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Alora Trading Company Ltd.

BSE: 539693 Sector: Others
NSE: N.A. ISIN Code: INE527R01018
BSE 00:00 | 24 Apr 2.57 -0.05
(-1.91%)
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2.62

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2.62

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2.57

NSE 05:30 | 01 Jan Alora Trading Company Ltd
OPEN 2.62
PREVIOUS CLOSE 2.62
VOLUME 7912
52-Week high 35.90
52-Week low 2.57
P/E 5.98
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.62
CLOSE 2.62
VOLUME 7912
52-Week high 35.90
52-Week low 2.57
P/E 5.98
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Alora Trading Company Ltd. (ALORATRADING) - Auditors Report

Company auditors report

TO

THE MEMBERS OF ALORA TRADING CO LIMITED

1) REPORT ON FINANCIAL STATEMENTS

We have audited the financial results of ALORA TRADING CO LIMITED for the yearended 31st March 2017 being submitted by the company pursuant to therequirements of Regulation 33 of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 as modified by Circular No.CIR/CFD/FAC/62/2016 dated July5 2016. These financial results which are the responsibility of the Management have beenprepared in accordance with the recognition and measurement principles laid down in IndianAccounting Standards as prescribed under Section 133 of the Companies Act 2013 read withrelevant rules issued there under or by the Institute of Chartered Accountants of Indiaas applicable and other accounting principles generally accepted in India.

2) MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Management is responsible for the matters stated in Section 134(5) of the CompaniesAct

2013 ("the Act") with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

3) AUDITOR'S RESPONSIBILITY

We conducted our audit in accordance with the auditing standards generally accepted inIndia. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial results are free of material misstatement(s). Anaudit includes examining on a test basis evidence supporting the amounts disclosed asfinancial results. An audit also includes assessing the accounting principles used andsignificant estimates made by management. We believe that our audit provides a reasonablebasis for our opinion.

In our opinion and to the best of our information and according to the explanationsgiven to us these financial results: a. are presented in accordance with the requirementsof Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 as modified by Circular No.CIR/CFD/FAC/62/2016 dated July 52016. b.give a true and fair view of the net profit and other financial information for theyear ended 31st March2017 .

4) BASIS FOR QUALIFIED OPINION

Attention is drawn to the provisions of Section 45I of Reserve Bank of India Act 1934and Reserve Bank of India Press Release 1998-99/1269 dated April 08 1999 which states ifits Financial Assets is more than 50 percent of its total assets and income from financialassets are more than 50 percent of the gross income then the company is identified as anNBFI and hence it is required to obtain Certificate of Registration from RBI. In ouropinion the company has not complied with the provisions of Section 45IA of the RBI Act1934 in spite of fulfilling the conditions prescribed under the Act for registration withRBI as Non-Banking Financial Institution (NBFI).

5) QUALIFIED OPINION

In our opinion and to the best of our information and according to the explanationgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its profit for the year ended on that date EXCEPT for the following:

As per the provisions of Section 45I of Reserve Bank of India Act 1934 and ReserveBank of India Press Release 1998-99/1269 dated April 08 1999 a Company would beidentified as an Non Banking Financial Institution(NBFI) if its financial assets are morethan 50 percent of its total assets (Netted off by Intangible Assets) and income fromFinancial Assets are more than 50 percent of the gross income. Accordingly the company isrequired to obtain Certificate of Registration from RBI to commence/carry on business asper Section 45IA of the RBI Act 1934. However the company has not complied with theaforesaid provisions of the RBI Act 1934 inspite of fulfilling the conditions prescribedunder the Act for registration with RBI as NBFI which states that the company is requiredto get registered if its financial assets is more than 50 percent of its total assets.

6) REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

As required by the Companies (Auditors Report) Order 2016 ("The Order")issued by the

Central Government of India in terms of Section 143(11) of the Act we give in the "AnnexureA" a statement on the matters specified in paragraphs 3 & 4 of the Order.

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 bestof 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 theCompany so far as it appears from our examination of those books.

c) Branch audit is not applicable to the company.

d) In our opinion the Balance Sheet the Statement of Profit and Loss dealt with bythis Report are in agreement with the books of account.

e) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

f) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

g) There are no such observations and comments on the financial transactions or matterswhich have adverse effect on the company.

h) In our opinion there are no qualifications reservations or adverse remarks inrespect of the maintenance of the books of accounts or other matters connected herewith.

i) In our opinion and with the help of the compliance procedures conducted by us weconclude that the company has adequate financial control system in place and also thecontrol system is operating effectively (Refer "Annexure B").

j) The Company does not have any pending litigations which would impact its financialposition.

k) The Company did not have any long term contracts including derivative contracts forwhich there were any foreseeable losses.

l) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.

m) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us we alsoreport that:

(i) There have been no transactions with respect to the dealings in Specified BankNotes (SBN) as well as holdings and dealings of the same during the period from 8thNovember 2016 to 30th December 2016 and also the same is in accordance withthe books of accounts maintained by the company.

FOR CHAITIK SALOT & ASSOCIATES
Chartered Accountants
(FRN: 139912W)
Sd/-
Chaitik Salot
(Proprietor)
(M. No: -163193)
Place:-Mumbai
Date: - 27th May 2017

ANNEXURE A

To

The Members of Alora Trading Company Limited

Companies (Auditor's Report ) Order 2016 for the year ended 31st March 2017

SR. NO. COMMENT REQUIRED ON AUDITOR'S OPINION ON FOLLOWING REQUIRED REMARKS BY AUDITORS
(I) FIXED ASSETS (A) whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets YES
(B) whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; YES
(C') whether the title deeds of immovable properties are held in the name of the company. If not provide the details thereof YES
(II) INVENTORY whether physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so whether they have been properly dealt with in the books of account; The nature of business is such that there are no Inventories
(III) LOANS SECURED OR UNSECURED GRANTED whether the company has granted any loans secured or unsecured to companies firms Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act 2013. If so The Company has granted unsecured Loans
(A) whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest; NO
(B) whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular; Yes
(C') if the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest; in respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Companies Act 2013 have been complied with. If not provide the details thereof. Not Applicable
(IV) INTERNAL CONTROL the Company has an adequate internal control system commensurate with its size and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit we have not observed any continuing failure to correct major weaknesses in such internal control system. The Company has adequate Internal control system.
(V) PUBLIC DEPOSITS in case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder where applicable have been complied with? If not the nature of such contraventions be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? The Company has not accepted any Public Deposits during the year
(VI) COST ACCOUNTING RECORDS whether maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013 and whether such accounts and records have been so made and maintained. Not Applicable
(VII) STATUTORY COMPLIANCE (a) whether the company is regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-tax service tax duty of customs duty of excise value added tax cess and any other statutory dues to the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated; The Company has paid all the Statutory Dues
(b) where dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not be treated as a dispute).
(VIII) LOAN FROM BANKS/ FINANCIAL INSTITUTION whether the company has defaulted in repayment of loans or borrowing to a financial institution bank Government or dues to debenture holders? If yes the period and the amount of default to be reported (in case of defaults to banks financial institutions and Government lender wise details to be provided). The Company has not taken any loans from Banks or Financial Institutions
(IX) APPLICATION OF MONEY RECEIVED FROM EQUITY OR LOAN whether moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised. If not the details together with delays or default and subsequent rectification if any as may be applicable be reported; Yes
(X) FRAUD REPORTING whether any fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year; If yes the nature and the amount involved is to be indicated; No fraud was detected during the course of Audit
(XI) MANAGERIAL REMUNERATION whether managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act? If not state the amount involved and steps taken by the company for securing refund of the same; YES
(XII) NIDHI COMPANY - COMPLIANCE WITH DEPOSITS whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining ten per cent unencumbered term deposits as specified in the Nidhi Rules 2014 to meet out the liability; Not Applicable
(XIII) RELATED PARTY TRANSACTIONS whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards; There are no related party transactions
(XIV) ISSUE OF SHARE CAPITAL AND USE OF AMOUNT RAISED whether the company has made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and if so as to whether the requirement of section 42 of the Companies Act 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised. If not provide the details in respect of the amount involved and nature of non- compliance; No new issue was made during the year
(XV) TRANSACTION WITH DIRECTOR whether the company has entered into any non-cash transactions with directors or persons connected with him and if so whether the provisions of section 192 of Companies Act 2013 have been complied with; No
(XVI) REGISTERATION FROM RBI whether the company is required to be registered under section 45-IA of the Reserve Bank of India Act 1934 and if so whether the registration has been obtained. Yes the Company is required to be registered under section 45-IA of the Reserve Bank of India Act 1934. However the company has not applied for the same.
FOR CHAITIK SALOT & ASSOCIATES
Chartered Accountants
(FRN: 139912W)
Sd/-
Chaitik Salot
(Proprietor)
(M. No: -163193)
Place:-Mumbai
Date:- 27th May 2017

ANNEXURE B

Report on Internal Financial Controls over Financial Reporting

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the

Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ALORATRADING CO LIMITED ("the Company") as on March 31 2017 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Management is responsible for establishing and maintaining internal financialcontrols based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India. These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting("Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls applicable to an audit of Internal Financial Controlsand issued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Notes require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:

1. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of Management and Directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

FOR CHAITIK SALOT & ASSOCIATES
Chartered Accountants
(FRN: 139912W)
Sd/-
Chaitik Salot
(Proprietor)
(M. No: -163193)
Place:-Mumbai
Date: - 27th May 2017