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Anik Industries Ltd.

BSE: 519383 Sector: Others
NSE: ANIKINDS ISIN Code: INE087B01017
BSE 15:47 | 25 Jun 31.25 1.45
(4.87%)
OPEN

29.60

HIGH

31.25

LOW

28.50

NSE 15:40 | 25 Jun 30.80 0.70
(2.33%)
OPEN

30.30

HIGH

31.60

LOW

29.30

OPEN 29.60
PREVIOUS CLOSE 29.80
VOLUME 1700
52-Week high 82.35
52-Week low 23.70
P/E 6.26
Mkt Cap.(Rs cr) 87
Buy Price 30.65
Buy Qty 175.00
Sell Price 0.00
Sell Qty 0.00
OPEN 29.60
CLOSE 29.80
VOLUME 1700
52-Week high 82.35
52-Week low 23.70
P/E 6.26
Mkt Cap.(Rs cr) 87
Buy Price 30.65
Buy Qty 175.00
Sell Price 0.00
Sell Qty 0.00

Anik Industries Ltd. (ANIKINDS) - Auditors Report

Company auditors report

To

The Members of

ANIK INDUSTRIES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of AnikIndustries Limited ("The Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility 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 of thesestandalone 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 accountingprinciples generally accepted in India including the Accounting Standard specified underSection 133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014. ThisResponsibility also includes maintenance of adequate accounting records in accordance withthe provision of the Act for safeguarding of the assets of the company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting 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 statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provision of the Act the accounting and auditingstandard and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the company's preparation of the financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity withaccounting principles generally accepted in India of the state of affairs of the companyas at 31st March 2017 and its profit and its cash flows for the year ended on that date.

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 Act we give in the Annexure "A" statement on the matters specified in theparagraph 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 andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books. c) The Balance Sheet theStatement of Profit and Loss and Cash Flow Statement dealt with by this report are inagreement with the books of account. d) In our opinion the aforesaid standalone financialstatements comply with the accounting standards specified under section 133 of the actread with Rule 7 of the Companies (Accounts) Rules 2014. e) On the basis of the writtenrepresentations received from the directors as on 31st March 2017 taken on records by theBoard of Director none of the directors is disqualified as on 31st March 2017 from beingappointed as a director in terms of section 164(2) of the Act. f) With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate report in"Annexure B". g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 read with Companies (Audit and Auditors) Amendment Rules 2017 in our opinion and tobe best of our information and according to the explanations given to us: a. The companyhas disclosed the impact of pending litigations on its financial position in its financialstatement – refer note 29 to the financial statements; b. The Company did not haveany long term contracts including derivative contracts for which there were any materialforeseeable losses. c. There has been no delay in transferring amounts required to betransferred to the Investor Education and

Protection Fund by the company. d. The Company has provided requisite disclosures inthe financial statements refer note 43 as to holdings as well as dealings in SpecifiedBank Notes during the period from 8th November 2016 to 30th December 2016. Based onaudit procedures and relying on the management representation we report that thedisclosures are in accordance with books of account maintained by the Company.

For ASHOK KHASGIWALA & CO.
CHARTERED ACCOUNTANTS
(Firm Reg. No. 000743C)
CA Avinash Baxi
Place : Indore Partner
Dated: 3rd June 2017 (Membership No. 079722)

Annexure A to Independent Auditor's Report

Referred to in paragraph (1) under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of Anik IndustriesLimited on the standalone financial statements for the year ended 31st March 2017. i. Inrespect of its Fixed Assets : a. The Company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets. b. As explainedto us the fixed assets of the Company have been physically verified by the managementduring the year which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. No material discrepancies between the book recordsand the physical inventory have been noticed. In our opinion the frequency ofverification is reasonable. c. According to the information and explanations given to usand on the basis of our examination of the records of the Company the title deeds ofimmovable properties are held in the name of the Company except the lease deed in respectof the land at Jaisalmer costs Rs. 20000 on which Wind Mill is installed is yet to beexecuted. ii. In respect of its Inventories: The inventories has been physically verifiedby the Management during the year. In our opinion the frequency of verification isreasonable and no material discrepancies were noticed. iii. According to the informationand explanations given to us the Company has granted unsecured loans to one companycovered in the register maintained under section 189 of the Companies Act 2013. Thecompany has not granted any loans secured or unsecured to firms LLPs or other partiescovered in the register maintained under section 189 of the Companies Act 2013. Inrespect of the aforesaid loans granted : a. The terms and conditions of the grant of suchloans are not prejudicial to the company's interest; b. There is no stipulation ofschedule of repayment of principal and payment of interest. We are unable to make specificcomment on the regularity of repayment of principal and payment of interest. iv. In ouropinion and according to the information and explanations given to us the Company hascomplied with the provisions of section 185 and 186 of the Act with respect to loansgranted the investments made guarantee given and security provided. v. In our opinionand according to the information and explanations given to us the Company has notaccepted deposits from the public within the meaning of Section 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the Rules framed there under. Asinformed to us no Order has been passed by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any court or any other Tribunal. vi. We have broadlyreviewed the cost records maintained by the Company pursuant to the rules made by theCentral

Government under sub-section (1) of Section 148 of the Companies Act 2013 and are ofthe opinion that prima facie the prescribed records have been made and maintained. Wehave however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete. vii. In respect of Statutory dues : a)According to the information and explanations given to us and the records of the Companyexamined by us in our opinion the Company is generally regular in depositing undisputedstatutory dues including provident fund employee's state insurance income tax salestax service tax duty of customs duty of excise value added tax cess and any otherstatutory dues with the appropriate authorities. There were no undisputed statutory duesin arrears as at 31st March 2017 for a period of more than six months from the date theybecame payable. b) According to the information and explanations given to us there are nodues of sales tax value added tax income tax service tax duties of customs duties ofexcise which have not been deposited with appropriate authorities on account of anydispute except as follows :

Amount Period to which the Forum where Dispute is
Name of the Statute Nature of Dispute
Involved (Rs.) Amount Relates Pending
The Income Tax Act 1961 Income Tax 13207403 2009-10 ITAT
The Income Tax Act 1961 Income Tax 12091930 2010-11 Commissioner of
Income Tax (Appeals)
The Income Tax Act 1961 Income Tax 1624760 2011-12 ITAT
The Income Tax Act 1961 Income Tax 628424 2007-08 Commissioner of
Income Tax (Appeals)
The Income Tax Act 1961 Income Tax 9064000 2009-10 Commissioner of Income Tax (Appeals)
Central Excise Act 1944 Excise Duty 5100554 2002-03 to 2004-05 CESTAT
The Central Sales Tax Act Sales Tax 31303385 2001-02 Maharashtra Sales Tax Tribunal
M.P. VAT Act 2002 Commercial Tax 1881777 2007-08 M. P. Commercial Tax
(Appellate Board)
Entry Tax Act Entry Tax 1612382 2010-11 M.P. Commercial Tax (Appellate Board)
Gujarat VAT VAT 39016909 2011-12 Gujarat VAT Tribunal Ahmedabad
Entry Tax Act Entry Tax 2731694 2011-12 M.P. Commercial Tax (AppellateBoard)

viii. According to the records of the company examined by us and as per the informationand explanations given to us the

Company has not defaulted in repayment of loans and borrowings to a financialinstitution bank or government as on the balance sheet date. The Company has not issuedany debenture. ix. In our opinion and according to the information and explanations givento us the company has not raised money by way of initial public offer or further publicoffer (including debt instruments) and in our opinion and according to the information andexplanations given to us the company has not raised any term loans during the year. x.During the course of our examination of the books of account 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 across anyinstance of material fraud by the Company or on the company by the officers or employeesnoticed or reported during the year nor have we been informed of such case by themanagement. xi. According to the information and explanations given to us and based on ourexamination of the records of 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. xii. In our opinion and according to information and explanation given to us thecompany is not a Nidhi Company therefore the provision of para 3 (xii) of the Order isnot applicable to the company. xiii. According to the information and explanations givento us and based on our examination of the records of the Company transactions with therelated parties are in compliance with sections 177 and 188 of the Act where applicableand details of such transactions have been disclosed in the financial statements asrequired by the applicable accounting standards. xiv. According to the information andexplanations given to us and based on our examination of the records of the company thecompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year therefore the provision of para 3 (xiv) ofthe Order is not applicable to the company. xv. In our opinion and according to theinformation and explanations given to us the company has not entered into any non-cashtransactions with directors or persons connected with him during the year hence theprovision of para 3 (xv) of the Order is not applicable to the company. xvi. The companyis not required to be registered under section 45-IA of the Reserve Bank of India Act1934 therefore the provision of para 3 (xvi) of the Order is not applicable to thecompany for the year under audit.

For ASHOK KHASGIWALA & CO.
CHARTERED ACCOUNTANTS
(Firm Reg. No. 000743C)
CA Avinash Baxi
Place : Indore Partner
Dated: 3rd June 2017 (Membership No. 079722)

Annexure B To the Independent Auditor's Report of even date on the Standalone FinancialStatements of Anik Industries Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AnikIndustries Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express 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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 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 authorizations ofmanagement 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For ASHOK KHASGIWALA & CO.
CHARTERED ACCOUNTANTS
(Firm Reg. No. 000743C)
CA Avinash Baxi
Place : Indore Partner
Dated: 3rd June 2017 (Membership No. 079722)