ASHOKA REFINERIES LIMITED RAIPUR (C.G.)
Report on the Audit of the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of ASHOKA REFINERIESLIMITED("the Company") which comprise the Balance Sheet as at March 31 2020and the Statement of Profit and Loss and Statement (including other comprehensive income)the Statement of Changes in Equity and the Statement of Cash Flows for the year thenended and a summary of significant accounting policies and other explanatory information(hereinafter referred to as "the Ind AS financial Statements) which we have signedunder reference to this report.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2020 and its Profit (including other Comprehensive income) its changes inequity 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) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 the Ind ASfinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key Audit Matters are those matters that in our professional judgement were of mostsignificance in our audit of the Ind AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind AS financial statements as awhole and informing our opinion thereon and we do not provide a separate opinion onthese matters.
We have determined that there are no key audit matters to be communicated in ourreport.
Information Other than the Ind AS Financial Statements and Auditors' Report Thereon
The Company's management and Board of Directors areresponsible for the otherinformation. The other informationcomprises the information included in the Company'sannualreport but does not include the financial statements and ourauditors' reportthereon. Our opinion on the standalone financialstatements does not cover the otherinformation and we do notexpress any form of assurance conclusion thereon.
In connectipn with our audit of the standalone financialstatements our responsibilityis to read die other information andin doing so consider whether the other informationis materiallyinconsistent with the standalone financial statements or ourknowledgeobtained in the audit or otherwise appears to bematerially misstated. If based on thework we have performedwe conclude that there is a material misstatement of thisotherinformation we are required to report that fact. We have nothingto report in thisregard.
Responsibilities of management and those charged with governance for the ind asfinancial statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these Ind AS financial statements that give a true and fair view ofthe state of affairs profit/loss (including other comprehensive income) changes inequity and cash flows of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with the companies (Indian Accounting Standards) Rules2015 asamended.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate implementation and maintainance of accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Ind AS financial statements that gives true and fair view and are freefrom material misstatement whether due to fraud or error.
In preparing the Ind As financial statements management is responsible for assessingthe Company s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
The Board of Directors Are Also Responsible for Overseeing the Company's FinancialReporting Process.
Auditor's Responsibilities for the Audit of Ind as Financial Statement
Our objectives are to obtain reasonable assurance about whether the Ind AS 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 of users taken on thebasis of these Ind AS financial statements.
A further description of the auditor's responsibilities for the audit of the Ind ASfinancial statements is included in Annexure A. This description forms part of ourauditor's report.
Report on Other Legal and Regulatory Requirements
1. A. As required by Section 143 (3) of the Act based on our audit we reportthat:
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;
(c) The Balance sheet the Statement of Profit and loss the Statement of Changes inEquity and the Statement of Cash flows dealt with by this Report are in agreement with thebooks of account;
(d) In our opinion the aforesaid Ind AS statements comply with the AccountingStandards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors of theCompany as on 31 March 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March2020 from being appointed as a director in termsof Section 164 (2) of the 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" our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's Internal financial controls overfinancial reporting and
B. With respect to the other matters to be included in the Auditors 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 did not have any pending litigations which would impact its financialpositions.
(ii) The Company did not have any long term contracts including derivative contractsfor which there were any foreseeable losses.
(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
C. With respect to the matter to be included in the Auditors' Report under Section197(16) of the Act:
In our opinion and according to the information andexplanations given to us theremuneration paid by theCompany to its directors during the current year is inaccordancewith the provisions of Section 197 of the Act The remuneration paid to any director is notinexcess of the limit laid down under Section 197 of the Act. The Ministry of CorporateAffairs has not prescribedother details under Section 197(16) of the Act which arerequiredto be commented upon by us.
2. 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 ofthe Act we give in the "Annexure C" a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.
FOR AGRAWAL SHUKLA & CO.
FIRM REG. NO. 326151E
ANNEXURF. A TO THE AUDITORS REPORT
Auditor's Responsibilities for Audit of Ind AS Financial Statement
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
i. Identify and assess the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
ii. 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 Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has internal financial controls with reference to Financial Statements inplace and the operating effectiveness of such controls.
iii. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
iv. Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may 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 Ind AS 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 ofthe Ind AS financial statements including the disclosures and whether the Ind ASfinancial statements represent the underlying transactions and events in a manner dratachieves fair presentation.
v. 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.
vi. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we irimttfr Hnrinr our audit.
vii. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
viii. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the Ind AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
FOR AGRAWAL SHUKLA & CO.
FIRM REG. NO. 326151E