To the Members of ASL INDUSTRIES LIMITED
Report on the Financial Statements
1) We have audited the accompanying financial statements of ASL INDUSTRIES LIMITED("the company") which comprise the Balance Sheet as at 31stMarch2017 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2) The Company's Board of Directors isresponsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror. -
3) Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.
4) An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the company has in place an adequate internal financial control system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.
5) We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
6) In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the State of Affairs of the Company as at March31 2017itsProfit and its Cash Flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
7) As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of sub section (11) of section 143 of the Act wegive in the Annexure - A a statement on the matter specified in paragraphs 3 and 4 of theOrder.
8) As required by section 143(3) of the Act we further 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 appears from our examination of those books;
c) the Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealt
with by this Report are in agreement with the books of account;
d) inour opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) on the basis of written representations received from the directors as on 31stMarch2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.
f) in our opinion and to the best of our information and according to the explanationgiven to us with respect to the adequacy of the internal financial controls overfinancial reporting of the company and the operating effectiveness of such controls referto our separate report in "Annexure B": and
g) In our opinion and to the best of our information and according to the explanationgiven to us we report as under with respect to other matters to be included in theAuditor's report in accordance with rule 11 of the companies (Audit and Auditors)rules2014:
i. The Company has disclosed the impact of pending litigations on its financialpositionin its financial statements - Refer Note 18 to the financialstatements;
ii. The company did not have any long term contracts including derivate contracts andas such the question of commenting on any material foreseeable losses thereon does notarise.
iii. There were no amount which were required to be transferred to the Investor
Education and Protection Fund as such the delay in transferring such sums does notarise.
iv. in our opinion the Company had provided requisite disclosures in its financial
statements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with booksof account maintained by the Company and as produced to us by the Management.
| ||For S.K. Naredi & Co |
| ||Chartered Accountants |
| ||Firm Registration No -003333C |
| ||Sd/- |
|Place: Jamshedpur ||(Ajay Kumar Bajesaria) |
|Date: 30th day of June 2017 ||Partner |
| ||Membership No. 057943 |
The Annexure "A" referred to in Independent Auditors' Report to the membersof ASL Industries Ltd (company) on the financial statements for the year ended 31stMarch' 2017 On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets
(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals in our opinion programme for verification is reasonable in relationto the size of the company & nature of its assets. As informed to us no materialdiscrepancies were noticed on such verification.
(c) As per information & explanation given by the management and on the basis ofthe examination of the records of the company the title deeds of immovable properties areheld in the name of the company.
2. (a) As explained to us inventories have been physically verified during the year bythe management at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(c) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories. As informed to us discrepanciesnoted on physical verification of inventories were not material and have been properlydealt with in the books of account.
3. The company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.
4. 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 Companies Act 2013with respect to the loans and investment made.
5. The Company has not accepted any deposits covered under section 73 to 76 of theCompanies Act 2013 and the rules framed there under.
6. As per information & explanation given by the management maintenance of costrecords has not been prescribed by the Central Government under sub-section (1) of section148 of the Companies Act 2013.
7. (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is regular in depositing undisputedstatutory dues including Income-tax and any other material Statutory dues other than PF& ESIC as applicable with the appropriate authorities and no statutory dues as on31st of March 2017 was outstanding for a period of more than six months from the datethey became payable.
(b) According to the information and explanations given to us and based on the recordsof the company examined by us that there are no dues of income tax and any other statutorydues other than sale tax which have not been deposited on account of any disputes are asfollows.
|Name of the Statute ||Nature of Dues ||Amount (Rs.) ||Period to which the amount relate ||Forum where dispute is pending |
|Jharkhand Vat Act' 2005 ||ITC Disallowed ||490477 ||2015-16 ||Before High court of Ranchi |
|Jharkhand Vat Act' 2005 ||Central Sale tax ||62241 ||2012-13 ||Case remand back to Assessing officer |
|Jharkhand Vat Act' 2005 ||Penalty ||114750 ||2016-17 ||Revision petition before Commissioner office Ranchi |
8. According to the information and explanations given to us and based on the recordsof the company examined by us we are of the opinion that the Company has defaulted inrepayment of dues to financial institution amounting to Rs 2222200 as principal amountand Rs 376743/- as interest from 20th March 2017 to 31st March 2017 whichwas subsequently repaid on 19.04.2017.
9. According to the information and explanations given to us and based on the recordsof the company examined by us the company has not raised any money by way of initialpublic offer or further public offer .The term loan raised during the year were appliedfor the purpose for which they were raised
10. During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe year nor have we been informed of such instance by the management.
11. According to the information and explanations given to us and based on the recordsof the company examined by us the company has paid / provided for managerial remunerationin accordance with the provisions of section 197 read with schedule V of the act.
12. The company is not a Nidhi company Accordingly paragraph 3(xii) of the order is notapplicable.
13. According to the information and explanations given to us and based on the recordsof the company examined by us transaction with the related parties are in compliance withsection 177 and 188 of the Act where applicable and details of such transaction have beendisclosed in the financial statements as required by the applicable accounting standard.
14. According to the information and explanations given to us and based on the recordsof the company examined by us the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review.
15. According to the information and explanations given to us and based on the recordsof the company examined by us the company has not entered into any non-cash transactionswith directors or persons connected with him.
16. According to the information and explanations given to us and based on the recordsof the company
examined by us the company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.
| ||For &K-Naredi & Co- |
| ||Chartered Accountants |
| ||Firm Registration No-003333C |
| || |
| ||Sd/- |
|Place: Jamshedpur ||(Ajay Kumar Bajesaria) |
|Date: 30th day of June2017 ||Partner |
| ||Membership No: 057943 |