BSE 00:00 | 04 Dec 6.90 -0.40
(-5.48%)
OPEN

6.75

HIGH

6.90

LOW

6.75

NSE 05:30 | 01 Jan Angel Fibers Ltd
OPEN 6.75
PREVIOUS CLOSE 7.30
VOLUME 280000
52-Week high 9.24
52-Week low 3.60
P/E
Mkt Cap.(Rs cr) 17
Buy Price 5.85
Buy Qty 20000.00
Sell Price 7.30
Sell Qty 4000.00
OPEN 6.75
CLOSE 7.30
VOLUME 280000
52-Week high 9.24
52-Week low 3.60
P/E
Mkt Cap.(Rs cr) 17
Buy Price 5.85
Buy Qty 20000.00
Sell Price 7.30
Sell Qty 4000.00

Angel Fibers Ltd. (ANGELFIBERS) - Auditors Report

Company auditors report

TO THE MEMBERS OF M/S. ANGEL FIBERS LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

DISCLAIMER OF OPINION

We have audited the accompanying standalone financial statements of M/s. Angel Fibers Limited( the Company) which comprises the Balance Sheet as at March 31 2019 and the Statement of Profit and Lossand Statement of Cash Flows for the year then endedand notes to the financial statements including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us except for the effects of the matter described in the Basis for Disclaimer of Opinion section of our report the aforesaid standalone financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31 2019 and profit and its cash flows for the year ended on that date.

Basis for Disclaimer of Opinion

Included in debtors shown on the balance sheet is an amount of Rs. 1161600/- due from debtors which have ceased trading. The Company has no security for this debt. On the basis that no security has been obtained and no cash has been received on the debt in our opinion the Company should make a full provision for impairment of Rs. 1161600/- reducing profit before taxation for the year and net assets at March 31 2019 by that amount.

Included in short-term loans and advances shown on the balance sheet is an amount of Rs. 1060131/- due from certain parties. The Company has no security for these loans and advances. On the basis that no security has been obtained and no cash has been received on the loan/advance in our opinion the Company should make a full provision for impairment of Rs. 1060131/- reducing profit before taxation for the year and net assets at March 31 2019 by that amount.

The Company has not carried out an inspection of its fixed assets and has not maintained a register of fixed assets during the year under review. Consequently we were unable to carry out auditing procedures necessary to obtain adequate assurance regarding the quantities and condition of fixed assets appearing in the balance sheet at Rs. 889639393/- There were no other satisfactory audit procedures that we could adopt to obtain sufficient evidence regarding the existence of such fixed assets. Accordingly we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Any adjustment to the figure may have a consequential significant effect on the profit for the year and net assets as at March 31 2019.

The Company has not carried out an inspection of its inventories during the year under review. Consequently we were unable to carry out auditing procedures necessary to obtain adequate assurance regarding the quantities and condition of such inventories appearing in the balance sheet at Rs. 377068925/- There were no other satisfactory audit procedures that we could adopt to obtain sufficient evidence regarding the existence of such inventories. Accordingly we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Any adjustment to the figure may have a consequential significant effect on the profit for the year and net assets as at March 31 2019.The management has stated that there were no observations made by the stock auditor in their report for the stock audit carried out on behalf of the bank.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Companies Act 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

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

Except for the matter described in Basis for Disclaimer of Opinion section we have determined that there are no other key audit matters to communicate in our report.

Responsibility of Management for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 (the Act) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the accounting Standards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing the Companys ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the companys financial reporting process . Auditors Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

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

4. Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the 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's report. However future events or conditions may cause the Company to cease to continue as a going concern.

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

We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

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

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

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors Report) Order 2016 (the Order) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Companies Act 2013 we give in Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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 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 been kept by the Company so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d. In our opinion except for the matters described in Basis for Disclaimer of Opinion paragraph above the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

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

f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate Report in Annexure B.

g. With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and 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 financial position in its financial statements.Refer Note 20 to the financial statements.

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

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

Place: RajkotFor HB Kalaria and Associates
Date: 30/05/2019Firm Reg. No. 104571W
Chartered Accountants
(Hardik Kalaria)
Partner
Mem. No. 155474

Annexure A

Referred to in the section Report on Other Legal and Regulatory Requirements on of the Independent Auditors Report of even date to the members of Angel Fibers Limitedon the standalone financial statements as of and for the year ended March 312019

i. a) The Company is not maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

b) The fixed assets are physically verified by the Management from time to time. However the Company has not maintained a phased program for the physical verification of the fixed assets of the Company. The management has not noticed any material discrepancies during the year.

c) The title deeds of certain immovable properties as disclosed in the notes on fixed assets to the financial statements are held in the name of the Company.

ii. We have not been provided with the records of inventory verification done by the management of the company during the year. Hence we are unable to comment on whether there were any material discrepancies noticed by the management and whether the same have been dealt with in the books of accounts of the Company during the year.

iii. The Company has not granted any loans to any parties covered in the register maintained under section 189 of the Companies Act 2013 (the Act).

iv. The Company has not granted any loans or made any investments or provided any guarantee or security to the parties covered under Sections 185 and 186. Therefore the provisions of Clause 3(iv) of the said Order are not applicable to the Company.

v. The Company has not accepted any deposits from the public within the meaning of Sections 73 74 75 and 76 of the Act and the Rules framed there under to the extent notified.

vi. Pursuant to the Rules made by the Central Government of India the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products.

We have broadly reviewed the same and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not however made a detailed examination of the records with a view to determine whether they are accurate or complete.

vii. a) According to the information and explanations given to us and the records of the Company examined by us in our opinion the Company is generally regular in depositing undisputed statutory dues in respect of income-tax profession tax sales tax VAT and service tax and including provident fund employees state insurance duty of customs duty of excise cess and any other material statutory dues as applicable with the appropriate authorities except as outlined below:

Name of StatuteNature of duesAmount (in Rs.)Period to which the amount relatesDue date of paymentDate of paymentRemarks if any
NIL

b) According to the information and explanations given to us and the records of the Company examined by us there are dues which have been disputed and not paid as outlined below:

Name of StatuteNature of DuesDisputed Amount (in Rs.)Period to which the amount relatesForum where dispute is pending
Income-Tax Act 1961Income Tax104366600A.Y. 2015-16Commissioner Of Income Tax (Appeal)

viii. According to the records of the Company examined by us and the information and explanation given to us the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders as at the balance sheet date.

ix. The Company has not raised any moneys by way of initial public offer further public offer (including debt instruments) and term loans. Accordingly the provisions of Clause 3(ix) of the Order are not applicable to the Company.

x. During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us we have neither come across any instances of material fraud on or by the Company noticed or reported during the year nor have we been informed of su ch case by the Management.

xi. The Company has paid managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Act.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable to it the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. The details of related party transactions if any have been disclosed in the financial statements as required under Accounting Standard (AS) 18 Related Party Disclosures specified under Section 133 of the Act read with Rule 7 of the Companies (Account) Rules 2014.

xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly the provisions of Clause 3(xiv) of the Order are not applicable to the Company.

xv. The Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly the provisions of Clause 3(xv) of the Order are not applicable to the Company.

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

Place: Rajkot For HB Kalaria and Associates
Date: 30/05/2019Firm Reg. No. 104571W
Chartered Accountants
(Hardik Kalaria)
Partner
Mem. No. 155474

Annexure B

Referred to in point f. of the section Report on Other Legal and Regulatory Requirementsof the Independent Auditors' Report of even date to the members of Angel Fibers Limitedon the standalone financial statements for the year ended March 31 2019

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

1. In conjunction with our audit of the standalone financial statements of the Company as of and for the year ended March 31 2019 we have audited the internal financial controls over the financial reporting of Angel Fibers Limited (the Company) as of that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internal financial controls based on internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to the respective company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financial controls over f inancial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) issued by the ICAI and the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act to the extent applicable to an audit of internal financial controls both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on assessed risk. The procedures selected depend on the auditors' judgement including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error.

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

Meaning of Internal Financial Controls Over Financial Reporting

6. A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the company's assets that could have a material effect of financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial control over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Disclaimer of Opinion

8. According to the information and explanations given to us and based on our audit the following material weakness(es) has/have been identified as at March 31 2019:

a. The Company has inadequate segregation of duties with respect to procedures used toenter transaction totals into the general ledger; initiate authorize record and processjournal entries into the general ledger; and record recurring and non-recurring adjustmentsto the financial statements.

b. The Company is advised to appoint persons with adequate qualifications and training to fulfill their assigned functions.

c. The Company does not have an internal process to report deficiencies in internal control to management on a timely basis.

d. The Company has an ineffective internal audit function and is advised to improve the monitoring of internal financial controls to improve their effectiveness.

9. A 'material weakness' is a deficiency or a combination of deficiencies in internal financial control over financial reporting such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis.

10. We have considered the material weakness(es) identified and reported above in determining the nature timing and extent of audit tests applied in our audit of the March 31 2019 standalone financial statements of the Company and the/these material weakness(es) does not/do not affectour opinion on the financial statements of the Company.

11. The system of internal financial controls over financial reporting with regard to the Company were not made available to us to enable us to determine if the Company has established adequate internal financial control over financial reporting and whether such internal financial controls were operating effectively as at March 31 2019.

Place: RajkotFor HB Kalaria and Associates
Date: 30/05/2019Firm Reg. No. 104571W
Chartered Accountants
(Hardik Kalaria)
Partner
Mem. No. 155474

   

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