TO
THE MEMBERS OF ALORA TRADING CO LIMITED
1) REPORT ON FINANCIAL STATEMENTS
We have audited the financial results of ALORA TRADING CO LIMITED for the year
ended 31st March, 2020, being submitted by the company pursuant to the
requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, as modified by Circular No.CIR/CFD/FAC/62/2016 dated July
5, 2016. These financial results which are the responsibility of the Management, have been
prepared in accordance with the recognition and measurement principles laid down in Indian
Accounting Standards as prescribed, under Section 133 of the Companies Act, 2013 read with
relevant rules issued there under or by the Institute of Chartered Accountants of India,
as applicable and other accounting principles generally accepted in India.
2) MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Management 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
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.
3) AUDITORS RESPONSIBILITY
We conducted our audit in accordance with the auditing standards generally accepted in
India. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial results are free of material misstatement(s). An
audit includes examining, on a test basis, evidence supporting the amounts disclosed as
financial results. An audit also includes assessing the accounting principles used and
significant estimates made by management. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion and to the best of our information and according to the explanations
given to us these financial results:
a. Are presented in accordance with the requirements of Regulation 33 of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, as modified by
Circular No.CIR/CFD/FAC/62/2016 dated July 5, 2016.
b. Give a true and fair view of the net profit and other financial information for the
year ended 31st March, 2020.
4) BASIS FOR QUALIFIED OPINION
Attention is drawn to the provisions of Section 45I of Reserve Bank of India Act, 1934
and Reserve Bank of India Press Release 1998-99/1269 dated April 08, 1999 which states if
its Financial Assets is more than 50 percent of its total assets and income from financial
assets are more than 50 percent of the gross income, then the company is identified as an
NBFC and hence, it is required to obtain Certificate of Registration from RBI. In our
opinion, the company has not complied with the provisions of Section 45IA of the RBI Act,
1934 in spite of fulfilling the conditions prescribed under the Act for registration with
RBI as Non-Banking Financial Institution (NBFI).
5) QUALIFIED OPINION
In our opinion and to the best of our information and according to the explanation
given to us, the 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 31st
March, 2020 and its profit for the year ended on that date EXCEPT for the following:
As per the provisions of Section 45I of Reserve Bank of India Act, 1934 and Reserve
Bank of India Press Release 1998-99/1269 dated April 08, 1999, a Company would be
identified as an NonBanking Financial Institution(NBFI) if its financial assets are more
than 50 percent of its total assets (Netted off by Intangible Assets) and income from
Financial Assets are more than 50 percent of the gross income. Accordingly, the company is
required to obtain Certificate of Registration from RBI to commence/carry on business as
per Section 45IA of the RBI Act, 1934. However, the company has not complied with the
aforesaid provisions of the RBI Act, 1934 in spite of fulfilling the conditions prescribed
under the Act for registration with RBI as NBFI which states that the company is required
to get registered if its financial assets is more than 50 percent of its total assets.
6) REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditors Report) Order, 2016 ("The Order")
issued by the Central Government of India in terms of Section 143(11) of the Act, we give
in the "Annexure A" a statement on the matters specified in paragraphs 3
& 4 of the Order.
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) Branch audit is not applicable to the company.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account.
e) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
f) On the basis of the written representations received from the directors as on 31st
March, 2020 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2020 from being appointed as a director in terms of Section
164 (2) of the Act.
g) There are no such observations and comments on the financial transactions or matters
which have adverse effect on the company.
h) In our opinion, there are no qualifications, reservations or adverse remarks in
respect of the maintenance of the books of accounts or other matters connected herewith.
i) In our opinion and with the help of the compliance procedures conducted by us, we
conclude that the company has adequate financial control system in place and also the
control system is operating effectively (Refer "Annexure B").
j) The Company does not have any pending litigations which would impact its financial
position.
k) The Company did not have any long term contracts including derivative contracts for
which there were any foreseeable losses.
l) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the company.
m) 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 we also
report that:
| FOR Rishi Sekhari & Associates |
| Chartered Accountants |
| (FRN: 128216W) |
| Sd/- |
| Rishi Sekhari |
| (Proprietor) |
| (m. No: -126656) |
| UDIN: 20126656AAAAPI5537 |
| Place: - Mumbai |
| Date: - 30th July, 2020 |
"Annexure A" to the Independent Auditors Report
In terms of the information and explanations sought by us and given by the company and
the books and records examined by us in the normal course of audit and to the best of our
knowledge and belief, we state that: -
1 (a) the company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
(b) As explained to us, all the assets have not been physically verified by the
management during the year but there is a regular programme of verification which, in our
opinion, is reasonable having regard to the size of the company and the nature of its
assets. No material discrepancies were noticed on such verification.
(c) . the company does have immoveable property.
2. (I) as explained to us, the inventory has been physically verified at reasonable
intervals during the year by the management. In our opinion, the frequency of verification
is reasonable.
(ii)There is no discrepancy found on verification between the physical stocks and the
book records.
3. As explained to us, the company had not granted any loans, secured or unsecured, to
any companies, firms, Limited Liability Partnerships or other parties covered in the
register maintained under section 189 of the Act., or
4. In our opinion and according to the information and explanations given to us, the
company has complied with the provisions of section 185 and I86 of the Companies Act, 2013
In respect of loans, investments, guarantees, and security.
5. The Company has not accepted any deposits from the public and hence the directives
issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other
relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with
regard to the deposits accepted from the public are not applicable.
6. It has been explained to us that the maintenance of cost records has not been
prescribed under section148(1) of the Act.
7 (a) According to information and explanations given to us and on the basis of our
examination of the books of account, and records, the Company has been generally regular
in depositing undisputed statutory dues including Provident Fund, Employees State
Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value
added Tax, Cess and any other statutory dues with the appropriate authorities. According
to the information and explanations given to us, no undisputed amounts payable in respect
of the above were in arrears as at March31, 2020 for a period of more than six months from
the date on when they become payable.
b) According to the information and explanation given to us, there are no dues of
income tax, sales tax, service tax, duty of customs, duty of excise, value added tax
outstanding on account of any dispute.
8. Based on our audit procedures and according to the information and explanations
given to us, we are of the opinion, company had not borrowed from financial institution or
bank or issued debentures during the year under audit and there were no loan outstanding
at the beginning of the year. Therefore, this clause of the CARO is not applicable to
company.
9. The company has not raised moneys by way of initial public offer or further public
offer (including debt instrument) and term loans
10. Based upon the audit procedures performed and according to the information and
explanations given to us, no fraud by the company or any fraud on the company by its
officers or employees has been noticed or reported during the course of our audit, that
causes the financial statements to be materially misstated.
11. Company has not paid Managerial remuneration to its Key Managerial person pursuant
of provision of Companies Act 2013.
12. The company is not a Nidhi Company hence this clause is not applicable.
13. Based upon the audit procedures performed and according to the information and
explanations given to us, All transactions with related parties are in compliance with
sections 177 and 188 of Companies Act, 2013 where applicable and the details have been
disclosed in the Financial statements etc. as required by the applicable accounting
standards.
14. The company has not made any preferential allotment or private placement of shares
or fully or partly convertible debentures during the year under review.
15. The company has not entered into any non-cash transactions with directors or
persons connected with him.
16. The company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934.
| FOR Rishi Sekhari & Associates |
| Chartered Accountants |
| (FRN: 128216W) |
| Sd/- |
| Rishi Sekhari |
| (Proprietor) |
| (M. No: -126656) |
| UDIN: 20126656AAAAPI5537 |
| Place: - Mumbai |
| Date: - 30th July, 2020 |
ANNEXURE B
Report on Internal Financial Controls over Financial Reporting
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of ALORA
TRADING CO LIMITED ("the Company") as on March 31, 2020 in conjunction with
our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Management is responsible for establishing and maintaining internal financial
controls 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. These responsibilities include the
design, implementation and maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records and the 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
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
("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 controls applicable to an audit of Internal Financial Controls
and issued by the Institute of Chartered Accountants of India. Those Standards and the
Guidance Notes require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls
over financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls 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 judgement, including the assessment of the risks 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 our audit opinion on the Companys internal financial controls system
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 purposes in accordance with generally
accepted accounting principles. 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 transactions and dispositions of the assets of the company;
2. provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles and that receipts and expenditures 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 acquisition, use or disposition of the companys 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 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, projections of any evaluation of the internal financial controls 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, 2020, 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 Rishi Sekhari & Associates |
| Chartered Accountants |
| (FRN: 128216W) |
| Sd/- |
| Rishi Sekhari |
| (Proprietor) |
| (M. No: -126656) |
| UDIN: 20126656AAAAPI5537 |
| Place: - Mumbai |
| Date: - 30th July, 2020 |
+91-9892691696
