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Auroma Coke Ltd.

BSE: 531336 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE662I01012
BSE 00:00 | 15 Nov 8.50 -0.10
(-1.16%)
OPEN

8.50

HIGH

8.50

LOW

8.50

NSE 05:30 | 01 Jan Auroma Coke Ltd
OPEN 8.50
PREVIOUS CLOSE 8.60
VOLUME 61
52-Week high 14.66
52-Week low 8.50
P/E
Mkt Cap.(Rs cr) 5
Buy Price 9.75
Buy Qty 9.00
Sell Price 8.45
Sell Qty 860.00
OPEN 8.50
CLOSE 8.60
VOLUME 61
52-Week high 14.66
52-Week low 8.50
P/E
Mkt Cap.(Rs cr) 5
Buy Price 9.75
Buy Qty 9.00
Sell Price 8.45
Sell Qty 860.00

Auroma Coke Ltd. (AUROMACOKE) - Auditors Report

Company auditors report

To

The Members of Auroma Coke Limited

Report on the Financial Statements

We have audited the accompanying standalone financial statements of Auroma CokeLimited ('the Company') which comprises of the Balance Sheet as at 31st March 2018the Statement of Profit and Loss the Cash Flow Statement for the year ended on that dateand a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible 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 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 judgements 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 statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We have conducted our audit in accordance with the Standards on Auditing specifiedunder section 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation of the financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

(i) In our opinion and to the best of my information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(i) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2018; and

(ii) in the case of the Statement of Profit and Loss of the Profit of the Company forthe year ended on that date;

(iii) in the case of the Statement of Change in Equity of the Equity of the Companyfor the year ended on that date;

(iv) in the case of Cash Flow Statement of the cash flows of the Company for the yearended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

Note No. 30 of the financial statements which describes the uncertainty related to theoutcome of the case filed against the company by CBI and suspension of supply of rawmaterial under FSA by main supplier BCCL and its consequences.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. 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 Actand on the basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us we give in theAnnexure A a statement on the matters specified in paragraph 3 and 4 of the Order.

2. As required by section 143 (3) of the Act 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 the Statement of Change inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of accounts;

d. In our opinion the Balance Sheet the Statement of Profit and Loss and Cash FlowStatement dealt with the Accounting Standards specified under section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014;

e. On the basis of the written representations received from the directors as on 31stMarch 2018 and taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2018 from being appointed as a director in terms ofsection 164(2) of the Act;

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls we attachherewith a report on the same in Annexure B;

g. 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 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Chhaparia & Associates
Chartered Accountants
FRN : 322169E
(Subhash Kumar Baid)
Place : Kolkata Partner
Dated : 1st June 2018. Membership No. 064917

(Referred to in Paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

i. In respect of its fixed assets :

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

(b) As per information and explanations given to us a substantial portion of fixedassets were physically verified by the management during the year and in our opinion thefrequency of verification is reasonable having regard to the size of the Company and thenature of its assets. No material discrepancies were noticed on such verification.

(c) As per information and explanations given to us the title deeds of the ImmovableProperties are held in the name of the company except for the following which is not heldin the name of the company.

Total No. of Cases Leasehold/ Free Hold Gross Block as at 31.03.2018 Net Block as at 31.03.2018 Remarks
5 Free Hold Rs.1968950/- Rs.1968950/- The Title Deeds of these Lands are in the name of erstwhile partnership firm Auroma Coke Manufacturers

ii. In respect of its inventories :

(a) As explained to us the inventories were physically verified by the managementduring the year. In our opinion the frequency of verification is reasonable.

(b) In our opinion and according to information and explanations given to us theprocedures of verification of inventories followed by the management are reasonable andadequate in relation to the size of the Company and nature of its business.

(c) As explained to us the inventories were physically verified by the management andan independent professional firm during the year. In our opinion the frequency ofverification is reasonable. The discrepancies noticed on verification between the physicalstock and the book records were not material and have been properly dealt with in theaccounts.

iii. The company has not granted any loans to firms Limited Liability Partnerships orother parties covered in the register maintained under section 189 of the Companies Act2013 ("the Act") except granting of unsecured loans to the bodies corporatecovered in the register maintained under section 189 of the Act. On the basis ofinformation and explanation given to us we report that:

a) The terms and conditions of such loans are not prejudicial to the company'sinterest.

b) There is no stipulation regarding repayment of principal and interest and they arerepayable on demand and the company is receiving the principal and interest as and whendemanded. Accordingly paragraph 3(iii)(b) of the Order is not applicable to the company.

c) There are no overdue amounts for more than ninety days in respect of the loansgranted to the bodies corporate listed in the register maintained under section 189 of theAct.

iv. In our opinion and according to the information and explanations given to us theprovisions of section 185 and section 186 of the Act are not applicable to the loansinvestments guarantees and securities made by the company if any. Hence clause 3(iv) isnot applicable to the Company.

v. The Company has not accepted any deposits from the public within the meaning of theprovisions of section 73 to 76 of the Companies Act 2013 and rules made there under.Hence clause 3(v) of the Order is not applicable to the Company.

vi. In our opinion and according to the information and explanations given to us theCentral Government has prescribed the maintenance of cost records under section 148(1) ofthe Act and is of the opinion that prima facie the prescribed cost records have beenmaintained.

vii. In respect of statutory dues:

(a) We have been informed that the company is generally regular in depositingundisputed statutory dues including provident fund employee's state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess andany other statutory dues to the appropriate authorities wherever applicable though therehas been a slight delay in a few cases and non-payment in three cases as mentionedsubsequently. There are no arrears of outstanding liabilities as at the end of the yearfor a period of more than six months from the date they became payable except in case ofSales Tax Rs. 1.00 lacs Electricity Duty Rs. 0.55 lacs and Income tax Rs. 0.64 lacs.However Income tax demand has been adjusted by the authorities out of refunds.

(b) There are demands in respect of sales tax dues which are disputed by the companybut the said demands have been adjusted by the department from the input credit availablewith them. The company is yet to file revision petition / appeals in respect of demandsadjusted from input credit or claim for input credit not admitted amounting to Rs. 23.56lacs with the appropriate authorities for the year 2006-07 to 2010-11.

(c) According to the records of the Company and information and explanations given tome the following are the particulars of unpaid disputed statutory demands :

Name of the Statutes Nature of the Dues Amount Period to which the amount relates (A.Y.) Forum where dispute is pending
JVAT Act 2005 Tax & Penalty 43.76 2007-08 Appellate Authorities
JVAT Act 2005 Tax & Penalty 2.40 2008-09 Appellate Authorities
JVAT Act 2005 Tax & Penalty 54.45 2011-12 Appellate Authorities
JVAT Act 2005 Tax & Penalty 2.94 2014-15 Appellate Authorities
JVAT Act 2005 Tax & Penalty 17.55 2012-13 Appellate Authorities

viii. Based on our audit procedures and as per the information and explanations givenby the management we are of the opinion that the company has not defaulted in repaymentof dues to any bank or government. Company has no debenture holder or any financialinstitutional borrowing during the year.

ix. The Company has not raised any money during the year by way of initial public offeror further public offer or term loans. Hence clause 3(ix) of the said Order is notapplicable to the Company.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstances of material fraud on or by the Company noticed or reported during the year norhave been informed of such case by the management.

xi. In our opinion and according to the information and explanations given to us themanagerial remuneration paid or provided by the Company during the year has been so paidor provided in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V of the Act.

xii. The company is not a Nidhi company. Hence clause 3(xii) is not applicable to theCompany.

xiii. In our opinion and according to the information and explanations given to us thetransactions entered into by the Company with related parties are in compliance withsection 177 and 188 of the Act where applicable and the details have been disclosed in theFinancial Statements as required by the Accounting Standards.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Hence clause3(xiv) of the said Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him/her. Hence clause 3(xv) of the said Order is not applicable to the Company.

xvi. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934. Hence clause 3(xvi) of the said Order is not applicable to the Company.

For Chhaparia & Associates
Chartered Accountants
FRN : 322169E
(Subhash Kumar Baid)
Place : Kolkata Partner
Dated : 1st June 2018. Membership No. 064917

Annexure B to the Independent Auditors' Report

(Referred to in Paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

We have audited the internal financial controls over financial reporting of Auroma CokeLimited ("the Company") as of 31st March 2018 in conjunction with our audit ofthe financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We have 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 ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords 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 of 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 Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion 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 31st March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Chhaparia & Associates
Chartered Accountants
FRN : 322169E
(Subhash Kumar Baid)
Place : Kolkata Partner
Dated : 1st June 2018. Membership No. 064917