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Aroma Enterprises (India) Ltd.

BSE: 531560 Sector: Others
NSE: N.A. ISIN Code: INE371M01012
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NSE 05:30 | 01 Jan Aroma Enterprises (India) Ltd
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OPEN 16.25
CLOSE 16.25
VOLUME 1
52-Week high 23.40
52-Week low 14.25
P/E
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Aroma Enterprises (India) Ltd. (AROMAENT) - Auditors Report

Company auditors report

To The Members Aroma Enterprises (India) Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited standalone financial statements of Aroma Enterprises(India) Limited ("the company") which comprise the Balance Sheet as at 31stMarch 2021 the Statement of Profit and Loss (including other Comprehensive Income) theStatement in Changes in Equity and the Cash Flow Statement for the year then ended andnotes to the financial statement including a summary of significant accounting policiesand 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 manner so required and give a true and fair view in conformity with theIndian Accounting Standards prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("Ind AS") andother accounting principles generally accepted in india of the state of affairs of thecompany as at 31st March 2021 and profit and total comprehensive incomechange in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards 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 forthe Audit of the Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw your attention to the following matters:

1. On account of COVID-19 pandemic situation and its related preventivemeasures such as lockdown and travel restrictions by the Government of India books ofaccounts are audited online with supporting documents keeping in view of materiality.

2. Loans and advances against purchases amounting to Rs.184771327 to related parties are outstanding for more than six months the companyclassifies the same as undoubtful. In case of any adverse scenario it may effect goingconcern.

3. There are statutory dues related to Goods & Service TaxTDS Provident Fund Employee State Insurance etc. pending as at 31st March2021 for a period of more than six months from the date they became payable. Out of thesaid GST Department has made encumbrance on bank accounts.

Our opinion is not modified in respect of this matter

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone Ind AS financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters.

Information Other than the Financial Statements and Auditor'sReport Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Informationbut does not include the standalone financial statements and our auditor's reportthereon. Our opinion on the standalone financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. In connectionwith our audit of the standalone financial statements our responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation and presentation of these financial statements that give a true and fairview of the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes the maintenance ofadequate accounting records in accordance with the provision of the Act for safeguardingof the assets of the Company and for preventing and detecting the 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 control 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.

In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matter related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations of has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibility

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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

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

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion.

The risk of not detecting a material misstatement resulting from fraud is higher thanfor one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness 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 uncertaintyexists related to events or conditions that may cast significant doubt on theCompany's ability 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 theCompany to cease to continue 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.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and evaluating the results of our work; and (ii) to evaluatethe effect of any identified misstatements in the financial statement.

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 publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on other Legal and Regulatory Requirements

1. 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 ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Cash Flow statement dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act.

e) On the basis of written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controlsover financial reporting.

g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements.

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

iii. There were no amounts which required to be transferred by the Company to theInvestor Education and Protection Fund.

2. 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 of the Act we give in the "Annexure B" a statement on thematters Specified in paragraphs 3 and 4 of the Order.

For J P M K AND COMPANY For SUNIL DAD & CO.
Chartered Accountants Chartered Accountants
SD/- SD/-
Jitendra Vageriya Malay Pandit
Partner Partner
M.No. 114424 M.No. 046482
UDIN: 21114424AAAAHG4348 UDIN:21046482AAAAIU3412
Place: Ahmedabad Place : Ahmedabad
Date: 30.06.2021 Date : 30.06.2021

ANNAEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legaland Regulatory Requirements' section of our report to the Members of AromaEnterprises (India) Limited of even date)

Report on the Internal Financial Controls over Financial Reportingunder Clause (i) of Sub - section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of Aroma Enterprises (India) Limited as of 31st March 2021 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI').These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system 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 internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks 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 Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control 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 control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizationsmanagement 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.

Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us 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 31st March 2021 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 J P M K AND COMPANY For SUNIL DAD & CO.
Chartered Accountants Chartered Accountants
SD/- SD/-
Jitendra Vageriya Malay Pandit
Partner Partner
M.No. 114424 M.No. 046482
UDIN: 21114424AAAAHG4348 UDIN:21046482AAAAIU3412
Place: Ahmedabad Place : Ahmedabad
Date: 30.06.2021 Date : 30.06.2021

ANNAEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of Aroma Enterprises(India) Limited of even date)

i. In respect of company's fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The Company has a program of verification to cover all the items of fixed assets inphased manner which in our opinion is reasonably having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain fixed assets werephysically verified by the management during the year. According to information andexplanations given to us by the management no material discrepancy was noticed on suchverification.

c. According to information and explanations given by the management the company doesnot have any immovable property hence clause 3(i)(c) of the order is not applicable.

ii. We have been informed that inventories have been physically verified by themanagement at reasonable intervals. In our opinion the frequency of verification isreasonable with regard to the size of company. According to information and explanationsgiven to us by the management no material discrepancy was noticed on such verification.

iii. The Company has not granted any loan to any party listed in the registermaintained under section 189 of the Companies Act. Accordingly clause 3(iii) of the Orderis not applicable. iv. According to the information and explanations given to us theCompany has granted loans and advances to the party covered under section 185.

• Company has charged interest amount of Rs. 16784067 from the party at 8% rateduring the year 2020-2021.

v. According to the information and explanation given to us the company has notaccepted the any deposits and does not have any unclaimed deposits as at 31stMarch 2021 and therefore the provisions of the clause 3(v) of the Order are notapplicable to the company.

vi. The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the Companies Act 2013 for the business activities carried out bythe company. Thus reporting under clause 3(vi) of the order is not applicable to thecompany.

vii. (a) According to the information and explanation given to us and the records ofthe Company examined by us in our opinion the company is not regular in depositingundisputed statutory dues including Provident Fund Employees' State InsuranceIncome-tax Sales Tax Service tax Goods & Service Tax Duty of Customs Duty ofExcise Value Added Tax Cess and any other statutory dues with the appropriateauthorities during the period and there have been serious delays in large number ofcases.

According to the information and explanation given to us undisputed amounts payable inrespect of Provident Fund Employees' State Insurance Income-tax Sales Tax Servicetax Goods & Service Tax Duty of Customs Duty of Excise Value Added Tax Cess andthe material statutory dues applicable to it were in arrears as at 31st March2021 for a period of more than six months from the date they became payable details ofwhich are as under :

Statement of Arrears of Statutory Dues outstanding as at 31st March 2021for a period of more than six months from the date they became payable.

Name of the Statute Nature of Dues Amount ( ) Period to which the Amount relates Due Date Date of Payment Remarks if any
Goods & Service Tax Act 2017 GST (including all branches) 108085 139 Various Various Unpaid
Service Tax Act Krishi Kalyan Cess 72583 Various Various Unpaid
Service Tax Act Service Tax 1870594 Various Various Unpaid
Income Tax Act 1961 Tax Deduced at Source (including all branches) 6817 F.Y. 2018- 2019 Various Unpaid
Income Tax Act 1961 Professional Tax Tax Deduced at Source (including all branches) 4577213 F.Y. 2020- 2021 Various Unpaid
Professional Tax 15600 Feb-2020 & March-2020 Various Unpaid
Professional Tax Employees' Provident Professional Tax 27460 April-2020 to March-2021 Various Unpaid
Funds & Miscellaneous Provisions Act 1952 EPF 484904 April-2020 to March-2021 Various Unpaid
Employees' Provident Funds & Miscellaneous Provisions Act 1952 EPF 4807076 April-2019 to March-2020 Various Unpaid
Employees State Insurance Act 1948 ESIC 4761 August-2020 to March- 2021 Various Unpaid

(b) As per the information and explanation given to us there are no disputed duesoutstanding on account of Provident Fund Employees' State Insurance Income-taxSales Tax Duty of Customs Cess and any other statutory dues except Goods &Service Tax:

The amount of Rs. 15457617 has been blocked by GST Department in AXIS Bankaccount 003010200011334 of the Company.

The amount of Rs. 12950392 has been blocked by GST Department in StateBank of India 34697511157 of the Company.

viii. According to the records made available to us and information and explanationgiven to us by the management in our opinion the company has not defaulted in repaymentof dues to a bank or financial institution.

ix. The company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year hence clause3(ix) of companies (auditor's Report) order 2016 is not applicable.

x. According to the information and explanation given to us no fraud by the company orno material fraud on the company by its officers or employees has been noticed or reportedduring course of our audit.

xi. The company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act.

xii. According to the information and explanation given to us the company is not anidhi company hence clause 3(xii) of companies (auditor's Report) order 2016 is notapplicable.

xiii. According to the information and explanation given to us and based on ourexamination of the records of the company all transactions with the related parties arein compliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements as required by the applicableaccounting standards.

xiv. According to the information and explanation given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year hence clause 3 (xiv) of companies (auditor's Report) order 2016 is notapplicable

xv. According to the information and explanation 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 hence clause 3 (xv) of companies(auditor's Report) order 2016 is not applicable.

xvi. The company is not required to be registered under section 45-IA of the ReserveBank of India 1934. .

For J P M K AND COMPANY For SUNIL DAD & CO.
Chartered Accountants Chartered Accountants
SD/- SD/-
Jitendra Vageriya Malay Pandit
Partner Partner
M.No. 114424 M.No. 046482
UDIN: 21114424AAAAHG4348 UDIN:21046482AAAAIU3412
Place: Ahmedabad Place : Ahmedabad
Date: 30.06.2021 Date : 30.06.2021

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