Assam Entrade Ltd.
|BSE: 542911||Sector: Financials|
|NSE: N.A.||ISIN Code: INE165G01010|
|BSE 00:00 | 21 Jan||600.00||
|NSE 05:30 | 01 Jan||Assam Entrade Ltd|
Assam Entrade Ltd. (ASSAMENTRADE) - Auditors Report
Company auditors report
The Members of Assam Entrade Limited
Report on the audit of Standalone Financial Statements
Opinion and Conclusion
We have audited the accompanying financial statements of Assam EntradeLimited ("the Company") which comprise the Standalone balance sheet as at March31 2020 and the Standalone Statement of Profit and Loss and Standalone Statement of cashflows for the year then ended and notes to the financial statements including a summaryof significant accounting policies and other explanatory information (hereinafter referredto as the "Standalone Financial Statements")
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act2013(Act') in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 312020 its profit and cash flows for theyear ended on that date.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditingspecified under section 143 (10) of the Companies Act 2013. Our responsibilities underthose Standards are further described in the auditor's responsibilities for the auditof the financial statements section of our report. We are independent of the Company inaccordance with the code of ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the code of ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to the following matters in the Note-4 of thefinancial statements:
Out of Loans given by the company Loans given to Mothers PrideDairy India Pvt. Ltd. has become overdue last year. This year also interest/Installmentscould not be recovered from the company and proceedings under Insolvency and BankruptcyCode 2016 has been started by NCLT. In addition loans given to Mr. Navneet Jain adirector of Mothers Pride Dairy India Pvt. Ltd. has also become overdue since last year.Therefore provision on account of bad and doubtful debts has been created for thefinancial year 2019-20 amounting to INR 54.58 Lacs.
Our conclusion and 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 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.
Reporting of key audit matters as per SA 701 Key Audit Matters areapplicable to the Company as it is a listed company. For each matter below ourdescription of how our audit addressed the matter is provided in that context.
Impact of Covid-19 on Audit
Information other than the financial statements and auditors'report thereon
The Company's board of directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Board's Report including Annexures to Board's Report BusinessResponsibility Report but does not include the financial statements and our auditor'sreport thereon.
Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility 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.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact.Wehave nothing to report in this regard.
Management's responsibility for the financial statements
The Company's board of directors are responsible for the mattersstated in section 134 (5) of the Act with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Indian accounting standards specified under section 133of the Act read with relevant rules issued there under and in compliance with Regulation33 of the Listing Regulations. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic
alternative but to do so. The board of directors is also responsibleforover seeing the Company's financial reporting process.
Auditor's responsibilities for the audit of the financialstatements
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 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 thefinancial 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 control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls system in placeand the operating effectiveness of such controls
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management in termsof the requirements specified under Regulation 33 of the Listing Regulations.
Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the 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 thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Perform procedures in accordance with the circular issued by theSEBI under Regulation 33 (8) of the Listing Regulations to the extent applicable.
We communicate with those charged with governance regarding othermatters 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 our independence and where applicable related safeguards. From the matterscommunicated with those charged with governance we determine those matters that were ofmost significance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's reportunless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act2013we give in the Annexure "A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;
(c) The balance sheet the statement of profit and loss (includingother comprehensive income the standalone statement of changes in equity and the cashflow statement dealt with by this report are in agreement with the books of account;
(d) In our opinion the aforesaid financial statements comply with theIndian accounting standards specified under section 133 of the Act read with rule 7 ofthe Companies (Accounts) Rules 2014;
(e) On the basis of the written representations received from thedirectors as on March31 2020 taken on record by the board of directors none of thedirectors is disqualified as on March 312020 from being appointed as a director in termsof Section 164(2)of the Act;
(f) With regard to going concern matter we state that in our opinionthe company does not has an adverse effect on the functioning of the Company.
(g) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in Annexure B'.
(h) With respect to matter to be included in the Auditor's Reportunder section 197(16) of the Act;
In our opinion and according to the information and explanation givento us the company has provided/ paid for managerial remuneration in accordance with therequisite approvals mandated by provision of section 197 read with Schedule V of the Act.
(i) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies(Audit andAuditors)Rules2014in our opinion and to the best of our information and according to theexplanations given to us;
a. The Company does not have any other pending litigations which wouldimpact its financial position EXCEPT the fact that insolvency proceedings have been inacted against one of the corporate debtors under Insolvency and Bankruptcy Act 2016. Thefinancial statements are however adjusted in accordance with the same.
b. The Company has made provision as required under the applicable lawor Ind AS for material foreseeable losses if any on long term contracts includingderivative contracts.
C. No amount was required to be transferred to the Investor Educationand Protection Fund by the
Company during the year.
ANNEXURE "A" OF INDEPENDENT AUDITORS REPORT
Referred to in the paragraph 1 under the heading Report on OtherLegal & Regulatory Requirement' of our report of even date to the financialstatements of the Company for the year ended March 31 2020:
(a) The Company has maintained proper records to show full particularsincluding quantitative details and situation of its fixed assets.
(b) As explained to us the management at reasonable intervals duringthe year has physically verified the fixed assets of significant values and no materialdiscrepancies were noticed on such verification.
(c) According to the information and explanations given to us and onthe basis of our examination of the record of the company the title deeds of immovableproperties are held in the name of the company.
(a) The management at reasonable intervals during the year hasphysically verified the stock of shares securities mutual funds etc. .
(b) The Company has maintained proper records of stock of sharessecurities mutual funds & Land where applicable. As explained to us there was nomaterial discrepancies noticed on physical verification of stock of shares securitiesmutual funds & Land as compared to the book records
(a) The Company has granted secured loans to companies or other partiescovered in the
Register maintained under section 189 of the Act.
Terms and conditions of grant of such loan are not prejudicial to theinterest of the company.
Schedule of repayment of principal and interest are stipulated in loanagreement and same are regular.
In our opinion and according to the information and explanations givento us the company has complied with the provisions of section 185 and I86 of theCompanies Act 2013 In respect of loans investments guarantees and security.
The Company has not accepted any deposits from the public and hence thedirectives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 orany other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules2015 with regard to the deposits accepted from the public are not applicable
As informed to us the maintenance of Cost Records has not beenspecified by the Central Government under sub-section (1) of Section 148 of the Act inrespect of the activities carried on by the company.
(a) According to the books and records as produced and examined by usthe Company
is generally regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund Investor Education and ProtectionFund Employees' State Insurance Income Tax Sales Tax Wealth Tax Service TaxExcise Duty Custom duty Cess and any other statutory dues wherever applicable to it withappropriate authorities during the year. According to the information and explanationsgiven to us no undisputed amounts payable in respect of the aforesaid statutory duesapplicable to it were in arrears as at 31st
March 2020 for a period of more than six months from the date theybecome payable.
(b) According to the information and explanation given to us there areno dues of
income tax sales tax service tax duty of customs duty of excisevalue added tax outstanding on account of any dispute.
In our opinion and according to the information and explanations givento us company has not taken loans from financial institutions /bank & has notdefaulted in the repayment of dues to financial institutions/bank. The company has notissued any debentures.
Based upon the audit procedures performed and the information andexplanations given by the management the company has not raised moneys by way of initialpublic offer or further public offer including debt instruments and term Loans.Accordingly the provisions of clause 3 (ix) of the Order are not applicable to theCompany and hence not commented upon.
Based upon the audit procedures performed and the information andexplanations given by the management we report that no fraud by the Company or on thecompany by its officers or employees has been noticed or reported during the year.
Based upon the audit procedures performed and the information andexplanations given by the management the managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Companies Act.
In our opinion the Company is not a Nidhi Company. Therefore theprovisions of clause 4 (xii) of the Order are not applicable to the Company
In our opinion all transactions with the related parties are incompliance with section 177 and 188 of Companies Act 2013 and the details have beendisclosed in the Ind AS standalone financial statements as required by the applicableIndian accounting standards.
Based upon the audit procedures performed and the information andexplanations given by the management the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of clause 3 (xiv) of the Order are notapplicable to the Company and hence not commented upon.
Based upon the audit procedures performed and the information andexplanations given by the management the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly the provisions ofclause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
The Company is registered u/s 45-IA as a Non-Banking Financial Co.(Reg. No. B-05.06739 dated 28.02.2008) with RESERVE BANK OF INDIA.
Annexure "B" to the Independent Auditors' Report on theStandalone Financial Statements
(Referred to in paragraph 2 (g) under Report on other legal andregulatory requirements' section of our report to the Members ASSAM ENTRADE LIMITEDfor the year ended March 312020)
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 Assam Entrade Limited ("the Company") as at March 31 2020 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 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 Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business 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.
Our responsibility is to express an opinion on the internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the standards on auditing prescribed under Section 143 (10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols. Those standards and the guidance note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were 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 judgment including the assessment of therisks of material misstatement in the standalone financial statements whether due tofraud or error.
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 control 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 standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting includes those policies and procedures that (i)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (ii) providereasonable assurance that transactions are recorded as necessary to permit preparation ofstandalone financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and (iii)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a materialeffect on the standalone financial statements.
Limitations of internal financial controls over financial reporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper management ofoverride 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.
In our opinion and according to the information and explanations givento us the Company has in all material respects an adequate internal financial controlsystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2020 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 FinancialControls Over Financial Reporting issued by the Institute of Chartered AccountantsofIndia.