Mobile Nav

Market

AUDITOR'S REPORT

ACCEL Ltd.

You can view full text of the latest Auditor's Report for the company.
Market Cap. (₹) 52.16 Cr. P/BV 1.34 Book Value (₹) 6.85
52 Week High/Low (₹) 11/3 FV/ML 2/1 P/E(X) 12.41
Bookclosure 25/06/2018 EPS (₹) 0.74 Div Yield (%) 4.37
Year End :2015-03 
We have audited the accompanying standalone financial statements of Accel Transmatic Limited ('the Company'), which comprise the Balance Sheet as at 31st March, 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 and presentation 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 the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements 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 arc 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 we have obtained 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 31st March, 2015 and its Loss and its cash flows for the year ended on that date.

Emphasis of Matter

i) We draw attention to Note No.9.7 As stated therein, the management expects the value in use, based on estimated future cash flows, for the Intellectual Property rights amounting to Rs. 5,43,76,881/- carried in the books as Intangible Asset to be not: less than its carrying amount . Hence, no adjustment for impairment is made in the books of account. The pattern/quantum of the cash flows would, however, depend upon crystallization of enquiries received by the company.

ii) Also, as stated in Note No.4.1, the Company has suffered cash loss from its operations during the year. The Net Worth of the Company has been fully eroded as at: the Balance Sheet date. The Current Liabilities as at the year end exceeds the Current Assets by Rs.1,46,71,393/- . This, read with the matters stated in para (i) above, raises serious doubt about the ability of the Company to continue as a going concern.

iii) Attention is Invited to Note No.21.9. As stated therein, the proposal of merger of the holding Company with the Company w.e.f. 1st April, 2014(Appolnted Date) is pending before the Stock Exchange, and hence no adjustments have been made in the Accounts towards the same.

Our opinion is not qualified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

1, As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section(ll) of section 143 of the Act, we give in the Annexure a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable,

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 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 31st March, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31st: March, 2015 from being appointed as a director in terms of Section 164(2) of the Act;

(f) The matters discussed in sub- para (i) and (ii) under "Emphasis of Matter" paragraph above, in our opinion, may have an adverse impact 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:

(h) the Company has disclosed the impact of pending litigations on its financial position in its financial statements- Refer Note-21,6 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 has been a delay of 7 months and 26 days for transfer of an amount of Rs.1,01,817, to the Investor Education and Protection and Protection Fund, The amount was due to be transferred on 23rd September 2014, The transfer, however is seen made only on 19th May 2015,

Annexure Referred to In Paragraph 1 of the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of the Company on the standalone financial statements for the year ended 31st March, 2015, we report that:

(I) a. The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

b. The fixed assets of the company have been physically verified by the management during the year, which, In our opinion is reasonable having regard to the size of the company and the nature of assets and as per the information and explanation furnished to us, no material discrepancies have been noticed on such verification,

(ii) The Company does not carry any Inventory as at the year end and hence, the question of physical verification of inventory docs not arise. Hence the Paragraph (ii)(a), 4(ii)(b) & 4(ii)(c) of Companies (Auditor's Report) Order, 2015 are not commented upon by us,

(iii) 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. Hence, relative reporting requirement of the Order is not applicable and not commented upon.

(iv) In our opinion and according to the information and explanations given to us, the internal control systems for the purchase of fixed assets and for the sale of goods and services are generally commensurate with the size of the company and nature of its business. There are no major weaknesses in internal control of a continuing nature.

(v) The Company has not accepted any deposits from the public.

(vi) To the best of our knowledge and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Act for the company at this stage.

(vii) a. According to the information and explanations given to us, and on the basis of our examination of the records of the Company, there are certain delay In depositing Income Tax, Service Tax, Sales Tax, Employees State Insurance and Employees Provident with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, wealth tax, service tax, duty of customs, value added tax, cess and other material statutory dues were in arrears as at 31st March, 2015 for a period of more than six months from the date they became payable except Income Tax (Tax deducted at source) Rs. 14,12,206/-

b. According to the information and explanations given to us and the records of the Company examined by us, the following disputed amounts have not been deposited with the authorities as at 31st March, 2015 as per details given below:

Nature of dues    Period to       Amount           Forum where the
                  which                            dispute is pending
                  relates

Income Tax        AY 2008-09 TO   1,38,11,559      Income Tax Appellate
                  AY 2010-11                       Tribunal Kochi

Customs Duty      2010 - 11       33,88,000        Honorable High Court
                                                   Of Kerala
c. According to the information and explanations given to us the amounts which were required to be transferred to the investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules there under has been transferred to such fund within time, except to the extent mentioned in para 2(g)(iii) of the report.

(viii) The accumulated loss at the end of the financial year is more than 50% of its net worth. The company has incurred cash loss In the financial year and in the immediately preceeding financial year.

(ix) According to the information and explanations given to us, the Company has not defaulted in repayment of dues to any banks or financial institution

(x) In our opinion and 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 and the records of the company examined by us, the Company has not availed any term loans during the year and hence relative clause is not commented upon.

(xii) According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the course of our audit.

                                               For Varma & Varma
                                           Chartered Accountants
                                  Firms' Registration No. 04532S

Chennai                                       P.R.Prasanna Varma
26th May, 201.5                                          Partner
                                            Membership No.025854

Attention Investors :
Prevent Unauthorised transactions in your account --> Update your mobile numbers/email IDs with your stock brokers. Receive information of your transactions directly from Exchange on your mobile / email at the end of the day .......... Issued in the interest of investors
Attention Investors :
Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from NSDL on the same day......................issued in the interest of investors.
Attention Investors :
KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
Attention Investors :
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.
“Investment in securities market are subject to market risks, read all the related documents carefully before investing”.