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Ashoka Metcast Ltd.

BSE: 540923 Sector: Others
NSE: N.A. ISIN Code: INE760Y01011
BSE 13:34 | 30 Jul 4.74 -0.24
(-4.82%)
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NSE 05:30 | 01 Jan Ashoka Metcast Ltd
OPEN 4.74
PREVIOUS CLOSE 4.98
VOLUME 18000
52-Week high 5.51
52-Week low 1.73
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 4.97
Sell Qty 12000.00
OPEN 4.74
CLOSE 4.98
VOLUME 18000
52-Week high 5.51
52-Week low 1.73
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 4.97
Sell Qty 12000.00

Ashoka Metcast Ltd. (ASHOKAMETCAST) - Auditors Report

Company auditors report

To

The Members of Ashoka Metcast Limited

(Formerly Known as: Tanya Estates Private Limited )

Report on the Audit of Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements ofAshoka Metcast Limited ('the Company') which comprise the balance sheet as at 31 March2020 the statement of profit and loss cash flow statement and summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2020and Loss and 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) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules there underand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

Key Audit Matter

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements for the yearended March 31 2020. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters.

We have determined the matters described below to be the key auditmatters to be communicated in our report:

The Key Audit Matter How our audit addressed the key audit matter
During the year the Company has granted an interest free loan to its wholly owned subsidiary. We consider granting loan to Subsidiaries as a key audit matter as it constitutes significant percentage of loan given. We have verified the relevant records and found in accordance with company's policy. Based on the above procedure and in our opinion the management's determination is considered to be reasonable.

Emphasis of Matter

We draw attention to Other disclosures forming part of the standaloneFinancial Statements which describes the uncertainties and the impact of Covid-19pandemic on the Company's operations and results as assessed by the management. Ouropinion is not modified in respect of this matter.

Other Information

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annualreport but does not include the standalone financial statements and our auditor's reportthereon.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whethersuch other information is materially inconsistent with the Standalone financial statementsor our knowledge obtained in the audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information we are required to report that fact. We have nothing to reportin this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these Standalone financial statements that give a true andfair view of the financial position financial performance and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the company or to ceaseoperations or has no realistic alternative but to do so.

The board of directors are responsible for overseeing the company'sfinancial reporting process.

Auditor's Responsibility for the audit of Standalone financialstatements

Our responsibility is to express an opinion on these standalonefinancial statements based on our audit. We have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made thereunder. Weconducted our audit in accordance with the Standards on Auditing specified under Section143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the standalonefinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit 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 theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the entity has adequate internal financial controls system in place and theoperating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting in preparation of standalone financial statements and basedon the audit evidence obtained whether a material uncertainty exists related to events orconditions that may cast significant doubt on the appropriateness of this assumption. Ifwe conclude that a material uncertainty exists we are required to draw attention in ourauditors' report to the related disclosures in the standalone financial statements or ifsuch disclosures are inadequate to modify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditors' report.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

• Obtain sufficient appropriate audit evidence regarding thefinancial information of such entities or business activities within the company toexpress an opinion on the standalone financial statements.

We are responsible for the direction supervision and performance ofthe audit of financial information of such entities.

We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

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 sub-section(11) of section 143 of the Act we give in the "Annexure A" a statement on thematters specified in the paragraph 3 and 4 of the order.

2. As required by Section 143 (3) of the Act we report that:

(a) we have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) in our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;

(c) the balance sheet the statement of profit and loss the cash flowstatement dealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act.

(e) on the basis of the written representations received from thedirectors as on 31 March 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2020 from being appointed as a director in termsof Section 164 (2) of the Act;

(f) with respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B"; and

(g) with respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i. The Company does not have any pending litigations which would impactits financial position.

ii. The Company is not required to make provision as required underthe applicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts as the company did not have anylong-term contracts including derivative contracts for which there were any materialforeseeable losses.

iii. There were no amount which were required to be transferred to theInvestor Education and Protection Fund by the Company.

iv. The reporting on disclosures relating to Specified Bank Notes isnot applicable to the Company for the year ended March 31 2020.

(h) With respect to the matter to be included in the Auditors' Reportunder section 197(16): In our opinion and according to the information and explanationsgiven to us no remuneration has been paid by the Company to its directors during thecurrent year and is in accordance with the provisions of Section 197 of the Act. Theremuneration paid to any director is not in excess of the limit laid down under Section197 of the Act. The Ministry of Corporate Affairs has not prescribed other details underSection 197(16) which are required to be commented upon by us.

FOR SUNIL PODDAR & CO.
(Chartered Accountants)
Firm Reg. No 110603W
Date : 30th July 2020 CA PANKAJ AGARWAL
Place : Ahmedabad Partner
UDIN :20443450AAAALO8628 M. No. 443450

Annexure - A to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone

financial statements for the year ended 31st March 2020 we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details

and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years which inour opinion is reasonable having regard to the size of the company and nature of itsbusiness. In accordance with this programme certain fixed assets were verified during theyear and no material discrepancies were noticed on such verification.

(c) There are no immovable property held by the Company which requires registration.Hence reporting under the said clause of the order is not applicable to the company.

(ii) (a) The stock of Inventories has been physically verified by the management atreasonable intervals

commensurate with size and nature of the business.

(b) In our opinion and according to the information and explanation given to us theprocedures for physical verification of Inventories followed by the management isreasonable and adequate in relation to the size of the company and the nature of business.

(c) The company has maintained reasonable records for Inventories lying at its premisesand the discrepancies noticed during the verification have been properly dealt for inbooks of accounts.

(iii) The company has granted unsecured loans to the companies firm or other partiescovered in the register maintained under section 189 of the Companies Act 2013. Thedetails of parties and amount involved in the transaction are below:

Total No. of Parties :1

Balance outstanding as on 31/03/2020 :Rs. 95135000 /-

(a) As per the information and records made available to us the rate of interest andother terms and conditions of loan granted by the Company are prima facie not prejudicialto the interest of the company since the loan has been granted to wholly ownedsubsidiary.

(b) In respect of aforesaid loans granted whether the amount (principal as well asinterest) has been repaid / paid regularly or not cannot be commented upon as there is nostipulation as regards to the repayment / payment of the amount

(c) In respect of aforesaid loans granted whether the amount (principal as well asinterest) is overdue or not cannot be commented upon as there is no stipulation asregards to the repayment / payment of the amount

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made except section 186(7) of the companies act. Details ofthe same are as under:

Total no. of parties :4

Balance outstanding as on 31.03.2020 :Rs. 108331000

(v) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Section 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the goods or services rendered by the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination

of the records of the Company amounts deducted/ accrued in the books of account inrespect of undisputed statutory dues including provident fund income-tax sales taxvalue added tax duty of customs service tax cess and other material statutory dues havebeen regularly deposited during the year by the Company with the appropriate authorities.As explained to us the Company did not have any dues on account of employees' stateinsurance and duty of excise.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax duty ofcustoms service tax cess and other material statutory dues were in arrears as at 31March 2020 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no materialdues of income tax sales tax service tax duty of customs duty of excise value addedtax which have not been deposited with the appropriate authorities on account of anydispute.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to banks. The company has not takenany loan either from financial institutions or from the Government and has not issued anydebentures.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) Based upon the audit procedures performed and according to the information andexplanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not paid managerialremuneration to its directors during the year therefore the same is in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act 2013.

(xii) 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.

(xiii) 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 sections 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.

(xiv) 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.

(xv) 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.

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

FOR SUNIL PODDAR & CO..
(Chartered Accountants)
Firm Reg. No 110603W
Date : 30th July 2020 CA PANKAJ AGARWAL
Place : Ahmedabad Partner
UDIN :20443450AAAALO8628 M. No. 443450

Annexure - B to Independent Auditors' Report of even date on the Standalone FinancialStatement of the Ashoka Metcast Limited ("the Company")

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

Opinion

We have audited the internal financial controls over financial reporting of AshokaMetcast Limited ("the Company") as of 31 March 2020 in conjunction with ouraudit of the Standalone financial statements of the Company for the year ended on thatdate.

In our opinion the company has in all material respects an adequate internalfinancial controls system over financial reporting and were operating effectively as at31st March 2020 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 ICAI.

Management's Responsibility for Internal Financial 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 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 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 Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

FOR SUNIL PODDAR & CO.
(Chartered Accountants)
Firm Reg. No 110603W
Date : 30th July 2020 CA PANKAJ AGARWAL
Place : Ahmedabad Partner
UDIN :20443450AAAALO8628 M. No. 443450

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