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National General Industries Ltd.

BSE: 531651 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE654H01011
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OPEN 24.15
PREVIOUS CLOSE 0.00
VOLUME 100
52-Week high 24.75
52-Week low 23.55
P/E 142.06
Mkt Cap.(Rs cr) 13
Buy Price 24.35
Buy Qty 400.00
Sell Price 0.00
Sell Qty 0.00
OPEN 24.15
CLOSE 0.00
VOLUME 100
52-Week high 24.75
52-Week low 23.55
P/E 142.06
Mkt Cap.(Rs cr) 13
Buy Price 24.35
Buy Qty 400.00
Sell Price 0.00
Sell Qty 0.00

National General Industries Ltd. (NATLGENINDS) - Auditors Report

Company auditors report

Independent Auditors’ Report

To

The Members of

M/s NATIONAL GENERAL INDUSTRIES LTD.

New Delhi.

Report on the Financial Statements

We have audited the accompanying financial statements of M/s NATIONAL GENERALINDUSTRIES LTD (the Company). which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of 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 with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rule 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

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 there under. We conducted our audit in accordancewith the Standards on Auditing issued by the Institute of Chartered Accountants of India.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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 control relevant to the Company’s preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byManagement as well as evaluating the overall 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2016;

b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act We give in the Annexure A statement on the matters specified inparagraphs 3 and 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 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 Profit and Loss Statement and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

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 March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) ofthe Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in Annexure B.

3. 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:

a) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

b) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long-term contractsincluding derivative contracts.

c) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For R.K GOVIL & Co.
Chartered Accountants
FRN – 000748C
Sd/-
Place: New Delhi Rajesh Kumar Govil
Dated: 30.05.2016 Partner
Membership No.013632

ANNEXURE ‘A’ TO THE AUDITORS’ REPORT (Referred to in our Report of evendate)

In terms of the information and explanations given to us and the books and recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe state as under:

1) (a) The Company has maintained proper records though to be updated showing fullparticulars including quantitative details and situation of its fixed assets. (b) Asexplained to us the management has physically verified all the fixed assets during theyear in a phased periodical manner which in our opinion is reasonable having regard tothe size of the Company. We have been informed that no material discrepancies were noticedon such physical verification during the year. In our opinion periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets. (c) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the title deeds of immovable properties areheld in the name of the Company. 2) (a) The inventory has been physically verified duringthe year by the management in phased manner. (b) In our opinion and according to theinformation and explanations given to us the procedure and periodicity of physicalverification of inventory followed by the management is reasonable and adequate inrelation to the size of the Company and the nature of its business. (c) The Company hasmaintained proper records of inventories. As explained to us the discrepancies noticed onphysical verification as compared to book records were not material and have been dealtwith in the books of account.

3) According to the information and explanation given to us the company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register required to be maintained under section 189 of the Act. Accordingly paragraph3 (iii) of the order is not applicable.

4) 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 Act with respectto the loans and investments made.

5) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public.

6) In our opinion Company is not required to maintain cost records under section 148(1) of the Companies Act 2013 read with rule 4 of the Companies (Cost Records and Audit)Amendment Rules 2014.

7) (a) The Company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income-tax Sales tax ServiceTax Duty of Custom Duty of Excise Value Added Tax Cess and any other statutory duesapplicable to it with the appropriate authorities.

(b) According to the information and explanations given to us no undisputed amount ispayable in respect of Income-tax Service Tax Sales-tax Duty of Custom Duty of ExciseCess and other aforesaid statutory dues were outstanding as at 31st March 2016 for aperiod of more than six months from the date they became payable. (b) According to theinformation and explanations given to us no disputed amount is payable in respect ofIncome-tax Service Tax Sales-tax Value Added Tax Duty of Custom Duty of Excise Cessand any other statutory dues applicable to the Company.

8) According to the information and explanations given to us we are of the opinionthat Company has not defaulted in repayment of dues to financial institutions or banks anddebenture holders.

9) The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year and in our opinion andaccording to the explanations given to us the outstanding term loans were applied by theCompany for the purpose for which the loans were obtained.

10) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

11) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

12) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him.

16) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For R.K GOVIL & Co.
Chartered Accountants
FRN – 000748C
Sd/-
Place: New Delhi Rajesh Kumar Govil
Dated: 30.05.2016 Partner
Membership No.013632

ANNEXURE ‘B’ TO THE AUDITORS’ REPORT (Referred to in our Report of evendate)

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 NationalGeneral Industries Ltd (the Company) as of 31 March 2016 in conjunction with our audit ofthe financial statements of the Company for the year ended on 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 (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ 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 audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement 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 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 control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorization ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For R.K GOVIL & Co.
Chartered Accountants
FRN – 000748C
Sd/-
Place: New Delhi Rajesh Kumar Govil
Dated: 30.05.2016 Partner
Membership No.013632