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Golkonda Aluminium Extrusions Ltd.

BSE: 513309 | NSE: | Series: NA | ISIN: INE327C01023 | SECTOR: Aluminium

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Golkonda Aluminium Extrusions is not listed on NSE

Annual Report

For Year :
2015 2014 2013 2012 2011 2010 2009 2008 2007

Auditor's Report

We have audited the accompanying financial statements of Golkonda Aluminium Extrusions Limited (Formerly known as Alumeco India Extrusion Limited) (the Company) which comprise the Balance Sheet as at 30thJune, 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, which we have signed under reference to this report. Management''s Responsibility for the 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 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 of 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 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 thereunder. 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. 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 we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements. Basis for Qualified Opinion The company has accumulated losses of Rs. 161,161,535 as at 30th June 2015 which has exceeded the paid up capital and reserves of Rs. 160,522,805 of the company as at that date. The company has been declared sick on 9th February 2009 and had made a reference to the Board of Industrial & Financial Reconstruction (BIFR) in terms of section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.During the year, company ceases to be a sick industrial company vide order dated 08 June 2015 within the meaning of Section 3(1)(o) of Sick Industrial Companies Act (SICA) as its net worth has turned positive as on 31st December 2014.However as on 30 June 2015, the net worth has turned negative amounting to Rs.639,730. Considering the financial position of the Company as at 30th June 2015 and the subsequent financial stress caused by the Alumeco Group withdrawing extended credit terms for supply of raw material, there exists significant uncertainty as to whether the Company will be able to continue as a going concern. The Management is in the process of evaluating available options to rehabilitate the Company. The financial results for the year ended 30th June 2015 have been prepared on a going concern basis and do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or, to amounts or classification of liabilities that may be necessary if the Company is unable to continue as a going concern. Matter of Emphasis We draw attention to the following matters as stated in notes to the financial statements 1. Note 2.25(h) which describes the uncertainty related to the outcome of the lawsuit filed against the Company by the workers regarding settlement of compensation amounting to Rs.10,816,903. 2. Note 2.27 (C) with regards to extraordinary item on account of write back of Rs. 96,456,372 (excluding exchange effect) payable to creditors with mutual consent for which direct confirmation is not received till date. 3. Note 2.29 regarding provision of gratuity amounting Rs. 4,945,334 and compensated absences amounting to Rs. 988,708 is provided on actual basis and no actuarial valuation has been made as per the requirement of Accounting Standard -15 - Employee Benefits. 4. As per Sec. 138 of Companies Act, 2013 internal audit has not been carried out by the company as there were no operations in the company during the year. Our opinion is not qualified in respect of matters as stated above. Qualified Opinion In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph (amount of which is not ascertainable), the 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: (a) in the case of the Balance Sheet, of the state of affairs of the Company as at 30 June 2015; (b) in the case of the Statement of Profit and Loss, of the loss of the Company for the year ended on that date; and (c) in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor''s Report) 2015 issued by Central Government in terms of sub-section (11) of section 143 of the Companies Act 2013, we give in the annexure a statement on the matters specified in paragraphs 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 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 the Cash Flow Statement dealt with by this Report are in agreement with the books of account. (d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified underSection 133 ofthe 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 30 June, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 30 June, 2015 from being appointed as a director in terms of Section 164 (2) of the Act. ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT Golkonda Aluminum Extrusions Limited (Formerly known as Alumeco India Extrusion Limited) (i) a. The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets. b. All the assets have not been physically verified by the Management during the year but there is a phased programme of verification, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. However since the production is closed since July 2013 and it is unlikely to do the physical verification on a regular interval. (ii) a. There is no inventory except for stores and spares items which are under controlled environment. Hence no physical verification has been done on regular intervals. Therefore clause (ii)(b) of Paragraph 4 of the Order is not applicable. (iii) According to the information and explanations given to us, the Company has not granted loans, secured or unsecured, to Companies, Firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. (iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to the purchases of inventory, fixed assets and with regard to the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls. (v) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under. Accordingly, Paragraph 3(v) of the Order is not applicable to the Company. (vi) According to the information and explanation given by the company, the Central government has not specified maintenance of cost records under sub- section (1) of section 148 of Companies act 2013.Further production is closed since July 2013.Therefore clause (vi) of Paragraph 4 of the order is not applicable. (vii) a. According to the information and explanations given to us and the records of the company examined by us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Customs duty, Excise duty, Value added tax, Cess and any other statutory dues applicable to it as on 30.06.2015 b. According to the information and explanations given to us, there are no dues of Income tax, Sales tax, Wealth Tax, Service tax, Customs duty, Excise duty, Value added tax and Cess which have not been deposited with the appropriate authorities on account of any dispute except as under: Relevant Income under dispute Forum where dispute is Assessment Year (Rs.) pending 1994- 95 2,03,59,259 Honourable High Court of Andhra Pradesh 1995- 96 51,72,082 2003- 04 2,89,37,712 2004- 05 1,82,56,357 2005- 06 1,85,46,533 ITAT has redirected the case to TPO. 2006- 07 3,51,83,477 The case is pending before TPO 2007- 08 14,61,08,591 2008- 09 12,83,00,000 2010- 11 7,22,81,070 Income Tax Appellate Tribunal 2011- 12 1,09,90,023 Commissioner of Income-Tax (Appeal) c. According to information and explanation given to us and the records of the company examined by us, company has not declared any dividend since its incorporation. Therefore clause (vii)(c) of Paragraph 4 of the Order is not applicable. (viii). The accumulated losses at the end of the financial year are more than 50% of its net worth. The company has incurred cash losses of Rs. 1, 03, 84, 478 in the financial year ended on that date. (ix). According to the information and explanation given to us, the company has no borrowings Therefore clause (ix) of Paragraph 4 of the Order is not applicable. (x). 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, the terms and conditions whereof are prejudicial to the interest of the company. (xi). According to the information and explanations given to us, no term loans are availed by the company during the year. Therefore clause (xi) of Paragraph 4 of the Order is not applicable. (xii) To the best of our knowledge and according to the information and explanation given to us, no fraud by the company and no material fraud on the company has been noticed or reported during the year nor have been informed of such case by the management. for Laxminiwas & Jain Chartered Accountants Firm''s registration number: 001859S Place: Hyderabad Laxminiwas Sharma Date: 29 August 2015 Partner Membership No: 014244