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Associated Alcohols & Breweries Ltd.

BSE: 507526 Sector: Consumer
NSE: ASOCALCHOL ISIN Code: INE073G01016
BSE LIVE 11:53 | 20 Sep 170.50 0.95
(0.56%)
OPEN

168.70

HIGH

170.50

LOW

168.55

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 168.70
PREVIOUS CLOSE 169.55
VOLUME 2005
52-Week high 179.00
52-Week low 77.40
P/E 16.05
Mkt Cap.(Rs cr) 308
Buy Price 170.00
Buy Qty 225.00
Sell Price 170.50
Sell Qty 8.00
OPEN 168.70
CLOSE 169.55
VOLUME 2005
52-Week high 179.00
52-Week low 77.40
P/E 16.05
Mkt Cap.(Rs cr) 308
Buy Price 170.00
Buy Qty 225.00
Sell Price 170.50
Sell Qty 8.00

Associated Alcohols & Breweries Ltd. (ASOCALCHOL) - Auditors Report

Company auditors report

To

The Members of

Associated Alcohols & Breweries Limited

Report on the Financial Statements

We have audited the accompanying financial statements of

Associated Alcohols & Breweries Limited ("the Company") which comprisethe Balance Sheet as at March 31 2017 the Profit and Loss Statement the Cash FlowStatement for the year then ended and a summary of significant accounting policies andother 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 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 adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

While Conducting the Audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions 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 Companies Act 2013. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatements.

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 Company's directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is su_cient 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 financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of a_airs of the Company as at March31 2017 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 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the CompaniesAct 2013 we give in the Annexure A a statement on the matter specified in Para 3 and 4of 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 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. the Balance Sheet the Profit and Loss Statement 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 March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) ofthe 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 of our information and according to the explanations given to us:

(i) the Company has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to in Note 27 I (B) to the financialstatements.

(ii) the Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long-termcontracts.

(iii) there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the company.

(iv) the Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management (Refer Note 17).

For B. K. Agrawal & Co. For M.D. Agrawal & Co.
Chartered Accountants Chartered Accountants
Firm's Reg. No. 314202E Firm's Reg. No. 001177C
(CA B. K. Agrawal) (CA M.P. Agrawal)
Partner Partner
M. No. 51873 M.No. 016736
Place : Indore
Dated : 26th May 2017

Annexure "A" to the AudItor's report

The Annexure referred to in Independent Auditor's Report to the members of the companyon the financial statements for the year ended 31st March 2017 we report that:

(i) In respect of its Fixed Assets:

(a) The Company has maintained proper records of fixed assets showing full particularsincluding quantitative details and situation of fixed assets.

(b) As explained to us these fixed assets have been physically verified by themanagement at reasonable intervals. According to the information and explanation given tous no material discrepancies were noticed on such verification.

(c) According to the information and explanation given to us and on the basis of ourexamination the title deeds of immovable properties are held in the name of the company.

(ii) In respect of its inventory:

According to the information and explanation given to us physical verification of theinventory has been conducted at reasonable interval by the management and discrepanciesnoticed were corrected on such physical verification during the year.

(iii) According to the information and explanation given to us the company has notgranted loans secured or unsecured companies firms limited liability partnership orother parties covered in the register maintained under section 189 of the Companies Act2013.

(iv) According to the information and explanation given to us the company has compliedwith the provision of section 185 and 186 of the companies act 2013 as applicable inrespect of loans investments guarantees and security.

(v) According to the information and explanation given to us the company has notaccepted deposits to which provisions of Section 73 to 76 of the Companies Act 2013 areapplicable.

(vi) According to the information and explanation given to us the central governmenthas not prescribed maintenance of cost records under sub-section (1) Section 148 of theCompanies Act 2013.

(vii) According to the information and explanations given to us in respect ofstatutory dues: (a) The company is generally regular in depositing undisputed statutorydues including Provident Fund Employees' State Insurance Income Tax Sales Tax ServiceTax duty of Customs duty of excise Value Added Tax cess and other statutory dues tothe appropriate authorities and there were no undisputed amounts payable in respect ofProvident Fund Employees' State Insurance Income Tax Sales Tax Service Tax duty ofCustoms duty of excise Value Added Tax cess and other statutory dues in arrears as at31st March 2017 for period of more than six months from the date they became payable.

(b) According to the information and explanation given to us the dues of Income taxSales Tax Service Tax duty of Customs duty of Excise Value Added tax have not beendeposited as on 31st March 2017 on account of dispute are as under.

Sr. Name of the statue

Nature of dues

Amount (Rs in Lacs)

Forum where dispute is pending

1 Income Tax Act 1961 Income Tax Demand AY 2011-12 7.64 Commissioner of Income Tax (Appeals)
2 Income Tax Act 1961 Income Tax Demand AY 2012-13 6.28 Commissioner of Income Tax (Appeals)
3 Income Tax Act 1961 Income Tax Demand AY 2013-14 2.68 Commissioner of Income Tax (Appeals)
4 Entry Tax Act Entry Tax FY 2012-13 74.35 MP Commercial Tax Appeal Board Bhopal
5 Entry Tax Act Entry Tax FY 2007-08 11.38 MP Commercial Tax Appeal Board Bhopal
6 Entry Tax Act Entry Tax FY 2008-09 9.29 MP Commercial Tax Appeal Board Bhopal
7 Madhya Pradesh VAT Act M.P. VAT 2013-14 271.55 Addl. Commissioner Commercial Tax Indore
8 Central Sales Tax Act Central Sales Tax 2013-14 3.61 Addl. Commissioner Commercial Tax Indore
9 Entry Tax Act Entry Tax 2013-14 0.77 Addl. Commissioner Commercial Tax Indore
10 Madhya Pradesh VAT Act M.P. VAT 2014-15 289.25 Addl. Commissioner Commercial Tax Indore
11 Central Sales Tax Act Central Sales Tax 2014-15 0.59 Addl. Commissioner Commercial Tax Indore
12 Madhya Pradesh Excise Act State Excise Duty 6.63 Board of Revenue
13 Madhya Pradesh Excise Act State Excise Duty 454.80 M.P. High Court
14 Madhya Pradesh Excise Act State Excise Duty 118.99 Excise Commissioner Gwalior

(viii) The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank government or dues to debenture holders.

(ix) The company has not raised moneys by way of initial public o_er or further publico_er (including debt instruments). In our opinion and according to the information andexplanations given to us the Company has generally applied the term loans for the purposefor which the loans were obtained.

(x) We have not noticed or reported any fraud by the company or any fraud on thecompany by its officers or employees during the year.

(xi) The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule V to theCompanies Act.

(xii) The company has not been a Nidhi Company and as such requirement for comments asapplicable to Nidhi Company is not applicable.

(xiii) According to the information and explanations given to us all transactions withthe related parties are in compliance with section 177 and 188 of Companies Act 2013where ever applicable and the details have been disclosed in the Financial Statementsetc. as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review.

(xv) According to the information and explanation given to us the company has notentered into any non-cash transactions with directors or persons connected with him andthe provisions of section 192 of Companies Act 2013 are not applicable.

(xvi) The company has not been registered under section 45-IA of the Reserve Bank ofIndia Act 1934 and as such the requirements for comments as applicable to such companiesis not required.

For B. K. Agrawal & Co. For M.D. Agrawal & Co.
Chartered Accountants Chartered Accountants
Firm's Reg. No. 314202E Firm's Reg. No. 001177C
(CA B. K. Agrawal) (CA M.P. Agrawal)
Partner Partner
M. No. 51873 M.No. 016736
Place : Indore
Dated : 26th May 2017

Annexure "B" to the AudItor's report

The Annexure referred to in paragraph 2(f) under "Report on other Legal andRegulatory Requirements" of our Independent Auditor's Report of even date on thefinancial statements to the members of Associated Alcohols & Breweries Limited for theyear ended 31st March 2017.

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 AssociatedAlochols & Breweries Limited ("the Company") as of 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 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 eficientconduct 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 Standards on Auditing and deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by ICAI . 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 judgment 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 su_cient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial 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 B. K. Agrawal & Co. For M.D. Agrawal & Co.
Chartered Accountants Chartered Accountants
Firm's Reg. No. 314202E Firm's Reg. No. 001177C
(CA B. K. Agrawal) (CA M.P. Agrawal)
Partner Partner
M. No. 51873 M.No. 016736
Place : Indore
Dated : 26th May 2017