You are here » Home » Companies » Company Overview » Angel Fibers Ltd

Angel Fibers Ltd.

BSE: 541006 Sector: Industrials
NSE: N.A. ISIN Code: INE339Z01011
BSE 00:00 | 16 Nov 29.65 0
(0.00%)
OPEN

29.65

HIGH

29.65

LOW

29.65

NSE 05:30 | 01 Jan Angel Fibers Ltd
OPEN 29.65
PREVIOUS CLOSE 29.65
VOLUME 4000
52-Week high 34.65
52-Week low 6.60
P/E 10.90
Mkt Cap.(Rs cr) 74
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 29.65
CLOSE 29.65
VOLUME 4000
52-Week high 34.65
52-Week low 6.60
P/E 10.90
Mkt Cap.(Rs cr) 74
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Angel Fibers Ltd. (ANGELFIBERS) - Auditors Report

Company auditors report

To the Members of Angel Fibers Limited

Report on theStandalone Financial Statements Disclaimer of Opinion

We have audited the accompanying standalone financial statements of Angel FibersLimited ("the Company")which comprises the Balance Sheet as at March31 2020the Statement of Profit and LossandStatement ofCashFlows for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for Disclaimer ofOpinion section of our reportthe aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2020 and loss and its cash flowsfor the yearended on that date.

Basis for Disclaimer of Opinion a. The Company has not carried out an inspection ofits fixed assets and has not maintained a register of fixed assets during the year underreview. Consequently we were unable to carry out auditing procedures necessary to obtainadequate assurance regardingthe quantities and condition of fixed assets appearing in thebalance sheet at Rs. 757236736. There were no other satisfactory audit procedures thatwe could adopt to obtain sufficient evidence regarding the existence of such fixed assets.Accordinglywe have not been able to obtain sufficient appropriate audit evidence toprovide a basis for an audit opinion. Any adjustment to the figure may have aconsequential significant effect on the loss for the year and net assets as at March 312020.

b. The Company has not carried out an inspection of its inventories during the yearunder review. Consequently we were unable to carry out auditing procedures necessary toobtain adequate assurance regarding the quantities and condition of such inventoriesappearing in the balance sheet at Rs. 182144117. There were no other satisfactory auditprocedures that we could adopt to obtain sufficient evidence regarding the existence ofsuch inventories.

Accordingly we have not been able to obtain sufficient appropriate audit evidence toprovide a basis for an audit opinion. Any adjustment to the figure may have aconsequential significant effect on the loss for the year and net assets as at March 312020.

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 the FinancialStatements section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of the financial statements underthe provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis forour opinion.

Material Uncertainty Related to Going Concern a. The Company is irregular inrepayment of borrowings towards outstanding dues of principal repayable to banks andinterest payable to banks. The Company has however regularized all the borrowings as ofthe date of this report.

b. The Company has incurred a net loss of Rs. 146381732/-during the period underreview.

The Company has however prepared its financials on a going concern basis.

Key Audit Matters

Except for the matter described in Basis for Disclaimer of Opinion and MaterialUncertainty Related to Going Concern section we have determined that there are no otherkey audit matters to communicate in our report.

Emphasis of Matter

To assess the recoverability of certain assets the Company has considered internal andexternal information up to the date of this report in respect of the current and estimatedfuture Indian economic indicators consequent to the global health pandemic. The actualimpact of the pandemic may be different from that considered in assessing therecoverability of these assets. Our opinion is not modified in respect of this matter. Wedraw attention to note no. 4 & 5 of the half yearly financial results with respect toCovid-19 impact on the financial statement.

We draw your attention to Note2.6of the section Summary of Significant AccountingPolicies where the Company has not complied with the provisions of AS 15 Employee Benefitswith respect to creating a provision for leave encashment expense payable to itsemployees. The Company determines the liability for defined benefit plans on actualpayment basis only.

Our opinion is not modified in respect of this matter.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report CorporateGovernance and Shareholder's Information but does not include the standalone financialstatements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. Wehavenothing to report in this regard.

Responsibility of Management for the Standalone 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 financial statements that give a true and fair view of the financialposition financial performance and cash flowsof the Company in accordance with theaccounting principles generally accepted in India including the accounting Standardsspecified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate implementation and maintenance ofaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany's ability tocontinue 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 the company's financialreporting process.

Auditor's Responsibility 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 they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financialstatements.

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

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

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

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

4. Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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.

5. Evaluate the overall presentation structure and content of thefinancial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions 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

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) ofSection 143 ofthe Companies Act 2013 we give in"AnnexureA"a statement on the mattersspecified 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 andobtained all the information and explanations which to the best of our knowledge andbelief 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 and the Cash FlowStatementdealt with by this Report are in agreement with the books of account d. In ouropinion except for the matters described inBasis for Disclaimer of Opinion paragraphabove the aforesaid standalone financial statements comply with the Accounting Standardsspecified 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 onMarch31 2020 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020from being appointed as a director in terms of Section164(2) of the Act. f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "AnnexureB". g. The Company has paid managerialremuneration in accordance with the provisions of Sec.

197 of the Companies Act 2013 as amended from time to time during the reportingperiod. h. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule11 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. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements Refer Note20to the financial statements; ii. TheCompany did not haveany long-term contracts including derivative contracts for which there were any materialforeseeable losses. iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company

Place: Rajkot For
HB Kalaria and Associates
Date:18/07/2020 Firm Reg. No. 104571W
Chartered Accountants
(Hardik Kalaria)
Partner
Mem. No. 155474
UDIN:20155474AAAAKD2417

Annexure A

Referred to in the section Report on Other Legal and Regulatory Requirementson of theIndependent Auditors' Report of even date to the members of Angel Fibers Limitedon thestandalone financial statements as of and for the year ended March 31 2020 a)TheCompany is not maintaining proper records showing full particulars including quantitativedetails and situation of fixed assets.

b)The fixed assets are physically verified informally by the Management from time totime.

However the Company has not maintained a regular phased program for the physicalverification of the fixed assets of the Company. The management hashowevernot noticed anymaterial discrepancies during the year.

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

ii. We have not been provided with the records of inventory verification done by themanagement of the company during the year. Hence we are unable to comment on whetherthere were any material discrepancies noticed by the management and whether the same havebeen 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 registermaintained under section 189 of the Companies Act 2013 ("the Act").

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

v. The Company has not accepted any depositsfrom the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified.

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

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

a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company isgenerally regularin depositingundisputed statutory dues in respect of income-tax profession tax sales tax VAT andservice tax and including provident fund employees' state insurance duty of customsduty of excise cess and any other material statutory dues as applicable with theappropriate authoritiesexcept as stated below:-

Name of Statute Nature of dues Amount (in Rs.) Period to which the amount relates Due date of payment Date of payment Remarks if any
Gujarat Professional Tax Act Professional Tax 117580 F.Y.2019- 20 Monthly Not paid till date of report -
Gujarat Professional Tax Act Professional Tax 367850 Before F.Y. 2019-20 Monthly Not paid till date of report -

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

Name of Statute Nature of Dues Disputed Amount (in Rs.) Period to which the amount relates Forum where dispute is pending
Income-Tax Act 1961 Income Tax 104366600 A.Y. 2015-16 Commissioner Of Income Tax (Appeal)

vii. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government or dues to debenture holders as atthebalance sheet date. Though the Company is irregular in repayment of borrowings towardsoutstanding dues of principal and interest payable to banks. However the Company hasregularized allthe borrowings as of the date of this report.

The Company has sought to take the benefit ofCOVID-19 regulatory package announced bythe Reserve Bank of India vide its notification dated 27th March 2020and isconsequently has received moratorium on its loan obligations.

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

ix. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come acrossanyinstances of material fraud on or by the Company noticed or reported during the year norhave we been informed of such case by the Management.

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

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

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

xiii. The Company has not made any preferential allotment or private placement ofshares 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 theCompany.

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

xv. 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.

Place: Rajkot For
HB Kalaria and Associates
Date: 18/07/2020 Firm Reg. No. 104571W
Chartered Accountants
(Hardik Kalaria)
Partner
Mem. No. 155474
UDIN:20155474AAAAKD2417

Annexure B

Referred to in pointf. of the section Report on Other Legal and Regulatory Requirementsof the Independent Auditors' Report of even date to the members ofAngel Fibers Limited onthe standalone financial statements for the year ended March 31 2020 Report on theInternal 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 Companyas of and for the year ended March 31 2020 we have audited the internal financialcontrols over the financial reporting of Angel Fibers Limited ("theCompany") as of that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on internal control over financial reporting criteria establishedby the Companyconsidering 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 ("ICAI"). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the respective company's policies the safeguarding ofits 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

3. Our responsibility is toexpress an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith 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 tobe prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith the ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished andmaintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on assessed risk. The procedures selecteddepend onthe auditors' judgement including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error.

5. 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

6. 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 reasonableassurancethat 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 authorisationsofmanagement 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 of financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. 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 control 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.

Disclaimer of Opinion According to the information and explanations given to us andbased on ouraudit the following material weaknesses have been identified as at March 312020:

a. The Company has not carried out an inspection of its fixed assets and has notmaintained a register of fixed assets during the year under review.

b. The Company has not carried out an inspection of its inventories during the yearunder review.

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

9. The system of internal financial controls over financial reporting with regard tothe Company except as stated above were not made available to us to enable us todetermine if the Company has established adequate internal financial control overfinancial reporting and whether such internal financial controls were operatingeffectively as at March 31 2020.

Place: Rajkot For
HB Kalaria and Associates
Date: 18/07/2020 Firm Reg. No. 104571W
Chartered Accountants
(Hardik Kalaria)
Partner
Mem. No. 155474
UDIN:20155474AAAAKD2417

.