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Ashnisha Industries Ltd.

BSE: 541702 Sector: Others
NSE: N.A. ISIN Code: INE694W01024
BSE 00:00 | 25 Nov 9.88 0.46
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NSE 05:30 | 01 Jan Ashnisha Industries Ltd
OPEN 9.89
PREVIOUS CLOSE 9.42
VOLUME 183207
52-Week high 10.00
52-Week low 0.68
P/E 494.00
Mkt Cap.(Rs cr) 98
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.89
CLOSE 9.42
VOLUME 183207
52-Week high 10.00
52-Week low 0.68
P/E 494.00
Mkt Cap.(Rs cr) 98
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ashnisha Industries Ltd. (ASHNISHAINDUS) - Auditors Report

Company auditors report

To

The Members

Ashnisha Industries Limited Opinion

We have audited the accompanying financial statements of Ashnisha Industries Limited(“the Company”) which comprise the balance sheet as at March 31 2022 and theStatement of Profit and Loss and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand 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 ('Act') in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2022 its loss and cash flows for the year ended onthat date.

Basis for opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013 as amended ("the Act). Ourresponsibilities under those Standards are further described in the "Auditor'sResponsibilities for the Audit of the Standalone Financial Results" section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

Management's Responsibilities for the Standalone Financial Results

The Statement has been prepared based on the annual standalone financial statements forthe year ended March 31 2022. The Board of Directors of the Company are responsible forthe preparation and presentation of the Statement that give a true and fair view of theloss and other comprehensive income and other financial information in accordance with theapplicable accounting standards prescribed under Section 133 of the Act read with relevantrules issued there under and other accounting principles generally accepted in India andin compliance with Regulation 33 of the Listing Regulations This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Statement that give a trueand fair view and are free from material misstatement whether due to fraud or error.

In preparing Statement the Board of Directors are 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 the Boardof Directors either intends to liquidate the Company or to cease operations or has norealistic 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 Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the Statement as awhole is free from material misstatement whether due to fraud or error and to issue anauditor's report that includes our opinion. Reasonable assurance is a high level ofassurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken based on thisStatement.

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 Statement whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.

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 theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to these financial results in placeand the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Board of Directors.

Conclude on the appropriateness of the Board of Directors' use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theability of the Company to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Statement 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 Group and of itsJoint Venture to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the Statement includingthe disclosures and whether the financial results represent the underlying transactionsand 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143 (11) of the Act we give in theAnnexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with the Companies (IndianAccounting Standard) Rules 2015 as amended.

e. Based on written representations received from the directors as on 31/03/2022 andtaken on record by the Board of Directors none of the directors are disqualified as on31/03/2022 from being appointed as a director in terms of sub-section (2) of section 164of the Companies Act 2013.

For G M C A & Co.
Chartered Accountants
FRN: 109850W
CA Mitt S. Patel
Partner
Place : Ahmedabad Membership No.: 163940
Date : 30.05.2022 UDIN : 22163940AJWQXP2541

Annexure: A

Reports under The Companies (Auditor's Report) Order 2020 (CARO 2020) for the yearended on 31st March 2022

To

The Members of Ashnisha Industries Limited

(1) Details of tangible and intangible assets

• Whether the records maintained by the company display the complete particularson the details quantity and situation of tangible and intangible assets.

- Yes

• Whether the management has carried out physical verification of the assets atdifferent intervals reasonable with the size of the company.

- Yes

• Whether the material discrepancies if any noticed on physical verificationhave been accounted for in the books of accounts.

- Yes

• Whether the title deeds pertaining to the immovable properties (exceptproperties which are leased by the company with duly executed lease agreements in thecompany's favor) disclosed in the financial statements are held in the name of thecompany.

- No such immovable properties exist.

• If the title deeds are not held in the name of the company the below detailsshould be provided

Description of a property Gross carrying value Held in the name of Whether promoter director or their relative or employee Period held: indicate a range where appropriate Reason for not being held in the name of company
N.A. N.A. N.A. N.A. N.A. N.A.

• Whether a revaluation has been done by the company of its property plant andequipment (including the right of use assets) or intangible assets or both during the yearand if so whether the revaluation is based on the valuation by a Registered Valuer.

- No revaluation has been done during the year.

• In case of a change in values upon revaluation specify the amount of change ifthe change is 10% or more in the aggregate of the net carrying value of each class ofproperty plant and equipment or intangible assets.

- No revaluation has been done during the year. So not applicable

• Whether any proceedings have been initiated or are pending against the companyfor holding any benami property under the Benami Transactions (Prohibition) Act 1988 (45of 1988) and rules made thereunder. If yes whether the company has appropriatelydisclosed the details in its financial statements.

- As per what the Management said no such proceedings are going on.

(2) Details of inventory and working capital

• Whether the management has carried out physical verification of inventory atreasonable intervals.

- Yes

• If any discrepancies of 10% or more in the aggregate for each class of inventorywere noticed and if so whether they have been properly dealt with in the books ofaccounts.

- As per what Management said no such discrepancies were observed.

• Has the company during any point of time of the year sanctioned workingcapital limits in excess of five crore rupees in aggregate from banks or financialinstitutions on the basis of security of current assets.

- During the year no new loan has been sanctioned.

• Are the quarterly returns or statements filed by the company with financialinstitutions or banks in agreement with the books of account of the Company. In case ofnon-agreement to provide details of such nonagreement.

- Yes wherever applicable.

(3) Details of investments any guarantee or security or advances or loans given

• If the company has during the year made any investments in given any guaranteeor security or granted any loans or advances which are characterized as loans unsecuredor secured to LLPs firms or companies or any other person.

- Yes

• If the company has provided advances or provided loans which are characterizedas loans or given guarantee or given security to any other entity (other than a companycarrying on a business of providing loans) the below information should be furnished:

- The total amount given during the year and the balances due as at the balance sheetdate with respect to such loans or advances and guarantees or security to persons otherthan associates subsidiaries and joint ventures.

-

Sr. No. Name Outstanding Nature of the Transaction Amount
1 Akhil Retail Pvt Ltd Loan Given 41394500
Loan Repaid NIL
Closing Balance as at 31/03/2022 42552198
2 Rhetan TMT Limited Loan Given 20779500
Loan Repaid 14154749
Closing Balance as at 31/03/2022 11334500
3 Shaurya Organic Pvt Ltd Loan Given 1650000
Loan Repaid 1500000
Closing Balance as at 31/03/2022 150000

? The total amount during the year and the balance due on the balance sheet date ofsuch loans or advances and guarantees or security to associates subsidiaries and jointventures.

- Not Applicable

• In the case of investments made guarantee or security provided loans oradvances granted (as mentioned above) the report should indicate:

- Whether the investments made guarantees provided security given and the terms andconditions of the grant of all loans and advances in the nature of loans and guaranteesprovided are not prejudicial to the company's interest.

- Yes they are not prejudicial to the company's interest.

- In respect of loans and advances in the nature of loans whether the schedule ofrepayment of principal and payment of interest has been stipulated and whether therepayments or receipts are regular.

- Loans are Interest Free which is violation of Section 186(7) of the Act.

- If the amount is overdue state the total amount overdue for more than ninety daysand whether reasonable steps have been taken by the company for recovery of the principaland interest.

- As there is no specific guideline regarding repayment cannot derive the value ofamount overdue.

• In case any loan or advance in the nature of a loan is given which was due forrepayment during the year and has been renewed or extended or fresh loans granted tosettle the overdue of existing loans given to the same parties. If yes specify the totalamount of such dues renewed or extended or settled by fresh

loans and the percentage (proportion) of the total to the total loans or advancesgranted during the year (other than companies whose principal business is to grant loans).

- No such discrepancies were observed.

• In case the company has given any loans or advances in the nature of loanseither repayable on demand or without specification of any terms or period of repayment.If so to specify the total amount percentage thereof to the total loans granted thetotal amount of loans granted to promoters related parties as defined section 2(76) ofthe Companies Act 2013.

- Loans given are without specific instructions.

(4) Compliance in respect of a loan to directors

• If the company has given any loans to directors or any other person in whom thedirector is interested or made any investments whether the company has made compliancewith the provisions governing such loans investments and guarantees.

- No such loans were granted.

(5) Compliance in respect of deposits accepted

• In case the company has accepted deposits or deemed deposits whether thecompany has followed the directives of the RBI as under: - Compliance with the provisionsprescribed for accepting deposits under section 73 to 76 of the Companies Act 2013. - Thenature of contraventions if the above provisions are not followed. - Compliance with anyorder passed by any court or tribunal. - Reporting of any noncompliance with theprovisions of Companies Act 2013.

- No such deposits or deemed deposits have been accepted by the company.

(6) Maintenance of costing records

• In case the company is required to maintain cost records whether the recordshave been maintained during the year and non-compliance if any.

- Yes

(7) Deposit of statutory liabilities

• Whether the company has:

- Regularly deposited statutory dues.

- Yes

- Are any statutory dues pending for a period more than 6 months as on the balancesheet date.

- No

- In case of any disputed statutory dues the amount of such dues the forum beforewhom the dues are litigated.

- No such issues found.

(8) Unrecorded income

• Whether any transactions which are not recorded in the accounts have beendisclosed or surrendered before the tax authorities as income during the year. The detailsof such income tax assessments should be disclosed. - Whether such undisclosed income hasbeen recorded in the accounts during the year.

- No such Transactions found.

(9) Default in repayment of borrowings

• In case the company has made any default in the repayment of loans to banksgovernment debenture- holders etc. then the amount and period of default.

- No such default has been done.

• Has the company been declared a wilful defaulter by any bank or financialinstitution or any other lender.

- No

• Have term loans been used for the object for which they were obtained; in casethey have not been the loan funds diverted and disclosure of the end use of such loans.

- No

• Has the company used funds raised for a short term basis for long term purposes.The nature and the amount of such funds.

- No such transactions found as no such specific instructions have been made whileobtaining loan.

• Has the company raised any money from any person or entity for the account of orto pay the obligations of its associates subsidiaries or joint ventures. The details ofthe money raised with the description of the transactions and the amounts in each case.

- No

• Has the company raised any loans during the year by pledging securities held intheir subsidiaries joint ventures or associate companies. The details of such loans andalso the default in the repayment of the loans.

- No

(10) Funds raised and utilisation

• If the company has raised any funds from a public offer (equity or debtcapital) details of the funds applied for the purposes. Also the details of default ordelays and rectification measures taken. - Has the company made any private placement orpreferential allotment of shares or convertible debentures (fully partially or optionallyconvertible) during the year whether the same is in accordance with section 42 andsection 62 of the Companies Act 2013. - Whether the funds raised have been used for thepurposes they were raised and the non-compliance if any.

- Not Applicable.

(11) Fraud and whistle-blower complaints

• Has there been any fraud by the company or any fraud done on the company. If anysuch fraud has been noticed or reported any time of the year. If yes nature and amountinvolved have to be reported. - Whether the auditors of the company have filed a report inForm ADT-4 with the Central Government as prescribed under the Companies (Audit andAuditors) Rules 2014. - In case of receipt of whistle-blower complaints whether thecomplaints have been considered by the auditor.

- No such event has been occurred.

(12) Compliance by a Nidhi

• Compliance with provisions applicable to a Nidhi company: - Maintaining of netowned funds to deposit ratio of 1:20 for meeting liabilities. - Maintaining 10% termdeposits (which are unencumbered) for meeting liabilities. - Details of any default inpayment of interest on deposits or repayment of for any period.

- Not Applicable.

(13) Compliance on transactions with related parties

• Whether the company has complied with the provisions of section 188 of theCompanies Act 2013 in respect of transactions with related parties. Also whetherappropriate disclosures are made in the financial statements.

- Yes

(14) Internal audit system

• Does the company have an internal audit system in accordance with its size andbusiness activities.

- Yes

• Have the reports of the internal auditors been considered by the statutoryauditor.

- Not Applicable.

(15) Non-cash transactions

• In case the company has undertaken non-cash transactions with their directors orother persons connected to the directors whether the restrictions imposed are compliedwith.

- No such transactions have taken place.

(16) Registration under Section 45-IA of RBI Act 1934

• Is the company required to be registered under the RBI Act and whether thecompany has obtained registration.

- No

• Whether the company has carried on any Non-Banking Financial or Housing Financeactivities (NBFC or HFC) without having a valid registration certificate from RBI.

- No

• Is the company a Core Investment Company (CIC) under the RBI regulations anddoes it continue to fulfil the criteria of a CIC. In case the company is an exempted orunregistered CIC does the company continue to fulfil the criteria for exemption.

- No

• Does the group to which the company belongs have more than one CIC as part ofit then indicate the number of CICs which are in the group.

- No

(17) Cash losses

• Has the company incurred any cash losses in the financial year and theimmediately preceding financial year the amount of cash losses incurred.

- No

(18) Resignation of statutory auditors

• Whether during the year has there been any resignation of statutory auditorsif yes has the auditor considered the objections issues or concerns raised by theoutgoing auditors.

- No

(19) Material uncertainty

• Existence of any material uncertainty on the date of the audit report on anevaluation of: - The ageing report financial ratios and expected dates of realisation offinancial assets and payment of financial liabilities any other information accompanyingthe financial statements the auditor's knowledge of the Board of Directors and managementplans. - Opinion whether the company can meet its the liabilities which exist as at thebalance sheet date when such liabilities are due in the future.

- No such Material uncertainty exists on the Balancesheet Date.

(20) Transfer to fund specified under Schedule VII of Companies Act 2013

• With respect to obligations under Corporate Social Responsibility whether thecompany has transferred the unspent amount to a Fund specified in Schedule VII to theCompanies Act within a period of 6 months from the expiry of the financial year. - Whetherany amount which remains unspent has been transferred to a special account in accordancewith provisions of section 135 of the Companies Act 2013.

- Not Applicable.

(21) Qualifications or adverse auditor remarks in other group companies

• In case there have been any qualifications or adverse remarks in the auditreports issued by the respective auditors in case of companies included in theconsolidated financial statements to indicate the details of the companies and theparagraph numbers of the respective CARO reports containing the qualifications or adverseremarks.

- As such no such remarks found.

For G M C A & Co. Chartered Accountants
FRN: 109850W
CA Mitt S. Patel
Partner
Place : Ahmedabad Membership No.: 163940
Date : 30.05.2022 UDIN: 22163940AJWQXP2541

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 2022 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that 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.

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 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.

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 31 2022.

For G M C A & Co.
Chartered Accountants
FRN: 109850W
CA Mitt S. Patel
Partner
Place : Ahmedabad Membership No.: 163940
Date : 30.05.2022 UDIN: 22163940AJWQXP2541

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