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Company Information

Home » Market » Company Information

Aarti Industries Ltd.

Jan 25
982.80 +0.15 (+ 0.02 %)
 
VOLUME : 36860
Prev. Close 982.65
Open Price 960.00
TODAY'S LOW / HIGH
952.95
 
 
 
988.00
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
537.28
 
 
 
1168.40
Jan 25
981.80 -0.60 ( -0.06 %)
 
VOLUME : 450881
Prev. Close 982.40
Open Price 975.00
TODAY'S LOW / HIGH
954.00
 
 
 
987.65
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
536.28
 
 
 
1168.00
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Market Cap. ( ₹ ) 35590.65 Cr. P/BV 11.92 Book Value ( ₹ ) 82.37
52 Week High/Low ( ₹ ) 1168/536 FV/ML 5/1 P/E(X) 67.99
Bookclosure 11/11/2021 TTM EPS ( ₹ ) 17.72 Div Yield (%) 0.31
AUDITOR'S REPORT
You can view full text of the latest Director's Report for the company.
Year End :2021-03 

To the Members of Aarti Industries Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Standalone Financial Statements of Aarti Industries Limited ("the Company"), which comprise the Balance Sheet as at March 31,2021, and the statement of Profit and Loss, (statement of changes in equity) and statement of cash flows for the year then ended, and notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone 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 March 31, 2021, and profit/loss, 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 Auditor’s Responsibilities for the Audit of the Standalone 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 Standalone 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 judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Due to COVID-19 lockdown throughout the country during the year, we have adopted alternative methodologies solutions in performing our audit procedures. We have determined the matters described below to the Key Audit Matters to be communicated in the Report.

# Audit Matters

Auditor's Response

Audit Approach and Principal Audit Procedures

1. Accuracy, Completeness and disclosure with Our audit approach consisted testing of the design and operating effectiveness of the reference to IND AS-16 of Property, Plant and internal controls and substantive testing as follows:

Equipments (Including CapEx) a) We assessed Company's process regarding maintenance of records, valuation and Peculiarity and technical complexities of accounting of transactions pertaining to Property, Plant and Equipment including Property, Plant and Equipments used in the Capital Work in Progress with reference to Indian Accounting Standard 16. operations and multiple IT systems used for

b) We have carried out substantive audit procedures at financial and assertion level to

maintaining Fixed Asset Register (FAR), tracking

verify the capitalization of asset as Property, Plant and Equipment

and monitoring CapEx requires more attention

to ensure reasonable accurateness and c) We have verified the maintenance of records and accounting of transactions regarding completeness of financial reporting in respect capital work in progress by carrying out substantive audit procedures at financial and of Property, Plant and Equipments. assertion level.

Further, technical complexities requires d) management to assess and make estimates/ judgments about capitalization, estimated useful life, impairment etc. which has material e) impact on Balance Sheet and operating results e)

Refer note 1 to financial statements

We have reviewed management judgment pertaining to estimation of useful life and depreciation of the Property, Plant and Equipment in accordance with Schedule II of Companies Act, 2013.

Due to pandemic restrictions physical verification on sample basis was not possible. We have relied on physical verification conducted by management and management representations.

f)

We have verified the capitalization of borrowing cost incurred on qualifying asset in accordance with the Indian Accounting Standard 23

#

A dt M tt Auditor's Response u 1 a ers Audit Approach and Principal Audit Procedures

2.

Valuation, Accuracy, Completeness and disclosures Our audit approach consisted testing of the design and operating effectiveness of pertaining to Inventories with reference to Ind AS 2 the internal controls and substantive testing as follows:

Inventories constitutes material component of financial a) statement. Correctness, completeness and valuation are critical for reflecting true and fair financial results of operations. Further due to continuous nature of plant b) operations and the raw materials which are basically b) chemicals, management has to exercise its judgment in assessing stage of the product and its valuation. c)

Refer note 4 to financial statements

d)

We assessed the Company’s process regarding Maintenance of records, Valuation and accounting of transactions relating to Inventory as per the Indian Accounting Standard 2.

We have evaluated the design of Internal Controls relating to recording and valuation of Inventory.

We have carried out substantive audit procedures to verify the allocation of overheads to Inventory.

Due to pandemic restrictions physical verification on sample basis was not possible. We have relied on physical verification conducted by management and management representations.

e)

We have verified consistency in respect of valuation process and methodology followed

3.

Valuation, Presentation and Disclosure pertaining to The Company has entered into long term contracts for exports of materials. Under advances received for export commitments under long these contracts the Company has received advances to expedite establishment term contracts. of production facilities.

The contracts entered into covers a span of 10 to 20 Our audit approach consisted substantive testing as follows: years. During the current financial year in respect of one

a) We have reviewed the terms of contracts entered into by the Company

long term contract the Company received termination

intimation. On account of the termination the relevant b) The classification, presentation of the said advances received under these remedies available to the Company triggered. Further in contracts was tested

respect of other long term contracts, estimated supplies r . r which will happen over the period of contract at a later c) Recognition and of co^m^bon on accomt of te^rnatern stage requires management to exercise its judgment. 'ntimati°n was verified with reference to the terms of contract under Based on the judgment and the carrying value of the terminabon mb^iabon.

advances received, its fair presentation is critical. d) The fairness of value reflected in financial statement was verified and tested.

Refer note 12 to financial statements e)

Disclosure notes pertaining to said advances in financial statement was reviewed.

Information Other than the Standalone Financial Statements and Auditor's 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 and Analysis, Board’s Report with its annexures, but does not include Standalone Financial Statements and our auditor’s 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 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 information; we required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Standalone 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 Standalone 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 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 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 financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone 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 Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone 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 Standalone Financial Statements.

As a part of an audit in accordance with SA’s, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Standalone 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 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 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

Qinnifinant rlmiht nn thp P.nmnpnv’Q philitv tn rnntini ip pq

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 Standalone 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 Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

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 Standalone 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.

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, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid Standalone 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 March 31, 2021 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2021 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 A".

(g) 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 Standalone Financial Statements - Refer Note 25 to the Standalone Financial Statements;

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

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 (Auditor’s Report) Order, 2016 ("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 B”, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

For Kirtane & Pandit LLP, Chartered Accountants

Firm’s Registration No.105215W/W100057

Milind Bhave Partner

Place: Mumbai M. No. 047973

Date: May 18, 2021 UDIN: 21047973AAAABF5304