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Arfin India Ltd.

BSE: 539151 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE784R01015
BSE 00:00 | 18 Oct 58.10 2.95
(5.35%)
OPEN

58.75

HIGH

63.25

LOW

55.00

NSE 05:30 | 01 Jan Arfin India Ltd
OPEN 58.75
PREVIOUS CLOSE 55.15
VOLUME 399
52-Week high
52-Week low
P/E 21.68
Mkt Cap.(Rs cr) 92
Buy Price 57.00
Buy Qty 6.00
Sell Price 63.00
Sell Qty 225.00
OPEN 58.75
CLOSE 55.15
VOLUME 399
52-Week high
52-Week low
P/E 21.68
Mkt Cap.(Rs cr) 92
Buy Price 57.00
Buy Qty 6.00
Sell Price 63.00
Sell Qty 225.00

Arfin India Ltd. (ARFININDIA) - Auditors Report

Company auditors report

To

The Members of

Arfin India Limited

Reports on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Arfin India Limited("the Company") which comprise the Balance Sheet as at March 31 2018 theStatement of Profit and Loss including the statement of Other Comprehensive Income theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS 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 accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 and theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Ind AS financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under. We conducted our audit of theInd AS financial statements in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of theAct. Those Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidences about the amounts anddisclosures in the financial statements. The procedures selected depend upon the auditor'sjudgment including the assessment of the risks of material misstatement of the Ind ASfinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of theInd AS financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the Ind AS financial statements. We believe that the audit evidences we have obtainedare sufficient and appropriate to provide a basis for our audit opinion on the Ind ASfinancial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the Ind AS financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2018 its Profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date.

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 the Annexure - 1 a statement on the matters specified inparagraphs 3 and 4 of the Order.

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

(a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose 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 Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 and the Companies (Indian Accounting Standards) Rules2015 as amended;

(e) on the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of section 164(2) of theAct;

(f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness

105 Arfin India Limited of such controls refer to our separate Report in Annexure- 2 to this report;

(g) with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i.I The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements.(Refer Note No. 35)

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

Other Matter

The comparative financial information of the Company for the year ended March 31 2017and the transition date opening balance sheet as at April 01 2016 prepared in accordancewith Ind AS included in these Ind AS financial statements have been audited by thepredecessor auditor who had audited the financial statements for the relevant periods.

For Mukesh Rajendra & Co.

Chartered Accountants

Firm Registration No.: 143123W

Mukesh Garg

(Partner)

(Membership No.: 125292)

Place: Ahmedabad

Date: May 18 2018

Annexure 1to the Independent Auditors' Report

Referred to in Paragraph 1 of report on Legal & regulatory requirements of ourreport of even date to the members of Arfin India Limited on the FinancialStatements for the year ended on March 31 2018.

1 In respect of Fixed Assets:

a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets;

b) As explained to us the fixed assets have been physically verified by the managementduring the year according to a phased program designed by the Company to cover all theitems which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. In accordance with this program fixed assets have beenphysically verified by the management during the year and according to the information andexplanations given to us no material discrepancies have been noticed on suchverification; and

c) The title deeds of immovable properties other than self-constructed immovableproperties as disclosed in fixed assets note to the Financial Statements are held in thename of Company.

2 In our opinion and according to the information and explanations given to usphysical verification of inventories have been conducted at reasonable intervals by themanagement during the year and discrepancies noticed on verification between the physicalstocks and book records were not material having regard to the size of the Company.

3 According to the information and explanation given to us the Company has not grantedany secured or unsecured loans to Companies Firms LLP or other parties covered in theregister maintained under Section 189 of the Companies Act 2013. Therefore theprovisions of clause III of paragraph 3 of the aforesaid Order in our opinion are notapplicable to the

Company.

4 In our opinion and according to the information and explanations given to us theCompany has not granted any loans or given any guarantee or provided any security or madeany investment to any parties covered under Section 185 of the Act. The Company has notadvanced any loans or given guarantees or provided any security or made investmentspursuant to the provisions of Section 186 of the Act and hence not commented upon.

5 In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public and hence the provisions of Section73 to 76 or any other relevant provisions of the Companies Act 2013 and Rules framedthere under with regard to the deposits accepted from the public are not applicable tothe Company.

6 We have broadly reviewed the books of accounts maintained by the Company pursuant tothe Rules prescribed by the Central Government for maintenance of cost records underSub-Section (1) of Section 148 of the Companies Act 2013 for the business activitiescarried out by the Company and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination for the same with a view to determine whether they are accurate or complete.

7 In respect of Statutory Dues:

a) According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund investor education and protection fund employees' state insurance GST income taxsales tax wealth tax custom duty excise duty cess and other statutory dues if any.According to the information and explanations given to us no undisputed amounts payablein respect of income tax wealth tax sales tax customs duty and excise duty etc. wereoutstanding as at March 31 2018 for a period of more than six months from the date theybecame payable.

b) According to the information and explanations given to us there are no dues ofincome tax GST service tax value added tax wealth tax excise duty and cess which havenot been deposited on account of any dispute.

8 In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of loans and borrowings to any banks or financialinstitutions or government. The Company has not issued any Debentures.

9 To the best of our knowledge and belief and according to information and explanationsgiven to us the Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments). However term loans obtained were prima facieapplied by the Company during the year for the purpose for which they were raised.

10 To the best of our knowledge and belief during the course of our examination of thebooks and records of the Company carried out with the generally accepted auditingpractices in India and according to the information and explanations given to us we haveneither come across of any instances of material fraud by the Company or on the Company byits officers or employees noticed or reported during the year nor we have been informedof any such case by the management.

11 To the best of our knowledge and belief and according to the information andexplanations given to us managerial remuneration has been paid/ provided in accordancewith the requisite approvals mandated by the provisions of Section 197 read with ScheduleV to the Act.

12 As the Company is not Nidhi Company and the Nidhi Rules 2014 are not applicable toit; the provisions of Clause 3(xii) of the Order are not applicable to the Company.

13 To the best of our knowledge and belief and according to the information andexplanations given to us all the transactions with related parties are in compliance withthe provisions of Section 177 and Section 188 of the Act wherever applicable. The detailsof related party transactions have been disclosed in the Financial Statements under"Related Party Disclosures".

14 To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Consequently the provisions of Clause 3(xiv) of the Order are not applicable tothe Company.

15 To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not entered into any non-cash transactions withits Directors or persons connected with them. Consequently the provisions of Clause 3(xv)of the Order are not applicable to the Company.

16 According to the nature of business of the Company the Company is not required tobe registered under Section 45-IA of the Reserve Bank of India Act 1934.Consequently theprovisions of Clause 3(xvi) of the Order are not applicable to the Company.

For Mukesh Rajendra & Co.

Chartered Accountants

Firm Registration No.: 143123W

Mukesh Garg

(Partner)

(Membership No.: 125292)

Place: Ahmedabad

Date: May 18 2018

Annexure 2 to the Independent Auditor's Report

Referred to in Paragraph 2 of report on Legal & regulatory requirements of ourreport of even date to the members of Arfin India Limited on the FinancialStatements for the year ended on March 31 2018.

Report on the Internal Financial Controls under clause (i) of Sub-Section 3 of Section143 of the Act

We have audited the Internal Financial Controls over financial reporting of ArfinIndia Limited ("the Company") as on March 31 2018 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. These responsibilities includethe design implementation and maintenance of adequate Internal Financial Controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 reportingand the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act tothe extent applicable to an audit of Internal Financial Controls both applicable to anaudit of Internal

REPORT

Financial Controls and both issued by the Institute of Chartered Accountants of India(ICAI). 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 evidences about the adequacyof the Internal Financial Control Systems over financial reporting and their operatingeffectiveness. Our audit of Internal Financial Control Systems over financial reportingincludes 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 upon the Auditor's judgment including the assessment of therisks of material misstatement if any of the Financial Statements whether due to fraudor error.

We believe that the audit evidences we have obtained are sufficient and appropriate toprovide a basis for our audit opinion on the Company's Internal Financial Control Systemsover financial reporting.

Meaning of Internal Financial Control Systems over Financial Reporting

A Company's Internal Financial Control Systems over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withGenerally Accepted Accounting Principles. A Company's Internal Financial Control Systemsover financial reporting includes those policies and procedures that;

(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and depositions of the assets of the Company;

(ii) provides reasonable assurance that the transactions are recorded as necessary topermit preparations of Financial Statements in accordance with the Generally AcceptedAccounting Principles and that receipts and expenditures of the Company are being madeonly in accordance with authorizations of management and Directors of the Company; and

(iii) provides reasonable assurance regarding prevention or timely detection ofunauthorized acquisitions use or disposition of the Company's assets that could have amaterial effect on the Financial Statements.

Inherent Limitations of Internal Financial Control Systems over Financial Reporting

Because of the inherent limitations of Internal Financial Control Systems overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not to bedetected. Also projections of any evaluation of the Internal Financial Control Systemsover financial reporting to future periods are subject to the risk that the InternalFinancial Control Systems over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

REPORT

Opinion

In our opinion the Company has in all material respects an adequate InternalFinancial Control Systems over financial reporting and such Internal Financial Controlsover financial reporting were operating effectively as at March 31 2018 based on thecriteria established by the Company considering the essential components of internalcontrols stated in the Guidance Note on Audit of Internal Financial Control Systems overfinancial reporting issued by the Institute of Chartered Accountants of India.

For Mukesh Rajendra & Co.

Chartered Accountants

Firm Registration No.: 143123W

Mukesh Garg

(Partner)

(Membership No.: 125292)

Place: Ahmedabad

Date: May 18 2018