| We have audited the accompanying financial statements of Auroma Coke
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2015, the Statement of Profit and Loss and the Cash Flow Statement
for the year then ended, and 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 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, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding 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 statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance 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 the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
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 Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 March 2015 and its loss and its cash flows for the year ended on
that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements:
Note No. 1.12 of the financial statements which, describes the
uncertainty related to the outcome of the case filed against the
company by CBI and suspension of supply of raw material 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, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order
to the extent applicable.
2. As required by Section 143(3)of the Act, we report that :
a. We have sought and obtained all the information and explanation
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as 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 referred to in section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Section 164(2) of the
Act.
f. 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, 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 its financial statements - Refer Note 1.12 to 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.
Annexure to Independent Auditors' Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" to the members of the company on the
financial statements for the year ended 31st March, 2015, we report
that :
i. We have been informed that the Company is in the process of
preparing fixed assets register. Physical verification of assets has
been conducted on selective basis and no discrepancies were noticed
during such verification. In our opinion this method of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets.
ii. (a) We have been informed that the management has conducted physical
verification of inventories at the year end and no material
discrepancies have been noticed on such verification as compared to book
records.
(b) The procedures followed for such verification are reasonable in
relation to the size of the Company and the nature of its business.
(c) The company is maintaining proper records of inventory.
iii. (a) The company has granted unsecured loans to the bodies corporate
covered in the register maintained under section 189 of the Companies
Act, 2013 ("the Act").
(b) There is no stipulation regarding repayment of principal and
interest and they are repayable on demand, and the company is receiving
the principal and interest as and when demanded. Accordingly,
paragraph 3(iii)(b) of the Order is not applicable to the company.
(c) There are no overdue amounts of more than rupees one lakh in
respect of the loans granted to the bodies corporate listed in the
register maintained under section 189 of the Act.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
v. We have been informed that the Company has not accepted any
deposits as defined under Companies (Acceptance of Deposits) Rules,
2014 read along with other notifications/Rules issued from time to
time. Therefore the provisions of Clause (v) of the Order is not
applicable to the company.
vi. The Central Government has not specified the maintenance of cost
records under section 148(1) of the Act for the company.
vii. We have been informed that the company is generally regular in
depositing undisputed statutory dues including provident fund, investor
education and protection fund, income tax, sales tax, wealth tax,
custom duty, service tax, cess and any other statutory dues with the
appropriate authorities, wherever applicable, except with some delays.
There has been delay in depositing excise duty, service tax, Tax
deducted at Source, Employees State Insurance, Electricity duty and in
one case of income tax. However, there are no arrears of outstanding
liabilities as at the end of the year for a period of more than six
months from the date they became payable, except in case of Sales Tax '
1.00 lacs, Electricity Duty Rs 0.16 lacs and Income tax Rs 0.64 lacs.
There are demands in respect of sales tax dues, which are disputed by
the company but the said demands have been adjusted by the department
from the input credit available with them. The company is yet to file
revision petition / appeals in respect of demands adjusted from input
credit or claim for input credit not admitted amounting to Rs 23.56
lacs with the appropriate authorities for the year 2006-07 to 2010-11.
According to the information and explanations given to us, the
following dues of sales tax / VAT has not been deposited by the company
on account of disputes:
Name of the Nature of the Amount Period to Forum where
Statute dues involved which dispute
relate is pending
JVAT Act, 2005 Tax & Penalty Rs 43.76 2007-08 Commissioner
of Sales Tax
JVAT Act, 2005 Tax & Penalty Rs 2.40 2008-09 Commissioner
of Sales Tax
viii. The company does not have any accumulated losses at the end of
the financial year The losses incurred have been adjusted with the
balance available in Profit & Loss Account. The company has incurred
cash loss during the financial year covered by our audit. No cash loss
was incurred in the immediately preceding financial year
ix. The company has not defaulted in repayment of dues to any bank or
financial institutions. The company has not raised any amount by way of
Debentures.
x. The company has not given any guarantee for loans taken by others
from any bank or financial institutions.
xi. Term loans raised were applied for the purposes for which the
loans were obtained.
xii. Based upon the audit procedures performed and information and
explanations given to us, we report that no fraud on or by the company
has been noticed or reported during the year during the course of our
audit.
For AGARWAL KHEMKA & ASOCIATES
Chartered Accountants
(Registration Number : 314133E)
A. K. Agarwal
Place : Kolkata Proprietor
Date : 30th day of May, 2015 Membership Number : 052791 |