Independent Auditors' Report
The Members of
N D METAL INDUSTRIES LIMITED Report On The Financial Statements
We have audited the accompanying financial statements of N D METAL INDUSTRIES LIMITEDwhich comprise the Balance Sheet as at March 31 2017 the Statement of Profit and LossCash flow statement for the year then ended and a summary of significant accountingpolicies and other explanatory information.
Management's Responsibility for the Standalone Financial Statement and for InternalControls over Financial Reporting.
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditor-considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Management and Company's Directors as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
Meaning of Internal Financial Control over Financial Reporting
A company's internal financial controls over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial Statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial controls over financialreporting includes those policies and procedures that
(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company:
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and .
(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or - fraud may .occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so
Required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India.
(a) in the case of Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;
(b) in the case of Statement of Profit and Loss of the profit for the year ended onthat date: and
(c) in the case of Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
1. In accordance with the Companies (Auditor's Report) Order 2016 ("theOrder") as amended issued by the Central Government of India in terms of section143 (11) of the Companies Act 2013 and on the basis such checks of books and records ofthe Company we considered appropriate and according to information and explanations givento us we give in the Annexure a statement on the matters specified in the paragraphs 3and 4 of the order.
2. 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 bestof our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion proper books of accounts as required by law have been kept by theCompany including its branches so far as appears from our examination of those books;
c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with books of accounts of the company includingits branches;
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act;
f) In our opinion there are no qualifications reservation or adverse remark relatingto the maintenance of accounts and other matters connected therewith;
g) In our opinion considering nature of the business size of operation andorganizational structure of the entity the Company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at 31stMarch2017 based on "the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the institute of Chartered Accountants of India".
h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule-11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
(i) The company does not have any pending litigations which would impact its financialposition;
(ii) The Company did not .have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;
(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For SUDESH & ASSOCIATES Chartered Accountants
CA.Midesh R Shetty (Proprietor)
Firm Regn. No.l31970W
Place: Mumbai Date: 29th May 2017.
Annexure to Independent Auditor's Report
The Annexure referred to in paragraph 1 under the 'Report on Other Legal and RegulatoryRequirements' our . report to the members of N.D. METAL INDUSTRIES LIMITED for theyear ended on March 31 2017.
We report that:- '
i] In respect of its fixed assets:
(a) The Company has maintained proper records to show full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of fixed assets whichis in our opinion reasonable having regard to the size of the Company and the nature ofits assets. Inaccordance with this programme certain fixed assets have been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification.
(c) As per the information and explanation given to us by the management the titledeeds of the immovable properties as disclosed in fixed assets are held in the name of theCompany.
ii] In respect of its inventories:
(a) The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management werereasonable and adequate inrelation to the size of the Company and the nature of itsbusiness.
(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepanciesnoticed on physical verification of the same. iii] In respect of loans secured orunsecured granted or taken by the Company to / from companies firmsLimited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013:
During the year under audit company has not granted any loan to company covered underregister maintained u/ s. 189 of the Act but there is an opening balance in the respectof which maximum balance outstanding is Rs. 29440152/- (previous year Rs.49810152/-) and year-end balance is Rs. NIL (previous year Rs. 29440152/-).
(a) In our opinion and according to the information and explanation given to us theterms and conditions are not prima facie prejudicial to the interest of the companyhowever we are unable to comment on the same.
(b) As per the information and explanations given to us the above loans are repayableon demand and there is no repayment schedule. '
(c) The company has taken loans from parties covered under register maintained ujs.189of the Companies Act 2013 in respect of which maximum balance outstanding is Rs.3963929 /- (previous year Rs. 3963929 /-) year end balance is Rs. 3963929 /-(previous year Rs. 3963929 /-).
(d) In our opinion and according to the information and explanation given to us theterms and conditions are not prima facie prejudicial to the interest of the company.
(e) As per the information and explanations given to us the above loans are repayableon demand and there is no repayment schedule.
iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans Investments guarantees and security.
v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public and hence the directives issued bythe Reserve Bank of India and the provisions of Sections 737475 and 76 of the Act andthe Companies (Acceptance of Deposits) Rules 2015 with regard to the deposits acceptedfrom public are not applicable.
vi) On the basis of information given to us the company under the process ofmaintaining of cost records prescribed by the Central Government of India undersub-section (1) of Section 148 of the Companies Act 2013.
vii) (a) According to the information and explanations given to us the provisions ofthe Provident Fund Act
and Employees State Insurance Act are not applicable to the Company. Our reporting islimited to the amount of the deduction and the payment of the same. The Company has beengenerally regular in depositing undisputed statutory dues including income-tax sales taxwealth tax service tax Custom duty Excise duty and other statutory dues with theappropriate authorities during the year. According to the information given to us therewere no undisputed unpaid statutory dues outstanding as at 31st March 2017 fora period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of Income Tax Sales Tax Service Tax andCustom Duty which have not been deposited on account of any disputes.
viii) Based on our audit procedures and according to the information and explanationsgiven to us by the management we are of the opinion that the Company has defaulted inrepayment of dues to financial institutions and bank.
ix) The Company has not raised any money by way of initial public offer further publicoffer (including debt instruments) and term loans and hence provisions of Clause 3(ix) ofthe aforesaid Order are not applicable to the Company.
x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor .have we been informed of any such case by themanagement.
xi) The Company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provision of the Section 197 read with Schedule V ofthe Act.
xii) The Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable tothe Company and hence provisions of clause 3 (xii) of the aforesaid Order are notapplicable to the Company.
xiii) The Company has entered into the transaction with the related parties incompliance with the provisions of the-Section 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Accounting Standard (AS) 18 Related Party Disclosures specified under Section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review and henceprovisions of Clause 3(xiv) of the aforesaid Order are not applicable to the Company.
xv) The Company has not entered into any non-cash transactions with its directors orthe persons connected
with him and hence provisions of Clause 3(xv) of the aforesaid Order are not applicableto the Company.
xvi) The Company is not required to be registered Section 45-IA of the Reserve Bank ofIndia Act 1934 and hence provisions of Clause 3 (xvi) of the aforesaid Order are notapplicable to the Company.
For SUDESH & ASSOCIATES Chartered Accountants
CA. Sudesh R Shetty (Proprietor)
M.No. 103550 Firm Regn. NO.131970W
Place: Mumbai Date: 29th May 2017.