You are here » Home » Companies » Company Overview » Ankit Metal & Power Ltd

Ankit Metal & Power Ltd.

BSE: 532870 Sector: Metals & Mining
NSE: ANKITMETAL ISIN Code: INE106I01010
BSE 13:27 | 27 May 6.44 0.30
(4.89%)
OPEN

6.25

HIGH

6.44

LOW

6.17

NSE 13:19 | 27 May 6.45 0.30
(4.88%)
OPEN

6.30

HIGH

6.45

LOW

6.00

OPEN 6.25
PREVIOUS CLOSE 6.14
VOLUME 7675
52-Week high 21.90
52-Week low 1.15
P/E
Mkt Cap.(Rs cr) 91
Buy Price 6.44
Buy Qty 372.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.25
CLOSE 6.14
VOLUME 7675
52-Week high 21.90
52-Week low 1.15
P/E
Mkt Cap.(Rs cr) 91
Buy Price 6.44
Buy Qty 372.00
Sell Price 0.00
Sell Qty 0.00

Ankit Metal & Power Ltd. (ANKITMETAL) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

ANKIT METAL & POWER LIMITED

Report on the Audit of Financial Statements

Qualified Opinion

We have audited the accompanying Financial Statements of ANKIT METAL & POWERLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2021 the Statement of Profit and Loss (including Other Comprehensive Loss) the Statementof Changes in Equity and the Statement of Cash Flows for the year then ended and a summaryof significant accounting policies and other explanatory information (hereinafter referredto as "the Financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effect of matter described in the basis forqualified opinion section of our report the aforesaid Financial Statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesaccepted in India of the state of affairs of the Company as at 31st March 2021 and theloss including Other Comprehensive Gain the Statement of Changes in Equity and its CashFlow Statement for the year ended on that date.

Basis for Qualified Opinion

We draw your attention to note no.26 of the accompanying Financial Statementsregarding non-provision of interest expense on the borrowings of the Company amounting toRs.12809.67 Lacs for the year ended 31st March 2021 (cumulative non provision ofRs.65818.98 Lacs till 31st March 2021)and penal interest and charges thereof (amountremaining unascertained) which is not in accordance with the requirements of Ind AS 23:Borrowing Costs read with Ind AS 109: Financial Instruments.

Had the aforesaid interest expense been recognized the finance cost for the year ended31st March 2021 would have been Rs.14674.34 Lacs instead of reported amount of' 1864.67Lacs. The total expenses for the year ended 31st March 2021 would have been Rs.62171.89Lacs instead of' 49362.22 Lacs. The Net Loss after tax for the year ended 31st March2021 would have been Rs.20380.21 Lacs instead of reported amount of' 7570.54 Lacs. TotalComprehensive Loss for the year ended 31st March 2021 would have been Rs.20355.68 Lacsinstead of reported amount of' 7546.01 Lacs. Other equity as on 31st March 2021 wouldhave been Rs.(153348.91) Lacs instead of reported amount of' (87529.93) Lacs and OtherCurrent Financial Liability as on 31st March 2021 would have been Rs.144384.56 Lacsinstead of reported amount of' 78565.58 Lacs.

(The above reported interest has been calculated by using Simple Interest Rate).

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 Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the

Independent Auditors' Report

Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the Financial Statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our qualified opinion on the financial statements.

Material uncertainty relating to Going Concern

We draw your attention to note no. 27 of the Financial Statements regardingpreparation of the Financial Statements on going concern basis for the reason mentionedtherein. The Company has incurred losses during year ended 31st March 2021. As on datethe Company's current liabilities are substantially higher than its current assets and networth has also been fully eroded. These conditions indicate the existence of a materialuncertainty that may cast significant doubt on the Company's ability to continue as goingconcern. The appropriateness of assumption of going concern is critically dependent uponthe debt resolution of the Company which is under process the Company's ability to raiserequisite finance generation of cash flows in future to meet its obligation and to earnprofit in future.

Key Audit Matters

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

We have determined the matters described below to be the key audit matters to becommunicated in our report.

Sl. No. Key Audit Matter How our audit addressed the Key Audit Matter
1 Claim and exposure relating to taxation and litigation Our audit procedures included the following:
The Company has material uncertain tax positions including matters in respect of disputed claims/levies under various taxes and legal matters. Our audit procedures include the following substantive procedures:
• Obtained understanding of key uncertain tax positions;
The taxes and litigation exposures have been identified as key audit matter due to: • We have reviewed and analysed key correspondences relating to dispute;
i. Litigation cases require significant judgement due to complexity of the case and involvement of various authorities • We have discussed the matter for key uncertain tax positions with appropriate senior management;
ii. These involve significant management judgment to determine the possible outcome of the uncertain tax positions. • We have evaluated management's underlying key assumptions in estimating the tax provisions; and assessed management's estimate of the possible outcome of the disputed cases

Emphasis of Matter

i. As referred in note no. 30 of the Financial Statements certain balances of"Borrowings" "Trade Receivables" "Trade payables""Advances from Customer" "Advances Recoverable in Cash or Kind" and"Advance to Suppliers and Other Parties" etc. includes balances remainingoutstanding for a substantial period. The balances are subject to confirmations andreconciliation. The reported Financials might have consequential impact which remainsunascertained.

ii. As referred in note no. 11 of the Financial Statements various creditfacilities availed from UBI IOB SBI IDBI and Allahabad Bank have been assigned by therespective banks in favour of Asset Reconstruction Companies under various assignmentagreements between the respective Banks and Asset Reconstruction Companies. In absence ofinformation about the terms of assignments the company is carrying the various creditfacilities as appearing in the books and as per the previous terms with the respectivebanks. This may have consequential impact on the reported financials.

Our report is not modified in these matters.

Information other than the 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 Company'sAnnual Return but does not include the Financial Statements and our Auditor's reportthereon.

Our opinion on the Financial Statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the Financial Statements or our knowledge obtained during thecourse 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. We havenothing to report in this regard.

Responsibility of the Management for the 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 ofthe Financial Statements that give a true and fair view of the financial positionfinancial performance including Other Comprehensive Gain the Statement of Changes inEquity and Cash Flow Statement in accordance with the Ind AS and other accountingprinciples generally accepted in India. 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 Statements thatgive a 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 to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intendsto 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 skepticism throughout the audit. We also:

• Identify and assess the risks of the material misstatement of the FinancialStatement 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 controls 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 the 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

As required by the Companies (Auditors Report) Order 2016 ('the order') issued by theCentral Government of India in terms of subsection (11) of section 143 of the Act we givein the "Annexure A" a statement on the matters specified in theparagraphs 3 and 4 of the order to the extent applicable.

I. As required by section 143(3) of the Act we report that:

a. Except for the possible effects of the matters described in the basis ofqualified opinion section of our report we have sought and obtained all theinformation and explanations which to the best of our knowledge and belief were necessaryfor the purpose of our audit;

b. Except for the possible effects of the matters described in the basis ofqualified opinion section of our report in our opinion proper books of account asrequired by law have been kept by the Company so far as it appears from our examination ofthose books;

c. The Balance Sheet Statement of Profit and Loss including Other Comprehensive Lossthe Statement of Changes in Equity and the Cash Flow Statement dealt with by this Reportare in agreement with the books of accounts.

d. Except for the effects of the matters described in the basis of qualified opinionparagraph above in our opinion the aforesaid Financial Statements comply with theIndian Accounting Standards specified under section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

e. The matter described in the basis for qualified opinion section of our reportmay have adverse effect on the functioning of the Company.

f. On the basis of written representations received from the directors as on 31stMarch 2021 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms ofsection 164(2) of the Act.

g. 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 B".

h. 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 opinion and to the best of our information and according to the explanationsgiven to us the remuneration payable by the Company to its directors during the year isin accordance with the provisions of Section 197 of the Act.

i. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i) The Company has disclosed the impact of pending litigations on the financialposition in

the Financial Statements - refer note no. 28 to its Financial Statements.

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

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

Place: Kolkata For J.B.S & Company
Date: 30th day of June 2021 Chartered Accountants
FRN: 323734E
UDIN: 21063711AAAADR6714
C.A. Gouranga Paul
Partner
Membership No. 063711

Annexure "A" to the Independent Auditors' Report

The Annexure A referred to in paragraph 1 under the heading 'Report on Other Legal& Regulatory Requirements' of our report of even date to the Financial Statements ofthe Company for the year ended 31st March 2021 we report that:

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) The property plant and equipment of the Company have been physically verified bythe management at reasonable intervals and no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of freehold immovableproperties are held in the name of the Company. The Leasehold deeds of immovableproperties are in the name of Company.

(ii) The inventory has been physically verified by the management at reasonableintervals. In our opinion the frequency of such verification is reasonable. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material having regard to the size of the operations of the Company and the samehave been properly dealt with in the books of account.

(iii) The Company has not granted any loans secured or unsecured to Companies Firmsor other parties listed in the register maintained under section 189 of the Companies Act2013. Therefore the reporting under Paragraph 3 (iii) of the said order is not applicableto the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of grant of loans making investments and providing guarantees and securitiesas applicable.

(v) The Company has not accepted any deposits from the public and consequently thedirectives issued by Reserve Bank of India and provisions of section 73 to section 76 orany other relevant provisions of the Companies Act 2013 and the Companies (Acceptance ofDeposit) Rules 2015 with regard to the deposits accepted from the public are notapplicable to the Company.

(vi) We have broadly reviewed the books of account maintained by the Company in respectof manufacture of Iron & Steel product & Power generation unit pursuant to theRules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 and we are of the opinion that prima facie the recordshave been maintained. We have however not made a detailed examination of the records witha view to determining whether they are accurate and complete.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the books of account the Company has generally delayed in depositingundisputed statutory dues including Goods & Service Tax Provident Fund Income TaxSales Tax Service Tax Duty of Customs Value Added Tax Cess and other statutory duesduring the year with appropriate authorities.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of the above were in arrears as at 31st March 2021 for a period ofmore than six months from the date on when they become payable except the following:

Sl. No. Nature of Dues Amount involved ( Rs. in Lacs)
1 Excise Duty Payable 407.04
2 Income Tax Deducted at Source 167.67
3 P.F. Payable 26.73
4 Professional Tax On Salary 3.33
5 Withholding Tax 1.39
6 Liability For Gratuity Payment 0.61
7 Sales Tax Deducted At Source 0.32
Total 607.09

(c) According to the information and explanations given to us there are no dues ofIncome Tax Goods & Services Tax Sales Tax Value Added Tax Service Tax CustomsDuty Excise Duty and Cess which have not been deposited with the appropriate authoritieson account of any dispute except the following cases:

Name of the Statute Nature of Dues Amount (Rs. in Lacs) Period to which the amount relates Forum where the Dispute is pending
354.58 A. Y. 2008-09 Commissioner of Income Tax-Appeal (Kolkata)
41.39 A. Y. 2009-10 Commissioner of Income Tax-Appeal (Kolkata)
9299.55 A. Y. 2011-12 Commissioner of Income Tax-Appeal (Kolkata)
Income Tax Act 1961 11800.09 A. Y. 2012-13 Commissioner of Income Tax-Appeal (Kolkata)
Income Tax 1563.66 A. Y. 2013-14 Income Tax Appellate Tribunal (ITAT)
7151.07 A.Y. 2015-16 Income Tax Appellate Tribunal (ITAT)
18.46 A.Y. 2016-17 Commissioner of Income Tax-Appeal (Kolkata)
0.07 A.Y. 2018-19 Commissioner of Income Tax- (Kolkata)
TOTAL 30228.87
222.89 F.Y. 2005-06 Sr. Joint Commissioner of Commercial Taxes Dharmtala Circle.
TA /R y AT A onna 917.91 F.Y. 2006-07 Sr. Joint Commissioner of Commercial Taxes Dharmtala Circle.
W.D. VA! Act 2003 Sales lax 92.94 F.Y. 2006-07 Joint Commissioner of Commercial Taxes Purulia Range
358.17 F.Y. 2007-08 Sr. Joint Commissioner of Commercial Taxes Dharmtala Circle.
87.95 F.Y. 2007-08 Joint Commissioner of Commercial Taxes Durgapur Range
1946.82 F.Y. 2008-09 Deputy Commissioner of Commercial Taxes
3068.82 F.Y. 2015-16 Special Commissioner of Commercial Taxes Dharamtala Circle
3.87 F.Y. 2016-17 Joint Commissioner of Commercial Taxes
96.06 F.Y. 2017-18 Joint Commissioner of Commercial Taxes
TOTAL 6795.43
403.60 F.Y. 2012-13 Sr. Joint Commissioner of Commercial Taxes Dharamtala Circle
385.05 F.Y. 2013-14 Sr. Joint Commissioner of Commercial Taxes LTU Govt. of India
Entry Tax Entry Tax 353.95 F.Y. 2014-15 Sr. Joint Commissioner of Commercial Taxes LTU Govt. of India
210.24 F.Y. 2015-16 Joint Commissioner of Commercial Taxes LTU Govt. of India
27.67 F.Y. 2016-17 Joint Commissioner of Commercial Taxes
31.88 F.Y. 2017-18 Joint Commissioner of Commercial Taxes
TOTAL 1412.39
36.66 September 2007 and January 2008 CESTAT
30.91 01.02.2012 to 27.12.2012 Commissioner Appeal Siliguri
75.74 2008- 2009 2009- 2010 CESTAT
132.60 2008- 2009 2009- 2010 CESTAT
The Central Excise Act 1944 Excise Duty 73.42 August 2009 to February 2011 CESTAT
1809.48 2010-2014 DGCEI New Delhi
0.65 2010-11 Bolpur Commissionerate
59.36 2010-11 CESTAT
3.00 2011-12 Commissioner of Central Excise Kolkata-IV
984.17 2014-17 CESTAT
156.41 2013-14 Durgapur Commissionerate
310.05 2012-13 CESTAT
TOTAL 3672.45
Service Tax Rules 2012 Service Tax 4.33 2007 Durgapur Commissionerate
TOTAL 4.33
GRAND TOTAL 42113.39

There were no other dues of duty which have not been deposited as at 31st March 2021on account of dispute.

(viii) Based upon the audit procedures performed and according to the records of theCompany examined by us and the information and explanation given to us the Company hasdefaulted in payment of interest and repayment of principal on borrowings to banks asfollows:

In case of Long-Term Borrowings

(Rs. in Lacs)
Particulars Nature Principal Interest (Net of Reversal) Period of Default
UCO Bank 888.72 109.60 October 15 to March 21
Syndicate Bank 208.43 164.16 October 15 to March 21
Corporation Bank 1418.17 385.16 January 16 to March 21
Financial Institution - Asset Care & Reconstruction Enterprises Ltd. (ACRE) FITL 11875.79 719.65 October 15 to March 21
Financial Institution - Rare Asset Reconstruction Ltd. (RARE) 705.40 72.32 October 15 to March 21
TOTAL 15096.50 1450.88
UCO Bank 2018.00 174.48 February 16 to March 21
Syndicate Bank 500.00 365.84 February 16 to March 21
Corporation Bank 11.00 7.50 March 16 to March 21
Financial Institution - Asset Care & Reconstruction Enterprises Ltd. (ACRE) WCTL-1 3918.00 748.61 December 15 to March 21
Financial Institution - Rare Asset Reconstruction Ltd. (RARE) 77.00 12.52 November 15 to March 21
TOTAL 6524.00 1308.95
UCO Bank 820.00 71.42 February 16 to March 21
Corporation Bank 848.00 574.08 March 16 to March 21
Financial Institution - Asset Care & Reconstruction Enterprises Ltd. (ACRE) WCTL-2 4587.00 81.27 January 16 to March 21
Financial Institution - Rare Asset Reconstruction Ltd. (RARE) 372.00 60.47 December 15 to March 21
TOTAL 6627.00 787.24
Corporation Bank 5500.00 3057.18 November 15 to March 21
Financial Institution - Asset Care & Reconstruction Enterprises Ltd. (ACRE) Torm 16935.00 2124.01 November 15 to March 21
Financial Institution - Rare Asset Reconstruction Ltd. (RARE) Loan 1020.00 166.04 December 15 to March 21
Financial Institution - Alchemist Asset Reconstruction Company Ltd. 104.36 - October 14 to March 21
TOTAL 23559.36 5347.23
GRAND TOTAL 51806.86 8894.31

In case of Short-Term Borrowings

(Rs. in Lacs)
Particulars Nature Principal Interest (Net of Reversals) Period of Default
Corporation Bank 1290.59 1069.63 December 15 to March 21
Syndicate Bank 2200.63 2819.87 November 15 to March 21
UCO Bank 4129.27 590.03 September 15 to March 21
Financial Institution - Rare Asset Reconstruction Ltd. (RARE) Cash Credit 1461.80 141.63 October 15 to March 21
Financial Institution - Asset Care & Reconstruction Enterprises Ltd. (ACRE) 27546.11 2209.14 September 15 to March 21
TOTAL 36628.40 6830.30

In absence of the settlement agreement with ARC (RARE & ACRE) the maturity periodis continued to be shown as per earlier terms with respective banks and outstanding amounttill March 2021 is shown as default and the un-provided liability amounting to Rs.65818.98Lacs as referred in note no. 26 of the Financial Statements also continued tobe a default. The Company does not have any loans and borrowings from Government and hasnot issued any debentures.

(ix) Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not raised moneys by way of initial publicissue/follow-on offer (including debt instruments) and term loans.

(x) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year.

(xi) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Therefore the reporting under Paragraph 3 (xii) of theOrder is not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to usall transactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements as required by the applicable Accounting Standards.

(xiv) According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares of fully or partly convertible debentures andhence reporting under paragraph 3(xiv) of the order is not applicable to the Company.

(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not entered into any non-cash transactions withdirectors or persons connected with them. Accordingly the reporting under Paragraph 3(xv) of the order is not applicable to the Company and hence not commented upon.

(xvi) In our opinion the Company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934.

Place: Kolkata For J.B.S & Company
Date: 30th day of June 2021 Chartered Accountants
FRN: 323734E
UDIN: 21063711AAAADR6714
C.A. Gouranga Paul
Partner
Membership No. 063711

Annexure "B" to the Independent Auditors' Report

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofsub-section 3 of section 143 of the Companies Act 2013 ("the Act")

We have audited the Internal Financial Controls over financial reporting of ANKITMETAL & POWER LIMITED ("the Company") as of 31st March 2021 inconjunction with our audit of the Financial Statements of the Company for the year endedon 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'). 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 Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing issued by ICAI and prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of Internal Financial Controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the guidance note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate Internal Financial Controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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.

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.

Annexure "B" to the Independent Auditors' Report

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 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 31st March 2021 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.

Place: Kolkata For J.B.S & Company
Date: 30th day of June 2021 Chartered Accountants
FRN: 323734E
UDIN: 21063711AAAADR6714
C.A. Gouranga Paul
Partner
Membership No. 063711

.