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Auroma Coke Ltd.

BSE: 531336 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE662I01012
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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 5.91
PREVIOUS CLOSE 5.91
VOLUME 5
52-Week high 7.00
52-Week low 4.94
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 5.91
Sell Qty 121.00
OPEN 5.91
CLOSE 5.91
VOLUME 5
52-Week high 7.00
52-Week low 4.94
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 5.91
Sell Qty 121.00

Auroma Coke Ltd. (AUROMACOKE) - Auditors Report

Company auditors report

To the Members of

Auroma Coke Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Auroma Coke Limited (the Company) which comprise the Balance Sheet as at March 31 2016 the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory informa on.

Management's Responsibility for the Financial Statements

The company's Board of Directors is responsible for the ma ers stated in sec on 134(5) of the Companies Act 2013 (the Act) with respect to the prepara on and presenta on of these financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Sec on 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preven ng and detecting frauds and other irregulari es; selec on and applica on of appropriate accounting policies; making judgments and es mates that are reasonable and prudent; and design implementa on and maintenance of adequate internal financial controls that were operating the ectively for ensuring the accuracy and completeness of the accounting records relevant to the prepara on and presenta on of the financial statements that give a true and fair view and 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 our audit. We have taken into account the provisions of the Act the accounting and audi ng standards and ma ers which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Audi ng specified under Sec on 143(10) of the Act and other applicable authorita five pronouncements issued by the Ins tute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. In making those risk assessments the auditor considers internal financial control relevant to the Company's prepara on of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evalua ng the appropriateness of accounting policies used and the reasonableness of the accounting mates made by the Company's Directors as well as evalua ng the overall presenta on of the financial statements.

We believe that the audit evidence we have obtained is su cient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our informa on and according to the explana ons given to us the aforesaid financial statements give the informa on required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of a airs of the Company as at 31 March 2016 and its loss and its cash flows for the year ended on that date.

Emphasis of Matters

We draw a en on to the following ma ers in the Notes to the financial statements:

Note No. 1.12 of the financial statements which describes the uncertainty related to the outcome of the case filed against the company by CBI and suspension of supply of raw material under FSA by main supplier BCCL and its consequences.

Our opinion is not modified in respect of these matters.

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 sub-sec on (11) of sec on 143 of the Act and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the informa on and explana ons given to us we give in the `Annexure A' a statement on the ma ers specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Sec on 143(3) of the Act we report that:

a. We have sought and obtained all the informa on and explana on which to the best of 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 the Company so far as appears from our examina on of those books.

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply with the Accoun ng Standards specified under sec on 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;

e. On the basis of the wri en representa ons received from the directors as on March 31 2016 taken on record by the Board of Directors none of the directors is disqualified as on March 31 2016 from

14 being appointed as a director in terms of Sec on 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating the ec veness of such controls refer to our separate Report in `Annexure B'.

g. With respect to the other ma ers to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of our informa on and according to the explana ons given to us:

i. The Company has disclosed the impact of pending li ga ons on its financial posi on in its financial statements - Refer Note 1.12 to the financial statements; ii. The Company did not have any long-term contracts including deriva five contracts for which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the Investor Educa on and Protec on Fund by the Company

Annexure `A' to Independent Auditors' Report

Referred to in Paragraph 1 under the heading of Report on Other Legal and Regulatory Requirements to the members of the company on the financial statements for the year ended 31st March 2016 we report that: i. (a) We have been informed that the Company is in the process of preparing fixed assets register. (b) Physical verifica on of assets has been conducted on selec five basis every year by which all fixed assets are verified in a phased manner over a period. Pursuant to the program certain fixed assets were physically verified by the management during the year and no material discrepancies were no ced on such verifica on. (c) The tle deed of immovable proper es are held in the name of the company except for the following which are not held in the name of the company:

Total No. of CasesLeasehold/ Free HoldGross Block as at 31.03.2016Net Block as at 31.03.2016
5Free HoldRs. 1968950/-Rs. 1968950/-

 

RemarksThe Title Deeds of these Lands are in the name of erstwhile partnership firm Auroma Coke Manufacturers

ii. We have been informed that the management has conducted physical verifica on of inventories at the year end except for goods-in-transit and stock lying with third par es and no material discrepancies have been no ced on such verifica on as compared to book records.

iii. The company has not granted any loans to firms Limited Liability Partnerships or other par es covered in the register maintained under sec on 189 of the Companies Act 2013 (the Act) except gran ng of unsecured loans to the bodies corporate covered in the register maintained under sec on 189 of the Act. On the basis of informa on and explana on given to us we report that:

(a) The terms and conditions of such loans are not prejudicial to the company's interest.

(b) There is no s pula on regarding repayment of principal and interest and they are repayable on demand and the company is receiving the principal and interest as and when demanded. Accordingly paragraph 3(iii)(b) of the Order is not applicable to the company.

(c) There are no overdue amounts for more than ninety days in respect of the loans granted to the bodies corporate listed in the register maintained under sec on 189 of the Act. iv. In our opinion and according to the informa on and explana ons given to us in respect of loans investments guarantees and security the provisions of sec on 185 and 186 of the Companies Act 2013 have been complied with.

v. We have been informed that the Company has not accepted any deposits from the public during the year in terms of Sec ons 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Accordingly paragraph 3(v) of the Order is not applicable to the company.

vi. According to the informa on and explana ons given to us the maintenance of cost records as specified by the Central Government under sec on 148(1) of the Companies Act 2013 is not applicable for the year. Accordingly paragraph 3(vi) of the Order is not applicable to the company.

vii. (a) We have been informed that the company is generally regular in deposi ng undisputed statutory dues including provident fund employee's 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 authori es wherever applicable though there has been a slight delay in a few cases and non-payment in three cases as men oned subsequently. There are no arrears of outstanding liabili es as at the end of the year for a period of more than six months from the date they became payable except in case of Sales Tax Rs. 1.00 lacs Electricity Duty Rs. 0.37 lacs and Income tax Rs. 0.64 lacs.

(b) There are demands in respect of sales tax dues which are disputed by the company but the said demands have been adjusted by the department from the input credit available with them. The company is yet to file revision pe on / appeals in respect of demands adjusted from input credit or claim for input credit not admi ed amoun ng to Rs. 23.56 lacs with the appropriate authori es for the year 2006-07 to 2010-11.

(c) According to the informa on and explana ons given to us the following dues of sales tax / VAT has not been deposited by the company on account of disputes:

Name of the duesNature of the involvedAmount which relatePeriod to is pendingForum where dispute Statute
JVAT Act2005Tax & PenaltyRs. 43.762007-08
JVAT Act2005Tax & PenaltyRs. 2.402008-09Appellate
JVAT Act2005Tax & PenaltyRs. 68.822011-12Authori es
JVAT Act2005Tax & PenaltyRs. 2.942014-15

viii. According to the informa on and explana ons given to us and based on the records of the company the company has not defaulted in the repayment of loans or borrowings to banks. The company has not taken any loan from financial ins tu ons or government nor has raised any amount by way of Debentures.

ix. The company did not raise money by way of ini al public o er or further public o er (including debt instruments) during the year. According to the informa on and explana ons given to us term loans raised were applied for the purposes for which the loans were obtained.

x. Based upon the audit procedures performed and informa on and explana ons given to us and to the best of our knowledge we report that no fraud by the company and any fraud on the company by its o cers or employees has been no ced or reported during the year nor we have been informed of such case by the management.

xi. According to the informa on and explana ons given to us managerial remunera on has been paid or provided in accordance with the requisite approvals mandated by the provisions of sec on 197 and Schedule V of the Companies Act 2013.

xii. According to the informa on and explana ons given to us the company is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is not applicable to the company.

xiii. According to the informa on and explana ons given to us all transac ons with the related par es are in compliance with sec on 177 and 188 of the Companies Act 2013 and where applicable the details have been disclosed in the Financial Statements as required by the applicable accounting standards.

xiv. According to the informa on and explana ons given to us and based on our examina on of the records the company has made allotment of non-conver ble non-cumulative 5% Redeemable Preference Shares on private placement and preferen al basis during the year under review for which the requirements of Sec on 42 of the Companies Act 2013 have been complied with. The company has raised an amount of Rs. 2524.00 lacs in earlier years for allotment of equity shares and the said amount was kept under Share Applica on Money pending allotment. As per op on given by the company and exercised by the applicants during the year the company issued non-conver ble non-cumula five 5% Redeemable Preference Shares amoun ng to Rs. 2200.00 lacs and has refunded the balance amount. Since the funds were raised in earlier years for general business purposes of the company and were utilised in the year of receipt of such funds there is no scope to report about the use of such funds during the current year in which only allotment has taken place.

xv. According to the informa on and explana ons given to us and based on our examina on of the records of the company the company has not entered into any non-cash transac ons with directors or persons connected with them.

xvi. According to the informa on and explana ons given to us the company is not required to be registered under sec on 45-IA of the Reserve Bank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable to the company.

Annexure `B' to Independent Auditors' Report

Referred to in Paragraph 2(f) under the heading of Report on Other Legal and Regulatory Requirements to the members of Auroma Coke Limited on the financial statements for the year ended 31st March 2016 we report that: Report on the Internal Financial Controls Over Financial Repor ng under Clause (i) of Sub-sec on 3 of Sec on 143 of the Companies Act 2013 (`the Act') We have audited the internal financial controls over financial reporting of Auroma Coke Limited (`the Company') as at 31st March 2016 in conjunc on with our 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 internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essen al components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Ins tute of Chartered Accountants of India. These responsibilities include the design implementa on and maintenance of adequate internal financial controls that were operating the ec vely for ensuring the orderly and eficient conduct of its business including adherence to Company's policies the safeguarding of its assets the preven on and detec on of frauds and errors the accuracy and completeness of the accounting records and the mely prepara on of reliable financial informa on as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Repor ng (the `Guidance Note') and the Standards on Audi ng issued by ICAI and deemed to be prescribed under Sec on 143(10) of the Act to the extent applicable to an audit of internal financial controls both applicable to an audit of audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated the ec vely in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating the ec veness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and tes ng and evalua ng the design and operating the ec veness of internal control based on the assessed risk. The procedures selected depend on the auditors' judgment including the assessment of the risks of material 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 to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the prepara on of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transac ons and disposi ons of the assets of the company; (2) provide reasonable assurance that transac ons are recorded as necessary to permit prepara on of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorisa ons of management and directors of the company; and (3) provide reasonable assurance regarding preven on or mely detec on of unauthorized acquisi on use or disposi on of the company's assets that could have a material the ect on the financial statements.

Inherent Limita ons of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion to the best of our informa on and according to the explana ons given to us the Company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating the ec vely as at March 31 2016 based on the internal control over financial reporting criteria established by the Company considering the essen al components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Repor ng issued by the Ins tute of Chartered Accountants of India.

For AGARWAL KHEMKA & ASOCIATES
Chartered Accountants
(Registra on Number: 314133E)
A. K. Agarwal
Place: KolkataProprietor
Date: 30.5.2016Membership Number: 052791