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Adinath Exim Resources Ltd.

BSE: 532056 Sector: Financials
NSE: N.A. ISIN Code: INE398H01015
BSE 00:00 | 16 Apr 5.75 0
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NSE 05:30 | 01 Jan Adinath Exim Resources Ltd
OPEN 5.75
PREVIOUS CLOSE 5.75
VOLUME 100
52-Week high 9.08
52-Week low 4.70
P/E 4.91
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.75
CLOSE 5.75
VOLUME 100
52-Week high 9.08
52-Week low 4.70
P/E 4.91
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Adinath Exim Resources Ltd. (ADINATHEXIMRES) - Auditors Report

Company auditors report

To

The Members of

Adinath Exim Resources Limited

OPINION

We have audited the standalone financial statements of Adinath Exim ResourcesLimited ("the Company") which comprises of the balance sheet as at 31stMarch 2019 and the statement of Profit and Loss and statement of cash flows for the yearthen ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

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 theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2019 and profit 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) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained 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 mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Inour opinion there are no reportable Key Audit Matters for the standalone financialstatements of the Company.

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 Standards (AS)specified under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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 1 a statement on the matters specified inthe paragraph 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 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 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 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the 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 2"; and

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 wherever necessary of pending litigations onits financial position in its financial statements;

ii. the Company has made provision as required under the applicable law or IndianAccounting Standards for material foreseeable losses if any on long-term contractsincluding derivative contracts;

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

For Dhirubhai Shah & Co LLP
Chartered Accountants
Firm's registration number: 102511W/W100298
sd/-
Place : Ahmedabad Harish B Patel
Date : 23rd May 2019 Partner
Mem. No. : 014427

ANNEXURE -1 TO INDEPENDENT AUDITOR'S REPROT

1. (a) The Company is maintaining proper records showing full particularsincludingquantitative details and situation of fixed assets.

(b) The Company has regular programs of physical verification of its fixed assets bywhich fixed assets are verified in a phase manner over a period of the year. In accordancewith this verification certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets;

(c) As the company has no immovable property as Fixed Assets information requiredunder this para is not applicable.

2. The Company is a non-banking finance company ("NBFC"). Accordingly itdoes not hold any physical inventories. Thus paragraph 3(ii) of the Order is notapplicable to the Company.

3. According to the information and explanation given to us the Company has not grantedloans secured or unsecured to companies firms limited liability partnerships or otherrelated parties covered in the register maintained u/s 189 of the Companies Act 2013.Therefore the provision of Clause 3(iii)(iii)(a) (iii)(b) and (iii)(c) of the saidOrder are not applicable to the company.

4. In our opinion and according to the information and explanations given to us theprovisions of section 185 and 186 of the Act has been complied with considering theexemptions given to NBFC Companies.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits within the meaning of Section 73 to 76 of theCompanies Act 2013 and rules framed thereunder.

6. We have been informed by the management no cost audit records have been prescribedunder section 148(1) of the Companies Act 2013 in respect of financial services providedby the company.

7. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Income Tax Service Tax andother material statutory dues have been generally regularly deposited during the year bythe Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amount payablein respect of Income Tax Wealth Tax Value added Tax Service Tax and other statutorydues applicable to the Company were in arrears as on 31st March 2019 for a period of morethan six months from the date become payable.

8. Based on our verification and according to the information and explanations given bythe management the company has not defaulted in repayment of loans or borrowings to aFinancial Institution Bank Government or dues to debentureholders.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) during the year. Accordingly para 3(ix) of the orderis not applicable.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not paid/provided formanagerial remuneration. Soprovisions of section 197 read with Schedule V of the Act isnot applicable.

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

13. According to the information and explanations given to us and based on ourexamination of records of the Company transactions with related parties are in compliancewith section 177 and 188 of the Act wherever applicable and details of such transactionshave been disclosed in the financial statements as required by applicable accountingstandards.

14. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has complied with the provisions ofsection 42 of the Companies Act 2013 in respect of preferential allotment of sharewarrants out of which warrant holders fully converted their warrants into equity sharesduring the year under audit. According to the information and explanations given by themanagement we report that the aggregate amount of Rs. 41.92 Lacs was raised or receivedon issue of additional share warrants and on conversion of all the warrants into equitythe total amount so raised have been used for the purpose for which the amount was raised.

15. According to the information and explanations given to us and based on ourexamination of records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly para 3(xv) is notapplicable.

16. The Company being a NBFC is required to be registered under section 45-IA of theReserve Bank of India Act 1934. The Company is registered as a Non-Banking FinancialCompany ("NBFC") with the Reserve Bank of India ("RBI") and has gotclassified as a Non-Banking Financial Company with effect from February20 1998.

For Dhirubhai Shah & Co LLP
Chartered Accountants
Firm's registration number: 102511W/W100298
sd/-
Place : Ahmedabad Harish B Patel
Date : 23rd May 2019 Partner
Mem. No. : 014427

ANNEXURE-2 TO INDEPENDENT AUDITOR'S REPORT

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 AdinathExim Resources Limited ("The Company") as of March 31 2019 in conjunction withour audit of the 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. 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 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 amount the adequacyof the internal financial control system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reportingassessing the risk that a material weakness exists and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend upon on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial 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 controls systemover 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 authorizations 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 March 31 2019 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 issues by the Institute of CharteredAccountants of India.

For Dhirubhai Shah & Co LLP
Chartered Accountants
Firm's registration number: 102511W/W100298
sd/-
Place : Ahmedabad Harish B Patel
Date : 23rd May 2019 Partner
Mem. No. : 014427

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