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Nitin Fire Protection Industries Ltd.

BSE: 532854 Sector: Engineering
NSE: NITINFIRE ISIN Code: INE489H01020
BSE LIVE 15:40 | 23 Nov 6.99 -0.10
(-1.41%)
OPEN

7.39

HIGH

7.39

LOW

6.85

NSE 15:48 | 23 Nov 6.95 -0.05
(-0.71%)
OPEN

7.35

HIGH

7.35

LOW

6.80

OPEN 7.39
PREVIOUS CLOSE 7.09
VOLUME 79986
52-Week high 32.35
52-Week low 3.60
P/E
Mkt Cap.(Rs cr) 204
Buy Price 0.00
Buy Qty 0.00
Sell Price 6.99
Sell Qty 25.00
OPEN 7.39
CLOSE 7.09
VOLUME 79986
52-Week high 32.35
52-Week low 3.60
P/E
Mkt Cap.(Rs cr) 204
Buy Price 0.00
Buy Qty 0.00
Sell Price 6.99
Sell Qty 25.00

Nitin Fire Protection Industries Ltd. (NITINFIRE) - Auditors Report

Company auditors report

To the Members

of Nitin Fire Protection Industries Limited

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of Nitin FireProtection Industries Limited ("the Company") which comprise the Balance Sheetas at March 31 2017 the Statement of Profit and Loss the Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone 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 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 relevant rules framed there under. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 andensuring their operating effectiveness and the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

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 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 Standalone Financial Statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Standalone Financial Statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Standalone Financial Statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Standalone Financial Statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the Standalone Financial Statements.

Basis for Qualified Opinion

(a) As more fully explained in Note No. 35 to the notes to the Standalone FinancialStatements no provision has been made by the Company in respect of its dispute with abank for claim made by the bank for Rs. 50133481 on a derivative contract entered intoby its erstwhile subsidiary the liability for which has been taken over by the Company.The Company has not determined the quantum of mark to market losses as of March 312017 onthe above contract and has relied on a legal opinion in the matter wherein no liability isexpected. Pending the final settlement of the matter we are unable to comment on theextent of provision required if any in this regard.

(b) As more clarified in Note No. 45 to the Notes to the Standalone FinancialStatements the Company has an exposure in Worthington Nitin Cylinders Private Limited(WNCPL) aggregating Rs. 419504163 as at March 31 2017. In the absence of the fairvalue of the investment as required under Accounting Standard 13 ‘Accounting forInvestments' and audited financial statements of WNCPL for the period subsequent to March31 2015 we are unable to comment on the diminution if any on the carrying amount ofthe investment as at March 31 2017.

(c) As more clarified in Note No. 33 to the Notes to the Standalone FinancialStatements describing the reasons for not recognising impairment in the carrying value ofclaims receivables shown under other non-current assets representing the Company's shareof costs in an un-incorporated Joint Venture for Oil Block exploration amounting to Rs.226373172 as at March 31 2017. As stated in the note the Company and GAIL are engagedin arbitration proceedings in Delhi International Arbitration Centre. Pending the finaloutcome of such arbitration proceedings we are unable to comment on the extent ofimpairment required if any on the carrying amount of claims receivables as at March312017.

(d) As more clarified in Note No. 46 to the Notes to the Standalone FinancialStatements regarding export trade receivables amounting to Rs.1669809688 which areoutstanding for a long period of time payments for which are not forthcoming. We areunable to comment on the recoverability of the same and consequential write off if any.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matters described in the Basis forQualified Opinion paragraph the aforesaid Standalone Financial Statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in Indiaof the state ofaffairs of the Company as at March 31 2017 its loss and its cash flows for the yearended on that date.

Report on Other Legal and Regulatory Requirements

(1) (1) As required by the Companies (Auditors' 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 "Annexure 1" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

(2) As required by Section 143(3) of the Act we report that:

a. We have sought and except for the possible effects of the matters described in theBasis for Qualified Opinion paragraph obtained all the information and explanations whichto the best of our knowledge and belief were necessary for the purposes of our audit;

b. Except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph above in our opinion proper books of account as required by law havebeen 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 Statementdealt with by this Report are in agreement with the books of account;

d. Except for the possible effects of the matters described in the Basis for QualifiedOpinion paragraph above in our opinion the aforesaid Standalone Financial Statementscomply with the Accounting Standards specified under Section 133 of the Act read withrelevant rules framed there under;

e. The matters described in Basis for Qualified Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company;

f. On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 312017 from being appointed as a director in terms of Section 164 (2) of theAct;

g. The qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion paragraph above.

h. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls we give ourseparate Report in "Annexure 2". Our Report expresses a qualified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

j. 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 Standalone Financial Statements - Refer Note 38 on Contingent Liabilitiesto the Standalone Financial Statements;

(ii) Except for the possible effects of the matters described in sub-paragraph (a) ofthe Basis of Qualified Opinion abovethe Company has made provision as required under theapplicable law or accounting standards for material foreseeable losses on long-termcontracts including derivative contracts- Refer Notes3536 and 40 to the StandaloneFinancial Statements;

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company; and

(iv) The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember2016 to 30thDecember 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with the books of accountmaintained by the company and as produced to us by the Management-Refer Note No. 48to thefinancial statements.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W / W100048
Sd/-
Snehal Shah
Partner
Membership No.048539
Place : Mumbai
Date : May 30 2017