Ashnisha Industries Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Ashnisha Industries Limited.("The Company") which comprise the Balance Sheet as at March 31 2018 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and a summaryof significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordance with the standards on auditing issued by theInstitute of Chartered Accountants of India. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from misstatements.
Audit involves performing procedure to obtain audit evidence about the amounts anddisclosure in the financial statements. The procedure selected depends upon auditor'sjudgment including the assessment of the risk of material misstatements of the financialstatements whether due to fraud or error. In making those risk assessment the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedure that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimates made by management as wellas evaluating the overall presentation of financial statements.
We believe that audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(a) In case of the Balance Sheet of the state of affairs of the Company as at31/03/2018;
(b) In case Statement of Profit and Loss Account of the Loss for the year ended onthat date; and
(c) In the case of the Cash Flow Statement of the cash flows for the year ended31/03/2018 -
Report on Other Legal and Regulatory Requirements
1. This report does not include the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Section 143 of theAct since in Our opinion and according to the information and explanation given to usthe said order is not applicable to the company
2. As required by section 143(3) of the Act we report that:
a. We have obtained all information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by Law have been kept by theCompany so far as appears from our examinations of those books;
c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in section 133 of the Act.
e. On the basis of written representations received from the directors as on 31/03/2018and taken on record by the Board of Directors none of the directors are disqualified ason 31/03/2018 from being appointed as a director in terms of sub-section (2) of section164 of the Companies Act 2013.
FOR G M C A & CO.
MITT S. PATEL
MEMBERSHIP NO. 163940
Reports under The Companies (Auditor's Report) Order 2016 (CARO 2016) for the yearended on 31st March 2018 To
The Members of ASHNISHA INDUSTRIES LIMITED
(1) In Respect of Fixed Assets
(a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management at reasonableintervals; No material discrepancies were noticed on such verification.
(c) Yes The Title deeds of Immovable Properties are held in the name of the Company.
(2) In Respect of Inventories
As explained to us the inventories (excluding inventories with third parties) werephysically verified during the year by the Management at reasonable intervals.
(3) Compliance under section 189 of The Companies Act 2013
The Company has not granted any loan to the parties covered in the register maintainedu/s 189 of the companies Act 2013.
(a) As there is no such loan question of prejudicially does not arise.
(b) As there is no such loan question of repayment terms & conditions also doesnot arise.
(c) There is no overdue amount of loans granted to companies firms or other partieslisted in the register maintained under section 189 of the companies Act 2013.
(4) Compliance under section 185 and 186 of The Companies Act 2013
While doing transaction for loans investments guarantees and security provisions ofsection 185 and 186 of the Companies Act 2013 have been complied with.
(5) Compliance under section 73 to 76 of The Companies Act 2013 and Rules framedthereunder while accepting Deposits
According to information and explanations given to us the Company has not accepted anydeposits from public during the year. In respect of unclaimed deposits the Company hascomplied with the provisions of sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules made thereunder.
(6) Maintenance of cost records
The Company is not required to maintain cost Records pursuant to the Rules made by theCentral Government for the maintenance of cost records under sub-section (1) of section148 of the Companies Act 2013.
(7) Deposit of Statutory Dues
(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Income-tax Sales Tax Wealth Tax Service Tax Duty of customsDuty of excise Value added tax Cess and any other material statutory dues with theappropriate authorities.
(b) According to the information and explanations given to us no undisputed amountpayable in respect of Income Tax Wealth Tax Service Tax Sales Tax Customs Duty andExcise Duty were in arrears as of 31st March 2018 for a period of more than six monthsfrom the date they became payable.
(8) Repayment of Loans and Borrowings
The company has not defaulted in repayment of dues to financial institution bank ordebenture holders during the year.
(9) Utilization of Money Raised by Public Offers and Term Loan For which they Raised
The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) during the year. However money raised by way of termloans have been applied for the purposes for which they have been obtained.
(10) Reporting of Fraud During the Year
Based on our audit procedures and the information and explanation made available to usno such fraud noticed or reported during the year.
(11) Managerial Remuneration
Managerial Remuneration has not been provided by the Company
(12) Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio
As per information and records available with us The company is not Nidhi Company.
(13) Related party compliance with Section 177 and 188 of companies Act - 2013
Yes All transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.
(14) Compliance under section 42 of Companies Act - 2013 regarding Private placement ofShares or Debentures
According to the information and explanations give to us and based on our examinationof the records of the Company the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.
(15) Compliance under section 192 of Companies Act - 2013
The company has not entered into any non-cash transactions with directors or personsconnected with him.
(16) Requirement of Registration under 45-IA of Reserve Bank of India Act 1934
The company is not required to be registered under section 45-IA of the Reserve Bank oflndia Act.
FOR G M C A & CO.
MITT S. PATEL
MEMBERSHIP NO. 163940
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 M/sAshnisha Industries Limited ("the Company") as of March 31 2018 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
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 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 audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls 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 risks ofmaterial misstatement 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 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a 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.
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 31 2018.
FOR G M C A & CO.
MITT S. PATEL
MEMBERSHIP NO. 163940