TO THE MEMBERS OF ASI INDUSTRIES LIMITED
(Formerly known as Associated Stone industries (Kotah) Limited)
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone statements of ASI Industries limited("the Company") which comprise the Balance Sheet as at March 31 2019 theStatement of Profit and Loss (including Other Income) the Statement of Changes in equityand the Statement of Cash Flows for the year ended on that date and a summary of thesignificant other explanatory information (hereinafter referred to as "the standalonefinancial statements").
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 Companies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 the profit and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of
Company in accordance with the Code of ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the independence requirements that are relevantto our audit of the standalone financial statements under provisions of the Act and theRules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit 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 mattersto be communicated in our report. financial information Other than the StandaloneFinancial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Management
Discussion and Analysis Board's Report including Annexures accounting policies and toBoard's Report Business Responsibility Report Corporate Governance and Shareholder'sInformation but does not include the standalone financial statements and our auditor'sreport thereon.
Our opinion on the standalone financial statements does not the cover the otherinformation and 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 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 the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity the and cash flows of the Company in accordanceand other accounting principles generally accepted in India. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that a true and fairview and are free from material misstatement whether due 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 to cease operations or has norealistic alternative but to do so.
The Board of Directors are responsible for overseeing Company's financial reportingprocess.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.
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 standalone financialstatements whether to fraud or error design and perform audit procedures responsive tothose risks and obtain audit evidence is sufficient and appropriate to provide a basisfor opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
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 standalone financial statements or if such the disclosures are inadequate to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date ofour auditor's report. However future events or conditions may cause the Company to ceaseto continue as a going concern.
Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality qualitative factors in (i) planning the scope of our audit and inevaluating the results of our work; and (ii) to the effect of any identified misstatementsin the statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant any significant deficiencies induring 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.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters.
We describe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefitscommunication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act based on our audit we report that:
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. Loss
c) The Balance Sheet the Statement of Profit (including Other Comprehensive Income)Statement of Changes in equity and the Statement of Cash Flow dealt with by this Reportare in agreement with the relevant books of account.
d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.
e) On the basis of the written representations received from the directors as on March31 2019 and on record by the Board of Directors none of directors are disqualified as onMarch 31 2019 being appointed as a director in terms of Section 164 (2) of the Act
. f) With respect to the adequacy of the internal financial controls overfinancialreporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.
g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its of such directors during the year is in accordancewith the provisions of section 197 of the Act.
h) 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. There were no pending litigation which would impact the financial position of theCompany.
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 tothe Investor education and protection Fund by the Company.
2. 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"Annexure the B" a statement on the matters specified in paragraphs 3 and 4 ofthe Order.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1(f) under Report on Other Legal and RegulatoryRequirements' section of our report to the Members of ASi iNDUSTRiES LiMiTED of even date)
Report on the internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of ASIIndustries limited ("the Company") as of March 31 2019 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
Management's Responsibility for internal Financial Controls
The Board of Directors of the Company is establishing and maintaining internalfinancial based on the internal control over financial reporting established by theCompany considering the essential components of internal control stated in the Guidancenote on
Audit of Internal Financial Controls Over Financial Reporting issued by the Instituteof Chartered Accountants of India. These responsibilities include the designimplementation and maintenance of adequate internal financialcontrols that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to respective company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance note on Audit of Internal Financial Controls
Over Financial Reporting (the "Guidance Note") issued by the
Institute of Chartered Accountants of India and the Standards on Auditing prescribedunder Section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
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 internal financial controls system overfinancial reporting of the Company.
Meaning of internal Financial Controls Over Financial Reporting for A company'sinternal financial control over financial reporting is criteria a process designed toprovide 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.
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 controlsover 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financialreporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Instituteof Chartered Accountants of India.
ANNEXURE B' TO THE iNDEpENDENT AUDiTOR'S REpORT
Referred to in paragraph 2 of Report on other Legal and Regulatory Requirements of theindependent Auditors' Report of even date to the Members of ASi INDUSTRIES LIMITED("the Company") on the financial statements for the year ended March 31 2019
(i) a) The Company is maintaining proper records showing full Particulars includingquantitative details and situation of fixed assets.
b) The Company has a procedure for physical verification of fixed assets at reasonableintervals and in accordance with that the fixed assets have been physically verified bythe management during the year. This procedure is reasonable having regard to the size ofthe company and nature of its assets. no material discrepancies have been noticed on suchverification.
c) According to the information & explanation given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the company.
(ii) a) The physical verification of inventory has been conducted at reasonableintervals by the management during the year.
b) The procedures of physical verification of followed by the management are reasonableand adequate in relation to the size of the company and the nature of its business.
c) On the basis of our examination of records of inventory we are of the opinion thatthe company is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and the book records were not material.
(iii) As informed to us the Company has not granted any loans secured or unsecuredexcept advances and payments for goods and services not in the nature of loans tocompanies firms or other parties listed in the register maintained under section 189 ofthe Companies Act 2013 during the year under audit.
(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 in respect ofgrant of loans making investments and providing guarantees and securities.
(v) According to the information & explanation given to us the
Company has not accepted any deposits from the public. Therefore the provisions ofclause (v) of Paragraph 3 of the order are not applicable to the company.
(vi) We have broadly reviewed the cost records maintained by the company pursuant toCompanies (Cost records and Audit) Rules 2014 prescribed by the Central Government undersection 148(1) (d) of the Companies Act 2013 and are of the opinion that prima faciethe prescribed accounts and cost records have been maintained. We have however not made adetailed examination of cost records with a view to determine whether they are accurate orcomplete.
(vii) a) As per information and explanations given to us and the records of the companyexamined by us in our opinion undisputed statutory dues including
Provident Fund Income Tax Sales Tax Value Added Tax GST Service Tax Custom DutyExcise Duty Cess and other material statutory dues to the extent applicable to it havegenerally been regularly deposited with the appropriate authorities and there are noundisputed dues outstanding as on March 31 2019 for a period of more than six months fromthe date they became payable.
|Name of the Statute ||Nature of Dues ||Amount (र in Lacs) ||Period to which the amount relates ||Forum where the dispute is pending |
|Cess ||Land ||35.22 ||2006-2013 ||Revenue Dept. |
|Matters ||Tax ||2.75 ||1990-91 to 1993-94 ||Mining Dept./High Court |
| ||Royalty || || || |
According to the information and explanations given to us and the records of thecompany examined by us there are no dues of provident Fund Income
Tax Sales Tax Value Added Tax GST Service Custom Duty Excise Duty which have notbeen deposited on account of any dispute.
(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to financial institutions banks andGovernment. The Company did not have any outstanding debentures during the year.
(ix) The company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Term Loans taken by the companyhave been utilized for the purposes for which they were obtained.
(x) According to the information and explanations given to us no material fraud by theCompany or on the
Company by its officers or employees has been or reported during the year.
(xi) According to the information and explanations given to us the company has paid/provided managerial remuneration in accordance with the requisite approvals mandated bythe provisions of Section 197 read with Schedule V to the Companies Act 2013.
(xii) According to the information and explanations given to us the Company is not aNidhi Company. Accordingly clause (xii) of paragraph 3 of the Order is not applicable.
(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 the Sections 177 and 188 of the Companies Act 2013 where applicable anddetails of transactions with the related parties have been disclosed in the Standalonefinancial statements as required by applicable Accounting Standard.
(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. Therefore of clause (xiv) of paragraph 3 of the order is not applicable to thecompany.
(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 them. Accordingly clause (xv) ofParagraph 3 of the order is not applicable to the company.
(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.
| ||For S.C. Bandi & Co. |
| ||Chartered Accountants |
| ||(FRN: 130850W) |
| ||(S.C. Bandi) |
|Place: Mumbai ||Proprietor |
|Date: 22nd May 2019 ||Mem. No. - 16932 |