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Apcotex Industries Ltd.

BSE: 523694 Sector: Others
NSE: APCOTEXIND ISIN Code: INE116A01032
BSE 00:00 | 27 Jan 187.45 -2.60
(-1.37%)
OPEN

188.55

HIGH

192.40

LOW

185.80

NSE 00:00 | 27 Jan 187.70 -2.15
(-1.13%)
OPEN

189.75

HIGH

192.75

LOW

186.00

OPEN 188.55
PREVIOUS CLOSE 190.05
VOLUME 26121
52-Week high 196.25
52-Week low 64.35
P/E 10.36
Mkt Cap.(Rs cr) 972
Buy Price 187.50
Buy Qty 104.00
Sell Price 187.45
Sell Qty 41.00
OPEN 188.55
CLOSE 190.05
VOLUME 26121
52-Week high 196.25
52-Week low 64.35
P/E 10.36
Mkt Cap.(Rs cr) 972
Buy Price 187.50
Buy Qty 104.00
Sell Price 187.45
Sell Qty 41.00

Apcotex Industries Ltd. (APCOTEXIND) - Auditors Report

Company auditors report

To

The Members of Apcotex Industries Limited Report on the Financial Statements Opinion

We have audited the accompanying financial statements Apcotex Industries Limited (‘theCompany') which comprise the Balance Sheet as at 31st March 2020 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes to thefinancial statements including a summary of significant policies and other explanatoryinformation (herein after referred to as ‘the financial statements').

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 level of Standards prescribed undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended ("Ind AS") and other accounting principles generally accepted inIndia of the state of affairs of the Company as at 31st March 2020 the profitand total comprehensive income changes in equity and its 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 Act. Our responsibilities under those Standards are furtherdescribed in the Auditors Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

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. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Sr No. Key Audit Matter How our audit addressed the key audit matter
1. Inventory:
Due to COVID19 restrictions and lock down the Company was unable to carry out physical verification of inventory as on the year end. Inventory verification was carried out by the management subsequent to the year end. We have tested the controls of the management over inventory existence during the year of the Company. We have consequently performed alternate audit procedures to audit the existence of inventory.
2. Capitalisation of Property Plant and Equipment(PPE): The Company has invested in PPE during the year ended 31st March 2020. The significant level of capital expenditure of PPE meets the specific recognition criteria in Indian Accounting Standard Ind AS 16 Property Plant and Equipment. Our audit included assessing the nature of PPE capitalised by the Company to test the validity of the amounts capitalised with source documentation and requires evaluating whether assets consideration to ensure capitalised meet the that the capitalisation of recognition criteria in We have tested the design (Ind implementation and AS) 16 operating effectiveness of controls in respect of capital work in progress and capitalisation of PPE. We have physically verified the existence of PPE.

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 Annexures to Board's Report CorporateGovernance Business Responsibility report and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon. Our opinion on thefinancial statements does not cover the other information and we do not express any formof 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 workwe have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

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 changes in equityand cash flowsof the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards specified under Section 133of the Act. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due 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 doubt on the Company's going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibility for the Audit of the Financials 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 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 control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the companyhas adequate internal financial controls system in place and the operating effectivenessof such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of 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 ability may cast significant tocontinue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditor's report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions 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 We user of the financial statements may be influenced. 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 any identify significant during ouraudit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on our independenceand 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 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 the Annexure A a statement on the matters specified in the paragraphs 3 and 4of the order to the extent applicable.

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 Profitand Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (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 director isdisqualified as on 31st March 2020 from being appointed as a director in termsof Section 164(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 the requirements of section 197(16) of the Act as amended we report thatin our opinion and to the best of our information and according to the explanations givento us the remuneration paid 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 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 its financialposition in its financial statements Refer Note 35(a) to the financial statements;

(ii) The Company has made provision as required under the applicable law or Indianaccounting standard for material foreseeable losses if any on long-term contractsincluding derivative contracts Refer Note 38 to the financial statements;

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For SGDG & ASSOCIATES LLP
Chartered Accountants
Firm's Registration No: W100188
SHARAD GUPTA
Partner
Membership No: 116560
Place: Navi Mumbai
Dated: 21st May 2020
UDIN: 20116560AAAAAM9435

ANNEXURE – A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) The Company has a program of verification to cover all items of fixed assets in aphased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the programme a portion of the fixedassets have been physically verified by the management during the year and no materialdiscrepancies have been noticed on such verification.

(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 immovable properties and/orlease agreements in case immovable properties are taken on lease are held in the name ofthe Company except:

Sr. No. Total No of cases Type of Assets Gross Block as at 31st March 2020 (Rs. in Lakh) Net Block as at 31st March 2020 (Rs. in Lakh) Remarks
1 1 Lease Hold Land 458.38 402.35 The Company is in the process of transferring the title deeds in its name

(ii) The Management has conducted physical verification of the inventories atreasonable intervals. The discrepancies noticed on physical verification of inventory ascompared to book records were not material and have been appropriately dealt with in thebooks of accounts.

(iii) The Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act.

(iv) In our opinion and according to the information and explanations given to us theCompany has not advanced any loans to the parties covered under section 185 of the Act.The company has not given any loans and guarantees but has made investments in thesecurities of other body corporate within the limits specified by section 186 of theAct.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public as per the provisions of section 73 74 75 and 76or any other relevant provisions of the Act and the Rules framed there under to the extentnotified.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government of India for the maintenance of cost recordsunder section 148(1) of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and based on therecords of the Company examined by us in our opinion the Company is generally regular indepositing the undisputed statutory dues including Provident Fund Employees' StateInsurance Income-tax Custom Duty Goods and Service Tax Cess and other materialstatutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and based on the recordsof the Company examined by us in our opinion no undisputed amounts payable in respect ofProvident Fund Employees' State Insurance Income-tax Custom Duty Goods and ServiceTax Cess and other material statutory dues as applicable were in arrears as at 31stMarch 2020 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us and based on the recordsof the Company examined by us the particulars of dues of Income Tax Service Tax SalesTax Customs Duty and Excise Duty Value Added Tax Goods and Service Tax Cess as at 31stMarch 2020 which have not been deposited on accounts of any disputes are as follows:

Name of the Statue Nature of Dues Amount (Rs.in Lakhs) Financial Year for which amount relates Forum where the dispute is pending
Income Tax Act 1961 Income Tax 302.84 2002-03 2010-11 2011-12 & 2016-17 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 8.00 2007-08 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 105.55 2009-10 Bombay High Court

 

Maharashtra Value Added Tax Value Added Tax 1.70 2006-07 Bombay High Court
Maharashtra Value Added Tax Value Added Tax 110.58 2007-08 to 2011-12 & 2014-15 Joint Commissioner of Sales Tax (Appeals)
Profession Tax Profession Tax 2.29 2007-08 Assessing Officer
Profession Tax Profession Tax 0.90 2009-10 Joint Commissioner Appeals
Customs Act Custom Duty 142.09 2000-01 to 2004-05 Supreme Court
Central Excise Act Excise Duty 0.13 2007-08 Tribunal
Central Excise Act Excise Duty 1.59 2009-10 to 2011-12 Deputy Commissioner
Central Excise Act Service Tax 83.36 2005-06 to 2014-15 Customs Excise and Service Tax Appellate Tribunal
Central Excise Act Service Tax 18.62 2015-16 to 2016-17 Customs Excise and Service Tax Appellate Tribunal
Central Excise Act Service Tax 44.59 2016-17 to 2017-18 Joint Commissioner
Local Body Tax Local Body Tax 152.17 2016-17 Bombay High Court

(viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to the bank. The Company does nothaveduestofinancialinstitution government ordebenture holders as at the balance sheet date.

(ix) In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) during the year. The term loans have been applied for thepurposes for which they were obtained.

(x) According to the information and explanations given to us no fraud by the Companyand no material fraud on the Company by its officers or employees has been noticed orreported during the year.

(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 managerialremuneration during the year in accordance with the requisite approvals mandated by theprovisions of section 197 read with 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. Accordingly reporting as per paragraph 3(xii) of theOrder is not required.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableIndianAccounting Standards.

(xiv) According to the information and explanations 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 or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with its directors or persons connected with them. Accordingly reporting asper paragraph 3(xv) of the Order is not required.

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

For SGDG & ASSOCIATES LLP
Chartered Accountants
Firm's Registration No: W100188
SHARAD GUPTA
Partner
Membership No: 116560
Place: Navi Mumbai
Dated: 21st May 2020
UDIN: 20116560AAAAAM9435

ANNEXURE – B TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in paragraph 2(f) under "Report on Other Legal andRegulatory Requirements" section of our report of even date

Report on the Internal Financial Controls under Clause

(i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ApcotexIndustries Limited ("the Company") as of 31st March 2020 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'). 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 Reportingissued by ICAI (the "Guidance Note") and the Standards on Auditing prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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.

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 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 31st March 2020based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For SGDG & ASSOCIATES LLP
Chartered Accountants
Firm's Registration No: W100188
SHARAD GUPTA
Partner
Membership No: 116560
Place: Navi Mumbai
Dated: 21st May 2020
UDIN: 20116560AAAAAM9435

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