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Aro Granite Industries Ltd.

BSE: 513729 Sector: Others
NSE: AROGRANITE ISIN Code: INE210C01013
BSE LIVE 15:40 | 17 Nov 65.55 0.50
(0.77%)
OPEN

65.60

HIGH

68.70

LOW

65.10

NSE 15:31 | 17 Nov 65.35 0.20
(0.31%)
OPEN

65.95

HIGH

67.00

LOW

65.10

OPEN 65.60
PREVIOUS CLOSE 65.05
VOLUME 3683
52-Week high 89.90
52-Week low 57.00
P/E 20.17
Mkt Cap.(Rs cr) 100
Buy Price 0.00
Buy Qty 0.00
Sell Price 65.55
Sell Qty 500.00
OPEN 65.60
CLOSE 65.05
VOLUME 3683
52-Week high 89.90
52-Week low 57.00
P/E 20.17
Mkt Cap.(Rs cr) 100
Buy Price 0.00
Buy Qty 0.00
Sell Price 65.55
Sell Qty 500.00

Aro Granite Industries Ltd. (AROGRANITE) - Auditors Report

Company auditors report

To the Members of M/S ARO GRANITE INDUSTRIES LIMITED.

Report on the Financial Statements

We have audited the accompanying financial statements of M/S ARO GRANITE INDUSTRIESLIMITED. which comprise the Balance Sheet as at March 31 2017 the Profitand Loss Statement and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (‘the Act') with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the AccountingStandards referred to section 133 of the Companies Act 2013 read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes the maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities selection and application of appropriate accounting policies makingjudgements 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the management as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven 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: a) in the case of the Balance Sheet of thestate of affairs of the Company as at March 31 2017; b) in the case of the Profitand Loss Statement of the Profit for the year ended on that date; and c) In the caseof Cash Flow Statement of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

01. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 We give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

02. 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 are necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books

c) the Balance Sheet Profit and Loss Statement and Cash Flow Statement with by thisReport are in agreement with the books of account.

d) in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to section 133 of the CompaniesAct read with Rule 7 of the Companies (Accounts) Rules 2014.

e) on the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director under sub-section (2) of Section164 of the Companies Act 2013;

f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report on ‘Annexure B' and

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

i. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company and

ii. the Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note No. 25 (2) (r).

For ALOK MITTAL & ASSOCIATES

Firm Reg No. - 005717N

CHARTERED ACCOUNTANTS

ALOK K. MITTAL

(PARTNER)

M.No. 071205

Place : HOSUR

Date : 22.04.2017

Annexure - A to the Auditor's Report

Referred to in our report of even date

(i) The Company has maintained proper records of fixed assets showing full particularsincluding quantitative details and situation of fixed assets. All the assets have beenphysically verified by the management during the year and there is a regular programme ofverification which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets.

(ii) According to the information available to us that physical verification ofinventory has been conducted as reasonable intervals by the management and no materialdiscrepancies is noticed on physical verification between the physical stocks and the bookrecords.

(iii) The Company has not granted any loans to the parties covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act')

(iv) According to the information and explanations given to us the company has notgiven any guarantees for loans taken by others from Banks or Financial institutions.

(v) The Company has not accepted any public deposit so clause (v) is not applicable.

(vi) Pursuant to the provision of sub-section (1) of Section 148 of the Companies Act2013 The company is required to maintain cost records which are being made in respect ofthe business being carried out.

(vii) (a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Employees' State Insurance Income Tax SalesTax Service Tax Duty of Custom Duty of Excise Value Added Tax Cess and other materialstatutory dues applicable to it. According to information and explanation given to us noundisputed amounts payable in respect of Provident Fund Employees' State InsuranceIncome Tax Sales Tax Service Tax Duty of Custom Duty of Excise Value Added Tax Cessare in arrears as at 31st March 2017 for a period of more than six monthsfrom the date they become payable.

(b) According to the information and explanation given to us there are no materialdues of income tax custom duty excise duty cess which have not been deposited onaccount of any disputes. However according to information and explanations given to usthe demand and penalty has been raised by Tamilnadu VAT Department of Rs. 17092190/-for the financial year 2013-14 against which company has deposited Rs. 1710000/- andfiles an appeal to the department against the order of Assistant Commissioner (CT) Hosurof Tamilnadu VAT Department.

(viii) In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to banks and other financial institution.

(ix) According to the information and explanations given to us the company has notissued any preferential allotment and Private Placement offer during the period coveredunder audit.

(x) During the period covered under our audit no fraud has been noticed by the companyor by its officers and employees.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the provisions of section 197 read with schedule V to theCompanies Act (xii) According to the information and explanations given to us the companyis not a Nidhi Company hence clause (xii) is not applicable. (xiii) According to theinformation and explanations given to us all transactions with the related parties are incompliance with section 188 and 177 of Companies Act 2013 have been disclosed in theFinancial Statements etc as required by the accounting standards and Companies Act 2013.

(xiv) According to the information and explanations given to us the company has notissued any preferential allotment and Private Placement offer during the period coveredunder audit.

(xv) According to the information and explanations given to us the company has notentered any non-cash transactions with directors or persons connected with him during theperiod covered under audit.

(xvi) According to the information and explanations given to us the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934 henceclause (xvi) is not applicable

For ALOK MITTAL & ASSOCIATES

Firm Reg No. - 005717N

CHARTERED ACCOUNTANTS

ALOK K. MITTAL

(PARTNER)

M.No. 071205

Place : HOSUR

Date : 22.04.2017

Annexure (B) to the Auditor's Report

Rreferred to in our report of even date

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 M/S AROGRANITE INDUSTRIES LIMITED. ("the Company") as of 31.03.2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the 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(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance 168 Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 31.03.2017 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 ALOK MITTAL & ASSOCIATES

Firm Reg No. - 005717N

CHARTERED ACCOUNTANTS

ALOK K. MITTAL

(PARTNER)

M.No. 071205

Place : HOSUR

Date : 22.04.2017