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Foundry Fuel Products Ltd.

BSE: 513579 Sector: Others
NSE: N.A. ISIN Code: INE617C01027
BSE 00:00 | 23 Oct 1.40 0.06
(4.48%)
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NSE 05:30 | 01 Jan Foundry Fuel Products Ltd
OPEN 1.40
PREVIOUS CLOSE 1.34
VOLUME 100
52-Week high 2.76
52-Week low 1.12
P/E
Mkt Cap.(Rs cr) 1
Buy Price 1.29
Buy Qty 100.00
Sell Price 1.40
Sell Qty 12100.00
OPEN 1.40
CLOSE 1.34
VOLUME 100
52-Week high 2.76
52-Week low 1.12
P/E
Mkt Cap.(Rs cr) 1
Buy Price 1.29
Buy Qty 100.00
Sell Price 1.40
Sell Qty 12100.00

Foundry Fuel Products Ltd. (FOUNDRYFUEL) - Auditors Report

Company auditors report

TO THE MEMBERS OF FOUNDRY FUEL PRODUCTS LIMITED

Report on the Audit of the Financial Statements Opinion

We have audited the accompanying financial statements of Foundry Fuel Products Limited( the Company ) which comprise the Balance Sheet as at 31st March 2019 and the Statementof Profit and Loss (including Other Comprehensive Income) the Statement of changes inEquity and the Statement of Cash Flows for the year then ended and a summary ofsignificant accounting policies and other explanatory information (together referred to asfinancial statements ). In our opinion and to the best of our information and according tothe explanations given to us the aforesaid financial statements give the informationrequired by the Companies Act 2013 ( the Act ) in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ( Ind AS ) and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2019 and profit and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

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 Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on the financialstatements.

Material Uncertainty Related to Going Concern

We draw attention to Note 26 to the financial statements in respect of the Company'sbusiness which was dependent on the commencement of mining operation by its holdingcompany. However during the F.Y. 2014-15 the Hon'ble Supreme Court had passed an ordercancelling coal block allocations of various companies including the holding company.Considering the aforesaid cancellation the Company is looking for another businessproject. Notwithstanding above in the opinion of the management fixed assets aresufficiently and substantially depreciated / amortized and hence no adjustment would berequired to its carrying value. The Company has received commitment from holding companyfor giving the funds as and when required for payment of liabilities. Considering thesame accounts are prepared on going concern. Our opinion is not modified in respect ofthis matter.

Above matter was covered in emphasis of matter paragraph and our opinion was notmodified in respect of this matter in financial year 2014-15 2015-16 2016-17 as well asin 2017-18.

Key Audit Matter

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. Inaddition to the matter described in the Material Uncertainty Related to Going Concernsection above we have determined that there are no key audit matters to communicate inour report.

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 Annexures to Board s Report CorporateGovernance and Shareholder s Information but does not include the financial statementsand our auditor s report thereon.

Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the other information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance and make other appropriate reporting as prescribed.

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 andaccounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of 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 the Board of Directors is responsible forassessing the Company s ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

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

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 these financial statements. As part of an audit in accordance with SAs weexercise professional judgment and maintain 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 to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct 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 thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management s use of the going concern basis ofaccounting 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 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 ourauditor s 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 bythe Central Government of India in terms of sub-section (11) of Section 143 of the Act wegive in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by sub-section (3) of Section 143 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 the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flows dealt with by thisReport are in agreement with the books of account;

d. In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act; read with Rule 7 of the Companies (Accounts) Rules 2014;

e. The going concern matter described in Material Uncertainty Related to Going Concernparagraph above in our opinion may have an adverse effect on the functioning of theCompany;

f. On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2019 from being appointed as a director in terms of Section164(2) of the Act;

g. With respect to adequacy of internal financial controls system over financialreporting of the Company and operating effectiveness of such controls refer to ourseparate report given in Annexure B . Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company s internal financial controls overfinancial reporting; and

h. The Company has not paid any remuneration to its directors and hence provisions ofsection 197 of the Act read with Schedule V to the Act in respect of managerialremuneration are not applicable. Therefore any reporting as required by Section 197(16)of the Act is not applicable to the Company.

i. 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. The Company does not have any pending litigations which would impact its financialstatements;

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

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

For N. A Shah Associates LLP

Chartered Accountants

Firm Registration No. 116560W / W100149 Sd/-

Milan Mody

Partner

Membership No. 103286

Place: Mumbai

Date: 28th May 2019

Annexure A to the Independent Auditor s Report for the year ended 31st March 2019

[Referred to in paragraph 1 under the heading Report on other legal and regulatoryrequirements of our report of even date]

(i) In respect of the Company s fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The Company has physically verified all fixed assets during the year and nodiscrepancies noticed on such verification. In our opinion frequency of verification isreasonable having regards to the size of the Company and nature of its assets.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The Company does not hold any inventory. Therefore clause (ii) of paragraph 3 ofthe Order relating to inventory is not applicable to the Company

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theAct. Therefore requirements of clause (iii)(a) (iii)(b) and (iii)(c) of paragraph 3 ofthe Order is not applicable to the Company.

(iv) During the year the Company has not granted any loans or made any investments orprovided any guarantees or securities covered under section 185 and section 186 of theAct. Therefore question of ensuring compliance with section 185 and 186 of the Act doesnot arise.

(v) In our opinion and according to the explanations given to us the Company has notaccepted any deposits which are covered under section 73 to 76. Therefore question ofreporting compliance with directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 or any other relevant provisions of the Act and rulesframed thereunder does not arise. We are informed that no Order relating to the Companyhas been passed by the Company law Board or National Company Law Tribunal or Reserve Bankof India or any Court or any other Tribunal.

(vi) According to the information and explanations given to us there are no businessactivities in the Company in the current year. Accordingly clause (vi) of paragraph 3 theOrder regarding maintenance of costs records is not applicable to the Company.

(vii) In respect of statutory dues:

(a) According to the information and as per explanations given to us and on the basisof our examination of the records of the Company in respect of amounts deducted / accruedin the books of accounts the Company has generally been regular in depositing undisputedstatutory dues including provident fund employees state insurance tax deduction atsource income tax sales tax service tax goods and service tax value added tax cessand any other material statutory dues as applicable to the Company during the year withthe appropriate authorities. As at 31st March 2019 there are no such undisputed duespayable for a period of more than six months from the date they became payable.

(b) According to the records of the Company and information and explanations given tous there are no dues in respect of provident fund employees state insurance taxdeduction at source income tax sales tax service tax goods and service tax valueadded tax cess and any other material statutory dues which have not been deposited withappropriate authorities on account of any dispute.

(viii) The Company has neither taken any loan from financial institution bank andgovernment nor borrowed any amount by way of issue of debentures. Therefore clause (viii)of paragraph 3 of the Order is not applicable to the Company

(ix) During the year the Company did not raise any money by way of initial publicoffer or further public offer including debt instruments and term loans. Accordingly theprovisions of the clause (ix) of paragraph 3 of the Order is not applicable to theCompany.

(x) During the course of our examination of the books of account and records of theCompany carried out in accordance with generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyincidence of material fraud by the Company or on the Company by its employees / officersnor have been informed of any such case by the management.

(xi) The Company has not paid managerial remuneration during the year. Therefore thequestion of ensuring compliance with section 197 read with Schedule V of the Act does notarise

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) ofparagraph 3 of the Order is not applicable to the Company.

(xiii)According to the information and explanations given to us and based on ourexamination of the records transactions with the related parties are in compliance withSection 177 and 188 of the Act where applicable and details of such transactions havebeen disclosed in the financial statement as required by the applicable Ind AS - ReferNote 19 to the financial statements.

(xiv) According to the information and explanations given to us and on the basis ofour examination of records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year. Thereforethe provisions of clause (xiv) of paragraph 3 of the Order are not applicable to theCompany.

(xv) According to the information and explanations given to us and on the basis of ourexamination of records the Company has not entered into any non-cash transactions withdirectors or persons connected with him and hence compliance with Section 192 of the Actdoes not arise.

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

For N. A Shah Associates LLP

Chartered Accountants

Firm Registration No. 116560W / W100149 Sd/-

Milan Mody

Partner

Membership No. 103286

Place: Mumbai

Date: 28th May 2019

Annexure B to the Independent Auditor s Report for the year ended 31st March 2019

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ( the Act )

Report on the Internal Financial Controls under section 143(3)(i) of the Act

We have audited the internal financial controls over financial reporting of FoundryFuel Products Limited ( the Company ) as of 31st March 2019 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

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 (theGuidance Note ) issued by the Institute of Chartered Accountants of India ( ICAI ). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. 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 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 authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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.

For N. A Shah Associates LLP

Chartered Accountants

Firm Registration No. 116560W / W100149

Sd/-

Milan Mody

Partner

Membership No. 103286

Place: Mumbai

Date: 28th May 2019

.