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Airo Lam Ltd.

BSE: 535016 Sector: Others
NSE: AIROLAM ISIN Code: INE801L01010
BSE 05:30 | 01 Jan Airo Lam Ltd
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Airo Lam Ltd. (AIROLAM) - Auditors Report

Company auditors report

TO

THE MEMBERS OF AIRO LAM LIMITED

Opinion

We have audited the accompanying standalone financial statements ofAIRO LAM LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2021 the Profit and Loss Statement the Cash Flow Statement for the Period endedand a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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 31st March 2021 and its profit and its cash flows for the year/period ended on thatdate.

Basis of Our Opinion

We conducted our audit in accordance with the standard on auditing(SAs) specified under section 143(10) of the companies act 2013. Our responsibilitiesunder those standards are further described in the auditor's responsibilities for theaudit of the financial statements section of our report. We are independent of the companyin accordance with the code ethics issued by the institute of chartered accountants ofIndia together with ethical requirements that are relevant to our audit of financialstatement under the provisions of the Companies Act 2013 and rules thereunder and wehave fulfilled our ethical responsibilities in accordance with these requirements and thecode of ethics.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current year.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide separate opinion on thesematters.

We have determined that there are no key audit matters to becommunicated in our report.

Other Information

The Company's management and Board of Directors are responsible for theother information. The other information comprises the information included in theCompany's annual report but does not include the financial statements and our auditors'report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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.

In preparing the financial statements management and Board ofDirectors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether thefinancial 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 financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

a. Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

b. Obtain an understanding of internal financial controls relevant tothe audit in order to design audit procedures that are appropriate in the circumstances.Under section 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

c. Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

d. Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theability of the Company to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

e. Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters 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 wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

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 Companies Act 2013 we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable. Asrequired by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) the balance sheet the statement of profit and loss and cash flowstatement dealt with by this Report are in agreement with the books of account;

d) In our opinion the aforesaid financial statements comply with theAS 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 thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

1. The company has disclosed the impact of pending litigation on itsfinancial position in its financial statement.

2. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

3. There were no amounts which are required to be transferred to theinvestor's education and protection fund by the company.

Annexure - A to the Auditors' Report

The Annexure referred to in our Independent Auditors' Report to themembers of the Company on the financial statements for the Period 01-04-2020 to31-03-2021 we report that:

i) (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of property plant &equipment (fixed assets).

(b) The company has a regular programme of physical verification of itsproperty plant & equipment (fixed assets) by which fixed assets are verified in aphased manner over a period of three years. In accordance with this programme certainfixed assets were verified during the year and no material discrepancies were noticed onsuch verification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets.

(c) The title deeds of immovable properties are in the name of thecompany.

ii) (a) As explained to us the Inventories of finished goods Stores& consumables Raw Materials and Work in process goods have been physically verifiedat regular interval during the year by the management.

(b) In our opinion and according to the information and explanationsgiven to us the procedures of physical verification of inventories followed by themanagement were reasonable and adequate in relation to the size of the company and natureof its business.

(c) In our opinion and according to the information and explanationsgiven to us the company has maintained proper records of inventories and there were nomaterial discrepancies noticed on physical verification of inventory as compared to bookrecords and the same has been properly dealt with in books of accounts.

iii) The Company had not granted loans to parties covered in theregister maintained under section 189 of the Companies Act 2013 ('the Act').

(a) Not Applicable

(b) Not Applicable

(c) Not Applicable

iv) In our opinion and according to the information and explanationsgiven to us in respect of loans investments guarantees and security provisions ofsection 185 and 186 of the Companies Act 2013 had been complied with.

v) The company had not accepted any deposits from public therefore thedirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Companies Act 2013 and the rules framed there underis not applicable.

vi) The Central Government has not prescribed the maintenance of costrecords under section 148(1) of the Act for the goods supplied by the Company.

vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted / accruedin the books of account in respect of undisputed statutory dues including provident fundincome tax sales tax wealth tax service tax duty of customs value added tax cess andother material statutory dues have been regularly deposited during the year by the Companywith the appropriate authorities. As explained to us the Company did not have any dues onaccount of employees' state insurance and duty of excise.

According to the information and explanations given to us noundisputed amounts payable in respect of provident fund income tax sales tax wealthtax service tax duty of customs value added tax cess and other material statutory dueswere in arrears as at 31st March 2021 for a period of more than six months from the datethey became payable.

(b) According to the information and explanations given to us thereare following material dues of wealth tax duty of customs and cess which have not beendeposited with the appropriate authorities on account of any dispute.

Demand under the Act Pending At Assessment Year Amount (In Rs.)
Gujarat VAT Act 2006 Tribunal 2015-16 21618893/-

viii) In our opinion and according to the information and explanationsgiven to us the company had not defaulted in repayment of loans or borrowing to afinancial institution bank Government or dues to debenture holders.

ix) According to the information and explanations given to us thecompany had raised money by way of term loans and utilized the same for the purpose forwhich it is raised.

x) According to the information and explanations given to us nomaterial fraud on or by the company or on the company by its officers or employees hasbeen noticed or reported during the course of our audit.

xi) According to the information and explanations given to usmanagerial remuneration had been paid or provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct.

xii) In our opinion the company is not Nidhi company. Therefore theprovisions as mentioned in the Nidhi Rules 2014 are not applicable to the company.

xiii) In our opinion and according to the information and explanationsgiven to us all transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013

where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards.

xiv) According to the information and explanations given to us thecompany had not made preferential allotment of shares during the year/period under reviewand the requirement of Section 42 of the Companies Act 2013 and other applicableprovisions are therefore not applicable.

xv) According to the information and explanations given to us thecompany had not entered into any non-cash transactions with directors or persons connectedwith him.

xvi) In our opinion the company is not a Non-Banking Finance Companytherefore the requirement to register under section 45-IA of the Reserve Bank of IndiaAct 1934 is not applicable.

Annexure - B to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") on theFinancial Statements of Airo Lam Limited

Opinion

We have audited the internal financial controls over financialreporting of Airo Lam Limited ("the Company") as of 31st March 2021 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors are responsible forestablishing and maintaining internal financial controls based on the internal financialcontrols with reference to financial statements criteria established by the companyconsidering the essential components of internal control stated in the Guidance Note.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 (hereinafterreferred to as "the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to financial statements based on our audit. We conductedour audit in accordance with the Guidance Note and the Standards on Auditing prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls with reference to financial statements. Those Standards and theGuidance 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 whether such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of the internal control based on the assessed risk.The procedure selected depends on the auditor's judgement including the assessment ofrisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlsover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial controls over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements include those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls with reference to financial statements and such internalfinancial controls were operating effectively as at 31st March 2021 based on the internalfinancial controls over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India (the "Guidance Note").

For Piyush J. Shah & Co.
Chartered Accountants FRN: 121172W
Sd/-
Piyush J. Shah Partner M. No: 108670
UDIN: 21108670AAAAEK3754
Place: Ahmedabad
Date: 16th June 2021

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