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Aegis Logistics Ltd.

BSE: 500003 Sector: Others
NSE: AEGISCHEM ISIN Code: INE208C01025
BSE 00:00 | 26 May 211.10 4.35
(2.10%)
OPEN

208.05

HIGH

215.20

LOW

206.75

NSE 00:00 | 26 May 210.55 2.35
(1.13%)
OPEN

208.25

HIGH

215.55

LOW

206.65

OPEN 208.05
PREVIOUS CLOSE 206.75
VOLUME 25457
52-Week high 394.40
52-Week low 167.45
P/E 16.07
Mkt Cap.(Rs cr) 7,410
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 208.05
CLOSE 206.75
VOLUME 25457
52-Week high 394.40
52-Week low 167.45
P/E 16.07
Mkt Cap.(Rs cr) 7,410
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Aegis Logistics Ltd. (AEGISCHEM) - Auditors Report

Company auditors report

To the Members of Aegis Logistics Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of Aegis LogisticsLimited ("the Company") which comprise the Balance Sheet as at 31st March 2021the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes to theStandalone Financial Statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the StandaloneFinancial Statements"). In our opinion and to the best of our information andaccording to the explanations given to us the aforesaid Standalone Financial Statementsgive the information required by the Companies Act 2013 ("the Act") in themanner so required and give a true and fair view in conformity with the Indian AccountingStandards prescribed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended ("Ind AS") and other accountingprinciples generally accepted in India of the state of affairs (financial position) of theCompany as at 31st March 2021 the profit and total comprehensive income (financialperformance) changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing ("SAs") specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of Standalone Financial Statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on Standalone Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the current period.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters. We have determined the matters described below to be the keyaudit matters to be communicated in our report.

Key Audit Matter How the matter was addressed in the Audit
1. Recoverability of Indirect tax receivables • Obtained details of the amounts outstanding and verified the same with the claims made with the authorities.
As at March 31 2021 the Company has receivable of Rs. 485.51 Lakhs with respect to Cenvat Credit Recoverable or Refundable which are pending adjudication. • Verified the current status of the outstanding amounts as at the year end.
• Obtained details of legal status of disputes wherever applicable from the management.
• We have analysed the submissions to authorities to review the nature of the amounts recoverable the sustainability and the likelihood of recoverability upon final resolution.
2. Uncertain Tax Positions including Deferred Tax and Minimum Alternate Tax Credit (MAT Credit) if any • Obtained detailed breakup of the amount of tax provisions / payments for various years.
• Verified the same with the tax returns filed / assessments completed.
There are various complexities involved in recognition and measurement of deferred tax such as assessing the availability of future profits ability of the Company to utilise unused tax credit including MAT credit if any in future. • Obtained details of completed assessments and appeals filed and verified the current status of these appeals including the management's expectation of the outcome of these disputes based on past years as well as rulings of various appellate authorities.
Further uncertain tax positions including matters under dispute involve significant judgment to ascertain the possible outcome. • Obtained and verified the working of deferred tax and its appropriateness.
On account of the complexities involved in significant judgment thereof this is considered as a key audit matter. • In the case of deferred tax asset in respect of unutilised tax credits (including MAT credit if any) obtained and verified the basis of the management's assertion as to the availability of profits to offset these credits.
• Verified the accuracy of the calculation of the tax provisions – both current and deferred tax.

Information Other than the Financial Statements and the Audit Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Director's Report but does notinclude the financial statements and our auditors' report thereon.

Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon. In connection with our audit ofthe Standalone Financial Statements our responsibility is to read the other informationand in doing so consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears tobe materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of other information we are required to report that fact. We have nothing toreport in this regard.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance (includingOther Comprehensive Income) changes in equity and cash flows of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India including theAccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating 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. In preparing the Standalone Financial Statements the Management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless Management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Standalone FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls with reference to theStandalone Financial Statements in place and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Company's abilityto continue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditor's report to the related disclosures in theStandalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicate withthem all relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the Standalone Financial Statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's report unlesslaw or regulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

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-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specifiedin paragraphs 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 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 Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Cash Flows and the Statement of Changes in Equity dealt with bythis Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid Standalone Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of directors none of the directors aredisqualified as on 31st March 2021 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 with reference to the Standalone Financial Statements of the Company and theoperating effectiveness of such controls refer to our separate Report in "AnnexureB".

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theCompany has paid/ provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements – Refer Note 39 to theStandalone Financial Statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

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

For C N K & Associates LLP
Chartered Accountants
Firm Registration Number: 101961W/W-100036
Diwakar P. Sapre
Partner
Place: Mumbai Membership No.: 040740
Date: 27th May 2021 UDIN: : 21040740AAAABS3740

Annexure A to Independent Auditor's Report

[Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of AegisLogistics Limited ("the Company") on the Standalone Financial Statements for theyear ended 31st March 2021]

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment;

(b) As explained to us the property plant and equipment have been physically verifiedby the management during the year as per regular program of verification which in ouropinion is reasonable having regard to the size of the Company and nature of its assets.No material discrepancies between book records and physical inventory were noticed on suchverification. In our opinion the frequency of verification is reasonable.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deeds provided to us we reportthat the title deeds comprising all the immovable properties of land and buildings whichare freehold are held in the name of the Company as at the balance sheet date. In respectof immovable properties of land that have been taken on lease and disclosed as Right toUse Asset in the financial statements the lease agreements/ deeds are in the name of theCompany where the Company is the lessee in the arrangement.

(ii) According to the information and explanations provided to us the inventory hasbeen physically verified by the Management during/at the end of the year. In our opinionthe frequency of verification is reasonable. No material discrepancies were noticed onphysical verification of inventory.

(iii) According to the information and explanations given to us the Company hasgranted unsecured interest free loans to companies covered in the register maintainedunder section 189 of the Companies Act 2013 in respect of which:

a) The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the Company's interest.

b) The schedule of repayment of principal has been stipulated and repayments orreceipts of principal amounts have been regular as per stipulations.

c) There is no overdue amount remaining outstanding as at the year-end.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposits during the year. In respect of unclaimed deposits the Company hascomplied with the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act 2013. According to the information and explanations given to us no orderhas been passed by the Company Law Board or National Company Law Tribunal or the ReserveBank of India or any Court or any other Tribunals in this regard in the case of theCompany.

(vi) According to the information and explanations given to us the Company is notrequired to maintain cost records pursuant to Companies (Cost Records and Audit) Rules2014 as amended and prescribed by the Central Government under sub section (1) of Section148 of the Companies Act 2013.

(vii) According to the information and explanations given to us in respect ofstatutory dues:

(a) The Company has been generally regular in depositing undisputed statutory duesincluding Provident fund Employees' state insurance Income Tax Sales Tax Service TaxGoods and Service tax Duty of Customs Duty of Excise Value Added Tax cess and anyother material statutory dues applicable to it to the appropriate authorities. There wereno undisputed amounts payable as on the last day of the financial year for a period ofmore than six months from the date they became payable.

(b) Details of Income Tax Sales Tax Service Tax Goods and Service tax Duty ofCustoms Duty of Excise Value Added Tax have not been deposited as on 31st March 2021 onaccount of any dispute are as under:

Name of the Statute Nature of Dues Forum where dispute is pending Period to which the amount relates Amount Involved (Rs. in Lakhs) Amount Unpaid (Rs. in Lakhs)
Income Tax Act 1961 Income Tax Appellate authority - Commissioner of Income Tax Appeal (2) Mumbai F.Y. 2015-2016 60.08 60.08
Income Tax Act 1961 Income Tax Appellate authority - Commissioner of Income Tax Appeal (2) Mumbai F.Y. 2016-2017 25.33 22.96
West Bengal Value Added Tax 2005 Value Added Tax Office of Sr.Joint Commissioner of Commercial Tax Medinipur Circle (DCCT/Tamluk Charge Group-B) West Bengal F.Y. 2016-2017 128.05 115.32
Gujarat Value Added Tax 2003 Value Added Tax State Tax Officer Unit- 11 A'BAD Gujarat F.Y. 2017-2018 17.68 17.68
Maharashtra Value Added Tax 2003 Value Added Tax Dy. Commissioner of State Tax MUM VAT-E-606 Mumbai F.Y. 2016-2017 61.57 61.57
292.70 277.61

(viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to bank or dues to debenture holders. The Company has not borrowed fromFinancial Institution or Government.

(ix) In our opinion and according to the information and explanations given to us theterm loans have been applied by the Company during the year for the purposes for whichthey were raised. The Company has not raised moneys by way of initial public offer orfurther public offer (including debt instruments).

(x) Based upon the audit procedures performed and the information and explanationsgiven by the management no fraud by the Company or on the Company by its Officers oremployees has been noticed or reported during the course of our audit.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

(xii) The Company is not a Nidhi Company. Accordingly and therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company for the year under audit.

(xiii) In our opinion and according to the information and explanations given to usthe Company is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theIndian Accounting Standards;

(xiv) Based upon the audit procedures performed and the information and explanationgiven by the management the Company has not made any preferential allotment or privateplacement shares or fully or partly convertible debentures during the year under audit.Accordingly provisions of clause 3(xiv) of the order are not applicable to the Companyfor the year under audit.

(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 clause 3(xv) ofthe Order is not applicable to the Company for the year under audit.

(xvi) In our opinion the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934; Accordingly provisions of clause 3(xvi) of theorder are not applicable to the Company for the year under audit.

For C N K & Associates LLP
Chartered Accountants
Firm Registration Number: 101961W/W-100036
Diwakar P. Sapre
Partner
Place: Mumbai Membership No.: 040740
Date: 27th May 2021 UDIN: : 21040740AAAABS3740

Annexure B to Independent Auditor's Report

[Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of AegisLogistics Limited ("the Company") on the Standalone Financial Statements for theyear ended 31st March 2021]

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Act

We have audited the internal financial controls with reference to the StandaloneFinancial Statements of Aegis Logistics Limited ("the Company") as of31st March 2021 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 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 controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued 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 Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to the Standalone Financial Statementsbased on our audit. We conducted our audit in accordance with the Guidance Note on Auditof Internal Financial Controls over Financial Reporting (the "Guidance Note")and the Standards on Auditing specified under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls over financial reporting bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting with reference tothe Standalone Financial Statements were established and maintained and if such controlsoperated effectively in all material respects. Our audit involves performing procedures toobtain audit evidence about the adequacy of the internal financial controls over financialreporting with reference to the Standalone Financial Statements and their operatingeffectiveness. Our audit of internal financial controls over financial reporting withreference to the Standalone Financial Statements included obtaining an understanding ofinternal financial controls over financial reporting with reference to the StandaloneFinancial Statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control over financialreporting based on the assessed risk. 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. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theCompany's internal financial controls over financial reporting with reference to theStandalone Financial Statements.

Meaning of Internal financial controls over financial reporting with reference to theStandalone Financial Statements

A company's internal financial controls over financial reporting with reference to theStandalone Financial

Statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial control over financial reporting includes those policies and proceduresthat:

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 withreference to the Standalone Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to the Standalone Financial Statements including the possibilityof collusion or improper management override of controls material misstatements due toerror or fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to the StandaloneFinancial Statements to future periods are subject to the risk that the internal financialcontrol over 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 over financial reporting with reference to the Standalone FinancialStatements and such internal financial controls over financial reporting with reference tofinancial statements were operating effectively as at 31st March 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control over financial reporting stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe ICAI.

For C N K & Associates LLP
Chartered Accountants
Firm Registration Number: 101961W/W-100036
Diwakar P. Sapre
Partner
Place: Mumbai Membership No.: 040740
Date: 27th May 2021 UDIN: : 21040740AAAABS3740

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