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Asahi Songwon Colors Ltd.

BSE: 532853 Sector: Industrials
NSE: ASAHISONG ISIN Code: INE228I01012
BSE LIVE 15:40 | 25 May 294.75 0.85
(0.29%)
OPEN

293.00

HIGH

304.90

LOW

293.00

NSE 15:31 | 25 May 293.85 -0.80
(-0.27%)
OPEN

291.00

HIGH

305.00

LOW

290.15

OPEN 293.00
PREVIOUS CLOSE 293.90
VOLUME 2635
52-Week high 336.90
52-Week low 146.50
P/E 15.98
Mkt Cap.(Rs cr) 362
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 293.00
CLOSE 293.90
VOLUME 2635
52-Week high 336.90
52-Week low 146.50
P/E 15.98
Mkt Cap.(Rs cr) 362
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Asahi Songwon Colors Ltd. (ASAHISONG) - Auditors Report

Company auditors report

To the Members of

Asahi Songwon Colors Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Asahi Songwon Colors Limited("the Company") which comprise the balance sheet as at March 31 2016 thestatement of profit and loss the cash flow statement for the year then ended and asummary of the significant 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe Accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 there under.

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 ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by Company’s Directors as well as evaluating theoverall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Sub-Section (11) ofSection 143 of the Act we give in the Annexure-A a statement on the matters specified inparagraphs 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 bestof our knowledge and belief were 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 Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

(d) 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.

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164(2) of the Act.

(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 in "Annexure B"

(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) Rules 2014 in our opinionand to the best our information and according to the explanations given to us:

(a) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 29 to the financial statements;

(b) The Company did not have any long-term contract including derivative contract forwhich there were any material foreseeable losses;

(c) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended March 31 2016

For Trushit Chokshi and Associates

Chartered Accountants

Firm Registration No : 111072W

Trushit Chokshi

Place:Ahmedabad

Partner

Date: August 22 2016

Membership No. : 040847

ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

Annexure "A" to the Independent Auditors’ Report of even date on theFinancial Statements of Asahi Songwon Colors Limited

Referred to in Paragraph 1 under the heading "Report on Other Legal and RegulatoryRequirements" of our Report of even date:

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) These fixed assets have been physically verified by the Management at reasonableintervals and no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the Company.

(ii) (a) According to the information and explanation given to us the inventorieshave been physically verified by the management during the year. In our opinion theprocedures for the physical verification of inventory followed by management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(b) In our opinion and according to the information and explanation given to us theCompany has maintained proper records of inventory. No material discrepancies were noticedon physical verification of inventory.

(iii) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the Act.Accordingly clause (iii)(a) and (iii)(b) of paragraph of the Order are not applicable tothe Company for the current year.

(iv) In our opinion and according to the information and explanations given to us theCompany has not given any loans guarantees or security or made any investments to whichprovisions of section 185 and 186 of the Act is applicable and accordingly paragraph 3(iv) of the Order is not applicable to the Company.

(v) The Company has not accepted any deposits from the Public within the meaning of theprovisions of section 73 to 76 or any other relevant provisions of the Act and the rulesframes there under.

(vi) According to the information and explanation provided for the provisions of clause3(vi) of the Order are not applicable to the Company as the Company is not covered by theCompany (Cost Records and Audit) Rules 2014. The Company does maintain cost records inaccounting system as per financial data however the detailed examination has not beenmade to determine whether they are sufficient accurate or correct.

(vii) According to the information and explanations given to us in respect of statutorydues:

(a) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has been regular in depositing undisputedstatutory dues including Provident Fund Employees’ State Insurance Income-taxSales-tax Service tax Custom dutyExcise duty Value added Tax Cess and any othermaterial statutory dues during the year with the appropriate authorities. Moreover as atMarch 31 2016 there are no such undisputed dues payable for a period of more than sixmonths from the date they became payable.

(b) According to the information and explanations given to us the particulars of duesof Income tax Sales tax Excise duty and Service tax and other material statutory dues asat March 31 2016 which have not been deposited on account of any dispute are as follows:

Name of the Statute Nature of dues Amount of Demand net of Deposits Year to Which Amount Relates Forum where Dispute is Pending
Income Tax Act 1961 Income Tax 554841 2001-2002 The said Demand is outstanding because of non disposal of the application filed u/s 154
Income Tax Act 1961 Income Tax 1344550 2002-2003 Income Tax Appellate Tribunal Ahmedabad
Income Tax Act 1961 Income Tax 2755672 2004-2005 Commissioner of Income Tax (Appeal)
Income Tax Act 1961 Income Tax 151555 2006-2007 Commissioner of Income Tax (Appeal)
Income Tax Act 1961 Income Tax 16470 2010-2011 Income Tax Appellate Tribunal Ahmedabad
Income Tax Act 1961 Income Tax 272520 2011-2012 Income Tax Appellate Tribunal Ahmedabad
Income Tax Act 1961 Income Tax 62300 2013-2014 Commissioner of Income Tax (Appeal)

viii) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not defaulted in repayment of loansor borrowings from any financial institution banks government or due to debentureholders during the year.

(ix) The Company did not raise any money by way of initial public o_er or furtherpublic o_er (including debt instruments). The term loans raised during the year has beenutilized by the Company for the purpose for which the same has been taken.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its Officers or employees has been noticed or reported during thecourse of our audit.

(xi) According to the information and explanations given to us and on the basis of ourexamination of the books of account the managerial remuneration has been paid or providedin accordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V of the Companies Act 2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the

Company transactions with the related parties are in compliance with section 177 and188 of the Act where applicable and details of such transactions have been disclosed inthe financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Trushit Chokshi and Associates
Chartered Accountants
Firm Registration No : 111072W
Trushit Chokshi
Place:Ahmedabad Partner
Date: August 22 2016 Membership No. : 040847

ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

Annexure "B" Report on the Internal Financial Control clause (i) ofsubsection 3 of section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls over financial reporting of AsahiSongwon Colors Limited ("the Company") as at March 31 2016 in conjunction withour audit of the Financial Statements of the Company for the year 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s 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 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 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that:

(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(ii) 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 authorisations of management and Directors of the company; and

(iii) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company’s assets that could havea material 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 2016 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 Trushit Chokshi and Associates
Chartered Accountants
Firm Registration No : 111072W
Trushit Chokshi
Place:Ahmedabad Partner
Date: August 22 2016 Membership No. : 040847