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Ashima Ltd.

BSE: 514286 Sector: Industrials
NSE: ASHIMASYN ISIN Code: INE440A01010
BSE 14:03 | 17 Sep 17.25 -0.35
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NSE 13:51 | 17 Sep 17.50 -0.30
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OPEN 18.20
PREVIOUS CLOSE 17.60
VOLUME 10518
52-Week high 21.50
52-Week low 6.51
P/E
Mkt Cap.(Rs cr) 331
Buy Price 17.25
Buy Qty 50.00
Sell Price 17.50
Sell Qty 96.00
OPEN 18.20
CLOSE 17.60
VOLUME 10518
52-Week high 21.50
52-Week low 6.51
P/E
Mkt Cap.(Rs cr) 331
Buy Price 17.25
Buy Qty 50.00
Sell Price 17.50
Sell Qty 96.00

Ashima Ltd. (ASHIMASYN) - Auditors Report

Company auditors report

To the Members of Ashima Limited

Report on the Audit of the Standalone financial statements

Opinion

We have audited the accompanying Standalone financial statements of Ashima Limited('the Company') which comprise the balance sheet as at 31st March 2021 the statement ofProfit and Loss (including other comprehensive income) the statement of changes in equityand the statement of cash flows for the year then ended and notes to the Standalonefinancial statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone financial statements give the information requiredby the Companies Act 2013 ('the Act') in the manner so required and give a true and fairview in conformity with the Indian Accounting Standards prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended('Ind AS') and other accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2021 and its loss total comprehensive incomecash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing ('SAs') specified under section 143(10) of the Act. Ourresponsibilities 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 ('ICAI') together with the ethicalrequirements that are relevant to our audit of the Standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on the standalone financial statements.

Emphasis of Matter

We draw attention to Note 46 to the accompanying Standalone financial statements whichdescribe management's assessment of uncertainty relating to the effects of the COVID-19pandemic on the Company's operations and other related matters. Our opinion is notmodified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone financial statements of the current period.These matters were addressed in the context of our audit of the Standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. Based on the circumstances and facts of the audit andentity there are no key audit matters to be communicated in our report.

Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information.The other information comprises the information included in the Management Discussion andAnalysis Business Responsibility Report Corporate Governance Report and Directors'Report but does not include the consolidated financial statements the standalonefinancial statements and our audit reports thereon.

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

• In connection with our audit of the standalone financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

• If 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 Standalone financial statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the Ind-AS and other 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 appropriateimplementation and maintenance of accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone financial statements

Our objectives are to obtain reasonable assurance about whether the Standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone financial statements.

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

a) Identify and assess the risks of material misstatement of the Standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

b) Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

d) 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 the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

e) 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.

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 during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when 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

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 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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 so far asit appears from our examination of those book of accounts.

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

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

e) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors of the Groupcompanies is disqualified as on March 312021 from being appointed as a director in termsof 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 B".

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 opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

h) 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:

i. The Company has disclosed the impact of pending litigations as at 31st March 2021on its financial position in its Standalone financial statements - Refer Item[B] of Note26 to the Standalone financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For MUKESH M. SHAH & CO.
Chartered Accountants
Firm Registration No.: 106625W
Suvrat S. Shah
Partner
Place : Ahmedabad Membership No.: 102651
Date : June 5 2021 UDIN : 21102651AAAABV5901

"ANNEXURE A" TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended March 31 2021.

Based on the audit procedures performed for the purpose of reporting a true and fairview on the Standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

(b) Some of the fixed assets were physically verified during the year by the managementin accordance with a programme of verification which in our opinion provides for physicalverification of all the fixed assets at reasonable intervals. According to the informationand explanations given to us no material discrepancies were noticed on such verification.In our opinion the frequency of verification of the fixed assets is reasonable havingregard to the size of the Company and the nature of its assets.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed/transfer deed/conveyancedeed provided to us we report that the title deeds comprising all the immovableproperties of land and buildings which are freehold are held in the name of the Companyas at the balance sheet date except for the following case where the title deeds are notin name of the Company. In respect of immovable properties of land that have been taken onlease and disclosed under property plant and equipment in the financial statements thelease agreements are in the name of the Company where the Company is lessee in theagreement except for the following case where the lease agreement is not registered inthe name of the Company.

Category Gross Value [In Lacs] Remarks
Freehold land - admeasuring 2030 sq. meters 0.83 The title deeds/lease agreement are registered in the name of M/s. Ashima Dyecot Private Limited which was amalgamated with the Company pursuant to a scheme of amalgamation. The company is in the process of transferring the title in its name.
Lease Hold land - admeasuring 32010 sq. meters 979.44

2. (a) The inventories have been physically verified by the management during the year.In our opinion the procedures for the physical verification of inventory followed bymanagement are reasonable and adequate in relation to the size of the company and thenature of its business.

(b) In our opinion and according to the information and explanation given to us thecompany has maintained proper records of inventory. No material discrepancies were noticedon physical verification of inventory.

3. As per the details given in the table below the Company has granted aninterest-free unsecured loan to a company covered in the register maintained underSection 189 of the Act.

Sr. No. Name of the Party Relationship with the Company Amount of loan granted during the year [Rs. in Lacs] Year-end Balance [Rs. in Lacs]
1 Shardul Garments Private Limited Associate - 63.42

4. According to the information and explanations given to us the Company has not givenany loans guarantees or security or made any investments to which provisions of section185 and 186 of the Act are applicable and accordingly paragraph 3 (iv) of the Order isnot applicable to the Company.

5. The Company has not accepted any deposits from the Public within the meaning of theprovisions of section 73 to 76 or any other relevant provisions of the Act and the rulesframed thereunder. Further according to the information and explanations given to us noorder has been passed by the Company Law Board or National Company Law Tribunal or ReserveBank of India or any court or any other Tribunal in this regard.

6. We have broadly reviewed the books of accounts maintained by the Company pursuant tothe rules made by the Central Government for maintenance of cost records under subsection(1) of section 148 of the Companies Act 2013 and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the books of account the company has been generally regular indepositing undisputed statutory dues including Provident Fund Employees' State InsuranceIncome-tax Sales-tax Goods and Services tax Service tax Custom duty Excise dutyValue added Tax Cess and any other material statutory dues during the year with theappropriate authorities. Moreover as at 31st March 2021 there are no such undisputeddues payable for a period of more than six months from the date they became payable.

(b) Details of dues of Income Tax Sales Tax Service Tax Customs Duty Excise Dutyand Value Added Tax which have not been deposited as on March 312021 on account ofdisputes are given below:

Sr. No. Name of Statute Nature of Dues Amount [Rs. in Lacs] Period to which the amount relates Forum where dispute is pending
1 Foreign Trade (Dev. & Regu. Act) 1992 Custom Duty and Interest 78.25 1997 Gujarat High Court
2 The Income Tax Act 1961 Income tax 0.87 A.Y. 2001-02 Assessment Officer
3 The Income Tax Act 1961 Income tax 5672.03 A.Y. 2018-19 Commissioner of Income-tax (Appeals)-1 Ahmedabad
4 The Income Tax Act 1961 Income tax 17.05 A.Y 2017-18 Commissioner of Income-tax (Appeals)-1 Ahmedabad
5 The Income Tax Act 1961 Income tax 43.86 A.Y 2016-17 Assessment Officer
6 Gujarat Sales Tax Act 1969 Sales Tax 1906.01 F.Y. 1999-2000 and 2000-2001 Joint Commissioner (Appeals) of Commercial Tax
7 Gujarat Sales Tax Act 1969 Sales Tax 26.87 A.Y 2002-03 Joint Commissioner of Commercial Tax
8 Gujarat Value Added Tax Act 2003 VAT 1.34 F.Y. 2011-12 Commissioner (Appeals) of Commercial Tax
9 Employees' State Insurance Act 1948 ESI Contribution 94.14 FY 1994-95 to FY 1996-97 ESI Court
10 The Customs Act 1962 Counter Vailing Duty 6.80 2012 Assistant/ Deputy Commissioner of Customs
11 The Customs Act 1962 Counter Vailing Duty 3.50 2012 CESTAT
12 Central Excise and Salt Act 1944 Excise duty and Penalty 265.77 FY 2002-03 Gujarat High Court
13 Central Excise and Salt Act 1944 Excise duty and Penalty 35.66 FY 2010-11 Customs Excise and Service Tax Appellate Commissioner (A) Ahmedabad
14 Central Excise and Salt Act 1944 Excise duty and Penalty 11.18 FY 2010-11 Joint Secretary Revision Application under Ministry of Finance
15 Central Excise and Salt Act 1944 Excise duty and Penalty 0.51 FY 2015-16 Customs Excise and Service Tax Appellate Commissioner (A) Ahmedabad
16 Central Excise and Salt Act 1944 Excise duty and Penalty 0.34 FY 2015-16 Customs Excise and Service Tax Appellate Commissioner (A) Ahmedabad
17 Textile Committee Act 1963 Textile Cess 52.40 AY 1996-97 to 1999-00 Textile Cess Appellate Tribunal

8. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not defaulted in repayment of loansor borrowings from any financial institution banks government or dues to debentureholders during the year.

An amount of Rs.750 lacs in suspense account remains unsettled. Refer Note 20 of notesto Standalone financial statements.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3(ix) ofthe Order is not applicable to the Company.

10. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the year.

11. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of section197 (with schedule V) of the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

13. 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 section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Standalone financial statements as required by theapplicable accounting standards.

14. According to the information and explanations give 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.

15. According to the information and explanations 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. Accordingly paragraph 3(xv) ofthe Order is not applicable to the Company.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For MUKESH M. SHAH & CO.
Chartered Accountants
Firm Registration No.: 106625W
Suvrat S. Shah
Partner
Place : Ahmedabad Membership No.: 102651
Date : June 5 2021 UDIN : 21102651AAAABV5901

"ANNEXURE B" TO THE AUDITORS' REPORT

Report on the Internal Financial Control clause (i) of sub-section 3 of section 143 ofthe Companies Act 2013 ("the act")

We have audited the internal financial controls over financial reporting of ASHIMALIMITED ("the company") as of March 31 2021 in conjunction with our audit ofthe Standalone financial statements of the Company for the year ended on that date.

Management Responsibility for Internal Financial Controls

The company's management is responsible for establishing and maintaining internalfinancial control based on the internal control over financial reporting criteriaestablished by the company considering the essential components of internal control statedin the Guidance Note on audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ["ICAI"]. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors' Responsibility

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(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 about the adequacy ofthe internal financial control 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 materialmisstatement of the Standalone 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 Standalone financial statements for external purposes in accordance withgenerally 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 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 Standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance 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 Standalone 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.

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 March 312021 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 MUKESH M. SHAH & CO.
Chartered Accountants
Firm Registration No.: 106625W
Suvrat S. Shah
Partner
Place : Ahmedabad Membership No.: 102651
Date : June 5 2021 UDIN : 21102651AAAABV5901

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