INDEPENDENTAUDITOR'S REPORT To
The Members of
ASHOK ALCO-CHEM LIMITED
Report on Audit of the Standalone F inancial Statements
We have audited the accompanying standalone financial statements of ASHOK ALCO-CHEMLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2022 the Statement of Profit and Loss (including Other Comprehensive Income) theStandalone Statement of Changes in Equity and the Standalone Statement of Cash Flows forthe year ended on that date and a summary of the significant accounting policies andother explanatory information (hereinafter referred to as "the Standalone FinancialStatements").
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 trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaofthe state ofaffairs ofthe company as at 31st March 2022 the loss and totalcomprehensive loss changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit ofthe 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 ofthe 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 ICAl's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.
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.
We have determined that there are no key audit matters to be communicated in ourreport.
The company's management and Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theCompany's Annual Report but does not include the standalone financial statements and ourauditor's report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materiallymisstated.
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.
Responsibility of Management and Those Charged with Governance for the Standalone Financial Statements
The company's management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance ofadequate accounting records in accordancewith the provisions ofthe Act for safeguarding the assets ofthe company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 tocease operations or has no realistic alternative but to do so.
The Board ofDirectors are responsible for overseeing the company's financial reportingprocess.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objective is to obtain reasonable assurance about whether the standalone financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's 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 ofusers taken on thebasis of these standalone financial statements.
As part of anauditin accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances under section 143 (3)(i) of the Act. We are also responsible for expressing our opinion on whether the companyhas adequate internal financial controls system in place and the operating effectivenessof such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessofaccounting estimates and related disclosures made by management.
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 thatmay 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.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compiledwith relevant ethical requirements regarding independence and to communicate with them allrelationships and other matters thatmay reasonably be thought to bear on our independenceand where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that are of most significance in the audit of the standalone financial statementsofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror 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
1. As required by the Companies (Auditor's Report) Order 2016 ("the order")issued by the Central Government of India in terms of Section 143 (11) of the Act we givein "^ne?jre A" a statement on the matters specified in paragraphs 3 and 4of the Order to the extent applicable.
2. As required by section 143 (3) wereportthat:
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 ofthosebooks.
c) The standalone Balance Sheet the statement of Profit and Loss including OtherComprehensive Income the standalone statement of Changes in Equity and the Statement ofCash Flows dealt with by this Report are in agreement with the relevant books of accounts.
d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules2014.
e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of section164 (2) ofthe 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 Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:
i) The company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements (Refer Note 27 to the Standalone FinancialStatements).
ii) The company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.
iii) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Funds of the Company.
iv) a) The Management has represented that to the best of its knowledge and belief(Refer Note 36 (h) to the Standalone
Financial Statements) no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other persons or entities including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever ("UltimateBeneficiaries") by or on behalf of the Company or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries.
b) The Management has represented that to the best of its knowledge and belief (ReferNote 36 (i) to the Standalone Financial Statements) no funds have been received by theCompany from any persons or entities including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalfof the Funding Parties or provide any guarantee security or the like on behalf of theUltimate Beneficiaries.
c) Based on the audit procedures performed that we considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (a) and (b) of Rule 11(e) mentionedabove contain any material mis-statement.
v) The dividend declared and paid during the year by the Company is in compliance withSection 123 oftheAct.
h) In our opinion and according to the information and explanations given to us thecompany has not paid any remuneration to its directors during the current year and hencecompliance with the provisions of Section 197 of the Act is not applicable. The Ministryof Corporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.
| ||For R AMaru & Associates |
| ||Chartered Accountants |
| ||FRN: 141914W |
| ||Rumeet Anil Maru |
| ||(Proprietor) |
|Place: Mumbai ||M. No. 166417 |
|Date: May 262022 ||UDIN: 22166417AKUJLF9870 |
"(ANNEXURE - A)" to the Auditor's Report (Referred to in Paragraph 1 under'Report on other Legal and Regulatory Requirements' section of our report of even date)
With reference to the Annexure referred to in the Independent Auditors' Report to themembers of the Company on the financial statements for the year ended 31 March 2022 wereport the following:
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant& equipment. The Company hasmaintained proper records showing full particulars of intangible assets.
(b) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has verified its property plantand equipment at the year end. In our opinion this periodicity of physical verificationis reasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company does not hold any freehold /leasehold immovable properties.
(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not revalued its PropertyPlant and Equipment or intangible assets during the year
(e) According to information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any benami property under the Prohibition of BenamiProperty Transactions Act 1988 and rules made thereunder.
2. (a) The stock of traded Goods stores and consumables were physically verified bythe Management at regular intervals. The
Company did not carry any inventories at the year end.
(b) In our opinion and according to the information and explanations given to us theprocedure of physical verification of stocks followed by the management during the yearwas reasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) The Company has maintained proper records of inventories. The discrepancies noticedon verification between the physical stocks and book records were not material and havebeen properly dealt with in the books of account.
(d) In our opinion and according to the information and explanations given to us thecompany has not availed any working capital limits from any banks orfinancialinstitutions.
3. (a) The company has granted loans secured or unsecured loans to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013.
(b) The loans granted are repayable on demand. As informed to us by the management thecompany has renewed the agreements for loans from time to time. The company has notrecalled such loans before the expiry of the agreement period.
(c) According to the information and explanations given to us and based on the auditprocedures conducted by us the terms and conditions of the grant of loans and advances inthe nature of loans provided during the year are prima facie not prejudicial to theinterest of the Company.
4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.
5. According to the information and explanations given to us the Company has notaccepted any deposit from the public during the year. Accordingly paragraph 3 (v) of theorder is not applicable.
6. In our opinion and according to the information and explanations given to us theCentral Government prescribed maintenance of Cost records are not applicable to thecompany as per the provisions of Section 148 of The Companies Act 2013.
7. (a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of sales tax including Value Added Tax Service TaxGoods & Service Tax Provident Fund Employees' State Insurance Income Tax Duty ofCustoms Duty of Excise Cess and othermaterial statutory dues as applicable with theappropriate authorities.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of Value Added Tax Service Tax Goods & Service Tax ProvidentFund Employees' State Insurance Income Tax Duty of Customs Duty of Excise Cess andother material statutory dues were in arrears as at 31 st March 2022 for a period of morethan six months from the date they became payable.
(c) The particulars of dues of Value Added Tax Service Tax Goods & Service TaxProvident Fund Employees' State Insurance Income Tax Duty of Customs Duty of ExciseCess and other material statutory dues at 31st March 2022 which have not been depositedon account of dispute are as follows:
|Name of the Statute ||Nature of Dues ||Amount (E in Lakhs) ||Financial Year/s /Period to which the dues relates ||Forum where Dispute is pending |
|The Income TaxAct 1961 ||Demand U/s 143 (3) ||226.50 ||2011-2012 ||Commissioner of Income Tax (Appeals) Mumbai |
|The Income TaxAct 1961 ||Penalty U/s 271(1)(C) ||38.93 ||2016-2017 ||Commissioner of Income Tax (Appeals) Mumbai |
8. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not surrendered or disclosedany transactions previously unrecorded as income in the books of account in the taxassessments under the Income TaxAct 1961 as income during the year
9. (a) The Company has not availed any loans during the year under review andaccordingly clause 3 (ix) (a) of the Order is not
(b) The Company has not been declared a wilful defaulter by any bank or financialinstitution or government or government authority.
(c) The Company has not raised money by way of term loans during the year andaccordingly clause 3 (ix) (c) of the Order is not applicable.
(d) On an overall examination of the standalone financial statements of the Company nofunds have been raised by the company and accordingly clause 3 (ix) (d) of the Order isnot applicable.
(e) We report that the Company has not taken any funds from any entity or person onaccount of or to meet the obligations of its subsidiaries as defined under the CompaniesAct 2013. Accordingly clause 3(ix)(e) of the Order is not applicable.
(f) We report that the Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries as defined under the Companies Act 2013. Accordinglyclause 3(ix)(f) of the Order is not applicable.
10. (a) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments. Accordingly the provisions of clause3 (x)(a) of the Order are not applicable to the Company and hence not commented upon.
(b) The Company has not made any preferential allotment or private placement of sharesduring the year
11. (a) B ased upon the audit procedures performed and the information and explanationsgiven by the management considering the principles of materiality outlined in theStandards on Auditing we report that no fraud by the Company or on the Company has beennoticed or reported during the course of the audit.
(b) According to the information and explanations given to us no report undersub-section (12) of Section 143 of the Act has been filed by the auditors in Form ADT-4 asprescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment. In view of the above reporting under clause 3 (xi) (b) of the order is notapplicable.
(c) To the best of our knowledge and according to the information and explanationsgiven to us the company has not received whistle-blower complaints during the year.
12. In our opinion the Company is not a Nidhi Company. The provisions of clause 3(xii) of the Order are not applicable to the Company.
13. In our opinion and according to the information and explanations given to us thetransactions with related parties are in compliance with Section 177 and 188 of theCompanies Act 2013 where applicable and the details of the related party transactionshave been disclosed in the standalone financial statements as required by the applicableaccounting standards.
14. (a) Based on the information and explanations provided to us and our auditprocedures in our opinion the Company has an internal audit system commensurate withsize and nature of its business.
(b) We have considered the internal audit reports of the Company issued till date forthe period under audit.
15. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him and hence provisions of section 192 of theCompaniesAct 2013 are not applicable.
16. (a) The Company is not required to be registered under Section 45-IAof the ReserveBank of India Act1934. Accordingly clauses 3(xvi)(a) of the Order is not applicable.
(b) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly clauses 3 (xvi)(b) of the Order is not applicable.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is notapplicable.
(d) The Company is not part of any group (as per the provisions of the Core InvestmentCompanies (Reserve Bank) Directions 2016 as amended). Accordingly the requirements ofclause 3(xvi)(d) is not applicable.
17. The Company has not incurred cash losses in the current and in the immediatelypreceding financial year.
18. There has been no resignation of the statutory auditors during the year.Accordingly clause 3(xviii) of the Order is not applicable.
19. According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the standalone financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that the Company is not capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date. We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the facts up tothe date of the audit-report and we give neither any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the Company as and when they fall due.
20. In our opinion and according to the information and explanations given to usprovisions of Section 135 of the Act is not applicable to the company. Accordinglyclauses 3 (xx)(a) and 3 (xx)(b) of the order are not applicable.
| ||For RAMaru & Associates |
| ||Chartered Accountants |
| ||FRN: 141914W |
| ||RumeetAnilMaru |
|Place: Mumbai ||Proprietor |
|Date: May 262022 ||MNo: 166417 UDIN:22166417AKUJLF9870 |
"Annexure - B" to the Auditors' Report
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 ASHOKALCO-CHEM LIMITED ("the Company") as of 31st March 2022 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.
Management's Responsibility for Internal F inancial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls 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 assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the CompaniesAct 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 judgment 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 F inancial 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal F inancial Controls over F inancial 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 31st March 2022 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 R AMaru & Associates |
| ||Chartered Accountants |
| ||FRN: 141914W |
| ||Rumeet Anil Mar u |
|Place: Mumbai ||(Proprietor) |
|Date: May 262022 ||M.No. 166417 |
| ||UDIN: 22166417AKUJLF9870 |