To
The members of AURO LABORATORIES LIMITED Report on the Audit of IND-AS Financial
Statements Opinion
We have audited the accompanying IND-AS financial statements of AURO LABORATORIES
LIMITED ("the Company"), which comprise the balance sheet as at 31st
March 2023, the statement of profit and loss (Including Other Comprehensive Income),
statement of changes in equity, statement of cash flows for the year then ended and notes
to the financial statements, including a summary of significant accounting policies and
other explanatory information (hereinafter referred to as “the IND-AS 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 in the manner so required and give a true and fair view in conformity
with the Indian Accounting Standards prescribed under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles
generally accepted in India, of the state of affairs of the Company as at March 31, 2023,
its profit, changes in equity 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 specified under section 143(10) of the Companies Act, 2013. Our responsibilities
under those Standards are further described in the Auditors 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 there
under, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
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.
Key Audit matters |
Auditors response |
1 Evaluation of tax position st |
Obtained details of completed income tax assessment and demand till
AY 2022-23 which are not significant and estimated provision has been made for the year
ended 31st March,2023 |
2.Indirect tax Recoverability |
|
2.As at 31 March, 2023 short terms loans and advances includes
Exports Incentive Rs. 25.35 lakhs, VAT credit Rs. 3.32 lakhs and GST credit Rs.416.04
lakhs. Refer Note no.8 to the financial statement |
We have used our knowledge to gain and understanding in current
status of recoverability to review the nature of amounts recoverable, the sustainability
and the likelihood recoverability upon final resolution. |
3.Provisions and Contingencies As at 31 March 2023 a demand notice
received from MPCB and TEPS amount of Rs. 1.92 Crore. Refer note no 23 (iv) to the
financial statements. |
The company has filed appeal in the Supreme court of India through
(TIMA) and already deposited 30% of this amount. |
Information Other than the Financial Statements ana Auditor s Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the management
discussion and analysis, Board of Directors Report including Annexure to Directors
Report, Business responsibility report, corporate governance and shareholders
Information, but does not include the financial statements and our auditors 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 as records available to us and upon reading, if we conclude that there
is material misstatement thereon, we are required and shall communicate the matter to
those charged with governance. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the IND-AS
Financial Statements
The Companys Board of Directors are 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, changes in equity and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the accounting Standards
specified under section 133 (IND-AS) 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 statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
In preparing the IND-AS financial statements, the Board of Directors is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
the Board of Directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
That Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the IND-AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the IND-AS financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors 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 IND-AS financial statements.
Report on Other Legal and Regulatory Requirements
1. 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 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, the Statement of Changes in
Equity and the Cash Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid IND-AS financial statements comply with the Accounting
Standards specified under 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 31st
March, 2023 and 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 B". Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Companys internal financial
controls over financial reporting.
g) In our opinion and to the best of our information and 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(16) of the Act.
h) With respect to the other matters to be included in the Auditors 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 standalone 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 has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditors Report) Order, 2020 (“the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the Annexure “A" a statement on the
matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
For Khurdia Jain & Co. |
Chartered Accountants |
Firm Regn. No. 120263W |
CA Abhinav Khurdia |
Partner |
M.NO. 126358 |
Place: Mumbai |
Date: 16th May, 2023 |
UDIN: 23126358BGYQWB6680 |
The Annexure "A” of the Independent Auditors Report to the Members of
AURO LABORATORIES LIMITED on the financial statements for the year ended 31st
March, 2023.
To the best of our information and according to the explanations provided to us by the
Company and the books of account and records examined by us in the normal course of audit,
we state that:
i. In respect of the Companys Property, Plant and Equipment and Intangible Assets:
a. The company has maintained proper records showing full particulars including
quantitative details and situation of Property, Plant and Equipment.
b. As explained to us, the fixed assets are being physically verified under a phased
program of verification, which in our opinion, is reasonable and no material discrepancies
have been noticed on such verification.
c. Based on our examination of the property tax receipts and lease agreement for land
on which building is constructed, registered sale deed / transfer deed / conveyance deed
provided to us, we report that, the title in respect of self-constructed buildings and
title deeds of all other immovable properties (other than properties where the company is
the lessee and the lease agreements are duly executed in favour of the lessee), disclosed
in the financial statements included under Property, Plant and Equipment are held in the
name of the Company as at the balance sheet date.
d. The Company has not revalued any of its Property, Plant and Equipment (including
right-of-use assets) during the year.
e. No proceedings have been initiated during the year or are pending against the
Company as at March 31, 2023 for holding any Benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
ii.
a. Inventories have been physically verified during the year by management at
reasonable intervals. The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the company and nature
of its business. The company is maintaining proper records of its inventories as required
in the normal course of business. The discrepancies noticed on verification between
physical stocks and book records were not material.
b. Company has been sanctioned working capital limits in excess of five crore rupees,
from bank on the basis of security of current assets; we had verified statements filed by
the company with such bank.
In our opinion and according to the information and quarterly monthly statements
provided to us we find that in the month of March 2023 there is variation in stock as
under.
As per books of Account |
As per statement submitted with Bank |
Raw Material Rs. 8,59,70,224 |
Raw Material Rs. 8,58,92,142 |
Packing Material Rs. 5,19,987 |
Packing Material Rs. 5,19,987 |
Work in Progress Rs. 46,79,650 |
Work in Progress Rs. 50,00,000 |
Finished Goods Rs.2,63,88,395 |
Finished Goods Rs.2,18,77,445 |
iii. In our opinion and according to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to companies, firms, Limited
Liability Partnerships or other parties covered in the register maintained under section
189 of the Companies Act, 2013 and hence not commented upon.
iv. In our opinion and according to the information and explanations given to us,
the Company has not given any loans, made investments and provided any guarantees and
securities, hence provisions of Sections 185 and 186 of the Companies Act, 2013 does not
apply to the Company and hence not commented upon.
v. In our opinion and according to the information and explanation given to us, the
company has not accepted deposits from public within the meaning of section 73 and 76 of
the Act and the rules framed there under to the extent notified.
vi. We have broadly reviewed the books of accounts maintained by the Company
pursuant to the order made by the Central Government for maintenance of cost records
prescribed under Sub- Section (1) of section 148 of the Act, and are of the opinion that
prima facie, the prescribed accounts have been made and maintained. We have, however, not
made a detailed examination of the said records with a view to determining whether they
are accurate or complete.
vii. Statutory Dues
a. According to the information and explanations given to us and on the basis of
examination of the records of the Company, we are of the opinion that the Company has been
generally regular in depositing undisputed statutory dues including Provident Fund,
Investors Education and protection fund, Employees State Insurance, Income Tax, Sales
Tax/VAT, Wealth Tax, Custom Duty, Excise Duty, Cess and Goods and Services tax (GST),
material statutory dues with the appropriate authorities and there are no outstanding
unpaid amounts as at the balance sheet date for a period of more than six months from the
date they became payable.
b. According to the information and explanations given to us, there are no undisputed
dues in respect of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty, Cess and
Goods and Services tax (GST).
viii. There were no transactions relating to previously unrecorded income that have
been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (43 of 1961).
ix.
a. In our opinion, according to the information and explanation given to us, the
company has not defaulted in repayment of dues to financial institutions or banks,
Government or dues to debenture holders.
b. The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
c. In our opinion, according to the information and explanation given to us, the term
loans were applied for the purpose for which the loans were obtained;
d. In our opinion, according to the information and explanation given to us, the
company has not utilised any fund raised for short term basis have been utilised for long
term purposes.
e. On an overall examination of the financial statements of the Company, the Company
does not have any subsidiary nor the Company had taken any funds from any entity or person
on account of or to meet the obligations of any subsidiaries and hence reporting on clause
3(ix)(e) of the Order is not applicable.
f. The Company has not raised any loans during the year on pledge of securities held in
its subsidiaries, joint ventures or associate companies and hence reporting on clause 3
(ix) (f) of the Order is not applicable.
x.
a. The Company has not raised moneys by way of initial public offer or further public
offer (including debt instruments) during the year and hence reporting under clause
3(x)(a) of the Order is not applicable.
b. During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause 3(x)(b) of the Order is not applicable.
xi. In our opinion,
a. According to the information and explanation given to us no fraud on or by the
Company has been noticed or reported during the course of our audit.
b. No report under sub-section (12) of section 143 of the Companies Act has been filed
in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government, during the year and upto the date of this report.
c. According to the information and explanation given to us, no whistle blower
complaints were received by the Company during the year.
xii. The company is not a Nidhi / chit fund company hence our comment as required
under clause 3(xii) of the order not given.
xiii. In our opinion and according to the information and explanations given to us
the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where
ever applicable, for all transactions with the related parties and the details of related
party transactions have been disclosed in the financial statements etc. as required by the
applicable accounting standards.
xiv.
a. In our opinion the Company has an adequate internal audit system commensurate with
the size and the nature of its business.
b. We have considered, the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures.
xv. In our opinion during the year the Company has not entered into any non-cash
transactions with its directors or persons connected with its directors. and hence
provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi. In our opinion, the Company is not required to be registered under section
45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b)
and (c) of the Order is not applicable. In our opinion, there is no core investment
company within the Group (as defined in the Core Investment Companies (Reserve Bank)
Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not
applicable.
xvii. The Company has not incurred cash losses during the financial year covered by
our audit and the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of the Company
during the year.
xix. On the basis of the financial ratios, ageing and expected dates of realization
of financial assets and payment of
financial liabilities, other information accompanying the financial statements and our
knowledge of the Board of Directors and Management plans and based on our examination of
the evidence supporting the assumptions, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of the audit report
indicating that Company is not capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of one year from the balance sheet
date. We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
xx. As per the information and explanation given to us, Corporate Social
Responsibility norms (CSR) is not applicable under Sec 135 of Companies Act. Hence,
reporting under clause 3(xx)(a) and (b) of the Order is not applicable.
a. There are no unspent amounts towards Corporate Social Responsibility (CSR) on other
than ongoing projects requiring a transfer to a Fund specified in Schedule VII to the
Companies Act in compliance with second proviso to sub-section (5) of Section 135 of the
said Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not applicable for
the year.
b. There are no amount remaining unspent under sub-section (5) of section 135 of the
Companies Act, pursuant to any ongoing project, that is required to be transferred to
special account in compliance with the provision of sub-section (6) of section 135 of the
said Act.
xxi. There is no Consolidate Financial Statements prepared. Hence, reporting under
clause 3(xxi) of the Order is not applicable.
For Khurdia Jain & Co. |
Chartered Accountants |
Firm Regn. No. 120263W |
CA Abhinav Khurdia |
Partner |
M.NO. 126358 |
Place: Mumbai |
Date: 16th May, 2023 |
UDIN: 23126358BGYQWB6680 |
|
Annexure "B” to the Independent Auditors Report to the Members of AURO
LABORATORIES LIMITED on the financial statements for the year ended 31st March, 2023.
Report on the Internal Financial Control under Clause (i) of Sub section 3 of section
143 of the companies Act 2013 (the Act)
We have audited the internal financial control over financial reporting OF AURO
LABORATORIES LIMITED (“the company”) as of 31st March 2023 in
conjunction with our audit of the standalone financial statement of the company for the
year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial control based on the internal control over financial reporting criteria
establish by the Company considering the essential components of the internal control
stated in the guidance note on Audit of Internal financial control over financial
reporting issued by the Institute of Chartered Accountants of India (ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal
financial control that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the companys policies the safeguarding of
its assets the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and timely preparation of reliable financial
information, as required under the Companies Act 2013.
Auditors Responsibility
Our Responsibility is to express an opinion on the companys Internal Financial control
over financial reporting based on our audit. We conducted our audit in accordance with the
guidance note on audit of Internal Financial control over financial reporting (the
Guidance Note”) and the standards on auditing issued by ICAI and deemed to be
prescribed under section 143 (10) of the companies act 2013 to the extent applicable to an
audit of internal financial control both applicable to an audit of internal financial
control and both issued by the institute of chartered accountant of India. That standard
and the guidance note required that we comply with ethical requirement and plan and
perform the audit to obtain reasonable assurance about whether adequate internal financial
reporting was establish and maintained and if such controls operated effectively in all
matters respect.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial control systems over financial reporting and their operating
effectiveness. Our audit of internal financial control over financial reporting included
obtaining an understanding of internal financial control over financial reporting,
assessing the risk that a material weakness exists and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment including the assessment of risk of material
misstatement of the financial statements, whether due to fraud or error. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for
my/our audit opinion on the company internal financial control systems over financial
reporting.
Meaning of Internal Financial controls over financial reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purpose in accordance with generally
accepted accounting principal. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that in reasonable detail accurately and fairly reflect the transaction and
dispositions of the assets of the company; (2) provide reasonable assurance that
transaction are recorded as necessary to permit preparation of financial statement in
accordance with generally accepted accounting principles, and that receipts and
expenditure of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisitions, use or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitation of Internal Financial Control over financial reporting
Because of the inherent limitation of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected. Also
projection of any evaluation of the internal financial control over financial reporting to
future periods are subject to the risk that the internal financial control over financial
reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on the
internal control over financial reporting criteria established by the company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by the Institute Of Chartered
Accountants Of India.
For KHURDIA JAIN & Co. |
Chartered Accountants |
Firm Regn. No. 120263W |
CA Abhinav Khurdia |
Partner |
M.NO. 126358 |
Place: Mumbai |
Date: 16th May, 2023 |
UDIN: 23126358BGYQWB6680 |
+91-9892691696
