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Adhunik Metaliks Ltd.

BSE: 532727 | NSE: ADHUNIK | Series: BZ | ISIN: INE400H01019 | SECTOR: Steel - Sponge Iron

BSE Live

Nov 29, 16:00
0.49 -0.02 (-3.92%)
Volume
AVERAGE VOLUME
5-Day
3,426
10-Day
5,067
30-Day
4,257
11,261
  • Prev. Close

    0.51

  • Open Price

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NSE Live

Nov 29, 15:32
0.50 0.00 (0.00%)
Volume
AVERAGE VOLUME
5-Day
26,194
10-Day
19,802
30-Day
13,803
33,015
  • Prev. Close

    0.50

  • Open Price

    0.50

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2016 2015 2014 2013 2012 2011 2010 2009 2008

Auditor's Report

We have audited the accompanying standalone financial statements of ADHUNIK METALIKS LIMITED (the Company), which comprise the Balance Sheet as at 30th June, 2015, the Statement of Profit and Loss and, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management''s Responsibility for the Standalone Financial Statements The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the Act) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and 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 standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements. Opinion In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 30th June, 2015, and its loss and its cash flows for the year ended on that date. Emphasis of Matter a) We draw attention to the fact that the Company had locked out its plant w.e.f 13th February, 2015 till 15th May, 2015, due to adverse business conditions. In view of such lock out, the company has not made provision for most of the employees'' salary at plant and related statutory obligation for the lock out period, the amount of which is not ascertainable. b) With reference to Note No 6.2 of the financial statement, the company has recognized Net Deferred Tax Assets amounting to Rs. 13,336.06 lacs up to 30th June, 2015 based on the future profitability projections made by the management. The management is of the view that sufficient future taxable income will be available against which such deferred tax assets can be adjusted. Our Opinion is not modified in respect of above matters Other Matters We did not audit the financial statements of one foreign branch included in the standalone financial statements of the Company whose financial statements reflect total assets (net) of Rs,917.62 lacs as at 30th June, 2015 and total revenues of Rs. Nil for the year ended on that date, as considered in the standalone financial statements. The financial statements of this branch have been audited by the branch auditor whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of this branch, is based solely on the report of such branch auditor. Our opinion is not modified in respect of this matter. Report on Other Legal and Regulatory Requirements As required by the Companies (Auditor''s Report) Order, 2015 (the Order), issued by the Central Government of India in terms of sub- section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. 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 best of 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 the Company so far as it appears from our examination of those books. c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account. d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. e) On the basis of the written representations received from the directors as on 30th June, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 30th June, 2015 from being appointed as a director in terms of Section 164 (2) of the Act. f) The matters describes in the ''Emphasis of Matter'' paragraph above, in our opinion, may not have an adverse effect on the functioning of the company. g) With respect to the other matters to be included in the Auditor''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 the explanations given to us: i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements as stated in Note No. 29 to the financial statements. ii. The Company did not have any long-term contracts including derivative 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. (Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date) (i) In respect of fixed assets: a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. b. The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of three/reasonable intervals which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us no material discrepancies were noticed on such verification. (ii) In respect of Inventory: a. As explained to us inventories were physically verified during the year by the management at reasonable intervals. b. As the Company''s inventory of raw material and finished goods mostly include bulk materials which require technical expertise for establishing the quantity thereof, the Company has hired independent agencies for physical verification of such stocks. Relying on the above verification by independent expert agencies and according to information and explanation furnished to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. c. In our opinion and according to the information and explanation given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification. (iii) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Consequently, the provisions of clauses iii (a) and iii (b) of the order are not applicable to the Company and hence, not commented upon. (iv) In our opinion and according to the information and explanations given to us there is generally an adequate internal control procedure commensurate with the size of the Company and the nature of its business with regard to purchase of inventories, fixed assets, sale of goods and services. During the course of our audit, no major instance of continuing failure to correct any weakness in the internal controls has been noticed. (v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit from the public covered under Section 73 to 76 of the Companies Act, 2013. Therefore, the provisions of the clause 4 (v) of the Order are not applicable to the Company. (vi) According to the information and explanations given to us, in our opinion, the Company have, prima facie, made and maintained the prescribed cost records pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended, prescribed by the Central Government under subsection (1) of Section 148 of the Companies Act, 2013. We have, however, not made a detailed examination of the cost records with a view to determining whether they are accurate or complete. (vii) (a) According to the information and explanation given to us and on the basis of our examination of the records of the company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Service Tax, Value Added Tax, cess or other material statutory dues have been generally regularly deposited during the year by the Company with appropriate authorities. According to the information and explanation given to us no undisputed statutory dues including Provident Fund, Income Tax, Service Tax, Value Added Tax, cess or other material statutory dues were in arrears as at 30th June, 2015 for a period of more than six months from the date they become payable except in following cases: Nature of statute Nature of dues Amount Period to which (Rs. in Lacs) the amount relates Income Tax Act, 1961 Tax Deducted at Source 377.05 April 2014 to November 2014 Finance Act, 1994 Service Tax on reverse charge 2.68 October2014 to mechanism November 2014 The Central Excise Act, 1944 Excise duty 266.67 September 2014 to November 2014 Employees'' Provident Funds Employees'' Share, Employer 40.29 November 2014 Scheme, 1952 share and PF on contractors Employees'' State Insurance Employees'' Share and ESI on 5.33 November 2014 Act, 1948 contractors (b) According to the information and explanation given to us, the following dues of sales-tax have not been deposited by the company on account of dispute as at 30th June, 2015: Nature of Nature of dues Amount Period to statute (Rs. in which the Lacs) amount relates Central Disallowance of Sale against 179.84 2004-05, Sales Tax Form-C, Form-H and transfer of 2005-06 & stock to branches 2007-08 Sales tax has arisen due to 17.30 2011-12 & pending C/F/H Forms and Supporting 2012-13 document for Deemed Export. On assessment for 2005-06 shortfall in 14.22 2003-04 & Sales tax has arisen due to pending 2005 -06 C Forms, H Forms and F Forms. For 2003-04 Demand raised on the basis of discrepancies identified during investigation Disallowance for sale against Form-C 2.30 2009-10 Central Dispute towards Cenvat Excise and Credit on 2,121.14 2003-09 structural steel used service Tax for construction of capital goods, input and disallowance of Service Tax on Commission Income Dispute towards Cenvat Credit on 763.42 2006-11 capital goods & input. Dispute towards Cenvat Credit on input. 16.20 2005-11 Orissa Entry Entry Tax on machinery & spares and 121.52 2011-12 & Tax Capital Goods, Interest & Penalty for 2012-13 late filling of return Entry Tax on machinery & spares & 59.92 2002-05 & Capital Goods 2007-08 Orissa Value Disallowance of Input Tax credit. 123.27 2005-06 & Added Tax 2006-07 Disallowance of Input Tax credit. 430.88 2005-06 & 2011-12 Disallowance of Input Tax credit, 3.64 2012-13 Interest & Penalty for late filling of return Orissa Demand against discrepancies identified 0.67 2003-04 & Sales Tax during investigation 2004-05 Dispute on gross turnover vis--vis 5.98 2003-04 taxable turnover West Bengal Disallowance of input tax credit, 289.89 2007 to 2012 Value Added Tax Addition of Turnover Total 4,150.19 Nature of Forum where dispute is pending Statute Central Additional Commissioner of Sales Tax, sales Tax Orissa Sales Tax Tribunal, Cuttack Additional Commissioner of Sales Tax, Sambalpur The Joint. Commissioner of Sales Tax, Rourkela Sr. Jt Commissioner, Chowringhee Circle, Kolkata Central C E S T A T( KOLKATA) Excise and Service Tax Commissioner, Jt. Commissioner, Addl. Commissioner, Commissioner (Appeal) Bhubaneswar Dy. Commissioner, Asst. Commissioner, Rourkela Orissa Entry Addl. Commissioner of Sales Tax, Sambalpur Tax Additional Commissioner of Sales Tax, The Orissa Sales Tax Tribunal, Cuttack Orissa Value High Court Of Orissa, Cuttack Added Tax Orissa Sales Tax Tribunal, Additional Commissioner of Sales Tax, Cuttack Add. Commissioner of Sales Tax, Sambalpur Orissa Jt. Commissioner of Sales Tax, Dy. Commissioner, Sales Tax Rourkela The Orissa Sales Tax Tribunal, Cuttack West Bengal Sr. Joint Commissioner, Chowringhee circle, Kolkata Value Added Tax (c) According to the information and explanation given to us there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company. (viii) The accumulated losses of the company are more than fifty percent of its net worth at the end of the current financial year. The company has incurred cash losses in the current financial year but the company had not incurred cash losses in the immediate preceding financial year. (ix) Based on the records examined by us and as per the information and explanations given to us, the Company has during the year defaulted in repayment of dues to the banks and financial institutions. However, the Company''s proposal for restructuring of credit facilities has been approved by the Corporate Debt Restructuring- Empowered Group and Rs.238.98 lacs were in arrears as on the balance sheet date (refer Note no 5(B) of the financial statement) . There were no outstanding debentures as on the balance sheet date. (x) According to the information and explanation given to us, the Company has pledged a part of its investments, for the loan taken by its wholly owned subsidiary from bank and financial institutions, the terms and conditions thereof, in our opinion are not prima-facie prejudicial to the interest of the Company. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. (xi) According to the information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained. (xii) Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management. For Das & Prasad Chartered Accountants Firm''s Registration No.-303054E Anil Kumar Agarwal Place: Kolkata Partner Dated: 28th August, 2015 Membership No.-062368