Alka India Ltd.
|BSE: 530889||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE061B01020|
|BSE 00:00 | 02 May||Alka India Ltd|
|NSE 05:30 | 01 Jan||Alka India Ltd|
|BSE: 530889||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE061B01020|
|BSE 00:00 | 02 May||Alka India Ltd|
|NSE 05:30 | 01 Jan||Alka India Ltd|
To the Members of ALKA INDIA LIMITED
Disclaimer of Opinion
We have audited the financial statements of Alka India Limited ("theCompany") which comprise the balance sheet as at 31st March 2022 and the statementof Profit and Loss (including Other Comprehensive Income) the Statement of Changes inEquity the Statement of Cash Flows and notes to the standalone Ind AS financialstatements for the year ended on that date and a summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as "thestandalone financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matters described in the 'Basis for Disclaimerof Opinion' section of our report the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 as amended ("the Act") in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as atMarch31 2022 its loss including other comprehensive income its cash flows and the changesin equity for the year ended on that date.
Basis for Disclaimer of Opinion
We draw to attention to:
We are unable to determine the consequential impact of certain specific transactions/matters and disclosures on the Standalone Financial Statements. Such specifictransactions/ matters include:
a. During the financial year 2021-22 the company has booked Business Promotion Incomeof Rs. 950000. The said services were provided by Alka India Limited to K Sera Sera BoxOffice Pvt Ltd which was one of the Group Company. The management has explained overemail that "Alka India Ltd is engaged in the business of Textiles which producesvarious cloth materials. Hence to promote the Dome business of KSS Box Office Pvt. Ltdthere is an agreement between both the companies stating that "Alka India Ltd. willadvertise the dome business of KSS Box Office on its every cloth material like print ofdome on the T-Shirts etc."
However during our review we were not provided with sufficient documentary evidencebeing Agreement proof of printing of Dome on cloth material by Alka India
Limited etc. to substantiate that the services were actually provided by Alka IndiaLimited.
Thus due to lack of sufficient and appropriate audit evidence we are unable tocomment on such income appearing in the accompanying audited standalone financialstatements for the year ended 31st March 2022.
b. The Company has advanced an amount of Rs. 1475000 during the FY 2020-21 in theform of loans to Nityagata Advisor Management Consultancy for which we were not providedwith documentary evidence to validate the said transaction.
Further it was also noted that Mr. Ashok Pancharia (director of Alka) is also adirector in Nityagata Advisor Management Consultancy and accordingly loans and advances toan entity where the director of Alka India Limited is interested resulted in the violationof the provisions under Section 185 of the Companies Act 2013.
c. The company has gross outstanding loans and advances of Rs. 102447884 (Gross) ason the year ended 31st March 2022 from various companies out of which the company hascreated the provision for Doubtful Debts amounting to Rs. 22519000/- in the previousfinancial years. We have circulated the independent balance confirmation for the majorityof the outstanding loans and advances; however we have not received any confirmationindependently. Accordingly due to lack of sufficient and appropriate audit evidence weare unable to comment on the recoverability and existence of such loans and advances.
d. The company had not conducted the Fair Value Assessment for the Investments held byAlka India Limited of Rs. 24394962 (Net) in the shares of unlisted company as requiredunder Ind AS 109. Hence we are unable to comment on the realizable value of suchinvestment.
e. As per Standards on Auditing (SA) - 505 External Confirmation Independent Balanceconfirmation for outstanding Bank Balances as on 31.03.2022 were sought during the courseof audit but the response to the said confirmations were not received by us till the dateof this report. Hence the outstanding balances appearing as on 31 March 2022 are basedon the account statement available and provided by those charge with governance.
f. The company has made available the minutes of the Board Meetings held during the FY2021-22 for our inspection till the date of this report and hence we are unable to reviewthe same.
g. The company has not provided us with the internal Audit Report of the financial year2021-22 as required under section 138 of the Companies Act 2013 till the date of thisreport and hence we are unable to review the same.
Material uncertainty related to Going Concern
Due to the matters described under Basis on Disclaimer of Opinion and Emphasis ofMatter and possible impact thereof we are unable to obtain sufficient appropriate auditevidence as to whether the Company will be able to service its debts realize its assetsand discharge its liabilities as and when they become due over the period of next 12months Accordingly we are unable to comment on whether the Company will be able tocontinue as Going Concern.
Due to the possible effects of the matters described in the Basis for Disclaimer ofOpinion paragraph in our main audit report we are unable to obtain sufficient appropriateaudit evidence to provide a basis for our opinion on whether the Company had adequateinternal financial controls over financial reporting with reference to these StandaloneInd AS financial statements as at March 31 2022 and whether such internal financialcontrols were operating effectively. Accordingly we do not express an opinion on InternalFinancial Controls Over Financial Reporting with reference to these Standalone Ind ASfinancial statements.
We conducted our audit in accordance with the Accounting Standards (AS) specified undersection 143(10) of the Companies Act 2013. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto 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 standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
Information other than the financial statements and auditors' report thereon
The Company's board of directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report but does not include the financial statementsand our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the FinancialStatements
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 positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards (AS) specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial 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 the Company's financialreporting 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.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe
Companies Act 2013 we give in the Annexure A' a statement on thematters specified 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 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 (AS) 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 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 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 with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in Annexure B'.
g) With respect to the matter to be included in the Auditor's Report under section197(16) In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under section 197(16) which arerequired to be commented upon by us.
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 contracts forwhich 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.
iv. (a) The management has represented that to the best of it's knowledge and beliefno funds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the company to or in any other person(s)or entity(ies) including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries")or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented that to the best of its knowledge and belief nofunds have been received by the company from any person(s) or entity(ies) includingforeign entities ("Funding Parties") with the understanding whether recordedin writing or otherwise that the company shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.
v. No dividend have been declared or paid during the year by the company.