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Archies Ltd.

BSE: 532212 Sector: Others
NSE: ARCHIES ISIN Code: INE731A01020
BSE 00:00 | 21 Oct 11.60 0.30
(2.65%)
OPEN

11.76

HIGH

11.76

LOW

11.44

NSE 00:00 | 21 Oct 11.70 0.20
(1.74%)
OPEN

11.60

HIGH

11.95

LOW

11.20

OPEN 11.76
PREVIOUS CLOSE 11.30
VOLUME 449
52-Week high 24.80
52-Week low 8.12
P/E
Mkt Cap.(Rs cr) 39
Buy Price 11.45
Buy Qty 173.00
Sell Price 11.89
Sell Qty 1000.00
OPEN 11.76
CLOSE 11.30
VOLUME 449
52-Week high 24.80
52-Week low 8.12
P/E
Mkt Cap.(Rs cr) 39
Buy Price 11.45
Buy Qty 173.00
Sell Price 11.89
Sell Qty 1000.00

Archies Ltd. (ARCHIES) - Auditors Report

Company auditors report

To The Members of

ARCHIES LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of ARCHIES LIMITED ("theCompany") which comprise the Balance Sheet as at 31 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 ("the Art") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2019 the profit changes in equity andits cash flows for the year ended on that 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 the ethicalrequirements 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 matter described below to be the key audit matter to be communicatedin our report.

Key Audit Matter Auditors' Response
Recoverability of Insurance Claim Filed Principal Audit Procedure
On 14 February 2019 a fire occurred at the head office premise of the company causing damage to the Property Plant and Equipment and Inventory as detailed in Note 36. We have carried out the checking of working of the management determining the written down value of those Property Plant and Equipment and Inventory which have been damaged/ destroyed
Against the above loss the company has filed the insurance claim of Rs 926.67 Lakhs (Property Plant and Equipment at replacement value and Inventory at cost) with the insurance company. The amount of Rs 510.90 Lakhs being complete loss has been shown as "Insurance Claim Receivable" in (Note 8(d)). The book value of repairable items is included respectively in Property Plant and Equipment (Note 3) and Inventory (Note 7). due to fire.
Quantum of the recoverable amount of insurance claim is uncertain as the final assessment of the loss is under process by the insurance company.

Management's Responsibilities 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 flows of 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 of 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 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.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditors' 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 auditors' 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 order todesign 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 Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch 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 auditors' 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 auditors'report. 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.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' 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 sub-section (11) of Section 143 ofthe Act we give in "Annexure A" a statement on the matters specified inparagraphs 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 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 and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus.

(c) The Balance Sheet the Statement of Profit and Loss Statement of Changes in Equityand the Cash Flow Statement dealt with by this report are in agreement with the books ofaccount and with the returns received from the branches not visited by us.

(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 31March 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31 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 Auditors' Report inaccordance with the requirements of Section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration 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 Auditors' 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 28 to the financial statements;

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

iii. There has been no delay in transferring amounts except as stated below requiredto be transferred to the Investor Education and Protection Fund by the Company.

Due Date Date of Demand Draft Date of Deposit
5 December 2018 30 November 2018 17 December 2018

 

For J. P„ KAPUR & UBERAI
CHARTERED ACCOUNTANTS
(Firm Registration No. 000593N)
Place: Gurugram H. S. Khurana
Date: 28 May 2019 PARTNER
(M. No. 017779)

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'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 fixed assets have been physically verified by the management during the year.There is a regular programme of verification which in our opinion is reasonable havingregard to the size of the Company and nature of its fixed assets. No materialdiscrepancies were noticed on such verification.

(c) According to our examination of the books and records of the Company and theinformation and explanations given to us the title deeds of immovable properties are heldin the name of the Company.

ii. The inventory has been physically verified by the management at reasonableintervals. The discrepancies noticed on verification between the physical stocks and bookrecords were not material.

iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnership or other parties covered in the register maintained underSection 189 of the Act. Accordingly paragraph 3(iii) of the order is not applicable.

iv. The Company has not entered into any transaction in respect of loans investmentsguarantees and security to which the provisions of Section 185 and 186 of the Act wouldapply.

v. The Company has not accepted any deposits from the public to which the provisions ofSection 73 to 76 or any other relevant provisions of the Act and the rules framedthereunder would apply.

vi. The Central Government has not prescribed maintenance of cost records under Section148 (1) of the Act in respect of the products of the Company.

vii. (a) According to the records of the Company the Company is regular in depositingwith appropriate authorities undisputed statutory dues including provident fundemployees' state insurance income tax sales tax service tax duty of customs duty ofexcise value added tax cess and any other statutory dues applicable to it except in fewcases where there is a delay in deposit. According to the information and explanationsgiven to us no undisputed amounts payable in respect of provident fund employees' stateinsurance income tax sales tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues applicable to it were outstanding as at 31March 2019 for a period of more than six months from the date they became payable.

(b) According to the records of the Company there are no dues of income tax salestax service tax duty of customs duty of excise value added tax which have not beendeposited with the appropriate authorities on account of any dispute except thefollowing: -

Nature of the Statutory Dues Amount (Rs in Lakhs) Period to which the amount relates Forum where the dispute is pending
Tax Deducted at Source 6.67 2010-11 Commissioner of Income Tax (Appeals)
Tax Deducted at Source 9.02 2011-12 Commissioner of Income Tax (Appeals)

viii. The Company has not defaulted in the repayment of loans or borrowings to banks.The Company has neither taken any loans or borrowings from financial institutions orgovernment nor issued any debentures during the year.

ix. The Company has not taken any moneys raised by way of initial public offer orfurther public offer (including debt instruments) and term loans. Accordingly paragraph3(ix) of the order is not applicable.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company by its officers or employees noticed or reportedduring the year nor have we been informed of such case by the Management.

xi. According to our examination of the books and records of the Company and theinformation and explanations given to us the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

xii. According to the information and explanations given to us the Company is not aNidhi company.

xiii. According to our examination of the books and records of the Company and theinformation and explanations given to us transactions with the related parties are incompliance with Section 177 and 188 of the Act and the details of such transactions havebeen disclosed in Note 31 to the Financial Statements as required by the applicableaccounting standards.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year.

xv. According to our examination of the books and records of the Company and theinformation and explanations given to us the Company has not entered into non-cashtransactions with directors or persons connected with him.

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

For J. P„ KAPUR & UBERAI
CHARTERED ACCOUNTANTS
(Firm Registration No. 000593N)
Place: Gurugram H. S. Khurana
Date: 28 May 2019 PARTNER
(M. No. 017779)

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Act We have audited the internal financialcontrols over financial reporting of the Company as of 31 March 2019 in conjunction withour 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India("the 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 Act.

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 and the Standards on Auditing both issued by ICAI and deemed to beprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 auditors' 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 on the achievement of the objectives of the control criteria theCompany has in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at 31 March 2019 based on the internal financial control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.

For J. R KAPUR & UBERAI
CHARTERED ACCOUNTANTS
(Firm Registration No. 000593N)
Place: Gurugram H. S. Khurana
Date: 28 May 2019 PARTNER
(M. No. 017779)

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