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APM Industries Ltd.

BSE: 523537 Sector: Industrials
NSE: N.A. ISIN Code: INE170D01025
BSE 00:00 | 13 Nov 19.15 -1.60
(-7.71%)
OPEN

20.65

HIGH

20.65

LOW

19.10

NSE 05:30 | 01 Jan APM Industries Ltd
OPEN 20.65
PREVIOUS CLOSE 20.75
VOLUME 4201
52-Week high 39.29
52-Week low 16.05
P/E 4.14
Mkt Cap.(Rs cr) 41
Buy Price 19.15
Buy Qty 22.00
Sell Price 21.70
Sell Qty 57.00
OPEN 20.65
CLOSE 20.75
VOLUME 4201
52-Week high 39.29
52-Week low 16.05
P/E 4.14
Mkt Cap.(Rs cr) 41
Buy Price 19.15
Buy Qty 22.00
Sell Price 21.70
Sell Qty 57.00

APM Industries Ltd. (APMINDS) - Auditors Report

Company auditors report

TO THE MEMBERS OF APM INDUSTRIES LIMITED Report on the Audit of the FinancialStatements

1. Opinion

We have audited the accompanying financial statements of APM Industries Limited("the Company") which comprise the Balance Sheet as at March 31 2019 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of the significant accounting policies and other explanatory information(hereinafter 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 Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("IndAS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 the profit and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

2. 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 Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered AccountantsofIndia(ICAI) together with the independence requirements that are relevant to our auditof the financial statements under the provisions of the Act and the Rules made thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

3. 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 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.

Key Audit Matter How our audit addressed the key audit matter
Revenue from sale of products
(As described in Note 3.5 of the financial statements) Following audit procedures have been performed:
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Assessed the design and tested the operating effectiveness of internal controls automated and manual related to revenue recognition.
The revenue is one of the key profit drivers.The terms of sales arrangements including the timing of transfer of control delivery specifications create complexity and judgement in determining timing of sales revenues. Performed sample test of individual sales transaction and traced to sales invoices sales orders and other related documents. Checked that the conditions for revenue recognitions are satisfied.
Accordingly due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 ‘Revenue from Contracts with Customers' it was determined to be a key audit matter in our audit of the financial statements. Performed inventory reconciliations substantive testing for cut-offs confirmation of receivables balances and analytical procedure.
Assessed the relevant disclosures made within the financial statements.

 

4. 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 its

Annexures Corporate Governance and Shareholder's information but does not include thefinancial statements and our auditor's report thereon. Other Information as described inabove paragraph is expected to be made available to us after the date of this Auditors'Report.

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 identified abovewhen it becomes available and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

When we read the Management Discussion and Analysis Board's Report including itsAnnexures Corporate Governance and Shareholder's information if we conclude that thereis material misstatement therein we are required to communicate the matter to thosecharged with governance to correct the same. If material misstatement of the otherinformation remains uncorrected we may take appropriate action considering our legalrights and obligations to seek and have the uncorrected misstatement appropriatelybrought to the attention of the user for whom the Auditor's Report is prepared

5. 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 the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate 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 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 responsible for overseeing theCompany's financial reporting process.

6. 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 thesefinancial 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 financial controls relevant to the audit inorderto design audit proceduresthat 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 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 includinganysignificant deficiencies in internal control that we identify duringour 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 Financial Statements of the currentperiod and are therefore the key audit matters. We Describe these matters in our Auditor'sReport unless Law or Regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourReport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communications.

7. 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 in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by Section 143(3) of the Act based on our audit we report that: a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. c) The Balance Sheet the Statement of Profitand Loss including Other Comprehensive Income Statement of Changes in Equity and theStatement of Cash Flow dealt with by this Report are in agreement with the relevant booksof account. d) In our opinion the aforesaid financial statements comply with the Ind ASspecified under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended. e) On the basis of the written representationsreceived from the directors as on March 31 2019 taken on record by the Board ofDirectors none of the directors is disqualified as on March 31 2019 from being appointedas a director in terms of Section 164 (2) of the Act. f) With respect to the adequacy ofthe internal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure-B".Our report expresses unmodified opinion on the adequacy and operating effectiveness of theCompany's internal financial controls over financial reporting. g) With respect to theother matters to be included in the Auditor's Report in accordance with the requirementsof section 197(16) of the Act as amended: In our opinion and to the best of ourinformation and according to the explanations given to us the company has paid theremuneration to its directors during the year as per section 197 read with schedule V ofthe Companies Act 2013. h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 as amended in our opinion and to the best of our information and according to theexplanations given to us: i. the Company has disclosed the impact of pending litigationson its financial position in its Financial Statements- Refer Note 37 of the FinancialStatements. ii. the Company has made provision as required under the applicable law oraccounting standards for material foreseeable losses.

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 wererequired to be transferred to the Investor Education and Protection Fund by the Company.

For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Registration No. 307068E
ANUJ MAHANSARIA
New Delhi Partner
June 20 2019 Membership No. 500819

 

ANNEXURE "A" REFERRED IN INDEPENDENT AUDITORS REPORT OF EVEN DATE

The Annexure referred to in Independent Auditors' Report to the members of APMIndustries on the Financial Statements for the year ended March 31 2019 we report that:i. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. b. These Fixed assets have beenphysically verified by the management during the year pursuant to a regular programmedesigned for physical verification which in our opinion is reasonable having regard tothe size of the Company and the nature of its assets. According to the information andexplanations given to us no material discrepancies were noticed on such verification. c.According to the information and explanation given to us title deeds and lease agreementsof the immovable properties have been mortgaged as security with lenders i.e. banks forsecurity of the borrowings raised by the Company. On the basis of our examination of therecords of the Company and the copies of the title deeds and lease agreements availablewith the Company the title deeds and lease agreements of immovable properties are held inthe name of the Company. ii. Physically verification of inventories has been conducted atreasonable interval by the management and no material discrepancies were noticed. iii.According to the information and explanations given to us the Company has not granted anyloan secured or unsecured to companies firms LLP firms or other parties covered in theregister maintained under Section 189 of the Companies Act 2013. Accordingly the clauseiii (a) (b) and (c) of paragraph 3 of the Order are not applicable to the Company. iv.According to the information and explanation given to us the company has not directly orindirectly advance any loan including any loan represented by a book debt to any of itsdirectors or to any other person in whom the directors are interested or give anyguarantee or provide any security in connection with any loan taken by him or such otherperson. The Company had complied with the provision of Section 186 of the Companies Act2013 regarding investment and loan. v. According to the information and explanations givento us the Company has not accepted any deposit during the year. Accordingly the clause(v) of paragraph 3 of the Order is not applicable to the Company. vi. We have broadlyreviewed the cost records maintained by the Company specified by the Central Governmentunder Sub Section (1) of Section 148 of the Companies Act 2013 and rules thereunder andare of the opinion that prima facie the prescribed cost records have been made andmaintained.

We have however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.

vii. a. The Company is regular in depositing undisputed statutory dues includingProvident Fund Employee State Insurance Income Tax Good and Service Tax Customs Dutycess and other statutory dues as applicable with the appropriate authorities and thereare no undisputed statutory due outstanding at year end for a period of more than sixmonths from the date they became payable. b. According to the information and explanationgiven to us there were no disputed amounts payable in respect of Income Tax Sales TaxService Tax Customs Duty Value Added Tax or cess as at March 31 2019 except:

Name of the Statute Nature of Dues

Amount (Rs. in lakhs)

Period to which amounts relates

Forum where dispute is pending

Remarks

The Central Excise Act 1944 Excise Duty

138

FY 2016-17

Commissioner (Appeal)

Adjustable from GST Input Tax Credit Balance

Finance Act 1994 Service Tax

7

FY 2015-16 FY 2016-17

Commissioner (Appeal)

The Central Excise Act 1944 Excise Duty

3

April 2017 to June 2017

Assistant Commissioner

 

viii. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to any bank. The Company has not taken anyloans or borrowings from Financial Institutions and Government and has not issued anyDebentures. ix. According to the information and explanations given to us the Company hasnot raised any money by way of initial public offer or further public offer during theyear. The term loan availed during the year were applied for the purpose for which termloan was taken. x. According to the information and explanation given to us no fraud bythe company or on the company by its officers or employees has been noticed or reportedduring the year. xi. According to the information and explanations given to us theCompany has paid or provided managerial remuneration in accordance with the requisiteapproval mandated by the provisions of Section 197 read with Schedule V of the CompaniesAct 2013. xii. The company is not a Nidhi Company. Accordingly the clause xii ofparagraph 3 of the Order is not applicable to the Company. xiii. The company has compliedwith the provisions of the sections 177 and 188 of the Companies Act 2013 and hasdisclosed the details in the Financial Statements as required by the applicable accountingstandard with respect to the transaction with the related parties during the year. xiv.According to the information and explanations given to us the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebenture during the year under review. Accordingly the clause xiv of paragraph 3 of theOrder is not applicable to the Company. xv. According to the information and explanationsgiven to us the company has not entered into any non-cash transaction with directors orperson connected with them. Accordingly the clause xv of paragraph 3 of the Order is notapplicable to the Company. xvi. The company is not required to be registered under section45 –IA of Reserve Bank of India Act 1934. Accordingly the clause xvi of paragraph 3of the Order is not applicable to the Company.

For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Registration No. 307068E
ANUJ MAHANSARIA
New Delhi Partner
June 20 2019 Membership No. 500819

 

Annexure-B REFERRED IN INDEPENDENT AUDITORS REPORT OF EVEN DATE

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 "APMINDUSTRIES LIMITED ("the Company") as of March 31 2019 in conjunction with ouraudit 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 responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required 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") and the Standards on Auditing both issued by ICAI anddeemed to be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 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 March 31 2019 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 CHATURVEDI & PARTNERS
Chartered Accountants
Firm Registration No. 307068E
ANUJ MAHANSARIA
New Delhi Partner
June 20 2019 Membership No. 500819