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Ashima Ltd.

BSE: 514286 Sector: Industrials
NSE: ASHIMASYN ISIN Code: INE440A01010
BSE 11:06 | 01 Oct 7.13 -0.37
(-4.93%)
OPEN

7.40

HIGH

7.50

LOW

7.13

NSE 11:05 | 01 Oct 7.50 0.35
(4.90%)
OPEN

7.00

HIGH

7.50

LOW

6.85

OPEN 7.40
PREVIOUS CLOSE 7.50
VOLUME 2802
52-Week high 9.80
52-Week low 3.00
P/E
Mkt Cap.(Rs cr) 92
Buy Price 7.13
Buy Qty 1150.00
Sell Price 7.49
Sell Qty 200.00
OPEN 7.40
CLOSE 7.50
VOLUME 2802
52-Week high 9.80
52-Week low 3.00
P/E
Mkt Cap.(Rs cr) 92
Buy Price 7.13
Buy Qty 1150.00
Sell Price 7.49
Sell Qty 200.00

Ashima Ltd. (ASHIMASYN) - Auditors Report

Company auditors report

TO THE MEMBERS OF ASHIMA LIMITED Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Ashima Limited ("the Company")which comprise the Balance Sheet as at March 312019 the statement of Profit and Loss(including Other Comprehensive Income) the statement of changes in equity and thestatement of cash flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 and profit/loss changes in equityand 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) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor’s Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Key Audit Matter How our audit addressed Key Audit Matter
Existence of trade receivables and their recoverability • We performed walkthrough of accounts receivable and revenue to confirm whether they are not overstated or understated.
• We reconciled the subsidiary ledgers to the general ledger.
• We performed certain substantive procedures: namely receivable confirmations and tests of subsequent collections.
We have observed that the trade receivables of the company have gone up substantially during the year. Details of trade receivables are as per Note 10 to the Financial Statements. • We checked and confirmed the consistency and reasonableness of the methodology used for computing the impairment allowance.
• We verified the ageing breakup of the receivables thoroughly and tested the computation of impairment allowance.
Considering that higher levels of debtors compared to levels of operations of the company can potentially lead to impairment we considered this to be a significant aspect of audit and hence a key audit matter. • We also obtained information from the management about higher credit being allowed by the company in some cases to meet customer requirement and to promote sales which has led to higher level of trade receivables.
Based on the facts and procedures performed as stated above we have obtained reasonable assurance about trade receivables and have found the same to be appropriate.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the other information. Theother information comprises the information included in the Management Discussion andAnalysis Board’s Report including Annexures to Board’s Report CorporateGovernance and Shareholders Information but does not include the financial statements andour audit 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 the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially 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 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 financial statements that givea true and fair view of the financial position financial performance changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany’s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’sfinancial reporting process. Auditor’s Responsibilities for the Audit of theFinancial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an audit report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould 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:

a) 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 ishigher than for one resulting from error as fraud may involve collusion forgeryintentional 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 basisof accounting 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 audit report to the relateddisclosures in the financial statements or if such disclosures are inadequate to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date ofour audit 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 financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ouraudit 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

As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 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 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 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 theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164 (2) of theAct.

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 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:

position in its financial statements - Refer Note 26 to the financial statements;

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

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

For MUKESH M. SHAH & CO.
Chartered Accountants
Firm Registration No.: 106625W
Suvrat S. Shah
Place : Ahmedabad Partner
Date : May 25 2019 Membership No.: 102651

"Annexure A" referred to in the Independent Auditor’s Report of evendate to the members of ASHIMA LIMITED on the Financial Statements for the year ended March31 2019.

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation 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 programme of verification. According to the information andexplanations given to us no material discrepancies were noticed on such verification. Inour opinion the frequency of verification of the fixed assets is reasonable having regardto the size of the Company and the nature of its assets.

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

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 by management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

(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. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013. Accordingly clause (iii)(a) and (iii)(b) of paragraph of the Order are notapplicable to the company for the current year.

4. In our opinion and according to the information and explanations given to us theCompany has not given any loans guarantees or security or made any investments to whichprovisions of section 185 and 186 of the Act is applicable and accordingly paragraph 3(iv) of the Order is not 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 of 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 in depositing undisputedstatutory dues including Provident Fund Employees’ State Insurance Income-taxSales-tax Goods and Services tax Service tax Custom duty Excise duty Value added TaxCess and any other material statutory dues during the year with the appropriateauthorities. Moreover as at March 31 2019 there are no such undisputed dues payable fora period of more than six months from the date they became payable.

(b) According to the information and explanations given to us the particulars of duesof Income tax Sales tax Excise duty and Service tax and other material statutory dues asat March 312019 which have not been deposited on account of any dispute are as follows:

Sr. No. Name of Statute Nature of Dues Amount (' In lacs) Period to which the amount relates Forum where dispute is pending
1 Foreign Trade (Dev. & Regu. Act) 1992 Custom Duty and Interest 72.47 1997 Gujarat High Court
2 The Income Tax Act 1961 Income tax 0.87 A Y. 2001-02 Assessment Officer
3 Gujarat Sales Tax Act 1969 Sales Tax 1906.01 F.Y. 1999-2000 and 2000-2001 Joint Commissioner (Appeals) of Commercial Tax
4 Gujarat Value Added Tax Act 2003 VAT 1.34 F.Y. 2011-12 Commissioner (Appeals) of Commercial Tax
5 Employees’ State Insurance Act 1948 ESI Contribution 88.96 FY 1994-95 to FY 1996-97 ESI Court
6 The Customs Act 1962 Countervailing Duty o 00 CD CM O C\J Assistant/ Deputy Commissioner of Customs
7 The Customs Act 1962 Countervailing Duty 3.50 CM O C\J CESTAT

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 due to debentureholders during the year.

An amount of ' 750 lacs in suspense account remains unsettled. Refer Note 18 of notesto financial statements

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments). The term loan raised during the year has been utilisedby the Company for the purpose for which the same has been taken.

10. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

11. According to the information and explanations given to us and on the basis of ourexamination of the books of account the managerial remuneration has been paid or providedin accordance with the requisite approvals mandated by the provisions of section 197 (withschedule 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 financial statements as required by the applicableAccounting 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
Place : Ahmedabad Partner
Date : May 25 2019 Membership No.: 102651

"ANNEXURE B" TO THE AUDITOR’S 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 2019 in conjunction with our auditof the 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 about whether adequate internal financial controls overfinancial reporting were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial 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 Judgment including the assessment of the materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of 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 financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea material effect on the financial statements.

Inherent limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

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 312019 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
Place : Ahmedabad Partner
Date : May 25 2019 Membership No.: 102651