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N R Agarwal Industries Ltd.

BSE: 516082 Sector: Industrials
NSE: NRAIL ISIN Code: INE740D01017
BSE 00:00 | 25 May 435.85 25.45
(6.20%)
OPEN

418.95

HIGH

441.20

LOW

417.60

NSE 00:00 | 25 May 432.55 19.60
(4.75%)
OPEN

415.10

HIGH

443.00

LOW

413.05

OPEN 418.95
PREVIOUS CLOSE 410.40
VOLUME 1868
52-Week high 598.60
52-Week low 245.20
P/E 8.22
Mkt Cap.(Rs cr) 742
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 418.95
CLOSE 410.40
VOLUME 1868
52-Week high 598.60
52-Week low 245.20
P/E 8.22
Mkt Cap.(Rs cr) 742
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

N R Agarwal Industries Ltd. (NRAIL) - Auditors Report

Company auditors report

To The Members of

N R AGARWAL INDUSTRIES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of N R Agarwal Industries Limited("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

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 financial statements that give a true and fair view of the financial position thefinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs (financial performance) ofthe Company as at March 31 2017 the "profit" and cash flows for the year endedon that date.

Emphasis of Matter

We draw attention to the following matters in the Notes to the financial statements:(a) Note 37 regarding the forfeiture of deposit given to a party amounting toH12000000/- against which the Company has initiated legal proceedings and for which noprovision has been made in the accounts.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 issued by theCentral Government of India in terms of subSection (11) of Section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks of accounts and records of the Company as we considered appropriate and according tothe information and explanations given to us we give in the Annexure hereto a statementon the matters specified in the paragraphs 3 and 4 of the said Order to the extentapplicable.

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 account as required by law have been kept by theCompany 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 Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 March31 2017 taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2017 from being appointed as a Director in terms of Section 164 (2) of theAct.

(f) With respect to the adequacy of the internal controls over the financial reportingof the Company and the operating effectiveness of such controls we give our separateReport in "Annexure B"

(g) 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 has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to in Notes 34 to the financialstatements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts which were required to betransferred to the Investor Education and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the financial statements asregards dealings in Specified Bank Notes during the period from November 8 2016 toDecember 30 2016. Based on audit procedures and relying on the management representationwe report that the disclosure are in accordance with the books of account maintained bythe Company and as produced to us by the management (refer Note No. 35 to the financialstatements)

For Chaturvedi& Partners
Chartered Accountants
(Firm Registration No.: 307068E)
(Khyati M. Shah)
Place: Mumbai Partner
Date: May 19 2017 (Membership No.: 117510)

Annexure A to the Independent Auditors’ Report

The Annexure referred to in our Independent Auditors’ Report to the members of N RAgarwal Industries Limited ("the Company") for the year ended March 31 2017 wereport that:

1) a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets except for assets under installation.

b. All the fixed assets have not been physically verified by the management during theyear but there is a regular program of verification which in our opinion is reasonablehaving regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such verification.

c. According to the information & explanation given to us and on the basis of ourverification title deeds of all immovable properties are held in the name of the Company.

2) As explained to us the inventories of the Company have been physically verifiedduring the year by the management and no material discrepancies were noticed on suchverification as compared to book records. In our opinion the frequency of verification isreasonable.

3) According to the information & explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theCompanies Act 2013. In view of the foregoing the question of reporting on Clause 3 (i)to (iii) of the said order does not arise.

4) The Company has not made any loans investments guarantees and security as per theprovisions of Section 185 and 186 of the Companies Act 2013.

5) During the year the Company has not accepted any deposits from the public withinthe meaning of Sections 73 to 76 of the Companies Act 2013 and the rules framed thereunder as also the directives issued by the Reserve Bank of India. The Company has compliedwith the applicable statutory provisions. The Company has not received any order passed byCompany Law Board or National Company Law Tribunal or Reserve Bank of India or any courtor any other tribunal.

6) We have broadly reviewed the books of account maintained by the Company in respectof products where pursuant to the Rules made by the Central Government the maintenanceof cost records has been prescribed under Section 148(1) of the Act and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have not however made a detailed examination of the records with a viewto determining whether they are accurate or complete.

7) a. According to the information and explanations given to us and the records of theCompany examined by us the Company is generally regular in depositing undisputedstatutory dues including Provident Fund Employees’ State Insurance Income-TaxSales-Tax Service Tax Duty of Customs Duty of Excise Value Added Tax cess and anyother statutory dues to the appropriate authorities. However during the year there havebeen occasional delays in depositing Provident Fund Service Tax & Sales Tax but therewere no dues outstanding as on the last day of the financial year for a period of morethan six months from the date they became payable.

b. According to the books of accounts and records as produced and examined by us inaccordance with the generally accepted auditing practices in India as at March 31 2017the following are the particulars of dues that have not been deposited on account ofdispute:

Name of the Statute Name of dues Amount (Rs. in lacs) Forum where dispute is pending Financial year to which the amount relates
Central Excise Act 1944 Excise Duty* 261.63 Appellate Authority--CESTAT 2003-04 to 2015-16
Central Excise Act 1944 Custom Duty 34.90 Appellate Authority--CESTAT 2013-14 to 2014-15
Income Tax Act 1961 Income Tax** 454.00 Appellate Authority—Income Tax Appellate Tribunal Ahmedabad 2006-07 to 2012-13
Income Tax Act 1961 Income Tax** 26.23 Appellate Authority—Commissioner of Income Tax (Appeals) 2013-14
Income Tax Act 1961 Penalty demand- Income Tax 352.11 Appellate Authority—Commissioner of Income Tax (Appeals) 2006-07 to 2009-10

*Out of the demand a sum of H1448142/- was paid under protest.

** These amounts have already been paid by the Company.

8) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment ofloans or borrowings to Financial Institutions Banks or Government. The Company did nothave any debentures outstanding during the year.

9) According to the information and explanations given to us and based on the recordsand documents produced before us in our opinion the term loans have been applied for thepurposes for which they were obtained. During the year the Company has not raised anymoney by way of initial public offer or further public offer (including debt instruments).

10) During the course of our examination of the books of accounts and records of theCompany carried out by us in accordance with the generally accepted auditing practices inIndia we have neither come across any instance of fraud on the Company by its officers oremployees noticed or reported during the year nor have we been informed of such case bythe management.

11) According to the information and explanations given to us and based on the recordsand documents produced before us managerial remuneration has been paid by the Company inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act.

12) The Company is not a Nidhi Company and in view of the foregoing the question ofreporting on Clause 12 of the said order does not arise.

13) According to the information & explanations given to us transactions withrelated parties are in compliance with Sections 177 and 188 of Companies Act 2013 and thedetails have been disclosed in the Financial Statements as required by the applicableaccounting standards. Refer note no. 33 in financial statements for details.

14) According to the information and explanations given to us and based on the recordsand documents produced before us the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.

15) As per the information & explanations given to us the Company has not enteredinto any non-cash transactions with Directors or persons connected with them.

16) As per the information & explanations given to us the Company is not requiredto be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For Chaturvedi& Partners
Chartered Accountants
(Firm Registration No.: 307068E)
(Khyati M. Shah)
Place: Mumbai Partner
Date: May 19 2017 (Membership No.: 117510)

Annexure B to the Independent Auditors’ Report

[Referred to in paragraph (2)f under ‘Report on Other Legal and RegulatoryRequirements’ in the Independent Auditor’s Report of even date to the membersof the Company on the financial statements for the year ended March 31 2017.]

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of N RAgarwal Industries Limited ("the Company") as of March 31 2017 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management’s Responsibility for Internal Financial Controls

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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisations ofmanagement and Directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany’s 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 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.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For Chaturvedi& Partners
Chartered Accountants
(Firm Registration No.: 307068E)
(Khyati M. Shah)
Place: Mumbai Partner
Date: May 19 2017 (Membership No.: 117510)