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Anjani Portland Cement Ltd.

BSE: 518091 Sector: Industrials
NSE: APCL ISIN Code: INE071F01012
BSE 00:00 | 25 Jan 206.70 -0.50
(-0.24%)
OPEN

208.65

HIGH

208.95

LOW

205.85

NSE 00:00 | 25 Jan 207.20 0.15
(0.07%)
OPEN

208.95

HIGH

210.00

LOW

205.40

OPEN 208.65
PREVIOUS CLOSE 207.20
VOLUME 2431
52-Week high 234.90
52-Week low 82.25
P/E 9.68
Mkt Cap.(Rs cr) 523
Buy Price 205.90
Buy Qty 100.00
Sell Price 209.95
Sell Qty 50.00
OPEN 208.65
CLOSE 207.20
VOLUME 2431
52-Week high 234.90
52-Week low 82.25
P/E 9.68
Mkt Cap.(Rs cr) 523
Buy Price 205.90
Buy Qty 100.00
Sell Price 209.95
Sell Qty 50.00

Anjani Portland Cement Ltd. (APCL) - Auditors Report

Company auditors report

To

The Members of Anjani Portland Cement Limited

Report on the Audit of the Financial Statements Opinion

We have audited the accompanying financial statements of Anjani Portland CementLimited ("the Company") which comprise the Balance Sheet as at 31st March2020 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 312020 and its profit total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Auditof the Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India ("ICAI") together with the ethical requirements that arerelevant to our audit of the financial statements under the provisions of the Act and theRules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificant 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. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Sr. Key Audit Matter No. Auditor's Response
1 Evaluation of uncertain tax positions Principal Audit Procedures
Obtained details of completed tax assessments and demands for the year ended March 312020 from management. We involved our internal experts to challenge the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Our internal experts also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions.
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes.

Refer Notes 38 to the Financial Statements

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

The Company's Board of Directors is responsible for the preparation of otherinformation. The other information comprises the information included in the DirectorsReport and Corporate Governance Report but does not include the financial statements andour auditor's report thereon. The Directors Report and Corporate Governance Report isexpected to be made available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the Directors report and Corporate Governance Report if we conclude thatthere is a material misstatement therein we are required to communicate the matter tothose charged with Governance.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the IND AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate implementation andmaintenance of 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.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's 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 SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement 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 financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the 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 content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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 Section 143(3) of the Act based on our audit 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 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 including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow Statement dealt withby this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act read with Rule 7 of Companies(Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the 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 the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid or provided by the company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 1 1 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 in its financial statements (Refer note 38);

ii. The Company did not have any long-term contracts including derivative contracts forwhich there are any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143 (11) of the Act we givein "Annexure- B" a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

For Ramanatham & Rao
Chartered accountants
Firm Registration No.S-2934
C. Kameshwar Rao
Partner
Membership No.024363
UDIN:20024363AAAABP5761
Place : Chennai
Date : 29.06.2020

Annexure "A" to the Independent Auditor's Report

(Referred to in paragraph 1(f) under 'Report on Other Legal Regulatory Requirements'section of our report to the Members of the Company of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AnjaniPortland Cement Limited ("the Company") as of 31 March 2020 in conjunctionwith our audit of the financial statements of the Company for 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 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 Companies Act 2013.

Auditor's 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") issued by ICAI and the Standards on Auditing prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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.

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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Ramanatham & Rao
Chartered accountants
Firm Registration No.S-2934
C. Kameshwar Rao
Partner
Membership No.024363
UDIN:20024363AAAABP5761
Place : Chennai
Date : 29.06.2020

Annexure "B" to the Independent Auditor's Report

With reference to Paragraph 2 under 'Report on Other Legal Regulatory Requirements'section of our

report to the Members of the Company we report that:

1.1 The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

1.2 According to the information and explanations given to us and the records of thecompany examined by us the property plant and equipment have been physically verified bythe management in a periodical manner which in our opinion is reasonable having regardto the size of the Company and the nature of its business. No material discrepancies werenoticed on such physical verification.

1.3 According to the information and explanations given to us and on the basis of ourexamination of records of the company the title deeds of immovable properties are held inthe name of the company.

2.1 The inventories have been physically verified during the period by the management.In our opinion the frequency of verification is reasonable. The discrepancies noticed onverification between the physical stocks and book records were not material.

3 During the year the company has not granted any loans secured or unsecured toparties covered in the register maintained under section 189 of the Act. Hence paragraph3(iii) of the order is not applicable to the company.

4 In our opinion and according to the information and explanations given to us duringthe year company has not given any loans made investments given guarantees or securityto parties covered under provisions of section 185 and 186 of the Companies Act 2013.Hence paragraph 3(iv) of the order is not applicable.

5 During the year the company has not accepted any deposits nor any depositsoutstanding as on balance sheet date where provisions of sections 73 to 76 or any otherrelevant provisions of the Act are applicable. We are informed that no order has beenpassed by the Company Law Board or National Company Law Tribunal or Reserve Bank of Indiaor any court or any other tribunal.

6 In our opinion and according to the information and explanations given to us theCompany has made and maintained accounts and records prescribed by the Central Governmentunder subsection (1) of section 148 of the Act.

7.1 According to the information and explanations given to us and the records of theCompany examined by us the Company is regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax customs duty cessgoods and service tax and any other statutory dues as applicable with the appropriateauthorities and there are no arrears of outstanding statutory dues as at year endedconcerned for a period of more than six months from the date they became payable.

7.2 According to the information and explanations given to us and records of theCompany examined by us particulars of income tax sales tax valued added tax servicetax customs duty excise duty goods and service tax or cess as at 31st March 2020 whichhave not been deposited on account of any dispute pending are as under:

Name of the Statute Nature of the Dues Amount (Rs. In Lakhs) Period to which the amount relates Forum where dispute is pending
Central Excise Act 1944 Excise Duty

180

2006 to 2010

CESTAT Bangalore remanded back to Commissioner Hyderabad.

Customs Act 1962 Customs Duty

97

July Oct & Nov 2012

CESTAT Bangalore

Customs Act 1962 Customs Duty

24

Nov 2013 & Jan 2014

Commissioner of Customs (Appeals) Visakhapatnam
Customs Act 1962 Customs Duty

9

Mar 2012

Commissioner of Customs (Appeals) Visakhapatnam
Income Tax Act 1961 Income Tax

116

2013-14

Income Tax Appellate Tribunal Hyderabad.
Income Tax Act 1961 Income Tax

102

2007-08

High Court for the state of Telangana Hyderabad
Income Tax Act 1961 Income Tax

194

2008-09

High Court for the state of Telangana Hyderabad

8 According to the information and explanations given to us the company has notdefaulted in repayment of dues to financial institutions banks or debenture holders.

9 The company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments). Term Loans are utilised for the purposes for whichthose were obtained other than amounts temporarily invested pending utilization of thefunds for the intended use.

10 To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company by its officers or employees wasnoticed or reported during the period.

11 Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the CompaniesAct 2013.

12 Company is not a Nidhi Company; hence paragraph 3(xii) of the order is notapplicable to the company.

13 According to the information and explanations given to us all transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements as required bythe applicable accounting standards.

14 During the year company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures hence paragraph 3(xiv) ofthe order is not applicable to the company.

15 To the best of our knowledge and belief and according to the information andexplanations given to us the company has not entered into any non-cash transactions withdirectors or persons connected with them hence paragraph 3(xv) of the order is notapplicable to the company.

16 As per the information available and explanations given to us the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For Ramanatham & Rao
Chartered accountants
Firm Registration No.S-2934
C. Kameshwar Rao
Partner
Membership No.024363
UDIN:20024363AAAABP5761
Place : Chennai
Date : 29.06.2020

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