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Asian Star Company Ltd.

BSE: 531847 Sector: Consumer
NSE: N.A. ISIN Code: INE194D01017
BSE 00:00 | 07 Dec 748.05 7.90
(1.07%)
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744.05

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770.00

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744.00

NSE 05:30 | 01 Jan Asian Star Company Ltd
OPEN 744.05
PREVIOUS CLOSE 740.15
VOLUME 24
52-Week high 999.00
52-Week low 673.95
P/E 20.76
Mkt Cap.(Rs cr) 1,198
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 744.05
CLOSE 740.15
VOLUME 24
52-Week high 999.00
52-Week low 673.95
P/E 20.76
Mkt Cap.(Rs cr) 1,198
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Asian Star Company Ltd. (ASIANSTARCO) - Auditors Report

Company auditors report

TO

THE MEMBERS OF ASIAN STAR COMPANY LIMITED

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the standalone Ind AS financial statements of AsianStar Company Limited (“the Company”) which comprise the balance sheet as at31st March 2022 and the statement of Profit and Loss (including Other ComprehensiveIncome) Statement of changes in equity and statement of cash flows for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information (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 Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2022 and profit/loss changes in equity and itscash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theCompanies Act 2013. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of theCompanies Act 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the standalone Ind AS financial statements.

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 donot providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. No. Key Audit Matter Auditors' Response
1. Gems & Jewellery is highly working capital-intensive industry and Inventory is a major component of it.
Inventory mainly consists of Rough Diamonds Cut & Polished diamonds Jewellery Gold and other precious metal and precious and semi-precious stones. In view of the significance of the matter we have applied the following audit procedures in this area among other procedures to obtain sufficient audit evidence:
Cut & Polished Diamonds not being a standardized product requires specialized skill and knowledge for valuation. The assessment of its Net Realisable value is based on the assessment by the management and valuation done by the government approved valuer based on various parameters of diamonds and marketable conditions. - We assessed the appropriateness of the inventories accounting policies and its compliances with the applicable accounting standards.
- We evaluated the key controls with respect to the movement of inventory and its recording. There are sufficient and effective controls in the IT systems recording movement from manufacturing to sales.
- Inventory of cut & polished diamonds is valued using Specific Identification method to the extent possible and where it is not possible due to vast variety quality and peculiarity of goods the valuation is done using Retail Method.
Because of the above reasons we have identified inventory as Key audit matter.
- We evaluated reasonableness of the management's assessment of net realizable value which is substantiated by the valuation done by a government approved valuer.
- We have also obtained a documentation of the verification of Inventory done by the company. The same has been assessed and effective control seems to be in place with regards to Inventory.

Responsibility of Management for Standalone Ind AS 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 of these standalone Ind AS financial statements that give a true and fair viewof the financial position financial performance (changes in equity) and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the 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.

That Board of Directors is also responsible for overseeing thecompany's financial reporting process.

Auditors' Responsibilities for the Audit of Standalone Ind ASFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due 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 Ind AS financialstatements.

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

1. Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud and 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 one resulting from error as fraud mayinvolve collusion forgery intentional omissions misrepresentations or the override ofinternal control.

2. Obtain an understanding of internal financial controls relevant tothe audit in order to design audit procedures that are appropriate in the circumstances Under section 143(3)(i) of the Act We are also responsible for expressing our opinion onwhether the company has adequate internal financial control system in place and theoperating effectiveness of such controls.

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

4. 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 theability of the Group 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 conditions maycause the Group to cease to continue as a going concern.

5. 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 findingsthat we identify during our audit.

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.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of subsection (11) ofsection 143 of the Companies Act 2013 we give in the "Annexure- A" statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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

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.

a 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.

b The Balance Sheet the Statement of Profit and Loss (including othercomprehensive income) statement of change in equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

c In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under

Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

d On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2022 from being appointed as a director interms of Section 164 (2) of the Act.

e With respect to the adequacy of the internal financial control overthe financial reporting of the company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure-B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's Internal FinancialControls over financial reporting.

f 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 has disclosed the impact of pending litigations whichwould impact its financial position in its standalone Ind AS financial statements -ReferNote 36 to the standalone Ind AS financial statements.

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any and as required onlong-term contracts including derivative contracts.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For Mahendra Doshi & Associates
Chartered Accountants
FRNo. 105765W
Mahendra Doshi
Proprietor
Place : Mumbai Membership No.41316
Date: May 30 2022 UDIN: 22041316AKQKAB9465

ANNEXURE 'A' TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date to the Members of Asian Star Company Limited)

1. In respect of the Company's fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. All the fixed assets have not been physically verified by the management during theyear but there is a regular program of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. As informed to usno material discrepancies have been noticed upon such verification.

c. The title deeds of immoveable properties are held in the name of the company

d. During the year none of the Assets of the Company is revalued.

e. There have not been any proceeding initiated or are pending against the company forholding any benami property under the Benami Transactions (Prohibition) Act 1988 (45 of1988) and rules made there under.

2. a. The stocks of finished goods and raw-materials have been physically verified bythe management at the end of the accounting year. In our opinion the Company hasmaintained proper records of inventory. No material discrepancies were noticed on physicalverification as compared to the book records.

b. The company is having working capital limits in excess of Five Crore Rupees inaggregate from Bank on the basis of security of assets; Quarterly statements filed by theCompany are in agreement with the books of accounts of the Company.

3. During the year the company has not made investments in provided any guarantee orsecurity or granted any loans or advances in the nature of loans secured / unsecured toCompanies firms Limited Liability Partnership or any other parties.

As per records provided to us the terms and conditions of guarantee provided are notprejudicial to the interest of the company.

a. The Company has not provided any loan or advances in the nature of loan. As theCompany has not provided any loans or advances in the natue of loan the other clauses (b)to (d) are not applicable.

4. In our opinion and according to the information and explanations given to us theCompany has not entered into any transaction which attract provisions of section 185 and186 in respect of loans investments guarantees and securities.

5. The Company has not accepted any deposits from the public during the year.

6. The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the Companies Act 2013 for the business activities carried out bythe Company. Thus reporting under clause 3(vi) of the order is not applicable to theCompany.

7. a. According to the records of the Company and as per information and explanationgiven to us the Company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-Tax Goods and Service TaxDuty Of Customs Duty of Excise Value Added Tax and any other statutory dues applicableto it with appropriate authorities and there were no undisputed dues outstanding as on31st March 2022 for a period of more than six months from the date they become payable.

b. Details of statutory dues referred to in subclause (a) which have not been depositedas at March 31 2022 on account of dispute are given below:

Nature of the statute Nature of dues Forum where the dispute is pending Period to which dispute relates Amount in Rs. Crores Remarks (if any)
The Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals) A. Y.2012-13 A.Y. 2014-15 & A.Y. 2019-20 11.12 Rectification filedfor Rs. 0.75 cr and Appeal filed for Rs. 10.37 cr
The Customs Act 1962 Custom Duty and Interest Commissioner of Customs December 2009 to September 2013 3.32 Demand is stayed by order of Gujarat High court

8. During the year under consideration the company does not have any transaction whichhave been surrendered or disclosed as non-recorded income during the year in the taxassessments under the Income Tax Act 1961;

9. a. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to Government any Financial Institution orBank or Debenture holders.

b. According to the information and explanation provided to us by the Management and onthe basis of our examination of the records of the company the Company has not beendeclared as Willful defaulter by any bank or financial institution during the year.

c. During the year the Company has not availed any term loan for the purpose ofbusiness.

d. From the records available we have not found any transaction where the funds raisedfor short term have been used for long term purposes.

e. The company has not taken any funds from the entity or person on account of or tomeet the obligation of its subsidiaries associates or joint ventures.

f. the Company has not raised loans during the year on the pledge of securities held inits subsidiaries joint ventures or associate companies.

10. a. To the best of our knowledge and belief and according to the information andexplanations given to us the Company has neither obtained any term loans nor has raisedmoney by way of initial public offer or further public offer during the year. (includingdebt instruments).

b. The Company has not made any preferential allotment or private placement of sharesor convertible debentures (fully partially or optionally convertible) during the year.

11. a. In our opinion and according to the information and explanations given to us nofraud by the Company or any fraud on the Company by its officers or employees has beennoticed or reported during the year.

b. There has been no report under sub-section (12) of section 143 of the Companies Acthas been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies(Audit and Auditors) Rules 2014 with the Central Government

c. The Company has not received any whistle blower complaints during the year

12. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of theOrder is not applicable.

13. 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 notes to accounts of the financial statements asrequired by the applicable accounting standards

14. The company has an adequate internal audit system commensurate with the size andnature of its business. According to the information and explanations given to us andbased on our examination of the internal Audit reports submitted by the Internal Auditorsit can be ascertained that the internal audit system exists and is functioningeffectively.

15. In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with the directors or personsconnected with him.

16. a The company is not required to obtain registration under section 45-IA of theReserve Bank of India Act 1934.

b As per records available the company has not conducted any Non-Banking Financial orHousing Finance activities.

c The company is not a Core Investment Company (CIC) as defined in the regulations madeby the Reserve Bank of India

17. The company has not incurred cash losses in the financial year and in theimmediately preceding financial year.

18. There has been no resignation of the statutory auditors during the year.

19. On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements the auditor's knowledge of the Board of Directors and managementplans the auditor is of the opinion that no material uncertainty exists as on the date ofthe audit report that company is capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date

We however state that this is not an assurance as to the future viability of thecompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the company as and when they fall due.”

20. In our opinon and according to the information and explanation given to us withrespect to obligations under Corporate Social Responsibility the company has spent theamount it is liable to spend on account of Corporate Social Responsibility as requiredunder sub-section (5) of Section 135 of the Companies Act 2013 and there are no amountsunspent in that regard.

For Mahendra Doshi & Associates
Chartered Accountants
FRNo. 105765W
Mahendra Doshi
Proprietor
Place : Mumbai Membership No.41316
Date: May 30 2022 UDIN: 22041316AKQKAB9465

ANNEXURE “B” TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(e) under 'Report on Other Legal andRegulatory Requirements' section of our report to the Members of

Asian Star Company Limited 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 STAR COMPANY LIMITED (“the Company”) as of March 31 2022 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining 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 Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India ('ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the “Guidance Note”) and the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards and Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 judgment including the assessment of therisks of material misstatements of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide for 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 is aprocess designed to provide a 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 control overfinancial reporting includes those policies and procedures that: 1) pertain to maintenanceof records 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 to financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and 3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the Inherent Limitations of Internal Financial Controls overFinancial Reporting including the possibility of collusion or improper managementoverride 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 the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols system over financial reporting were operating effectively as at 31st March2022 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Mahendra Doshi & Associates
Chartered Accountants
FRNo. 105765W
Mahendra Doshi
Proprietor
Place : Mumbai Membership No.41316
Date: May 30 2022 UDIN: 22041316AKQKAB9465

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