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Andhra Pradesh Tanneries Ltd.

BSE: 509367 Sector: Others
NSE: N.A. ISIN Code: INE628Y01010
BSE 05:30 | 01 Jan Andhra Pradesh Tanneries Ltd
NSE 05:30 | 01 Jan Andhra Pradesh Tanneries Ltd

Andhra Pradesh Tanneries Ltd. (APTANNERIES) - Auditors Report

Company auditors report

To

The Members of

Andhra Pradesh Tanneries Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Andhra Pradesh Tanneries Limited ("theCompany") which comprise the balance sheet as at 31st March 2019 the statement ofprofit and loss statement of changes in equity and statement of cash flows for the yearthen ended 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 the aforesaid financial statements give the information required by theCompanies Act 2013 in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India

(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2019;

(b) in the case of the Statement of Profit and Loss (including Other ComprehensiveIncome) of the Loss for the year ended on that date;

(c) in the case of the Statement of Changes in Equity of the changes in equity for theyear ended on that date; and

(d) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013(‘the Act’). Ourresponsibilities under those Standards are further described in the Auditor’sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics.

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

Material Uncertainty Related to Going Concern

We draw attention to Note 3(1)(ii) in the financial statements which indicates thatthe Company incurred a net loss of 11.46 Lakhs during the year ended March 31st 2019 andas of that date the Company’s net worth is fully eroded and having a negative networth of Rs. 1153.34 lakhs. These events or conditions along with other matters as setforth in Note 3(1)(ii) indicate that a material uncertainty exists that may castsignificant doubt on the Company’s ability to continue as a going concern. Ouropinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit financial statements of the current period. These matters wereaddressed in the context of our auditofthefinancial statements as a whole and in formingour opinion thereon and we do not provide a separate opinion on these matters. Except forthe matter described in the Material Uncertainty Related to Going Concern section noother KAM needs to be addressed in our report.

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 ManagementDiscussion and Analysis Board’s Report including Annexure to Board’s Reportand Shareholder’s Information but does not include the financial statements and ourauditor’s report thereon.

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 thefinancial statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto 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.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 with respect to the preparation of these financialstatements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theInd ASand other accounting principles generally accepted in India. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 the Board of Directors is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the Board of Directors either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.

The Board of Directors are 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 ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud 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 weexercise professional judgment and maintain professional skepticism 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 controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act 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.

• 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 concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However future events or conditions may cause theCompany to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunder lying transactions and events in a manner that achieves fair presentation.

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 thematter or when 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 the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the companies Act 2013 we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the 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 the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with therelevant books of account.

(d) In our opinion theaforesaidfinancialstatementscomplywiththeIndASspecified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 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 B".

(g) 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 does not have any pending litigations which would impact its financial

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

iii. There were no dues which were required to be transferred to Investor Education andProtection Fund by the company.

For Ajay Dhoot & Co.
Chartered Accountants
Firm Regn. No.100196W
AJAY DHOOT
Place : Mumbai (Proprietor)
Date : 18th April 2019 M.No.- 42772.

"ANNEXURE -A’’ TO THE INDEPENDENT AUDITORS REPORT

The Annexure referred to in our Report of even date to the members of the AndhraPradesh Tanneries Limited on the financial statements for the year ended on 31 st March2019. We report that:

i. (a) The company is maintaining proper records showing full particulars includingquantitative details and fixed assets. situationof

(b) The fixed assets have been physically verified by the management at reasonableinterval and no material discrepancies were noticed on such verification.

(c) Title deeds of Immovable Properties are held in the name of the company.

ii. As the company has no inventory during the year para 2 of the said order is notapplicable.

iii. According to information and explanations given to us the company has not grantedany loans secured or unsecured to companies firms or other parties covered in theregister maintained under section 189 of the Companies Act and hence paragraph 3(iii) ofthe Order is not applicable.

iv. The Provisions of Section 185 and 186 are not applicable as company has not givenany loan guarantees

Investment and security. Accordingly paragraph 3(iv) of the Order is not applicable.

v. According to the information and explanations given to us the Company has notaccepted any deposits as per the provisions of Section 73 to 76 or any other relevantprovisions of the Companies Act and the rules framed there under.

vi. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company.

vii. (a) According to the records of the Company undisputed statutory dues includingGST and Income Tax have been regularly deposited with the appropriate authorities.According to and information and explanations given to us no undisputed amounts payablein respect of aforesaid dues were outstanding as at 31st March 2019 for a period of morethan six months from the date it became payable.

(b) According to the records of the Company and information and explanations given tous there are no disputed dues in case of income tax or sales tax or wealth tax or servicetax or duty of customs or duty of excise or value added tax or cess.

viii. The Company has no outstanding default in repayment of dues to a financialinstitution and Banks towards loans availed.

ix. The Company has not raised money by way of Initial Public Offer or Further PublicOffer. No term Loan was availed by the company during the year.

x. According to information and explanations given to us and to the best of ourknowledge and belief no fraud on or by the company has been noticed or reported during theyear.

xi. According to information and explanations given to us and based on our examinationof the records of the company the company has not paid/provided for ManagerialRemuneration during the year.

xii. In our opinion and according to information and explanations given to us thecompany is not a Nidhi Company.

Accordingly paragraph 3(xii) of the Order is not applicable.

xiii. According to information and explanations given to us and based on ourexamination of the records of the company transactions with related parties are inaccordance with section 177 and 188 of the act where applicable and details of suchtransactions have been disclosed in Financial Statements as required by applicableaccounting standards.

xiv. According to information and explanations given to us and based on our examinationof the records of the company the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.

xv. According to information and explanations given to us and based on our examinationof the records of the company the company has not entered into non-cash transactions withdirectors or persons connected with him.

Therefore paragraph 3(xv) of the Order is not applicable.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Ajay Dhoot & Co.
Chartered Accountants
Firm Regn. No.100196W
AJAY DHOOT
Place : Mumbai (Proprietor)
Date : 18th April 2019 M.No.-42772.

ANNEXURE B"

TO THE INDEPENDENT AUDITOR’S REPORT

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 AndhraPradesh Tanneries Limited ("the Company") as of 31st March 2019 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). 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 assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of information as required under theCompanies Act 2013. reliable

Due to no operations Company has yet to adopt a policy for Internal Finance control.

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 both applicable to an audit of Internal FinancialControls and issued by the Institute of Chartered Accountants of India. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

As mentioned above due to no operations Company has not adopted a policy for InternalFinance control.

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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

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 reasonableassurance that 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 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 although the company has not adopted a policy for internal financecontrol the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2019 based on the internalcontrol over financial reporting criteria established by the company considering theessential components of Internal Control stated in the Guidance note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India (ICAI).

For Ajay Dhoot & Co.
Chartered Accountants
Firm Regn. No.100196W
AJAY DHOOT
Place : Mumbai (Proprietor)
Date : 18th April 2019 M.No.-42772.