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Assam Company India Ltd.

BSE: 500024 Sector: Agri and agri inputs
BSE 00:00 | 29 Oct Assam Company India Ltd
NSE 05:30 | 01 Jan Assam Company India Ltd
OPEN 0.55
VOLUME 62201
52-Week high 0.56
52-Week low 0.00
Mkt Cap.(Rs cr) 17
Buy Price 0.55
Buy Qty 8000.00
Sell Price 0.56
Sell Qty 13011.00
OPEN 0.55
CLOSE 0.54
VOLUME 62201
52-Week high 0.56
52-Week low 0.00
Mkt Cap.(Rs cr) 17
Buy Price 0.55
Buy Qty 8000.00
Sell Price 0.56
Sell Qty 13011.00

Assam Company India Ltd. (ASSAMCO) - Auditors Report

Company auditors report

TO THE MEMBERS OF ASSAM COMPANY INDIA LIMITED Report on the Audit of the StandaloneFinancial Statements Opinion

We have audited the accompanying Standalone Financial Statements of ASSAM COMPANY INDIALIMITED (“the Company”) which comprise the Balance Sheet as at March 312019the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of the significant accounting 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 the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 (“the Act”) in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended (“Ind AS”) and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 312019 the loss total comprehensiveloss 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 the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone Financial Statements.

Emphasis of Matter

We draw attention to Notes 1 Note 45 to Note 51 to the Standalone Financial Statementswhich describes the implementation of Resolution Plan pursuant to its approval by theNational Company Law Tribunal and the resultant impact of the same as recorded in thestandalone financial for the year ended 31 March 2019. Our opinion is not modified inrespect of this matter.

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 the matters described below to bethe key audit matters to be communicated in our report.

Kev Audit Matter How the matter was addressed in our audit
Understanding and Evaluating We performed audit procedure set out below:
Financial Reporting Process • Procedures used to enter transaction totals into the general ledger;
• Procedures related to the selection and application of accounting policies;
• Procedures used to initiate authorize record and process journal entries in the general ledger;
• Procedures used to record recurring and non-recurring adjustments to the annual and quarterly financial statements; and
• Procedures for preparing annual and quarterly financial statements and related disclosures.
• Inputs procedures performed and outputs of the processes the company uses to produce its annual and quarterly financial statements;
• The extent of information technology ("IT") involvement in the period-end financial reporting process;
• The locations involved in the period-end financial reporting process;
• The types of adjusting and eliminating entries; and
• The nature and extent of the oversight of the process by management the board of directors and the audit committee.
• Significant changes in the company's accounting principles financial reporting policies or disclosures and the reasons for such changes;
• The financial reporting competencies of personnel involved in selecting and applying significant new or complex accounting principles;
• The accounts or disclosures for which judgment is used in the application of significant accounting principles especially in determining management's estimates and assumptions;
• The effect of significant accounting principles in controversial or emerging areas for which there is a lack of authoritative guidance or consensus;
• The methods the company uses to account for significant and unusual transactions; and
• Financial reporting standards and laws and regulations that are new to the company including when and how the company will adopt such requirements.
Accounting of Financial Instruments We performed audit procedure set out below:
• Test checked the design implementation and operating effectiveness of management's key internal controls over the Financial Instruments accounting valuation process and inputs.
Evaluation of business model is subjective matter and impacts the classification of Financial Instruments upon initial recognition and consequently the measurement of the same.
• Read the documents on a sample basis to understand the relevant terms and identify any conditions that were relevant to the accounting classification and valuation;
• Assessed the appropriateness of the accounting and the valuation methodology and test key inputs
Key Audit Matter How the matter was addressed in our audit
Provisions and contingent liabilities relating to litigations Our audit procedures in relation to the provisions a contingent liability relating to litigations included to the following.
The Company has exposure to certain tax matters and litigations which involves significant judgements to determine the possible outcome of these disputes. Obtained an understanding of process for:
• identification of legal and tax matters initiated against the Company
• assessment of accounting treatment for each such litigation identified under Ind AS 37 accounting principles for measurement of amounts involved.
• Evaluated the design and tested the operating effectiveness of key controls around the above process.
Due to the range of possible outcomes and considerable uncertainty around the various claims the same is considered to be a key audit matter in the current year
• Obtained an understanding of the nature of litigations pending against the company and discussed the key developments during the year for key litigations with the management and respective legal counsels handling such cases on behalf of the Company.
• On a sample basis obtained and reviewed the necessary evidence which includes correspondence with the external legal counsels and where necessary inspected minutes of case proceedings available in public domain to support the decisions and rationale for creation of provisions and / or disclosure of contingent liabilities in respect of each such litigation selected for testing.

Other Matter

Corresponding figures of the Company for the year ended 31 March 2018 and thetransition date opening Balance Sheet have been audited by another auditor who expressedan unmodified opinion dated 30th May 2018 on the Standalone financial statements of theCompany for the year ended 31 March 2018.

Information Other than the Standalone Financial 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 ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the Standalone Financial Statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand 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 materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for 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 and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 the 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to 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 reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent 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 of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during 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 mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are 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 except as stated below:

I. Indian Accounting Standard (Ind AS) 109 Financial Instruments dealing with lossallowance (i.e. impairment) for expected credit losses on financial assets including tradereceivables and discounting effects on assets and liabilities (quantum unascertainable).

e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312019 from being appointed as a director in terms of Section 164 (2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in “Annexure A”.

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 opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with 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. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note 36 to the standaloneInd AS financial statements;

II. Subject to above The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts.

III. There has been delay in transferring (Monetary amount INR 5.62 Lakhs to the extentidentifiable) required to be transferred to the Investor Education and Protection Fundby the Company upto the year ended March 312019.

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 B” a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For Saraf & Chandra LLP
Chartered Accountants
FRN: 315096E/E300027
Place : 501 Ashoka House CA Gautam Sharma
3A Hare Street Kolkata 700 001 Partner
Date : 30th May 2019 Membership No. 061224