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Ashiana Ispat Ltd.

BSE: 513401 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE587D01012
BSE 00:00 | 05 Dec 40.40 1.90
(4.94%)
OPEN

38.50

HIGH

40.40

LOW

38.50

NSE 05:30 | 01 Jan Ashiana Ispat Ltd
OPEN 38.50
PREVIOUS CLOSE 38.50
VOLUME 4105
52-Week high 62.60
52-Week low 15.40
P/E 11.99
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 38.50
CLOSE 38.50
VOLUME 4105
52-Week high 62.60
52-Week low 15.40
P/E 11.99
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ashiana Ispat Ltd. (ASHIANAISPAT) - Auditors Report

Company auditors report

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Ashiana Ispat Limited("the Company") which comprise the balance sheet as at 31st March 2021 thestatement of profit and loss (including other comprehensive income) statement of changesin equity and statement of cash flows for the year then ended and notes to the financialstatements including a summary of the significant accounting policies and otherexplanatory information. In our opinion and to the best of our information and accordingto the explanations given to us the aforesaid financial statements give the informationrequired by the Companies Act 2013 ("Act") in the manner so required and give atrue and fair view in conformity with the Indian Accounting Standards prescribed undersection 133 o~the Actread with the Companies (Indian Accounting Standards) Rules 2015; asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2021 and profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements inaccordancewiththeStandardsonAuditing(SAs)specified under section 143(10) of the Act. Ourresponsibilities under those SAs are fwiher described in the Auditor's Responsibilitiesfor the Audit of the Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the independence requirements that are relevantto our audit of the financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical independent responsibilities inaccordance with these requirements and the !CAI Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion on financial statements.

foformation Other than the Financial Statements and Auditors' Report Thereon

The Company's management and Board of Directors are responsible for the preparation ofthe other information. The other information comprises the information included in theManagement discu.ssion and analysis Board Report including annexures to Board reportCorporate Governance report and shareholder information etc. but does not include thefinancial statements and our auditors' report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon. In connection with our audit of thefinancial statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

I~ based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the :financial Statements

The Company's management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changesiii'equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified unc!er section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisionsofthe'Act for ~g1i\ar4i~ of the assets of the Company and for preventing and detectingfrauds and other irregularities selepl!iJ.f.1\1'1 a a fbpJ~tion of appropriate accountingpoHcies making

view and are free from material misstatement whether due to fraud or error.

In preparing the financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable mitters related to going concern and using the going concernbasis of accounting unless management . either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud o~ errorand to issue an auditor's report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycoutci reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

• Identify and assess the risks of material misstatement of the financialstatements 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.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

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

• Conclude on the appropriateness of man.agement's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material w1certainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial stat<:ments may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work (i) and {ii) to evaluate the tffectof any identified misstatements 1n the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify reasonably be thought tobear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematt.ers that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

I. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government in terms of section 143 (11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

(A) As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The balance sheet the statement of profit and loss (including other comprehensiveincome) the statement of changes in equity and the statement of cash flows dealt with bythis Report 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 read with Rule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164(2) of the Act.

t) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Repo~ in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

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

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous: reasonably be thought to bear on our independence and where applicable relatedsafeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of.doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

I. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Governml;lnt in terms of section 143 (11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

(A) As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The balance sheet the statement of profit and loss (including other comprehensiveincome) the statement of changes in equity and the statement of cash flows dealt with bythis Report _ 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 read with Rule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Repon- in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

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

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

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

ANNEXURE-A

THE ANNEXURE REFERRED TO IN INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE GOMP ANYON THE FINANIAL STATEMENTS FOR THE YEAR ENDED 31ST MARGH 2021 WE REPORT THAT:

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

(b) The fixed assets has been physically verified by the management at the reasonablewhich in our opinion is considered reasonable having regard to the size of the Company andthe nature of its assets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) According to the information and explanation given to us and on the basis of ourexamination of the records of the Company physical verification of the inventory has beenconducted at reasonable intervals by the management and discrepancies noticed which werenot material in nature have been properly dealt with in the books of accounts.

(iii) According to the information and explanation given to .us during the year theCompany has not granted any loans secured or unsecured to companies firm or otherparties covered in the register maintained under section 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to usthere are no loans investments guarantees and securities granted during the year inrespect of which provisions of section 185 of the Companies Act 2013 are applicable.Company has granted loans to body corporate which are under permissible limit of Section186.

(v) The Company has not accepted deposits from public within the meaning of provisionsof Section 73 to 76 or any other relevant provisions of the Companies Act 2013 and rulesframed there under.

(vi) We have broadly reviewed the books of accounts maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersection 148 of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained however we have not made a detailedexamination of such cost records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company provident fund employee state insuranceincome-tax duty of customs cess goods & services tax and other applicableundisputed statutory dues have generally been regularly deposited during the year by theCompany with the appropriate authorities except delay in few cases. According to theinformation and explanations given to us rio undisputed amounts payable in respect ofprovident fund; employee state insurance income tax duty of cqstoms cess goods &services tax and other applicable statutory dues were in arrears as at 31st March 2021for a period of more than six months from the date they became payable.

(bj According to the information and explanations given to us there are no materialdues of income tax or duty of custom or cess Goods & Services Tax which have notbeen deposited with the appropriate authorities on account of any dispute exceptfollowing:

Nameofthe Statutes Nature of Dues Amount in INR Financial year to which amoamount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 116111 AY2013-14 CIT (A) Alwar
Rajasthan Value Added Tax Act 2003 FY 2016-17 Deputy commissioner Appeal Alwar

(viii) The Company has made repayment of loan or borrowing to a financial institutionor bank government as per permissible guidelines. However there has been' delay inrepayment of 3 installments by 7-9 days in Term Loan cifCECL and Machinery. There are nodebenture holders.

According to the information and explanation given to us & records examined by us.the term loans taken

(ix) during the year have been applied for the purpose for which they were obtained.The Company has not raised money by way of initial public offer or further public offer(including debt instruments) during the year

According to the information and explanation given to us no fraud by the Company or onthe company by its

(x) officers or employees has been noticed or reported during the course of our audit.

According to the information and .explanations give to us and based on our examinationof the records of the

(xi) Company the Company has paid/provided for managerial remuneration in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Act.

In our opinion and according to the information and expl;mations given to us theCompany is not a Nidhi

(xii) Company as prescribed u/s 406 of the act. Accordingly paragraph 3(xii) of theOrder is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanation given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

According to the information and explanations given to us and based on our examinationof the records of the

(xv) Company the Company has not entered into non~ash transactions with directors orpersons connected with him. Accordingly paragraph 3(xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank -oflndia Act 1934.

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 AshianaLimited ("the Company") as of 31st March 2021 in conjunction with our audit ofthe financial statements of the Company for the year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR IN'fERNAL FINANCIAL CONTROLS

The Company's management and Board of directors are 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 issued by the Institute of Chartered Accountants oflndia ('ICAl').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 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 ofreliablefinancial information as required under the Companies Act 2013. .

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols over fimmcial reporting based oil our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAl and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 auditinvolves performing procedw-es to obtain audit evidence about the adequacy of the internalfmancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures sele.cteddepend on the auditor's judgment including the assessment of the risks- of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A Company's internal financial control over financial reporting is a process design.edto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generaUyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (I) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in .accordance with authorizations ofmanagement and directors of the Companyi and (3) provide reasonable assw-ance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

OPINION

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 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

Chartered Accountants of India.

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