Alora Trading Company Ltd.
|BSE: 539693||Sector: Others|
|NSE: N.A.||ISIN Code: INE527R01018|
|BSE 00:00 | 10 Jun||Alora Trading Company Ltd|
|NSE 05:30 | 01 Jan||Alora Trading Company Ltd|
|BSE: 539693||Sector: Others|
|NSE: N.A.||ISIN Code: INE527R01018|
|BSE 00:00 | 10 Jun||Alora Trading Company Ltd|
|NSE 05:30 | 01 Jan||Alora Trading Company Ltd|
THE MEMBERS OF ALORA TRADING CO LIMITED
1) REPORT ON FINANCIAL STATEMENTS
We have audited the financial results of ALORA TRADING CO LIMITED for the yearended 31st March 2020 being submitted by the company pursuant to therequirements of Regulation 33 of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 as modified by Circular No.CIR/CFD/FAC/62/2016 dated July5 2016. These financial results which are the responsibility of the Management have beenprepared in accordance with the recognition and measurement principles laid down in IndianAccounting Standards as prescribed under Section 133 of the Companies Act 2013 read withrelevant rules issued there under or by the Institute of Chartered Accountants of Indiaas applicable and other accounting principles generally accepted in India.
2) MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Management is responsible for the matters stated in Section 134(5) of the CompaniesAct 2013 ("the Act") with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
3) AUDITOR'S RESPONSIBILITY
We conducted our audit in accordance with the auditing standards generally accepted inIndia. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial results are free of material misstatement(s). Anaudit includes examining on a test basis evidence supporting the amounts disclosed asfinancial results. An audit also includes assessing the accounting principles used andsignificant estimates made by management. We believe that our audit provides a reasonablebasis for our opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us these financial results:
a. Are presented in accordance with the requirements of Regulation 33 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 as modified byCircular No.CIR/CFD/FAC/62/2016 dated July 5 2016.
b. Give a true and fair view of the net profit and other financial information for theyear ended 31st March 2020.
4) BASIS FOR QUALIFIED OPINION
Attention is drawn to the provisions of Section 45I of Reserve Bank of India Act 1934and Reserve Bank of India Press Release 1998-99/1269 dated April 08 1999 which states ifits Financial Assets is more than 50 percent of its total assets and income from financialassets are more than 50 percent of the gross income then the company is identified as anNBFC and hence it is required to obtain Certificate of Registration from RBI. In ouropinion the company has not complied with the provisions of Section 45IA of the RBI Act1934 in spite of fulfilling the conditions prescribed under the Act for registration withRBI as Non-Banking Financial Institution (NBFI).
5) QUALIFIED OPINION
In our opinion and to the best of our information and according to the explanationgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2020 and its profit for the year ended on that date EXCEPT for the following:
As per the provisions of Section 45I of Reserve Bank of India Act 1934 and ReserveBank of India Press Release 1998-99/1269 dated April 08 1999 a Company would beidentified as an NonBanking Financial Institution(NBFI) if its financial assets are morethan 50 percent of its total assets (Netted off by Intangible Assets) and income fromFinancial Assets are more than 50 percent of the gross income. Accordingly the company isrequired to obtain Certificate of Registration from RBI to commence/carry on business asper Section 45IA of the RBI Act 1934. However the company has not complied with theaforesaid provisions of the RBI Act 1934 in spite of fulfilling the conditions prescribedunder the Act for registration with RBI as NBFI which states that the company is requiredto get registered if its financial assets is more than 50 percent of its total assets.
6) REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditors Report) Order 2016 ("The Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3& 4 of the Order.
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) Branch audit is not applicable to the company.
d) In our opinion the Balance Sheet the Statement of Profit and Loss dealt with bythis Report are in agreement with the books of account.
e) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
f) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (2) of the Act.
g) There are no such observations and comments on the financial transactions or matterswhich have adverse effect on the company.
h) In our opinion there are no qualifications reservations or adverse remarks inrespect of the maintenance of the books of accounts or other matters connected herewith.
i) In our opinion and with the help of the compliance procedures conducted by us weconclude that the company has adequate financial control system in place and also thecontrol system is operating effectively (Refer "Annexure B").
j) The Company does not have any pending litigations which would impact its financialposition.
k) The Company did not have any long term contracts including derivative contracts forwhich there were any foreseeable losses.
l) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.
m) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us we alsoreport that:
"Annexure A" to the Independent Auditors' Report
In terms of the information and explanations sought by us and given by the company andthe books and records examined by us in the normal course of audit and to the best of ourknowledge and belief we state that: -
1 (a) the company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us all the assets have not been physically verified by themanagement during the year but there is a regular programme of verification which in ouropinion is reasonable having regard to the size of the company and the nature of itsassets. No material discrepancies were noticed on such verification.
(c) . the company does have immoveable property.
2. (I) as explained to us the inventory has been physically verified at reasonableintervals during the year by the management. In our opinion the frequency of verificationis reasonable.
(ii)There is no discrepancy found on verification between the physical stocks and thebook records.
3. As explained to us the company had not granted any loans secured or unsecured toany companies firms Limited Liability Partnerships or other parties covered in theregister maintained under section 189 of the Act. or
4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of loans investments guarantees and security.
5. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.
6. It has been explained to us that the maintenance of cost records has not beenprescribed under section148(1) of the Act.
7 (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March31 2020 for a period of more than six months fromthe date on when they become payable.
b) According to the information and explanation given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added taxoutstanding on account of any dispute.
8. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion company had not borrowed from financial institution orbank or issued debentures during the year under audit and there were no loan outstandingat the beginning of the year. Therefore this clause of the CARO is not applicable tocompany.
9. The company has not raised moneys by way of initial public offer or further publicoffer (including debt instrument) and term loans
10. Based upon the audit procedures performed and according to the information andexplanations given to us no fraud by the company or any fraud on the company by itsofficers or employees has been noticed or reported during the course of our audit thatcauses the financial statements to be materially misstated.
11. Company has not paid Managerial remuneration to its Key Managerial person pursuantof provision of Companies Act 2013.
12. The company is not a Nidhi Company hence this clause is not applicable.
13. Based upon the audit procedures performed and according to the information andexplanations given to us All transactions with related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial statements etc. as required by the applicable accountingstandards.
14. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.
15. The company has not entered into any non-cash transactions with directors orpersons connected with him.
16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
Report on Internal Financial Controls over Financial Reporting
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 ALORATRADING CO LIMITED ("the Company") as on March 31 2020 in conjunction withour audit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Management is responsible for establishing and maintaining internal financialcontrols based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India. These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
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("Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls applicable to an audit of Internal Financial Controlsand issued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Notes 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of Management and Directors of the company; and
3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
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 2020 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.