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Ashapura Minechem Ltd.

BSE: 527001 Sector: Metals & Mining
NSE: ASHAPURMIN ISIN Code: INE348A01023
BSE 15:30 | 27 Jan 115.10 0.75
(0.66%)
OPEN

117.70

HIGH

117.70

LOW

111.25

NSE 15:31 | 27 Jan 113.25 -1.35
(-1.18%)
OPEN

108.90

HIGH

116.00

LOW

108.90

OPEN 117.70
PREVIOUS CLOSE 114.35
VOLUME 8878
52-Week high 176.30
52-Week low 89.40
P/E 13.21
Mkt Cap.(Rs cr) 1,053
Buy Price 112.45
Buy Qty 100.00
Sell Price 115.55
Sell Qty 40.00
OPEN 117.70
CLOSE 114.35
VOLUME 8878
52-Week high 176.30
52-Week low 89.40
P/E 13.21
Mkt Cap.(Rs cr) 1,053
Buy Price 112.45
Buy Qty 100.00
Sell Price 115.55
Sell Qty 40.00

Ashapura Minechem Ltd. (ASHAPURMIN) - Auditors Report

Company auditors report

To

The Members of ASHAPURA MINECHEM LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of AshapuraMinechem Limited ("the Company") which comprise the balance sheet as at 31stMarch 2021 the statement of profit and loss (including other comprehensive income) thestatement of changes in equity and the statement of cash flows for the year then ended andnotes to the financial statements including a summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as "thestandalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ('Ind AS") and the other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31stMarch 2021 of its profit and total comprehensive loss its changes in equity and its cashflows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under Section 143(10) of theAct. Our responsibilities 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 ("the ICAI") together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI's Codeof Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in our forming our opinion thereon and we do notprovide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated in our report:

Key Audit Matter How our audit addressed the Key Audit Matter
Revenue Recognition
Revenue is one of the key profit drivers and is therefore susceptible to misstatement. Cut-off is the key assertion in so far as revenue recognition is concerned since inappropriate cut-off can result in material misstatement of results for the year. We carried out testing controls around dispatches and deliveries inventory reconciliation and substantive testing for cut-offs and analytical review procedures.

 

Assessment of litigations and related disclosure of contingent liabilities
The Company is subject to large number of various ongoing legal and tax related claims as stated under note no. 34 - Contingent Liabilities. We understood assessed and tested the operating effectiveness of key controls surrounding assessment of litigations and discussed with the management the recent developments and the status of the material litigations;
Significant judgment is required to assess such matters to determine the probability of occurrence of material outflow of economic resources and whether a provision should be recognized or a disclosure should be made. The management judgment is also supported with legal advice in certain cases as considered appropriate. We evaluated management's assessment by understanding precedents set in similar cases and assessed the reliability of the management's past estimates and judgments;
As the ultimate outcomes of the matters are uncertain and material in nature it is considered to be a Key audit Matter. We reviewed the disclosures made by the Company in the financial statements in this regard and obtained representation letter from the management on the assessment of these matters.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theBoard's Report including Annexures to Board's Report Management Discussion and AnalysisBusiness Responsibility Report Corporate Governance Report Shareholder's Informationbut does not include the standalone financial statements and auditor's report thereon. TheBoard's Report and other information are expected to be made available to us after thedate of this auditor's report.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

When we read the aforesaid reports and information if we conclude thatthere is material misstatement therein we are required to communicate the matter to thosecharged with governance.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income changes in equity and cash flows of the Company inaccordance with the Ind AS and accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concerns 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 is also responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibility for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is high level of assurance but is not a guarantee that auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

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

• Identify and assess the risks of material misstatements of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof the internal control.

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

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

• 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 theCompany's ability to continue as going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the standalone financial statements or if such disclosures are inadequateto modify 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.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosure and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

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

1 As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India terms of sub-section

(11) of section 143 of the Act we give in the Annexure - A astatement on the matters specified in clause 3 and 4 of the Order to the extentapplicable.

2. As required 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 purpose of our audit;

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 including othercomprehensive income statement of changes in equity and the cash flow statement dealtwith by this Report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e) On the basis of written representations received from the directorsas on 31st March 2021 and taken on record by the Board of Directors none ofthe directors is disqualified as on 31st March 2021 from being appointed as adirector in terms section 164(2) of the Act;

f) With respect to the adequacy of internal financial controls overfinancial reporting of the Company and operating effectiveness of such controls ourseparate report in annexure - B may be referred;

g) In our opinion and to the best of our information and according tothe explanations given to us 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 Auditors'Report 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 explanation given tous:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements;

ii. The Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses;

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

For P A R K & COMPANY Chartered Accountants FRN:116825W
Rajkot PRASHANT VORA
June 222021 Partner
Membership No. 034514 UDIN: 21034514AAAAAE6523

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

On the basis of such checks as we considered appropriate and in termsof information and explanations given to us we state that:

1 In respect of fixed assets:

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

b. The fixed assets were physically verified by the management atreasonable intervals in a phased manner in accordance with a programme of physicalverification. No material discrepancies were noticed on such verification.

c. The title deeds of immovable properties are held in the name of theCompany.

2 The inventories were physically verified by the management atreasonable intervals during the year. The discrepancies noticed on verification were notmaterial and have been dealt with in books of account.

3 The Company has granted unsecured loans to one of its wholly ownedsubsidiary company covered in the register maintained under section 189 of the Act. Sinceno terms and conditions of these loans are stipulated we cannot offer any comments as tothe repayment of principal amount or overdue amounts if any. The receipts of interest onthese loans are regular.

4 The Company has complied with provisions of Section 185 and 186 ofthe Act in respect of loans investments guarantees and securities to the extentapplicable.

5 The Company has not accepted any deposits within the meaning of theprovisions of section 73 to 76 or any other relevant provisions of the Act and the rulesframed thereunder with regard to the deposits accepted from the public. Accordinglyparagraph 3(v) of the Order is not applicable to the Company.

6 We have broadly reviewed the cost records maintained by the Companypursuant to Section 148(1) of the Act and are of the opinion that prima facie theprescribed cost records have been maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

7 In respect of statutory and other dues:

a. The Company has generally been regular in depositing undisputedstatutory dues including Provident Fund Employees State Insurance Income Tax Goods& Service Tax Cess and other material statutory dues to the extent applicable withthe appropriate authorities during the year. There were no undisputed statutory duesoutstanding as on 31st March 2021 for a period of more than six months from thedate they became payable.

b. There are no statutory dues which have not been deposited onaccount of dispute except for the followings:

Nature of Dues Statute Rs. in lacs Relevant Year Forum where dispute is pending
Service Tax Service Tax Act 231.68 Various Years The Office of Goods & Service Tax
Value Added Tax Andhra Pradesh Value Added Tax Act 16.12 2006-07 to 2009-10 The Commercial Tax Officer
Value Added Tax Gujarat Value Added Tax Act 30.57 2009-10 to 2013-14 The Assistant Commissioner of VAT
Income Tax Income Tax Act 141.79 2007-08 2008-09 The Gujarat High Court
2701.63 2018-19 The Commissioner of Income Tax (Appeal)

8 The Company has not defaulted during the year in repayment of loansor borrowing to banks. The Company has not obtained any borrowings from government orfinancial institution or by way of debentures.

9 Terms loans obtained by the Company have been applied for the purposefor which they were obtained. The Company has not raised any money during the year byway of public offer (including debt instruments).

10 To the best of our knowledge and belief and according to theinformation and explanations given to us no fraud on or by the Company or on the Companyby its officers or employees was noticed or reported during the year.

11 Managerial remuneration paid or provided by the Company during theyear is in accordance with the requisite approvals mandated by the provisions of Section197 read with Schedule V to the Act.

12 Since the Company is not a Nidhi Company the provisions of clause 3(xii) of the Order are not applicable to the Company.

13 All transactions with the related parties are in compliance withSection 177 and 188 of the Act and the details have been disclosed in the financialstatements as required by the applicable accounting standards.

14 The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview.

15 The Company has not entered into any non-cash transactions duringthe year with directors or persons concerned with him.

16 The Company is not required to be registered under Section 45-IA ofthe Reserve Bank of India Act 1934.

For P A R K & COMPANY Chartered Accountants FRN:116825W
Rajkot PRASHANT VORA
June 222021 Partner
Membership No. 034514 UDIN: 21034514AAAAAE6523

ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under 'Report on Other Legal andRegulatory Requirements' section of our report of even date)

We have audited the internal financial controls over financialreporting of Ashapura Minechem Limited ("the Company") as of 31stMarch 2021 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining 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 ("the Guidance Note") issued by the Institute of CharteredAccountants of India ("the ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.

Auditor's 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 and the Standards on Auditing issued by ICAI andprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 auditors' judgement 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 internal financialcontrols 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 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 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 the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March2021 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote issued by the ICAI.

For P A R K & COMPANY Chartered Accountants FRN:116825W
Rajkot PRASHANT VORA
June 222021 Partner
Membership No. 034514 UDIN: 21034514AAAAAE6523

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