Aurangabad Distillery Limited
Report on the audit of the Financial Statements
Opinion
We have audited the accompanying financial statements
of Aurangabad Distillery Limited (“the Company”) which
comprises the Balance Sheet as at March 31, 2023, the
Statement of Profit and Loss and Statement of Cash Flow for the
year ended on that date, and notes to the financial statements,
including a summary of significant accounting policies and
other explanatory information. (Hereinafter referred to as the
“Financial Statements”)
In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements
give the information required by the Companies Act 2013 (the
“Act”) in the manner so required and give a true and fair view
in conformity with the Accounting Standards prescribed under
section 133 of the Act & other accounting principles generally
accepted in India, of the state of affairs of the Company as at
March 31, 2023, and its profit, and its cash flows for the year
ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in
accordance with the Standards on Auditing (“SAs”) specified
under section 143(10) of the Companies Act, 2013. Our
responsibilities under those Standards are further described
in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India (“ICAI”) together
with the ethical requirements that are relevant to our audit of
the financial statements under the provisions of the Companies
Act, 2013 and the Rules made thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these
requirements and the ICAI’s Code of Ethics.
We believe that the audit evidence obtained by us is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were 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 financial statements
as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
There are no significant Key Audit matters that need to be
reported for the current period.
Emphasis of Matter
We draw your attention to the following points -
1. Note No. 10 ‘Trade Payables’, Note No. 11 ‘Other Current
Liabilities’, Note No. 18 ‘Trade Receivables’ and Note
No. 22 ‘Other Current Assets’ of the financial statements
disclose the balances outstanding as on the date of the
balance sheet of Trade payables, Trade Receivable
and Trade Advances taken and given. Though balance
confirmations were requested from the respective parties,
majority of the same were not received before the
conclusion of audit and are thus subject to confirmation.
However, we have adopted alternative audit procedures to
confirm such balances.
2. The Company has changed the method of valuation of
inventories as per AS-2 from FIFO method to Weighted
Average method during the year. The change in the
accounting policy was implemented due to the rate
variations in purchase of primary raw material (Molasses)
arising due to its seasonal nature of production. Such
change in accounting policy has decreased the valuation
on inventories by Rs. 188.37 lakhs as on 31st March 2023.
Our opinion is not modified in respect of above matters.
Information other than the financial statements and
auditors’ report thereon
The Company’s Board of Directors is responsible for the
preparation of the other information. The other information
comprises the information included in the Management
Discussion & analysis, Board’s Report including Annexures
to Board’s Report, Business Responsibility Report, Corporate
Governance & shareholders’ information, but does not include
the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the
other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements, or our knowledge obtained 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 material misstatement of this other information, we
are required to report that fact. We have nothing to report in
this regard.
Responsibilities of Management & Those Charged with
Governance for the Financial Statements -
The Company’s Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act, 2013 (“the Act”)
with respect to the preparation of these financial statements
that give a true and fair view of the financial position, financial
performance, and cash flows of the Company in accordance
with the accounting principles generally accepted in India,
including the accounting Standards specified under section
133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies,
making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation
of the financial statement that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is
responsible for assessing the Company’s ability to continue as
a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the
company’s financial reporting process.
Auditor’s Responsibility for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether 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 audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal financial controls
relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)
(i) of the Companies Act, 2013, we are also responsible
for expressing our opinion on whether the company has
adequate internal financial controls system in place and the
operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as
a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Company to
cease to continue as a going concern.
• Evaluate the overall presentation, structure, and content
of the financial statements, including the disclosures, and
whether the financial statements represent the underlying
transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the
financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements
may be influenced. We consider quantitative materiality
and qualitative factors in -
• planning the scope of our audit work and in evaluating the
results of our work; and
• to evaluate the effect of any identified misstatements in the
financial statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during
our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Other Matters
There are no matters reportable under this head.
Report on Other Legal and Regulatory Requirements:
1. Companies (Auditor’s Report) Order 2020, issued by
Central Government of India in terms of sub section (11) of
the Section 143 of the Companies Act, 2013 is applicable
to the company. We are giving in Annexure a statement on
the matters specified in paragraph 3 & 4 of the Order to the
extent possible. (Annexure 1)
2. 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 best of 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 the Company so far as it
appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement dealt with by this Report
are in agreement with the books of account.
d. In our opinion, the aforesaid financial statements
comply with the Accounting Standards specified under
Section 133 of the Act,
e. On the basis of the written representations received
from the directors as on 31st March 2023 taken on
record by the Board of Directors, none of the directors
is disqualified as on 31st March 2023 from being
appointed as a director in terms of Section 164 (2) of
the Act.
f. With respect to the adequacy of the internal financial
controls over financial reporting of the Company and
the operating effectiveness of such controls, refer
to our separate Report in “Annexure 2”. Our report
expresses an unmodified opinion on the adequacy
& operating effectiveness of the Company’s internal
financial control over financial reporting.
g. In our opinion & to the best of our information &
according to the explanations given to us, the
remuneration paid by the company to its directors
during the year is in accordance with the provisions of
Section 197 read with Schedule V of the Act.
h. With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014,
as amended in our opinion and 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 financial position in Note No. 35 of
the financial statements.
ii. The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses.
iii. There were no amounts which were required to
be transferred to the Investor Education and
Protection Fund by the Company.
iv. The management of the Company has
represented that, to the best of its knowledge
and belief, other than as disclosed in the notes
to the accounts, no funds (which are material
either individually or in the aggregate) have been
Date: - 27th May 2023
Place: - Pune
advanced or loaned or invested (either from
borrowed funds or share premium or any other
sources or kind of funds) by the company to or in
any other person(s) or entity(ies), including foreign
entities (Intermediaries), with the understanding,
whether recorded in writing or otherwise, that the
Intermediary shall, whether, directly or indirectly
lend or invest in other person or entities identified
in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or provide any
guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
v. The management of the Company has represented,
that, to the best of it’s knowledge and belief, other
than as disclosed in the notes to the accounts, no
funds (which are material either individually or in
the aggregate) have been received by the company
from any person(s) or entity(ies), including foreign
entities (Funding Parties), with the understanding,
whether recorded in writing or otherwise, that the
company shall, whether, directly or indirectly lend
or invest in other person or entities identified in
any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or provide
any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
vi. Based on the appropriate audit procedures that
has been considered reasonable and appropriate
in the circumstances, nothing has come to our
notice that has caused us to believe that the
representations under subclause (i) & (ii) of Rule
11(e) as provided in point no. iv & v above contains
any material misstatement.
vii. The company has not declared or paid any dividend during
the year in contravention of the provision of Section 123 of
the Companies Act 2013.
For HMA & Associates
Chartered Accountants
FRN - 100537W
CA Anand Joshi
Partner
Membership No. - 113805
UDIN: - 23113805BGWGDH8212
|