TO, THE MEMBERS
ASHOKA REFINERIES LIMITED RAIPUR (C.G.)
Report on the Audit of the Ind AS Financial Statements
Opinion
We have audited the accompanying Ind AS financial statements of ASHOKA REFINERIES
LIMITED(“the Company”), which comprise the Balance Sheet as at March 31, 2023,
and the Statement of Profit and Loss and Statement (including other comprehensive income),
the Statement of Changes in Equity and the Statement of Cash Flows for the year then
ended, and a summary of significant accounting policies and other explanatory information
(hereinafter referred to as “the Ind AS financial Statements), which we have signed
under reference to this report.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Ind AS 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, 2023 and its Profit (including other Comprehensive income), its changes in
equity and its cash flows for the year ended on that date.
Basis for opinion
We conducted our audit 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 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 together with the ethical requirements that are relevant to our audit of the Ind AS
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the 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 judgement, were of most
significance in our audit of the Ind AS financial statements of the current period. These
matters were addressed in the context of our audit of the Ind AS financial statements as a
whole, and informing our opinion thereon, and we do not provide a separate opinion on
these matters.
We have determined that there are no key audit matters to be communicated in our
report.
Information Other than the Ind AS Financial Statements and Auditors Report Thereon
The Companys management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Companys
annual report, but does not include the financial statements and our auditors report
thereon. Our opinion on the standalone 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 standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained in the 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 and those charged with governance for the Ind as
financial statements
The Companys 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
and presentation of these Ind AS financial statements that give a true and fair view of
the state of affairs , profit/loss (including other comprehensive income), changes in
equity and cash flows of the Company in accordance with accounting principles generally
accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under
Section 133 of the Act read with the companies (Indian Accounting Standards) Rules,2015 as
amended.
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 implementation and maintenance of 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 Ind AS financial statements that gives true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the Ind As financial statements, management 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 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 Companys Financial
Reporting Process.
Auditors Responsibilities for the Audit of Ind as Financial Statement
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.
A further description of the auditors responsibilities for the audit of the Ind AS
financial statements is included in Annexure A. This description forms part of our
auditors report.
Report on Other Legal and Regulatory Requirements
1.
A. 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, the Statement of Changes in
Equity and the Statement of Cash flows dealt with by this Report are in agreement with the
books of account;
(d) In our opinion, the aforesaid Ind AS 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 of the
Company as on 31 March, 2023 taken on record by the Board of Directors, none of the
directors is disqualified as on 31 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, and
(g)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, as amended, in
our opinion and to the best of our information and according to the explanations given to
us: (i) The Company did not have any pending litigations which would impact its financial
positions.
(ii) The Company did not have any long-term contracts including derivative contracts
for which there were any foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
(h) With respect to the matter to be included in the Auditors Report under Section
197(16) of the Act: In our opinion and according to the information and explanations given
to us, the remuneration paid by the Company to its directors during the current year is in
accordance with the provisions of Section 197 of the Act. The remuneration paid to any
director is not in excess of the limit laid down under Section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of
the Act which are required to be commented upon by us.
(i) With respect to reporting regarding advances, loans & investments, further
lending or investing other than disclosed in the notes to financial statements: -
a) The management has represented that, to the best of its knowledge and belief, no
funds have been 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 persons 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;
b) The management has represented that, to the best of its knowledge and belief, no
funds 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 persons 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; and
c) Based on such audit procedures that were considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (a) and (b) contain any material misstatement. (j) The
Company has not declared any dividend during the year under audit.
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 Act, we give in the “Annexure C”, a statement on the matters specified in
the paragraph 3 and 4 of the Order, to the extent applicable.
| FOR, AGRAWAL SHUKLA & CO. |
| CHARTERED ACCOUNTANTS |
| FIRM REG. NO. 326151E |
| Sd/- |
| (CA PANKAJ JAIN) |
| PARTNER |
| M. NO. 407917 |
| UDIN:- 23407917BGQTYP1137 |
| Place: Raipur |
| Date:20.05.2023 |
Auditors Responsibilities for Audit of Ind AS Financial Statement
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
i. Identify and assess the risks of material misstatement of the Ind AS 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.
ii. Obtain an understanding of internal control 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 internal financial controls with reference to Financial Statements in
place and the operating effectiveness of such controls.
iii. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
iv. Conclude on the appropriateness of managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the Ind AS 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
auditors 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 Ind AS financial statements, including the disclosures, and whether the Ind AS
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
v. 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 (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
vi. 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.
vii. 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.
viii. From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the Ind AS financial
statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors 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.
| FOR, AGRAWAL SHUKLA & CO. |
| CHARTERED ACCOUNTANTS |
| FIRM REG. NO. 326151E |
| Sd/- |
| (CA PANKAJ JAIN) |
| PARTNER |
| M. NO. 407917 |
| UDIN:- 23407917BGQTYP1137 |
| Place: Raipur |
| Date:20.05.2023 |
ANNEXURE B TO THE AUDITORS REPORT
Independent Auditors Report on Internal Financial Controls over Financial Reporting
[Referred to in paragraph 1(f) under “Report on Other Legal and Regulatory
Requirements” of our Report of even date to the members of ASHOKA REFINERIES LIMITED
On the accounts of the company for the year ended 31st March, 2023]
Opinion
We have audited the internal financial controls over financial reporting of Ashoka
Refineries Ltd (“the Company”) as of March 31, 2023 in conjunction with our
audit of the Ind AS financial statements of the Company for the year ended on that date.
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”].
Managements Responsibility for Internal Financial Controls
The Companys 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
(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 controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note 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 may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial possibility of collusion or
improper management override of controls, material misstatements due to error or fraud
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.
| FOR, AGRAWAL SHUKLA & CO. |
| CHARTERED ACCOUNTANTS |
| FIRM REG. NO. 326151E |
| Sd/- |
| (CA PANKAJ JAIN) |
| PARTNER |
| M. NO. 407917 |
| UDIN:- 23407917BGQTYP1137 |
| Place: Raipur |
| Date:20.05.2023 |
ANNEXURE CTO THE AUDITORS REPORT
With reference to the Annexure C referred to in the Independent Auditors Report to the
members of the Company on the Ind AS financial statements for the year ended March 31,
2023, we report the following: i) a & b) Based on our scrutiny of the Companys Books
of Accounts and other records and according to the information and explanation received by
us from the management, we are of the opinion that the question of commenting on
maintenance of proper records of fixed assets and physical verification of fixed assets
does not arise since the Company had no fixed assets as on 31st March, 2023 nor at any
time during the Financial year ended 31st March, 2023.
(c) According to the information and explanation received by us, as the Company owns no
immovable properties, the requirement on reporting whether title deeds of immovable
properties held in the name of the Company is not applicable.
(d) According to the information and explanation received by us, as the Company owns no
immovable properties, the requirement on reporting whether lease agreements are held in
the name of the Company is not applicable.
(e) There are no proceedings initiated or are pending against the Company for holding
any benami property under the Prohibition of Benami Property Transactions Act, 1988 and
rules made thereunder.
(ii) As informed to us, the Company did not hold inventory at any time during the year.
Hence, the requirement of clause (ii) of paragraph 3 of the said Order is not applicable
to the Company.
(iii) The Company has not granted any loans or advances in the nature of Loans to
parties covered in the register maintained under section 189 of the Companies Act, 2013.
Hence, the question of reporting whether the terms and conditions of such loans are
prejudicial to the interest of the Company, whether reasonable steps for recovery of
overdue of such loans are taken does not arise.
(iv) In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of Section 185 and 186 of the Act, with respect
to the loans and advances made.
(v) The Company has not accepted any deposits from public. Accordingly, paragraph 3 (v)
of the order is not applicable to the company.
(vi) According to the information and explanations provided by the management, the
Company is not engaged in production of any such goods or provision of any such services
for which Central Govt. has prescribed particulars relating to utilization of material,
labour, or other items of cost. Hence, the provisions of section 148(1) of the Act do not
apply to the Company. Hence, in our opinion, no comment on maintenance of cost records
under section 148(1) of the Act is required.
(vii) a) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, amounts deducted/accrued in the books of
accounts in respect of undisputed statutory dues including income tax, sales tax, wealth
tax, service tax, custom duty, excise duty, cess, Provident Fund and other material
statutory dues applicable to it have been regularly deposited during the year by the
Company with the appropriate authorities. As informed to us, the Employees State Insurance
Act, Investor Education & Protection Fund Act are not applicable to the Company and
hence they do not have any dues on these accounts.
According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, income tax, sales tax, value added tax, duty of
customs, duty of excise, service tax, cess, wealth tax and other material statutory dues
applicable to it were in arrears as at 31st March, 2023 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 dues of
amounts payable in respect of provident fund, income tax, GST, sales tax, value added tax,
duty of customs, duty of excise, service tax, cess, wealth tax, and other material
statutory dues applicable to it, which have not been deposited with appropriate
authorities on account of any dispute.
(viii) The Company has not surrendered or disclosed a ny transaction, previously
unrecorded in the books of accounts, in the tax assessments under the Income Tax Act, 1961
as income during the year. Accordingly, the requirement to report on clause 3(viii) of the
Order is not applicable to the Company.
(xi) According to the records of the Company, the Company has not borrowed from
financial institutions or banks or government issued debentures till 31st
March, 2023. Hence, in our opinion, the question of reporting on defaults in repayment of
loans or borrowing to a financial institutions, bank, government or dues to debenture
holders does not arise.
(x) The Company did not raise any money by way of initial public offer of further
public offer (including debt instruments) during the year. Accordingly, paragraph 3(x) of
the order is not applicable.
(xi) In respect of frauds done on or by the company: a) No fraud by the Company or no
material fraud on the Company has been noticed or reported during the year.
b) During the year, no report under sub-section (12) of section 143 of the Companies
Act, 2013 has been filed by cost auditor/secretarial auditor or by using Form ADT 4 as
prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central
Government.
c) As represented to us by the management, there are no whistle blower complaints
received by the Company during the year.
(xii) In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
(xiii) According to the information and explanations given to us and based on out
examination of the records of the Company, transactions with the related party are in
compliance with Sections 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
(xiv) In respect of Internal Audit System: a) The company does have an internal audit
system commensurate with the size and nature of its business.
b) The Company has conducted Internal audit for the period under audit and we have
received & considered such report, during our audit.
(xv) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into non-cash
transactions with directors or persons connected to him. Accordingly, paragraph 3(xv) of
the Order is not applicable.
(xvi) In respect of applicability of provisions of the Reserve Bank of India Act, 1934:
- a) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934)
are not applicable to the Company. Accordingly, the requirement to report on clause
(xvi)(a) of the Order is not applicable to the Company.
b) The Company has not conducted any Non-Banking Financial or Housing Finance
activities without obtaining a valid Certificate of Registration (CoR) from the Reserve
Bank of India as per the Reserve Bank of India Act, 1934. c) There is no Core Investment
Company as a part of the Group, hence, the requirement to report on clause 3(xvi)(d) of
the Order is not applicable to the Company.
(xvii) The Company has not incurred cash losses in the current year and in the
immediately preceding financial year.
(xviii) There has not been resignation of the statutory auditors during the year and
accordingly requirement to report on Clause 3(xviii) of the Order is not applicable to the
Company.
(xix) On the basis of the financial ratios disclosed in note to the financial
statements, ageing and expected dates of realization of financial assets and payment of
financial liabilities, other information accompanying the financial statements, 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 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) The provisions of section 135 of the act are not applicable on the company for the
F.Y. 2022-23 and accordingly requirement to report on Clause 3(xx) of the Order is not
applicable to the Company. (xxi) The Company is not required to prepare consolidated
financial statements in accordance with section 129 of the act and accordingly requirement
to report on Clause 3(xxi) of the Order is not applicable to the Company.
|
FOR, AGRAWAL SHUKLA & CO. |
|
CHARTERED ACCOUNTANTS |
|
FIRM REG. NO. 326151E |
|
Sd/- |
|
(CA PANKAJ JAIN) |
|
PARTNER |
| Place: Raipur |
M. NO. 407917 |
| Date:20.05.2023 |
UDIN:- 23407917BGQTYP1137 |
+91-9892691696
