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Archidply Industries Ltd.

BSE: 532994 Sector: Others
NSE: ARCHIDPLY ISIN Code: INE877I01016
BSE 00:00 | 24 May 36.85 0.95
(2.65%)
OPEN

37.00

HIGH

37.70

LOW

36.20

NSE 00:00 | 24 May 37.05 1.95
(5.56%)
OPEN

35.45

HIGH

37.50

LOW

35.20

OPEN 37.00
PREVIOUS CLOSE 35.90
VOLUME 854
52-Week high 85.50
52-Week low 33.15
P/E 18.24
Mkt Cap.(Rs cr) 81
Buy Price 36.00
Buy Qty 1.00
Sell Price 38.00
Sell Qty 1.00
OPEN 37.00
CLOSE 35.90
VOLUME 854
52-Week high 85.50
52-Week low 33.15
P/E 18.24
Mkt Cap.(Rs cr) 81
Buy Price 36.00
Buy Qty 1.00
Sell Price 38.00
Sell Qty 1.00

Archidply Industries Ltd. (ARCHIDPLY) - Auditors Report

Company auditors report

To The Members of

M/s Archidply Industries Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of M/sArchidply Industries Limited ("the company) which comprise the Balance Sheet asat March 312018 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash flow for the year then endedand a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors are responsible for the matters statedin Sec.134 (5) of the Companies Act 2013("the Act") with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial control 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these financialstatements based on our audit. In conducting our audit we have taken into account theprovisions of the Act the accounting & auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the rulesmade there under.

We conducted our audit in accordance with the Standards on Auditingspecified under section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for

our audit opinion on the financial statement.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2018 and its profit total comprehensive income the changes in equityand its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1 .As required by the Companies(Auditor's Report)order2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act We give in the Annexure 'A' statement on the mattersspecified in the paragraph 3 and 4 of the order to the extent applicable.

2. As required by section 143(3) of the Act We report that: a. We havesought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books.

c. The Balance Sheet Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015.

e. On the basis of written representations received from the directorsas on March 31 2018 and taken on record by the Board of Directors none of the directorsis disqualified as on March 31 2018 from being appointed as a director in terms ofSection 164(2) of the Companies Act 2013.

f. With respect to the adequacy of the Internal Financial Controls overfinancial reporting of the company and the operating effectiveness of such controls referto our separate report in "Annexure B".

g. In our opinion and to the best of our information and according tothe explanations given to us We report as under with respect to other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014; as amended;

i. The Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses.

ii. There were no amounts which required to be transferred by theCompany to the Investor Education and Protection Fund.

iii. The company has disclosed the impact of pending litigations on itsfinancial position in its financial statements Refer to Note 35 to the financialstatements

For Priti Jhawar & Co.

Chartered Accountants

FRN: 328818E

(Priti Jhawar)

Propreitrix

(Membership No. 303053)

Place: Bangalore

Date: 30 May 2018

Annexure A to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the membersof M/s. Archidply Industries Limited ("the Company") on thestandalone financial statements for the year ended 31 March 2018 we report that:

(i) (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets; (b) These fixedassets have been physically verified by the management at reasonable intervals; nomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the company the title deeds of immovableproperties are held in the name of the company.

(ii) (a) On basis of information and explanation given to us Physicalverification of Inventory has been conducted at reasonable intervals by the management.

(b) Procedure of physical verification of Inventory followed by themanagement is reasonable &adequate in relation to the size of company and nature ofits business.

(c) In our opinion and according to the information and explanationsgiven to us the Company has maintained proper records of its inventories and no materialdiscrepancies were noticed on physical verification of stocks as compared to book records.

(iii) The Company has not granted any unsecured loans to any of theparties covered in the Register maintained under Section 189 of the Companies Act 2013.Accordingly clause (iii) of the order is not applicable.

(iv) In our opinion and according to the information and explanationsgiven to us the company has not provided any loans guarantees and Investments to whichthe provision of sec 185 of the act apply. However regarding loans guarantees andInvestments to which the provision of sec 186 apply such investment are within the limitprovided under Section 186 of the act.

(v) The company has not received any public deposits during the year.Accordingly clause (v) of the order is not applicable.

(vi) As informed to us the Central Government has not prescribedmaintenance of cost records under subsection (1) of Section 148 of the Act in respect ofthe activities carried on by the Company. Accordingly clause (vi) of the order is notapplicable.

(vii) (a) According to the records of the company and information andexplanations given to us and on the basis of our examination of the records of thecompany the Company has generally been regular in depositing undisputed statutoryduesincluding Provident Fund Employees State Insurance (ESI) Investor Education andProtection Fund Income-tax Tax deducted at source Tax collected at sourceProfessional Tax Sales Tax Value Added Tax (VAT) Goods & Service Tax (GST)ServiceTax Custom Duty Excise Duty Cess and other material statutory dues applicable to itwith the appropriate authorities. As explained to us the compan did not have any dues onaccount of employee's state insurance and duty of excise.

According to the information and explanations given to us there wereno undisputed amounts payable in respect of Provident fund Income-tax Custom DutyExcise Duty Sales tax Goods & Service Tax (GST) Value Added Tax (VAT) Cess andother material statutory dues in arrears /were outstanding as at 31 March 2018 for aperiod of more than six months from the date they became payable. (b) According to theinformation and explanations given to us details of disputed Sales Tax IncomeTaxCustoms Duty Service Tax Excise duty and Cess which have not been deposited as on 31stMarch 2 0 1 8 o n account of any dispute are given below:

Name of Statute

Nature of the dues

Disputed amount pending

Period to which the amount relates (Financial

Forum where dispute is pending.
Central Excise Act

Excise duty

Rs.8101637/-

2000-2003

Honourable Supreme Court

Excise duty

Rs 1257472/-

2011-2012

Appellate Tribunal- Karnataka

Excise duty

Rs.3957322/-

2012-2013

Appellate Tribunal-Delhi

Excise duty

Rs 937746/-

2014-2016

Assistant Commissioner of Customs Central Excise and Service Tax Rudrapur
Income Tax Act

Income Tax

Rs 267890/-

2008-2009

CIT Appellate 1
Income Tax Act

Income Tax

Rs 485350/-

2009-2010

CIT Appellate 1
Uttaranchal Vat Tax Act

Sales Tax

Rs. 5135004/-

2006-07 & 2007-08

The Joint Commissioner

(viii) In our opinion and according to the information and explanationsgiven to us the company has not defaulted in the repayment of dues to financialinstitutions and banks.

(ix) No money has been raised by way of initial public offer or furtherpublic offer (including debt instruments) during the year and Term Loans has been utilizedfor the purposes for which they were raised during the year.

(x) To the best of our knowledge and according to the information andexplanations given to us no material fraud by the Company and no material fraud on theCompany by its officers or employees has been noticed or reported during the course of ouraudit.

(xi) According to the information and explanations given to us andbased on our examination of the records of the company the managerial remuneration hasbeen provided in accordance with the requisite approvals mandated by the provisions of Sec197 with respect to Managerial Remuneration.

(xii) In our opinion and according to the information and explanationsgiven to us the company is not a Nidhi Company. Accordingly clause (xii) of the order isnot applicable.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

(xiv) According to the information and explanations given to us andbased on our examination of the records of the company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Accordingly clause (xiv) of the order is notapplicable.

(xv) According to the information and explanations given to us andbased on our examination of the records of the company the company has not entered intoany non-cash transactions with directors or persons connected with him. Accordinglyclause (xv) of the order is not applicable.

(xvi) The company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Accordingly clause (xvi) of the order is notapplicable.

For Priti Jhawar & Co.
Chartered Accountants
FRN: 328818E
(Priti Jhawar)
Propreitrix
(Membership No. 303053)

Place: Bengaluru

th

Date: 30 May 2018

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the

Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of M/s. Archidply Industries Limited ("the Company") as of 31March 2018 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal

Financial Controls

The Company's Board of Directors are responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India ('ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that Ire operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over

Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally 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 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 Opinion overFinancial Reporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting are operating effectively as at 31 March 2018 based onthe 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 Priti Jhawar & Co. Chartered Accountants FRN: 328818E

(Priti Jhawar) Propreitrix (Membership No. 303053)

Place: Bengaluru

Date: 30 May 2018