ANNEXURE-I

Statement on Impact of Audit Qualifications (for audit report with modified opinion) submitted alongwith Annual Audited Financial Results - (Standalone)
Statement on Impact of Audit Qualifications for the Financial Year ended March 31.03.2016
[See Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016]

I.

SI
No.

1.
2.
3.
4.
5.
6.
7.
8.

II

Particulars

Turnover / Total income

Total Expenditure
Net Profit/(Loss)
Earnings Per Share
Total Assets
Total Liabilities
Net Worth
Any other financial item(s) (as felt appropriate by
the management)

Audited
Figures (as
recorded
before
adjusting as
qualifications)
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.

Adjusted Figures
(audited figures
after adjusting as
qualifications)

N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.

Audit Qualification (each audit qualification separately):

a. Details of audit Qualification:
a.1. The Company has not complied with the provisions of proviso to sub section 2 of
Section 55 of the Act as out of the total value of preference shares (including
premium) amounting to Rs. 53.56 lacs redeemed during the year, Rs. 51.34 lacs has
been redeemed otherwise than out of the profits of the Company which would
otherwise be available for dividend or out of the proceeds of a fresh issue of shares
made for the purpose of such redemption.
a.2.) The Company has computed the Depreciation on the tangible fixed assets using
straight line method based on the useful life of the assets as prescribed in Schedule II of
the Companies Act, 2013 and the management estimates of useful life for tangible and
intangible assets not covered by the Schedule II. However, for the assets
purchased/commissioned prior to 1st April, 2010, the purchase date of assets has been
considered as 1st April, 2010. The same is in violation of Accounting Standard 6Depreciation Accounting as this treatment not only enhances the useful life of the
assets that have already been consumed but has an effect over the depreciation
computed. The loss to that extent is under/over stated and similarly the assets, the

ALCHEMIST LTD.
CIN:L72200DL1988PLC192643
Regd. & Head Office:Alchemist House, Building No. 23, Nehru Place, New Delhi- 110019 Tel. : +91-11-40600800, Fax: +91-11-40600888
Chd. Office: Plot No. F5, Rajiv Gandhi IT Park, Chandigarh- 160101 Tel. :+91-172-4266666 Fax: +91-172-4266602
Email: investors@alchemist.co.in Website: www.alchemist.co.in

effect however could not be quantified.

a.3.) The Company has not made any provision on the export receivables amounting
to Rs. 47363.02 lacs outstanding for more than a year as at the year end date. The loss
to that extent is under stated and similarly the receivables, the effect however could
not be quantified.

a.4.) According to information and explanation given to us, the company is under the
process of establishing its internal financial controls over financial reporting on criteria
based on or considering the essential components of internal control stated in Guidance
Note on Audit of Internal Financial Controls over Financial Reporting issued by the
Institute of Chartered Accountants of India. Because of this reason, we are unable to
obtain sufficient appropriate audit evidence to provide a basis for our opinion whether
the Company had adequate internal financial control over financial reporting and
whether such internal financial controls were operating effectively as at March 31,
2016.
We have considered the disclaimer reported in determining the nature, timing and
extent of audit tests applied in our audit of the standalone financial statements of the
company, and the disclaimer does not affect our opinion on the standalone financial
statements of the company.
b. Type of Audit Qualification : Qualified Opinion and Disclaimer of Opinion
c. Frequency of qualification:
c.1.) Qualification for point no. II.a.1 and II.a.2 have been reported as
repetitive.
c.2.) Qualification for point no. II.a.3 and II.a.4 have been included for the first
time during the financial year ended 31st March, 2016.
d. For Audit Qualification(s) where the impact is quantified by the auditor,
Management's Views: N.A.
e. For Audit Qualification(s) where the impact is not quantified by the auditor:
(i)
Management's estimation on the impact of audit qualification:
(ii)
If management is unable to estimate the impact, reasons for the same:
II.a.1.) The redemption process had been carried by the company as part of
contractual obligations on due dates. The amount is not material in overall
context and the company will make the reserves for this purpose in future.
The management will raise the funds through fresh issue in future for the
aforesaid purpose, so that the provision of the Companies Act will not be

ALCHEMIST LTD.
CIN:L72200DL1988PLC192643
Regd. & Head Office:Alchemist House, Building No. 23, Nehru Place, New Delhi- 110019 Tel. : +91-11-40600800, Fax: +91-11-40600888
Chd. Office: Plot No. F5, Rajiv Gandhi IT Park, Chandigarh- 160101 Tel. :+91-172-4266666 Fax: +91-172-4266602
Email: investors@alchemist.co.in Website: www.alchemist.co.in

violated.
II.a.2.) Depreciation is provided based on usefull life of the Assets as
prescribed in Schedule II of the Companies Act, 2013. The Company had to
make assumption about life of assets in view of changes in the laws and has
made best judgment assessment for all the circumstances and ensure to
comply the provisions of Schedule II of the Companies Act, 2013.
II.a.3.) The Company has extended credit from time to time as per the
market practice for export receivables and regular follow up is being done
to recover the same and the management is confident to recover the same.
Hence no provision made by the management.
II.a.4.) To have an effective and transparent internal financial control, the
management have engaged an outside agency to document the present
internal financial controls in place and make improvements wherever
required. Since, the agency was engaged in February, 2016, they were still in
the process of establishing the internal financial control as on March 31,
2016.
(iii)

Auditors' Comments on (i) or (ii) above:

II.a.1.) The redemption process carried out by the Management is not in
consistence with the provisions of the Companies Act, 2013, hence the
Management is desirous to comply the provisions related to the said
Section by raising the funds for the redemption purposes.
II.a.2.) Amount of Depreciation has not been quantified due to the
difference in the usefull life of tangiable assets and not as per the Schedule
II of the Companies Act, 2013. As the management ensure to make proper
assessment of the life of the Assets and will comply to the provisions of
Schedule II of the Companies Act, 2013.
II.a.3.) Since, these are long pending dues from export receivables,
adequate steps should be taken to recover the amount immediately.
II.a.4.) Satisfied with the reply of the Management, and Management
ensure take the necessary steps to complete the process.

ALCHEMIST LTD.
CIN:L72200DL1988PLC192643
Regd. & Head Office:Alchemist House, Building No. 23, Nehru Place, New Delhi- 110019 Tel. : +91-11-40600800, Fax: +91-11-40600888
Chd. Office: Plot No. F5, Rajiv Gandhi IT Park, Chandigarh- 160101 Tel. :+91-172-4266666 Fax: +91-172-4266602
Email: investors@alchemist.co.in Website: www.alchemist.co.in

ANNEXURE-II
Statement on Impact of Audit Qualifications (for audit report with modified opinion) submitted alongwith Annual Audited Financial Results - (CONSOLIDATED)
Statement on Impact of Audit Qualifications for the Financial Year ended March 31.03.2016
[See Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016]

I.

SI
No.

1.
2.
3.
4.
5.
6.
7.
8.

II

Particulars

Turnover / Total income

Total Expenditure
Net Profit/(Loss)
Earnings Per Share
Total Assets
Total Liabilities
Net Worth
Any other financial item(s) (as felt appropriate by
the management)

Audited
Figures (as
recorded
before
adjusting as
qualifications)
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.

Adjusted Figures
(audited figures
after adjusting as
qualifications)

N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.

Audit Qualification (each audit qualification separately):

a. Details of audit Qualification:
a.1. It has been explained to us that the financial statements of one subsidiary namely
Alchemist Enterprise (S) Pte. Limited is still under compilation. Accordingly, the same is
not forming part of the consolidated financial statements.
a.2. The Holding Company has not complied with the provisions of proviso to sub
section 2 of Section 55 of the Act as out of the total value of preference shares
(including premium) amounting to Rs. 53.56 lacs redeemed during the year, Rs. 51.34
lacs has been redeemed otherwise than out of the profits of the Company which
would otherwise be available for dividend or out of the proceeds of a fresh issue of
shares made for the purpose of such redemption.
a.3. The Holding Company has computed the Depreciation on the tangible fixed assets
using straight line method based on the useful life of the assets as prescribed in
Schedule II of the Companies Act, 2013 and the management estimates of useful life for
tangible and intangible assets not covered by the Schedule II. However, for the assets

ALCHEMIST LTD.
CIN:L72200DL1988PLC192643
Regd. & Head Office:Alchemist House, Building No. 23, Nehru Place, New Delhi- 110019 Tel. : +91-11-40600800, Fax: +91-11-40600888
Chd. Office: Plot No. F5, Rajiv Gandhi IT Park, Chandigarh- 160101 Tel. :+91-172-4266666 Fax: +91-172-4266602
Email: investors@alchemist.co.in Website: www.alchemist.co.in

purchased/commissioned prior to 1st April, 2010, the purchase date of assets has been
considered as 1st April, 2010. The same is in violation of Accounting Standard 6Depreciation Accounting as this treatment not only enhances the useful life of the
assets that have already been consumed but has an effect over the depreciation
computed. The loss to that extent is under/over stated and similarly the assets, the
effect however could not be quantified.
a.4. The group has not made any provision on the export receivables amounting to Rs.
47363.02 lacs pertaining to Alchemist Limited and trade receivable amounting to Rs.
1108.98 lacs pertaining to Alchemist Foods Limited, outstanding for more than a year
as at the yearend date. The loss to that extent is under stated and similarly the
receivables, the effect however could not be quantified.

a.5. According to information and explanation given to us, the company is under the
process of establishing its internal financial controls over financial reporting on criteria
based on or considering the essential components of internal control stated in Guidance
Note on Audit of Internal Financial Controls over Financial Reporting issued by the
Institute of Chartered Accountants of India. Because of this reason, we are unable to
obtain sufficient appropriate audit evidence to provide a basis for our opinion whether
the Company had adequate internal financial control over financial reporting and
whether such internal financial controls were operating effectively as at March 31,
2016.
We have considered the disclaimer reported in determining the nature, timing and
extent of audit tests applied in our audit of the standalone financial statements of the
company, and the disclaimer does not affect our opinion on the standalone financial
statements of the company.
b. Type of Audit Qualification : Qualified Opinion and Disclaimer of Opinion
c. Frequency of qualification:
c.1.) Qualification for point no. II.a.2 and II.a.3 have been reported as
repetitive.
c.2.) Qualification for point no. II.a.1, II.a.4 and II.a.5 have been included for
the first time during the financial year ended 31st March, 2016.
d. For Audit Qualification(s) where the impact is quantified by the auditor,
Management's Views: N.A.
e. For Audit Qualification(s) where the impact is not quantified by the auditor:
(i)
Management's estimation on the impact of audit qualification:

ALCHEMIST LTD.
CIN:L72200DL1988PLC192643
Regd. & Head Office:Alchemist House, Building No. 23, Nehru Place, New Delhi- 110019 Tel. : +91-11-40600800, Fax: +91-11-40600888
Chd. Office: Plot No. F5, Rajiv Gandhi IT Park, Chandigarh- 160101 Tel. :+91-172-4266666 Fax: +91-172-4266602
Email: investors@alchemist.co.in Website: www.alchemist.co.in

(ii)

If management is unable to estimate the impact, reasons for the same:

II.a.1.) Alchemist Enterprises (S) Pte. Limited is a Subsidiary Company and
the company is under process of closure, So the Financial Statements of the
Company has not been furnished.
II.a.2.) The redemption process had been carried by the company as part of
contractual obligations on due dates. The amount is not material in overall
context and the company will make the reserves for this purpose in future.
The management will raise the funds through fresh issue in future for the
aforesaid purpose, so that the provision of the Companies Act will not be
violated.
II.a.3.) Depreciation is provided based on usefull life of the Assets as
prescribed in Schedule II of the Companies Act, 2013. The Company had to
make assumption about life of assets in view of changes in the laws and has
made best judgment assessment for all the circumstances and ensure to
comply the provisions of Schedule II of the Companies Act, 2013.
II.a.4.) The Company has extended credit from time to time as per the
market practice for export receivables and regular follow up is being done
to recover the same and the management is confident to recover the same.
Hence no provision made by the management.
II.a.5.) To have an effective and transparent internal financial control, the
management have engaged an outside agency to document the present
internal financial controls in place and make improvements wherever
required. Since, the agency was engaged in February, 2016, they were still in
the process of establishing the internal financial control as on March 31,
2016.

(iii)

Auditors' Comments on (i) or (ii) above:

II.a.1.) II.a.1.) The redemption process carried out by the Management is
not in consistence with the provisions of the Companies Act, 2013, hence
the Management is desirous to comply the provisions related to the said
Section by raising the funds for the redemption purposes.
II.a.2.) The redemption process carried out by the Management is not in
consistence with the provisions of the Companies Act, 2013, hence the
Management is desirous to comply the provisions related to the said
Section by raising the funds for the redemption purposes.

ALCHEMIST LTD.
CIN:L72200DL1988PLC192643
Regd. & Head Office:Alchemist House, Building No. 23, Nehru Place, New Delhi- 110019 Tel. : +91-11-40600800, Fax: +91-11-40600888
Chd. Office: Plot No. F5, Rajiv Gandhi IT Park, Chandigarh- 160101 Tel. :+91-172-4266666 Fax: +91-172-4266602
Email: investors@alchemist.co.in Website: www.alchemist.co.in

II.a.3.) Amount of Depreciation has not been quantified due to the

difference in the usefull life of tangiable assets and not as per the Schedule
II of the Companies Act, 2013. As the management ensure to make proper
assessment of the life of the Assets and will comply to the provisions of
Schedule II of the Companies Act, 2013.
II.a.4.) Since, these are long pending dues from export receivables,
adequate steps should be taken to recover the amount immediately.
II.a.5.) Satisfied with the reply of the Management, and Management
ensure take the necessary steps to complete the process.

ALCHEMIST LTD.
CIN:L72200DL1988PLC192643
Regd. & Head Office:Alchemist House, Building No. 23, Nehru Place, New Delhi- 110019 Tel. : +91-11-40600800, Fax: +91-11-40600888
Chd. Office: Plot No. F5, Rajiv Gandhi IT Park, Chandigarh- 160101 Tel. :+91-172-4266666 Fax: +91-172-4266602
Email: investors@alchemist.co.in Website: www.alchemist.co.in