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Asian Granito India Ltd.

BSE: 532888 Sector: Consumer
NSE: ASIANTILES ISIN Code: INE022I01019
BSE 00:00 | 25 Jan 120.75 1.20
(1.00%)
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119.55

HIGH

121.85

LOW

116.55

NSE 00:00 | 25 Jan 120.80 1.25
(1.05%)
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118.60

HIGH

121.65

LOW

116.60

OPEN 119.55
PREVIOUS CLOSE 119.55
VOLUME 54108
52-Week high 257.10
52-Week low 116.00
P/E 7.19
Mkt Cap.(Rs cr) 685
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 119.55
CLOSE 119.55
VOLUME 54108
52-Week high 257.10
52-Week low 116.00
P/E 7.19
Mkt Cap.(Rs cr) 685
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Asian Granito India Ltd. (ASIANTILES) - Auditors Report

Company auditors report

To

The Members of

Asian Granito India Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of ASIANGRANITO INDIA LIMITED ("the Company") which comprise the Balance Sheet asat March 31 2020 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as the "standalone financial statements")

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 including the Indian Accounting Standards ("IndAS") prescribed under section 133 of the Act read with Companies (Indian AccountingStandard) Rules 2015 as amended of the state of affairs of the Company as at March 312020 the profit and total comprehensive income changes in equity and its cash flows forthe year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing ("SA"s) specified under section143(10) of the Companies Act 2013. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone financialstatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India("ICAI") together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the Act and the Rules madethereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidenceobtained by us is sufficient and appropriate to provide a basis for our audit opinion onthe standalone financial statements.

Emphasis of Matter

We draw your attention to Note 1.4(v) to the Standalone FinancialStatements which explains the management's assessment of the financial impact due tothe lock-down and other restrictions and conditions related to the COVID - 19 pandemicsituations for which a definitive assessment of the impact in the subsequent period ishighly dependent upon circumstances as they evolve.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key audit matters How our audit addressed the key audit matters
Adoption of Ind AS 116 Leases Principal Audit Procedure performed:
Effective from 1st April 2019 Ind AS 116 replaces the existing standard Ind AS 17 and specifies how an entity will recognize measure present and disclose leases. Assessing the accounting regarding leases with reference to consistency with the definitions of Ind AS 116. This includes factors such as lease term discount rate and measurement principles;
The standard provides a single lease accounting model requiring lessees to recognize a right of use asset ("ROU asset") and a corresponding liability on the lease commencement date. It provides exemption for leases with lease term of 12 months or less or the underlying asset has a low value. Testing completeness of the lease data by reconciling the Company's operating lease commitments to the underlying data used in computing the ROU asset and Lease liability;
The Company has applied Ind AS 116.
We considered the first-time application of the standard as a key audit matter due to the judgments needed in establishing the underlying key assumptions. Examining the Company's judgement in establishing the underlying assumptions. This includes assessing the discount rate used in determining the lease liability.

Information Other than the Financial Statements and Auditor'sReport Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexure to Board's ReportCorporate Governance and Shareholder's Information but does not include thestandalone financial statements and our auditor's report thereon. The otherinformation is expected to be made available to us after the date of this auditor'sreport.

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 whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

When we read the other information if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance as required under SA 720 ‘The Auditor's responsibilitiesRelating to Other Information'

Management's Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act")with respect tothe preparation of these standalone financial statements that give a true and fair view offinancial position financial performance including other comprehensive income changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including Indian Accounting Standard ("Ind AS")specified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material 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 also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

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

Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omission misrepresentations or the overrideof internal control.

Obtain an understanding of internal financial controls 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 Company 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 and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe 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 benefits of suchcommunication.

Other Matter

We have not audited the comparative financial information as at and forthe year ended March 31 2019 included in the accompanying financial statements. Thepredecessor auditors have expressed an unmodified opinion dated May 28 2019 on theiraudit of the comparative financial information.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As r equired by Section 143(3) of the Act our audit wereport that: a) We have sought and obtained all the information and explanations whichto the best of 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 the Companyso far as it appears from our examination of those books. c) The Balance Sheet theStatement of Profit and Loss including Other Comprehensive Income the Cash Flow Statementand Statement of Changes in Equity dealt with by this Report are in agreement with therelevant books of account. d) In our opinion the aforesaid standalone financialstatements comply with the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2020 from being appointed as a director in termsof Section 164(2) of the Act. f) With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure A". Our reportexpresses an unmodified opinion on the adequacy and operating effectiveness of theCompany's internal financial controls over financial reporting. g) With respect tothe other matters to be included in the Auditor's Report in accordance with therequirements of section 197(16) of the Act as amended In our opinion and to the best ofour information and according to the explanations given to us the remuneration paid bythe Company to its directors during the year is in accordance with the provisions ofsection 197 of the Act. h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its standalone financial statements. ii. TheCompany has made provision as required under the applicable law or accounting standardfor material foreseeable losses if any on long term contracts including derivativecontracts. iii. There has been no delay in transferring amounts required to betransferred to the Investor Education on and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order2016 ("the Order") issued by the Central Government in terms of Section 143(11)of the Act we give in "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order.

For R.R.S. & Associates
Chartered Accountants
FRN.118336W
Rajesh R Shah
(Partner)
Place : Ahmedabad Membership No.034549
Date : June 30 2020 UDIN: 20034549AAAAAD9015

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of Asian Granito IndiaLimited of even date)

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of Asian Granito India Limited ("the Company") as of March 312020 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Control OverFinancial Reporting issued by the Institute of Chartered Accountants of India (the"ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sInternal Financial Controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the Instituteof Chartered Accountants of India and the Standards on Auditing prescribed under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial controlover financial reporting includes those policies and procedures that:

(1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of management and directors of theCompany; and

(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Control over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 based on thecriteria for internal financial 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 theInstitute of Chartered Accountants of India.

For R.R.S. & Associates
Chartered Accountants
FRN.118336W
Rajesh R Shah
(Partner)
Place : Ahmedabad Membership No.034549
Date : June 30 2020 UDIN: 20034549AAAAAD9015

ANNEXURE ‘B' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of Asian Granito IndiaLimited of even date)

1. In r espect of the Company's fixed assets:

a. The Company has maintained records showing particulars includingsituation of its fixed assets however certain particulars are in process of beingupdated.

b. The Company has a program of verification to cover all the items offixed assets in a phased manner which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. Pursuant to the program certain fixedassets were physically verified by the management during the year. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

c. According to the information and explanations given to us therecords examined by us and based on the examination of the conveyance deeds provided tous we report that the title deeds comprising all the immovable properties of land andbuildings which are freehold are held in the name of the Company as at the balance sheetdate.

2. As explained to us the inventories were physically verified duringthe year by the Management at reasonable intervals and no material discrepancies werenoticed on physical verification.

3. According to the information and explanations given to us theCompany has granted unsecured loans to three bodies corporate covered in the registermaintained under section 189 of the Companies Act 2013 in respect of which:

a. The terms and conditions of the grant of such loans are in ouropinion prima facie not prejudicial to the Company's interest.

b. The schedule of repayment of principal and payment of interest hasnot been stipulated and in the absence of such schedule we are unable to comment on theregularity of the repayments or receipts of principal amounts and interest.

4. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of grant of loans making investments and providingguarantees and securities as applicable.

5. The Company has not accepted deposits during the year and does nothave any unclaimed deposits as at March 31 2020 and therefore the provisions of theclause 3(v) of the Order are not applicable to the Company.

6. The maintenance of cost records has not been specified by theCentral Government under section 148(1) of the Companies Act 2013 for the businessactivities carried out by the Company. Thus reporting under clause 3(vi) of the order isnot applicable to the Company.

7. According to the information and explanations given to us inrespect of statutory dues:

a. The Company has generally been regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income TaxGoods and Service Tax Customs Duty and other material statutory dues applicable to itwith the appropriate authorities.

b. There were no undisputed amounts payable in respect of ProvidentFund Employees' State Insurance Income Tax Goods and Service Tax Customs Dutyand other material statutory dues in arrears as at March 31 2020 for a period of morethan six months from the date they became payable.

c. The details of disputed statutory dues of Income Tax

Sales Tax Value Added Tax Excise Duty Custom Duty and other materialstatutory dues which have not been deposited as at March 31 2020 on account of disputeare as under:-

Name of Statue

Nature of Dues

Forum Where dispute is pending

Period to which the amount relates

Amount ` ( In Lakhs)

Central Sales Tax Act

Sales Tax and VAT

Appellate Tribunal

FY 2010-2011

7.86

1956 Sales Tax Act and VAT Laws

Appellate Authority upto Commissioners' Level

FY 2013-14 to 2017-18

1281.54

Sub –Total (A)

1289.40

Customs Act 1962

Customs

Commissioner Level

AY 2013-2014

167.97

Sub –Total (B)

167.97

Central Excise Act 1944

Excise

Commissioner Level

AY 2004-05 to 2008-09

2043.18

Sub –Total (C)

2043.18

The Income Tax Act 1961

Income Tax

High Court

AY 2004-05 to AY 2010-11

808.75

Income Tax Appellate Tribunal

AY 2004-05

3.90

Appellate Authority to Commissioners' Level

AY 2007-08 AY 2008-09 AY 2013-14 AY 2016-17 AY 2017-18 AY 2018-19

214.39

Sub –Total (D)

1027.04

Total (A+B+C+D)

4527.59

8. To the best of our knowledge and according to the information andexplanations given to us the Company has not defaulted in repayment of loans to banks andfinancial institutions. The Company has not taken any loans from government or has notissued any debentures.

9. In our opinion and on the basis of information and explanationsgiven to us the Company has not raised money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year.

10. According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.

11. In our opinion and according to information and explanation givento us the Company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provision of the Section 197 read with Schedule V tothe Act.

12. According to the explanation given to us the Company is not aNidhi Company and therefore the provisions of clause (xii) of the Order are notapplicable.

13. According to the information and explanations given to us andbased on our examinations of the records of the Company transactions with related partiesare in compliance with section 177 and section 188 of the Act where applicable and thedetails of the transaction have been disclosed in the standalone financial statement asrequired by the applicable accounting standards.

14. During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly paid convertible debentures.

15. In our opinion and according to the information and explanationsgiven to us during the year the Company has not entered into any non-cash transactionswith its Directors or persons connected to its directors and hence provisions of section192 of the Companies Act 2013 are not applicable to the Company.

16. The Company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934.

For R.R.S. & Associates
Chartered Accountants
FRN.118336W
Rajesh R Shah
(Partner)
Place : Ahmedabad Membership No.034549
Date : June 30 2020 UDIN: 20034549AAAAAD9015

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