CS/30/1508

Dated: 25/06/2016

To
Department of Corporate Relations
BSE Ltd., Floor 25, P.J.Tower,
Dalal Street
Mumbai-400001
Sub: Independent Auditors Report and Financial Results for the quarter and year ending on 31st
March, 2016.
Ref: Scrip Code: 506267 Scrip ID: ASSAPET
Dear Sir/ Madam,
Further to our letter no. CS/30/1483 dated 14th June, 2016 and pursuant to regulation 33(3) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 we are submitting herewith the
Independent Auditors Report alongwith the Audited Financial Results for the quarter and year ending
on 31st March, 2016. Please note that the disclosure of the Impact of Audit Qualifications pursuant to
SEBI Circular CIR/CFD/CMD/56/2016 dated 27th May, 2016 read with BSE Circular DCS/COMP/04/201617 dated 01st June, 2016 will be filed in due course.
This may be noted that the Audited Financial Results for the quarter and year ending on 31st March,
2016 have already been submitted to the exchange vide transaction number 14062016316564 dated
14th June,2016.
Yours faithfully
For Assam Petro-Chemicals Limited

UTTAM
BAILUNG

Digitally signed by UTTAM

BAILUNG
DN: cn=UTTAM BAILUNG, o, ou,
email=bailung.uttam@assampetr
ochemicals.co.in, c=IN
Date: 2016.06.25 12:21:38 +05'30'

(CS Uttam Bailung)

Company Secretary/Compliance Officer
Enclosure as stated.

Ed CO,
C HARTERED AC C OU NTA]VTS

SPRK

(Formerly known as R.IC Jallan & Associates)

C o nt act : 0 3 6 I -2 4 6 0 9 84, 9 4 3 5 I' I 0 I 4 I ; Email : sp rkco@e diffmaiL com
II\DEPEI\DENT AI]DITOR'

Io Floor, Royal Wew Building'

Dn B. K. Kakati Road'
Ulubari, Guwahati - 781007
Assam

REPORT

To
The Members

of

ASSAM PETROCIIEMICALS LIMITED

Renort on the Financial Statements

We have audited the accompanying standalone financial statements of ASSSAM
pETROCHEMICALS Ln{ITED, ("The Company") which comprise the Balance Sheet as at March
31,2016 and the Statement of Profit and Loss and the Cash Flow Statement for the year then ended
on that date, and a summary of the significant accounting policies and other explanatory information.
Manasement's Responsibilitv 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 Acf') with respect to the preparation of these standalone financial statements
ihut gine a true and fair view of the financial positioT, financial performance and cash flows of the
Company in accordance with the Accounting Principles Generally Accepted in India" including the Accouniing Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014 ('the Rules"). This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the
Company and for preventing and detecting the frauds and other inegularities; selection and application
of appropriate accounting policies; making judgments and estimates that are reasonable and prudent;
andiesign, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevantto the
prep-aration 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 Responsibilitv
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have conducted the audit for the year ending on 31.03.2016 as per our appointment vide Letter
No./CA.V/COY/ASSAM, APETRO (l)/69 dated 03.07.2015 by the c&AG of India.

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.

Head Office

1st Floor, RoyalView Building B.K.Kakoti Road, Ulubari, Guwahati-781@Z Assam

B.R.P. Road, Near Rly. Gate No.7, Kumarpara, GuwahatF781O09, Assam
2. AE 483, SALT IAKE CITY, SECTOR 1, Kolkata-70064
3. C/o Ram Avtar Tantia, S N Ganguly Road, Ranchi-8340o1

Branches : 1.

SPRK

CO,

1o

CHARTERED ACCOU NTA]V?S

u;"'*'-""-"/ (Formerly
known as R. IC Jallan & Associates)
Co

ntact :

0 3 6 I -2 4 6 0 9 I

4,

9 43 5 I - I 0I 4 8;

Floor, Royal Wew Building'

Dn B. K. Kakati Road'
Ulubari, Guwaholi

E mnil : spr kc @Tediffmail co m

781007
Assam

::2::
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor's judgmen! 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
reasonableness of the accounting estimates made by the Company's Directors, as
the overall presentation of the financial statements.

the

well as evaluating

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.

@ion
1.

Amortization of ROC fees Expenses: Expenses related to ROC fees for enhancement of authorised
share capital total amounting to { 1,66,50,510 /- had been amortized as per decision of the
management from Financial Year 2012-13 @ < 33,30,1021- per year, has been charged under
Depreciation and Amortization expenses and balance amount { 33,30,102/- shown as Unamortized
Expenses under Other Non-Current Assets. On the basis of Accounting Standard (AS)-10 on Fixed
Assets Para 9.2 under, The Companies Accounting Standards Rules, 2006, the whole expenses
related to ROC fees for enhancement of authorised share capital of { 1,66,50,510/- should have
been charged to Capital Work in Progress as the amount is specifically incuned with a view for
expansion of new project. As such the company had overstated its loss for FY 2014-15 &2015'16
by t 33,30,102/- respectively and understated profit for FY 2012-13 & 2013'14 by { 33, 30,102/respectively. This matter was also qualified by the previous auditor on the financial statements for
the year ended 3l't March'2015.

2.

Provision for Pay revision of arrear salaries for employees for the year 2009'10 & 2010'11 : As
mentioned in CAG comments on the accounts for the year 2012-13 and as per qualified opinion of
previous auditor <6,27,54,977/- being the arrear payable against pay revision of salaries of
employees for the years 2009-10 & 2010-11 should have been provided for and shown under
"Current Liabilities" instead of disclosing it under "Contingent Liabilities" as the same was
approved by the Board of Directors of the Company and Government of Assam.

But no provision has been made by the Company charging to Statement of Profit and Loss
< 6,27, 54,977/- (Previous year ended 3ls March'2015 { 6,270 54,9771-) as "Prior period Items"
and shown under "Short term provisions". This has resulted in understatement of loss by T
6,27,54,9771- andunderstatement of short term provisions byl6,27,54,9771- @revious year ended
3ltt March'2015, { 6,27,54,977/-,< 6,27,54,9771-, respectively). This matter was also qualified by
the previous auditor on the financial statements for the year ended 3ltr March'2015.

Head Ofl

Branches

: 1. B.R.P. Road,

1st Floor, Royal View Building, B.K.Kakoti Road, Ulubarl, Guwahatl-7810o2 Assam
Near Rly. Gate No.7, Kumarpara, Guwahatl-781@9, Assam
2. AE 483, SALT LAKE CITY, SECIOR 1, Kolkata-70064
3. C/o Ram Avtar Tantla, S N Ganguly Road, Ranchi-834001

SPRK

8 CO.

1o

C HART ER ED A C C OU NTAJVTS
(Formerly known as R.IC Jallan & Associates)
C o ntact : 0 3 6 1 - 2 4 6 0 9 84, 9 4 3 5 I - I 0 8 4 I ; Ettuil : sprkc o@7e diffmail com

Floor, Royal View Building,

Dn B. K. KakatiRoad'
Ulubari, Guwahati - 781007
Assam

....3....
a
J.

for deficit in PF Trust: As per the Employees'Provident

&

Miscellaneous
Funds
Trust
Account it
in
PF
is
any
dehcit
there
if
and
Provisions Act,1952, PF Trust is liable to be audited
to
the Audit
According
is the responsibility of the Company to compensate for the deficit every,year.

Provision

foify

21I4-ls,balance of accumulated deficit as on 3ls March'2015 is T 18,535,484/', out of

which deficit for FY 2014-15 < 1,784,203/'.
report

But no such provision has been made by the Company y6t. As a result, the "Profit and Loss Accounf'
& "Short term provisions" had been misstated for the current as well as previous years. Loss for the
year have been understated by t 1,784,203/- & < 16,751,281/- respectively for current year and
previous years. Similarly, "Short term provisions" have been understated.
4. Other Tax Provision

Fringe Benefit Tax : The Company had overstated its other tax provision as on 31.03.2015 by t
44,92,729/- & long term loans & advances as on 31.03.2015 by < 44,92,7291'.
b) Liabilities for Companies Income Tax : The Company had overstated its other tax provision as'on
31.03.2015 by { 3,55,08,493/- & long term loans & advances as on 31.03.2015 by < 3,55,08,493l-.
c) Treatrnent of MAT Credit: The Company had MAT Credit Balance in FY 2012-13 of T 49,
lg,7\0/-,which the company fails to recognized in the books of account nor claimed in the income
tax retum for the said financialyear, which it had written back to the balance of Profit & Loss Ac.count in the current year. This has resulted in understatement of Loss for the current year by {
49,19,700/- & overstatement of loss for FY 2014'15 by 7 49,19,700/-.
d) Treatment of Income Talr Expense: The Company had made excess Provision for Income Tax for
FY 2014-15 by { 36, 74,395/-, which it had written back to the balance of Profit & Loss Account
in the current year. This has resulted in understatement of Loss for the current year by < 36,74,395/'
& overstaterirent of loss for FY 2014'15 by 7 36,74,3951-.

a)

).

Capital Work in Progress

a)

Administrative Building(Project): Construction of Administrative Building for the new Project is

under process. The Company had debited to Administrative Building Account@Y 2014'15 to Repairs & Maintenance) { 12,59,195/- & credited to hior Period Items by same amount during the
FY 2015-16. This has resulted in overstatement of Loss for the FY 2014-15 by 7 12,59,195/-.

b)

Administrative & Other Expenses@roject) :The Company had debited the related expenses to Capi
tal Work-in Progress during the FY 2015-16 < 1,50,40,679/- (Depreciation < 22,15,175/- + Salary
& Other Allowances { 1,16,95,195/- + Project Travelling Expenses { 10,66,203/- + Other Expenses
{ 63,386/-) & whereas The Company had debited the related expenses to Profit & Loss Account
during the FY 2014-15 < 76,76,204/- (Salary & Other Allowances { 71,49,318/- + Project Travelling Expenses { 5,26,886/-). This has resulted in overstatement of Loss for the FY 2014-15 by t
76,76,2041- & understatement the Administrative & Other expenses of Capital Work in Progress
for FY 2014-15 by | 76,76,204/'.

: lst Floor, Royal View Building g'K.Kakoti Road, Ulqbari, Guwahati-781007, Assam
Branches : 1. B.R.P. Road, Near Rly. Gate No.7, Kumarpara, Guwahati-781009, Assam

Head Office

2.

AE 483, SALT IAKE CITY, SECTOR 1, Kolkata-70o64

3. C/o

Ram Avtar Tantia, S N Ganguly Road, Ranchl-834oo1

SPRK
CH
C o ntact

CO,

In Floor, Royal Wew Building,

Dn B. K. Kakati Road'

ARTE RE D A C C OUNTA]VTS

03 61 -2 4 6 0 9

84,

9 43 5

Ulubari,

I' I 0 I 4 I ; E mail : spr kc o@re diffmoil

co m

G uw ah

ati

7I

I 00 7

Assam

::4::
6.

VAT TDS : The Company had overstated the Other Short Terms Loans of Loans & Advances as well
TDS.
as duties & ta<es of Current Liabilities for FY 2015-l6by 7 1,32,627/-by not claiming the VAT

7.

policy of debiting quantity

euantity Discount & Tumover Discount: The Company had following the
& to-on.r discount to Turnover Account. During the year the Company had charged quantrty & turnover discounts to the Turnover Account, resulting in understatement of Sales by < 1,96,03,592/(Previous year

1,49,01,010/-).

Other Income : During the year, recoveries were made from staff for the following amenities used by

8.

them:

Bus:

83'360/-)
84,1201'(Ptevious Year
Use of School
Use of Electricity Charges < 2,43,998/-(Previous Year { 2,42,678/-)
7,7181')
20,523/'(Ptevious Year
c) Use of
account. Accordingly, Other Income
expenses
to
the
corresponding
Tfiese recoveries should be adjusted

a)
b)

Water

have been overstatement by < 3,48,641/-(Previous Year 3,33,756/') as well as coffesponding expenses also overstatement by { 3,48,641/-(Previous Year < 3,33,7561-).

Oualified 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 above, 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:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2016;
b) in the case of the Statement of Profit and Loss, of the loss for the year ended on that date.
c) in the case of the Statement of Cash Flow, of the cash flow for the year ended on that date.
Emnhasis of Matter

1.

We draw attention to Note s(bxii) and Note 24.1 to the financial statements related to Equity
capital money received from Government of Assam amounting < 1702lakhs shown under other
long term liabilities for which legal formalities relating to issue of share capital will be taken by
the Board in due course as mentioned in above notes.
Our opinion is not qualified in respect of this matter'

2.

We draw attention to Note 25.10 to the financial statements

The Consolidated Financial Statements under section 129(3) of the Companies Act'2013, of the company and its subsidiary lWs. Pragiyotish Fertilizer and Chemicals Limited has not been prepared due
to absence of Audited Financial Statements of the subsidiary company.

Our opinion is not qualified in respect of this matter'

Head Office: 1st Floor, Royal View Building; B.K.Kakoti Road, Ulubari, Guwahati-7810o7, Assam

Branches : 1. B.R.P. Road,

Near Rly. Gate No'7, Kumarpara, Guwahati-781009, Assam

2. AE 483, SALT I-AKE CITY, SECTOR 1, Kolkata-70064

3. C/o Ram Avtar Tantia, S N Ganguly Road, Ranchi-834001

'd5

SPRK

CO,

Is Floor, Royal Wew Building,

Dn B. K Kakati Road,
Ulub ari, Guwah ali - 7 I 1 00 7

CHARTERED AC C OUNTAJV?S
Co ntact

@ormerly known as R. IC Jallan & Associates)

I 4, 9 4 3 5 I - I 0 I 4 I ; E mail : sp rkco@7e diffmoiL com

Assam

03 6 I -2 4 6 0 9

.. s..

3.

We draw attention to Note 25.11to the financial statements related to basis for calculation of depreciation:

In absence of proper fixed assets register, rate of depreciation under straight line method and written
down value method on remaining useful life of respective assets is calculated on the basis of audited
financial statements of previous years and other financiai records.
Our opinion is not qualified in respect of this matter.

REPORT ON OTHER LEGAL AND REGTJLATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order,2016, issued by the Central Government of
India in exercise of powers confered by sub-section 11 of section 143 of the Act we enclose in Annexure '6,{" a statement on the matters specified in paragraphs 3 & 4 of the Order.

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 best of our knowledge and belief were necessary for the purpose of our audit.

O) 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, 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 Rules.
(e) On the basis of the written representations received from the Directors as on 31't March,20l6 and
taken on record by the Board of Directors, none of the Directors are disqualified as on 31't
March,2016 from being appointed as a Director in terms of sub section 2 of section 164 ofthe Act.

(f)

With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness ofsuch controls, refer to our separate report in Annexure "8"
and.

(g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule
1l 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 :
D

The Company has disclosed the impact of pending litigations on its financial position in its
financial statements-Refer Note No. 24.2 to the financial statements:

Head Office: 1st Floor, RoyalView Building, B.K.Kakoti Road, Ulubari, Guwahati-781@7, Assam

Branches r 1.

B.R.P. Road, Near Rly. Gate No.7, Kumarpara, Guwahati-781@9, Assam

2. AE 483, SALT LAKE CITY, SECTOR 1, Kolkata-70064

3. C/o Ram AvtarTantia, S N Ganguly Road, Ranchi-8321001

SPRK

8 CO.

Io Floor, Royal View Building'

Dn B. K. KakatiRoad'
Ulubari, Guwahati - 781007

CHARTERED ACCOUNTAN?S
(Formerly known
Contact

03 61 -2 4 6 0 9

I 4,

9 43 5 I -

as R. IC

Jallan & Associates)

Assum

I 0 I 4 I ; E mail : sprkc o@re diffmail com

:: 6::
iD

Provision has been made in the financial statements, as required under the applicable law
or accounting standards, for material foreseeable losses, if any, on long-term contractsRefer Note No. 8 to the financial statements;

iii)

There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Proctection Fund by the Company.

FoTSPRK&CO.
(Formerly R.K. Jallon & Associates)
Chartered

(K K.A

Date:2ld June'2016
Place: Guwahati

Head Office: 1st Floor, Royal View Building, B.K.Kakoti Road, Ulubari, Guwahati-781002 Assam

Branches : 1.
2.

3.

B.R.P. Road, Near Rly. Gate No.7, Kumarpara, Guwahati-781009, Assam

AE 483, SALT IAKE CITY, SECTOR 1, Kolkata-70o64
C/o Ram Avtar Tantia, S N Ganguly Road, Ranchi-834001

Manoging
Membership. No.

SPRK
""
Co

ntact :

8 CO,

CHARTERED AC COU NTAJV?S

1Fo"-erly known

03 6I -2 4 6 0 9 I

4,

9 4 3 5 1'

as

R.IC Jallan & Associates)

Io Floor, Royal Wew Building'

Dr. B. K Kakati Road'
Ulubari, Guwahati - 781007
Assam

I 0 I 4 8 ; E mail : sprkco@Se dilfmaiL com

AI\tyEXuRE 6.A" To rHE rI\DEpENDENT ArJDrroR's REPoRT-3lsr MARCH,2016

Referred to in our report ofeven date
1. (a) The company has not maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b)

According to the information given to us, physical verification of fixed assets has not been
done by t[e management during the y :ar and as'such material discrepancies with financial
records, if any, could not be noticed and have not been dealth with in the books of account.

(c)

According to the information and explanations given to us, the title deeds of the immoveable properties, as disclosed in note 9 to the financial statements are held in the name of the
company.

Z.

The inventories of Stores, except goods-in-transit, has been physically verified at reasonable intervals
during the year by the management. In our opinion, the frequency of verification is reasonable. The
discrepancies noticed on verification between the physical stocks and the book records were not material.

3.

The company had granted loan to two body corporate listed in the register maintained under section
189 of the Act.
The Company has granted loan to its subsidiary lWs. Pragjyotish Fertilizers & Chemicals
Limited which is { 41,84,185/- and advance for Share Application Money to the Subsidiary
Company is T 4,80,000/- as on 3l't March, 2016. The Company has made provision for the
full amount i.e. { 41,84,1851- and { 4,80,000/- respectively considering them doubtful. The
Company had also granted loans to Assam Tea Corporation Limited as per details given in
Note No.25.9.

(a)

As per above details, the repayment of principal of loan II was received on 22.10.2009
against the due date of 10.04.2009 and the interest dlue7. 5,24,488/- has not been received so
far. In case of loan I, out of principal { 35,00,000/-, { 10,00,000/- only was received on
17.03.2011against due date of 07.08.2007 and the interest due { 38,78,4041- has not been
received so far.

(b)

4.

The balance amount of principal for the loan given to Assam Tea Coporation Ltd. of
{25,00,000/- is still onerdue and total interest accrued and due < 44,02,892/- has not been
received so far. Though the Company is pursuing through Govt. of Assam for the recovery
of the balance amount of principal and the amount of interest overdue, however the steps
are not reasonable in view of long overdue.

The company had not granted any loans or provided any guarantees or security to the parties covered
under section 185 of the Act. The Company has complied with the provisions of Section 185 & 186
of the Act in respect of investments made or loans or guarantee or security provided {o the parties
covered under section 185 & 186.

Head office

1st Floor, Royal View Building, B.K.Kakoti Road, ulubarl, Guwahati-781@7, Assam
B.R.P. Road, Near Rly. Gate No'7, Kumarpara, GuwahatF781009 Assam
2. AE 483, SALT |jKE ClW, SECIOR 1, Kolkata-70054
3. C/o Ram AvtarTantia, S N Ganguly Road, Ranchi-834001

Branches : 1.

SPRK

CO,

ld Floor, Royal Wew Building,

CHARTERED AC COU NTA]VTS

@ormerly known as R.IC Jallan & Associates)
C o nt act : 0 3 6 1 - 2 4 6 0 9 I 4, 9 4 3 5 I - I 0 I 4 I ; E mail : sp rkco@rediffmaiL com

Dr. B. K. Kakati Road'

Ulubari, Guwahati - 781007
Assam

::2::

5.

ln our opinion and according to the information and explanations given to us, the Company

has not
provi
and
the
Reserve
Bank
of
India
issued
by
accepted any deposits in contravention of Directives
sions of section 73 to 76 or any other relevant provisions of the Act and the rules framed there under,
where applicable . No order has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any court or any other tribunal.

viewed
al Gove

6.

es presection

T,'"fil?

7. (a)

;ffiffs:

According to the information and explanations given to us and records of the company examined by us, in our opinion, the Company is generally regular in depositing the undisputed
statutory dues including provident fund, investor education protection fund, employees' state
insurance, income tax, sales tax, wealth ta& service tax, custom duty, excise duty, Cess and
other material statutory dues applicable to iL with appropriate authorities.
According to the information and dxplanations given to us, no undisputed amounts payable in
respect of income tax, wealth tog service Tax, sales tax, custom duty, excise duty and cess
were in arrears, as at 31-March-2016 for a period of more than six months from the date they
became payable.

(b)

According to the information and explanations given to us, there are no dues of sales tax, value
added tax, income tax, service tax, custom duty, wealth tax, excise duty and cess which have
not been deposited with the appropriate authorities on account of any dispute other than those
mentioned below to this report.

Act

Period to which
the amount re-

Central Excise

lates
February'2OO9 to

Central Excise

Act'1944
Central Excise
Act'1944
Central Excise
Act'1944
Central Excise
Act'1944

Nature of Dues

Excise Duty
Penaltv
Excise Duty
Penaltv
Excise Duty
Penalty
Excise Duty
Penaltv

&

Amount(T)

5,04,54,7141-

Januarv'20l1

&

2,09,56,4501-

&

40,49,747/-

lvlarch'20l2to

&

1,55,78,715/-

February'2Ol3 to
October'2O13

February'20ll to
Februarv'2012
January22013

Forum where
dispute is
pendins

CESTAT,
Kolkata
CESTAT,
Kolkata
CESTAT,
Kolkata
CESTAT,
Kolkata

8.

As the Company does not

Govemment, noi has it issu
of the Order are not applica

1.

The company has not raised money by way of initial public offer or further public
debt instrument) and term loans during the year. ,A,ccordingly, the provisions of Clause
Order are not applicable to the Company.

from any financial institution or bank or

sheet date, the provisions of clause 3(viii)
(including
of the
3

Head Office: 1st Floor, Royal View Building, B.K.Kakotl Road, Ulubari, Guwahati-781002 Assam
Branches : 1. B.R.P. Road, Near Rly. Gate No.7, Kumarpara, Guwahiti-781@9, Assam

2. AE 483, SALT LAKE CITY, SECIOR 1, Kolkata-70064

3. C/o Ram Avtar Tantia, S N Ganguly Road, Ranchi-83t1001

1o

C o ntact

03 6 1 -2 4 6 0 9

I 4,

9 43 5 1 -

Floor, Royal Wew Building'

Dn B. K. Kakati Road,
Ulubari, Guwahati - 781007
Assam

I 0 I 4 I ; E mail : sptkc @7e diffmail com

....3....

2.

Based upon the audit procedures performed and according to the information and explanations given
to us, no fraud by thc company or any fraud on the company by its officers or employees has been
noticed or reported during the course of our audit, that causes the financial statements to be materially misstated

3.

The Managerial remuneration has been paid or provided in accordance with the requisite approvals
mandated by the provisions of section 197 readwith Schedule V to the Act.

4.

In our Opinion and according to the information and explanations given to us, the company is not a
Nidhi Company. Accordingly, paragraph 3(xii) ofthe Order is not applicable.
According to the information and explanations given to us and based on our examinations of the
records of the Company, transactions with related parties are in compliance with sections 177 and
188 of the Ac! where applicable. The details of such related party transactions have been disclosed in
note no. 25.4.b of the financial statements as required under AS-18, Related Party Disclosures specified under section 133 of the Act, read with Rule 7 of the Companies(Accounts) Rules, 2014.

6.

According to the information and explanations given to us and based on our examinations of the
records, the Company has not made any preferential allotment or private placement of shares or fully
or partly convertible debentures during the year under review.

7.

According to the information and explanations given to us and based on our examinations of the
records, the Company has not entered into non cash transactions with directors or persons connected
with him. Accordingly, parugraph 3(xv) of the Order is not applicable.
The company is not required to be registered under section 45-IA of the Reserve Bank of India Act,
1934. Accordingly, the provisions of clause 3(xvi) ofthe Order is not applicable to the Company.

FoTSPRK&CO.
(Formerly R.K. Jallan & Associates)

(K.K.
Date: 2ld June'2016
Place: Guwahati

Head Office

1st Floor, Royal View Building, B.K.Kakoti Road, Ulubari, GuwahatF78100Z Assam
Near Rlv' Gate No.7, Kumarpara, Guwahati-781009, Assam
2. AE 483, SALT I-AKE CITY, SECIOR 1, Kolkata-70064
3. C/o Ram Avtar Tantia, S N Ganguly Road, Ranchi-834001

Eranches : 1. B.R.P. Road,

Membership. No.

SPRK

CO,

1o

C I:IARTE R E D A C C O U N TAIVTS

Floor, Royal View Building,

Dr. B. K Kakati Road,
Ulubari, Guwahati - 781007
Assam

AI\I\EXIJRE 558'' TO THE II\DEPEI\DENT AT'DITOR'S REPORT.31.t MARCH'2016 OF EVEN

DATE ON THE STAIIDALOIYE FINANCIAL STATEMENTS OF ASSAM PETROCIIEMICALS
LIMTED
Report on the Internal Financial Controls under Clause (i) of Sub-sectirin 3 of Section 143 of the
Companies Act,2013 ("the Act")
We have audited the the internal financial controls over financial reporting of Assam Petrochemicals Li
mited as of 3l't March, 2016 in conjunction with our audit of the standalone financial statements of the
Company for the year ended on that date.

Management's Responsibility for fnternal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls
based on the internal controls over financial reporting criteria established by the Company considering the
essential components of intemal controls stated in the Guidance Note on Audit of Intemal Financial Controls over Financial Reporting issued by ICAI. These responsibilities include the design, implementation
and maintenance of adequate intemal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of
its assets, the prevention and detection offrauds and errors, the accuracy and completeness ofthe accounting records, and the timely preparation of reliable standalone financial information, as required under the
Companies Act,2013.

Auditors' Responsibility
Our responsibility !s to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing,
issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act,2013, to the extent applicable to an audit of intemal financial controls, both applicable to an audit of Internal Financial
Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate intemal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of intemal financial controls
over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of intemal control based on the assessed risk. The procedures selected
depend on the auditor's judgement, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error.
We believe that the audit evidence we have'obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Company's intemal financial controls system over financial reporting.

Cont'd.....2

Head Offlce

1st Floor, Royal View Buildin& B.K.Kakoti Road, Ulubari, Guwahati-781007, Assam
B.R.P. Road, Near Rly. Gate No.7, Kumarpara, Guwahati-781009, Assam
2. AE 3, SALT |-AKE CtTy, SECTOR 1, Kolkata-70064
3. C/o Ram Awar Tantia, S N Ganguly Road, Ranchi-834001

Branches : 1.

SPRK
C HART

CO,

7o

ERED A C C OUNTAIVTS

Floor, Royal Wew Building,

Dn B. K. Kakati Road'
Utubart, Guwahati

781007
Assam

..)..
Meaning of Internal Financial Controls Over Financial Reporting

A company's internal frnancial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for extemal purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of
the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles, and
that receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets
that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

of internal financial controls over financial reporting, including the

possibility of collusion or improper management override of controls, material misstatements due to enor
or fraud may occur and not be detected. Also, projections of any evaluation of the intemal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over
financial reporting may
become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Because of the inherent limitations

Basis for Qualified Opinion

According to the information and explanations given to us and based on our audit, the following material
weaknesses have been identified as at March 3I,2016:
a) The Company did not have an appropriate intemal financial control system as explicated in the following material instances :

i)

ii)

Weakness in Debtors/ Trade Receivables management like lack of practice of timely reconciliation of account statements, long credit balance outstanding, unsystematic realisation and
credit period allowed to the parties and non adherence to the credit policy of the company,
non release/ adjustrnent of CST Security Deposit collected from customers beyond reasonable

period.

Lack of proper management of Cfeditors/Trade Payables like lagging of liability recognition

.for more than reasonable period even after receipt of materials due to inefficient internal accounting cycle, non-payment/adjustment of security deduction of the creditors beyond reasonable period.

iiD
iv)

Ineffective Internal Audit coirmensurate with the size and nature of business.
Lapses have been observed in proper deduction of Income Tax TDS/ VAT TDS in certain
expenditure/payments to creditors.

Head Office

1st Floor, Royal View Building B.K.Kakoti Road, Ulubari, Guwahati-781007, Assam
B.R.P. Road, Near Rly. Gate No.7, Kumarpara, Guwahati-781009 Assam
2. AE 483, SALT I-AKE CITY, SECIOR 1, Kolkata-70064
3. C/o Ram Avtar Tantia, S N Ganguly Road, Ranchi-834001

Branches : 1.

SPRK

8 CO,

C HART ERED A C C O U N TAIVTS

(Formerly known as R. K; Jallan & Associates)
C o nt act : 0 3 6 1 - 2 4 6 0 9 I 4, 9 4 3 5 I - I 0 I 4 I ; E mail : sp rkc o@7 e diffmaiL

ls Floor, Royal View Building,

Dn B. K Kukati Road,
Ulubari, Guwahati
co

- 781007
Assam

....3....

A 'material

weakness' is a deficiency, or a combination of deficiencies, in internal financial control over

financial reporting, such that there is a reasonable possibility that a material misstatement of the company's
annual or interim financial statements will not be prevented or detected on a timely basis.

Qualified Opinion

In our opinion, except for the effects/possible effects of thd material weaknesses described above on the
achievement of the objectives of the control criteri4 the Company has maintained, in all material respects,
adequate intemal financial controls over financial reporting and such internal financial controls over finan-

cial reporting were operating effectively as of March 31,2016, based on the internal control over furancial
reporting criteria established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India.
We have considered the material weaknesses identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the March 31,2016 financial statements of the Company, and these material weaknesses do not affect our opinion on the financial statements ofthe Company.

FoTSPRK&CO.
(Formerly R.R Jallan & Associates)
Chartered
F.
32

(K.K.A
Date: 2ld June'2016
Place: Guwahati

Membership. No.

Head Office: 1st Floor, Royal View Building, B.K.Kakoti Road, Ulubari, Guwahati-7810o7, Assam

Branches : 1. B.R.P. Road,

WAI-/l)

Mr

Near Rly. Gate No.7, Kumarpara, Guwahati-781009, Assam

2. AE 483, SALT I-AKE C|TY, SECTOR 1, Kolkata-70064

3. C/o Ram AvtarTantia, S N Ganguly Road; Ranchi-834001

315