You are here » Home » Companies » Company Overview » Aarti Industries Ltd

Aarti Industries Ltd.

BSE: 524208 Sector: Industrials
NSE: AARTIIND ISIN Code: INE769A01020
BSE 00:00 | 23 Aug 1488.95 26.25
(1.79%)
OPEN

1454.60

HIGH

1514.00

LOW

1425.60

NSE 00:00 | 23 Aug 1492.60 25.30
(1.72%)
OPEN

1452.00

HIGH

1514.80

LOW

1425.75

OPEN 1454.60
PREVIOUS CLOSE 1462.70
VOLUME 7009
52-Week high 1818.82
52-Week low 1059.40
P/E 25.07
Mkt Cap.(Rs cr) 12,972
Buy Price 1481.00
Buy Qty 1.00
Sell Price 1498.45
Sell Qty 5.00
OPEN 1454.60
CLOSE 1462.70
VOLUME 7009
52-Week high 1818.82
52-Week low 1059.40
P/E 25.07
Mkt Cap.(Rs cr) 12,972
Buy Price 1481.00
Buy Qty 1.00
Sell Price 1498.45
Sell Qty 5.00

Aarti Industries Ltd. (AARTIIND) - Auditors Report

Company auditors report

To the Members of Aarti Industries Limited

Report on the Standalone Financial Statements

1. W e have audited the accompanying Standalone Statements of Aarti IndustriesLimited ("the Company") which comprises the Balance Sheet as at March 31

2018 the Statement of Profit and Loss (including Other

Comprehensive Income) Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Financial Statements

2. The Board of Directors of the Company are responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Standalone Financial Statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under

Section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015as amended and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent;design implementation and maintenance of adequate internal financial controls that areoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion

Standalone Financial Statements based on our audit. We have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade there under and the Order issued under Section 143(11) of the Act. We conducted ouraudit in accordance with the Standards on Auditing specified under Section 143(10) of theAct.

Those Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the Standalone Financial Statementsare free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the Standalone Financial Statements. The procedures selected depend onthe auditor'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's preparation ofthe Standalone 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 accounting policies used and the reasonableness of theaccounting estimates made by the Company's Board of Directors as well as evaluating theoverall presentation of the Financial Statements.

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

Opinion

6. 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 theCompanyasatMarch312018 profittotal the comprehensive income its cash flows andthe changes in the equity for the year ended March 31 2018;

Report on Other Legal and Regulatory Requirements

7.theseAs required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of

India in terms of Section143 (11) of the Act we give in the Annexure A a statement onthe matters Specified in paragraphs 3 and 4 of the Order.

8. A s 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 including Other ComprehensiveIncome Cash Flow

Statement and Statement of Changes in Equity dealt with by this Report are in agreementwith the books of account;

d) in our opinion the aforesaid Standalone Financial Statements comply with theapplicable Accounting Standards specified under Section 133 of the

Act read with the Companies (Indian Accounting Standards) Rules 2015;

e) on the basis of written representations received from the Directors as on March 312018 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of Section 164(2) of theAct;

f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and g) In our opinion and to the best of ourinformation and according to the explanations given to us we report as under with respectto other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 as amended:

(i) The Company has disclosed the impact of pending litigation on its financialposition in its

Standalone Financial Statements. Refer Note 24 to the Standalone Financial Statements.

(ii) The Company has made provision as required under the applicable law or accountingstandards see material foreseeable losses if any on long term contracts includingderivative contracts;

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

For Kirtane & Pandit LLP
Chartered Accountants
FRN: 105215W/ W100057
Milind Bhave
Place: Mumbai Partner
Date: May 11 2018 Membership No.: 047973

Annexure A to the Auditor's Report –

March 31 2018

Annexure A referred to in paragraph 7 of our Report of even date to the members ofAarti Industries Limited on the accounts of the company for the year ended March 31 2018.

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

(i) (a) The Company is generally maintaining proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment.

(b) The Company has phased programme of physical by which verification all PropertyPlant and Equipment are verified over a period of three years. In our opinion periodicityof physical verification is reasonable having regard to the size of the Company and natureof assets. As informed to us there were no material discrepancies verification; werenoticedsuchphysical

(c) According to the information and explanation given to us and on the basis ofexamination of the records of the Company the title deeds of immovable properties otherthan self-constructed immovable property (buildings) are held in the name of the Company.

(ii) The Management has been conducted physical verification of the inventories atreasonable intervals except inventories lying at third parties confirmation of suchstocks has been obtained. No major discrepancies were found in the physical verification.All minor discrepancies have been properly dealt with in books of accounts.

(iii) According to the information and explanations given to us the Company hadgranted unsecured loan to its one wholly owned subsidiary in the register maintained underSection 189 of the Act

(a) In our opinion terms and conditions of such loan was not prejudicial to theinterest of the Company.

(b) The schedule of principal amount and interest has been stipulated and it isregular.

(c) There is no overdue amount in respect of such loan granted.

(iv) In our opinion and according to the information and explanations given to usCompany have been complied with provision of Section 185 and 186 of the Act in respect ofloans investments guarantees and security.

(v) The Company has not accepted any deposits from the public covered under Section 73to 76 of the Companies Act 2013.

(vi) The Company has maintained cost records as required under sub-Section (1) ofSection 148 of the Act. We have not carried out any detailed examination of such records.

(vii) According to the information and explanations given to us and based on therecords of the company examined by us

(a) The company has generally been regular in depositing the undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales

Tax Service Tax Goods and Service Tax Excise Duty

Custom Duty and other material statutory dues as applicable with the appropriateauthorities in India ;

According to the information and explanation given to us no undisputed amount payablein respect of Provident Fund Employees' State Insurance Income

Tax Sales Tax Service Tax Goods and Service

Tax Excise Duty Custom Duty and other material statutory dues were in arrears as atMarch 31 2018 for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of Income Tax

Sales Tax Service Tax Goods and Service Tax Excise

Duty and Custom Duty which have not been deposited on account of any disputes exceptfollowing:

Name of the Statute Amount in Rs Period for which it relates Forum where dispute is pending
The Central Excise Act 1944 Custom 31.84 Crs Commissionerate
Duty Service Tax Interest & Penalty 39.63 Crs FY 2001-02 to FY 2014-15 Appellate Authorities and Tribunals
Income Tax Act 1961 and Interest & Penalty 12.77 Crs Commissionerate
5.19 Crs FY 2008-09 to FY 2013-14 Appellate Authorities and Tribunals
Total 89.44 Crs

(viii) In our opinion and according to the information and explanations given to us andbased on our examination of the records the Company has not defaulted in repayment ofloans or borrowings to a financial institution bank government or dues to debentureholders.

(ix) In our opinion and according to the information and explanations given to usmonies raised by way of debt instruments and the term loans during the year have beenapplied by the Company for the purposes of which they are raised. Company does not raisemoney by way of initial public offer or further public offer and term loans other thanfor what it was purposes.

(x) In our opinion and according to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the year.

(xi) In our opinion and according to the information given to us the Company haspaid/provided managerial remuneration in accordance with the requisite approvals mandatedby the provisions of Section 197 read with Schedule V of to the Act.

(xii) The nature of business is not related to Nidhi Company; hence this clause is notapplicable.

(xiii) In our opinion and according to the information and explanations given to usand based on our examination of the records of the Company all transactions with relatedparties are in compliances with the Section 177 & 188 of the Companies Act 2013 anddetails have been disclosed in the Financial Statements as required by the applicableAccounting Standards.

(xiv) In our opinion and according to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year.

(xv) In our opinion and according to the information and explanations given to usduring the year the company has not entered into any non-cash transactions with directorsor persons connected with him.

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

Chartered Accountants
FRN: 105215W/ W100057
Milind Bhave
Place: Mumbai Partner
Date: May 11 2018 Membership No.: 047973

Annexure B to the Auditor's Report –

March 31 2018

Annexure B referred to in paragraph (f) under "Report on Other Legal andRegulatory Requirements" Section of our Report to the members of Aarti IndustriesLimited 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 AartiIndustries Limited ("the Company") as of

March 31 2018 in conjunction with our audit of the Standalone Financial Statements ofthe Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors are responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of

Chartered Accountants of India. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies 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 Note 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 judgment including the assessment of the risks ofmaterial misstatement of the Standalone Financial Statements whether due to fraud orerror.

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 system over 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a 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 subject to the risk that theinternal financial reporting may become inadequate because of changes in conditions orthat the 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 2018 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 Kirtane & Pandit LLP
Chartered Accountants
FRN: 105215W/ W100057
Milind Bhave
Place: Mumbai Partner
Date: May 11 2018 Membership No.: 047973