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Axel Polymers Ltd.

BSE: 513642 Sector: Industrials
NSE: N.A. ISIN Code: INE197C01012
BSE 00:00 | 31 Mar 12.40 0
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12.36

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NSE 05:30 | 01 Jan Axel Polymers Ltd
OPEN 12.36
PREVIOUS CLOSE 12.40
VOLUME 257
52-Week high 14.69
52-Week low 6.90
P/E
Mkt Cap.(Rs cr) 5
Buy Price 12.45
Buy Qty 450.00
Sell Price 13.00
Sell Qty 8632.00
OPEN 12.36
CLOSE 12.40
VOLUME 257
52-Week high 14.69
52-Week low 6.90
P/E
Mkt Cap.(Rs cr) 5
Buy Price 12.45
Buy Qty 450.00
Sell Price 13.00
Sell Qty 8632.00

Axel Polymers Ltd. (AXELPOLYMERS) - Auditors Report

Company auditors report

TO THE MEMBERS OF AXEL POLYMERS LIMITED

Report on the Audit of the Financial Statements Opinion

We have audited the accompanying financial statements of AXEL POLYMERSLIMITED which comprise the Balance Sheet as at 31st March 2020 the Statement of Profitand Loss Statement of Changes in Equity and Statement of Cash Flows for the year thenended and Notes to the Financial Statements including a summary of the significantaccounting policies and other explanatory information.

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 2020 its profit changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We have conducted our audit in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the code of Ethics issued by the Instituteof Chartered Accountants of India together with the Ethical requirements that are relevantto our audit of the financial statements under the provision of the Companies Act 2013and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Codes of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Emphasis Of Matter

We draw attention to Note No. 36(vii) of the accompanying standalonefinancial statements which states the impact of the Coronavirus Disease 2019 (COVID-2019)on the operations of the company. Our opinion is not modified on this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Information other than the Financial Statements and Auditor'sReport Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the managementreport and chairman's statement but does not include the financial statements andour auditor's report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those Charged with Governance forthe Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act. 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 designimplementation and maintenance of adequate internal financial controls that were

operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements the Board of Director isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperation or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing thecompany's financial reporting process.

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonableassurance is high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof the users taken on the basis of these financial statements.

As a Part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risk of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omission misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedure that are appropriate in the circumstances. Undersection 143(3){i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the Company has adequate Internal Financial Controls System in placeand the operating effectiveness of 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 thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainly exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charge with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine thematter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms ofsub-section(l 1) of section 143 of the Companies Act 2013 we give in the Annexure A astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

As required by Section 143 (3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

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

c) The Balance Sheet the Statement of Profit and Loss the Statementof Changes in Equity and the Cash Flow Statement dealt with by this Report are inagreement with the books of account.

d) In our opinion the aforesaid financial statements comply with theAccounting 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 thedirectors as on 31st March 2020 taken on record by the Board of Directors noneof the

directors is disqualified as on 31s1 March 2020 from beingappointed as a director in terms of Section 164(2} of the Act.

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 the managerial remuneration for the year ended March312020 has been paid/ provided by the Company to its Directors in accordance with theprovisions of section 197 read with Schedule V to the Act.

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}Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i) The Company does not have any pending litigations which would impactits financial position in its financial statements.

ii) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to the

Investor Education and Protection Fund by the Company. ¦

For Mukund & Rohit Chartered Accountants Registration No. X13375W

Rohit Kothari
Place: Vadodara Partner
Date: 30.06.2020 Membership No. 038908 UDIN:20038908AAAAAD4758

Annexure A to the Auditors' Report

The Annexure referred to in our report to the members of AxelPolymers Limited for the year ended March 31 2020 we report that:

(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment.

(b) According to the information and explanation given to us theProperty Plant and Equipment have been physically verified by the management atreasonable intervals and no material discrepancies were noticed on such verification.

(c) According to the information and explanation given to us the titledeeds of immovable properties are held in the name of the company.

II. The Inventory have been physically verified by the management atreasonable intervals. Discrepancies noticed were not material and the same have beenproperly dealt with in the books of accounts.

III. As informed to us the Company has not granted loans secured orunsecured to Companies firms LLP or other parties covered in register maintained undersection 189 of the Companies Act 2013. Hence the questions of reporting whether thereceipt of the principal amount and interest are regular; and whether reasonable stepsfor the recovery of overdues of such loan are taken does not arise.

IV. In our opinion and according to the information and explanationsgiven to us in respect of loans investments guarantees and security provisions ofsection 185 and 186 of the Companies Act 2013 have been complied with.

V. Based on the our scrutiny of Company's record and according tothe information and explanation provided by the management in our opinion the Companyhas not accepted any loans or deposits which

are "Deposits" within the meaning of Rule 2(b) of theCompanies (Acceptance of Deposit's) Rules 2014.

VI According to the information and explanation given to us theCentral Government has not prescribed the maintenance of cost records under sub-section(1) of section 148 of the Companies Act 2013.

VII.

(a) The Company is generally regular in depositing undisputed statutorydues including Provident Fund Income -Tax Sales - Tax Service tax duty of excisevalue added tax Goods & Service Tax or cess and any other statutory dues to theappropriate authorities and no statutory dues were outstanding as at 31st March 2020 fora period of more than six months from the date they became payable.

(b) According to the information and explanation given to us there areno dues of Income Tax or Sales Tax or Service Tax or duty of excise or value added taxGoods & Service Tax or cess which have not been deposited on account of any dispute.

VIII. Based on our audit procedures and as per the information andexplanations given by the management the Company has not defaulted in repayment of duesto financial institutions or bank or debenture holders.

IX. Based on our audit procedures and as per the information andexplanations given by the management Company has not raised money by initial public offeror further public offer (including debt instruments) and there are no term loans duringthe period covered by our audit report.

X. Based on the audit procedure performed for the purpose of reportingthe true and fair view of the Ind AS financial statements and as per the information andexplanations given by the management we report that no fraud on or by the Company hasbeen noticed or reported during the

year.

XI. Based on the our scrutiny of Company's record and according tothe information and explanation provided by the management in our opinion the companyhas paid / provided for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Companies Act.

XII. In our opinion the Company is not a Nidhi Company. Therefore theprovisions of clause 3(xii) of Companies (Auditor's Report) Order 2016 are notapplicable.

XIII. All transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 and the details have been disclosed in the IndAS Financial Statements as required by the applicable accounting standards at Note 36(ii) of financial statements.

XIV. Based on our examination of records and information provided to usby management we report that the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review.

XV. Based on our examination of records and information provided to usby management the Company has not entered into any non-cash transactions with directorsor persons connected with him

XVI. The company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Therefore the provisions of clause 3(xvi) ofCompanies (Auditor's Report) Order 2016 are not applicable.

For Mukund & Rohit Chartered Accountants Registration No. 113375W

Place: Vadodara Rohit Kothari
Date: 30.06.2020 Partner
Membership No. 038908
UDIN:20038908AAAAAD4758

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 Axel Polymers Limited ("the Company") as of 31 March 2020 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is 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 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 offrauds and 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 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 Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 internalfinancial controls 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 the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Ind AS financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and

(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould

.