To the Members of M/s. Ambition Mica Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying Standalone Financial statements of M/s. AmbitionMica Limited ("the Company") which comprises the Balance Sheet as atMarch 31 2020 the Statement of Profit and Loss (including Other Comprehensive income)the Statement of Changes in Equity and the Cash Flow Statement for the year ended on thatdate and a summary of significant accounting policies and other explanatory information(hereinafter referred to as "the standalone financial statements").
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 Companies Act 2013 (the 'Act') in the manner so required and give a true and fairview in conformity with the Indian Accounting Standards ('Ind AS') specified under Section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2020 and its profit and total comprehensiveincome changes in equity 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 specified underSection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ('ICAI') together withthe ethical requirements that are relevant to our audit of the financial statements underthe provisions of the Act and the rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea 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 statement of current period. Thesematters were addressed in the context of our audit of the financial statements as a wholeand in forming our opinion thereon as we do not provide a separate opinion on thesematters. We have determined the matters described below to be the key audit matters to becommunicated in our report.
|Sr Key Audit Matters No. ||Principal Audit Procedures/Auditor's Reponses |
|1. Evaluation of Pending Tax Litigations: ||We have obtained details of tax litigations under various statutes for the year ended 31st March 2020 from the management. |
|The Company has pending litigation for demand in dispute under various tax statutes which involves significant judgment to determine the possible outcome of these disputes. || |
| ||We have reviewed the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. We have also reviewed the legal precedence and other rulings provided for review by the management in evaluating its position in various matters. |
| ||We have also reviewed the assumptions made by the management as at 31st March 2019 and evaluated whether any change was required on account of information and updates made available during the year. |
|2. Appropriateness of Current / Non-current classification ||For the purpose of current/non-current classification of assets and liabilities the Company has ascertained its normal operating cycle as twelve months. This is based on the nature of services and the time between the acquisition of assets or inventories for processing and their realisation in cash and cash equivalents. |
| ||The classification of assets and liabilities has been done on the basis of documentary evidences. Where conclusive evidences are not available the classification has been done on the basis of management's best estimate of the period in which the assets would be realised or the liabilities would be settled. We have evaluated the reasonability of the management's estimates. |
|3. Non-responses of external confirmations request perpetrated pursuant to SA 505 ||We revised our assessed risk and have modified our audit procedures to mitigate these risks. We have obtained a reliable assurance pertaining to transactions with confirming parties in the sense for accurate and complete processing of routine and significant classes of transactions such as revenue purchases and cash receipts or cash purchases. |
|COVID-19 has impacted the procedure of external confirmation request to vendors and customers. Postal facilities were not available in the near-end of the financial year. However due to suspension of business activities of many confirming parties there are fewer confirmations received than anticipated. || |
| ||We selected samples and tested the effectiveness of controls relating to accuracy and completeness of transactions in totality considering the frequency and regularity of transactions. |
|4. Adoption of Ind AS 116 Leases ||Our procedures included the following: |
| ||Assessing the accounting regarding leases with reference to consistency with the definitions of Ind AS 116. This includes factors such as lease term discount rate and measurement principles; Testing completeness of the lease data as at 31st |
|Effective 1st April 2019 Ind AS 116 replaces the existing standard Ind AS 17 and specifies how an entity will recognise measure present and disclose leases. || |
|The standard provides a single lease accounting model requiring lessees to recognise a right of use asset ("ROU asset") and a corresponding liability on the lease commencement date. It provides exemption for leases with lease term of 12 months or less or the underlying asset has a low value. ||March 2019 by reconciling the Company's operating lease commitments to the underlying data used in computing the ROU asset and Lease liability; Assessing the transition to Ind AS 116 by verifying consistency with the definitions and practical expedients of Ind AS 116; |
| ||Examining the Company's judgement in establishing the underlying assumptions. This includes assessing the discount rate used in determining the lease liability. |
|The Company has applied Ind AS 116. We considered the first-time application of the standard as a key audit matter due to the judgements needed in establishing the underlying key assumptions || |
Emphasis of Matter
We draw your attention to Note 51 to the Standalone Financial Statements which explainsthe management's assessment of the financial impact due to the lock-down and otherrestrictions and conditions related to the COVID-19 pandemic situation for which adefinitive assessment of the impact in the subsequent period is highly dependent uponcircumstances as they evolve. Our opinion is not modified in respect of this matter.
Information other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and 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 in theaudit 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.
Management's responsibilities 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 (including other comprehensive income) changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Indian accounting Standards specified in the Companies(Indian Accounting Standards) Rules 2015 (as amended) under Section 133 of the Act. 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 that wereoperating effectively for ensuring 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.
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.
The Board of Directors are also responsible for overseeing the company's financialreporting process.
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 withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.
As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain 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 Act we are also responsible for explaining our opinion on whether the Companyhas adequate internal financial controls system in place and the operating effectivenessof 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.
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.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of subsection (11) of section 143 of the Act ("theOrder") we give in the Annexure "A" a statement on the matters specifiedin paragraphs 3 and 4 of the Order.
As required by Section 143(3) of the Act based on our audit 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 (including other comprehensiveincome) Statement of Changes in Equity and the statement of Cash Flow dealt with by thisReport are in agreement with the books of account;
d. In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act;
e. On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 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 "B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
g. As required by Section 197(16) of the Act we report that the Company has paidremuneration to its directors during the year in accordance with the provisions of andlimits laid down under Section 197 read with Schedule V to the Act.
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 as amended inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements;
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.
|For Ashok Thakkar & Co. || |
|Chartered Accountants || |
|(F.R.No. 112754W) || |
|[CA Ashok D. Thakkar] || |
|Proprietor ||Place: Ahmedabad |
|Membership No. 045940 ||Date: 31st July 2020 |
|UDIN: 20045940AAAABV1304 || |
ANNEXURE-A to the Independent Auditor's Report
Reports under The Companies (Auditor's Report) Order 2016 (CARO 2016) for the yearended on 31st
The Members of AMBITION MICA LIMITED
(1) In Respect of Fixed Assets
(a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) According to the Information and explanations given to us the fixed assets areverified in a phased manner by the management during the year which in our opinion isreasonable having regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deed of all immovable assets are heldin the name of company.
(2) In Respect of Inventories
The inventory lying at factory premise has been physically verified by the managementduring the year. Full verification could not be conducted due to COVID-19 outbreak. In ouropinion the frequency of verification is reasonable. The discrepancies noticed onverification between the physical stocks and the book records were not material and havebeen properly dealt with in the books of account
(3) Compliance under section 189 of The Companies Act 2013
The company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained u/s 189of the Companies Act2013 (the Act).
(4) Compliance under section 185 and 186 of The Companies Act 2013
As per information and explanation given to us Company has not given any loan orguarantee and has not provided any securities.
(5) Compliance under section 73 to 76 of The Companies Act 2013 and Rules framed thereunder while accepting Deposits
The company has not accepted any Deposits from the public.
(6) Maintenance of cost records
As explained to us the Central Government has not prescribed the maintenance of Costrecords under sub section (1) of section 148 of the Companies Act 2013.
(7) Deposit of Statutory Dues
(a) Company is generally regular in depositing with appropriate authorities undisputedstatutory dues including Income tax Sales-tax Service tax Duty of Excise Goods andService Tax Value added tax or Cess and any other statutory dues applicable to it exceptfor a professional tax amounting to Rs. 111760/- and Tax Deducted At Source (IncludingTCS) amounting to Rs.2716245.55/- which is outstanding on the last date of the financialyear concerned for a period of more than six months from the date they became payablealso there has been a delay in GST Payment.
(b) According to the information and explanation given to us and as per the records ofthe company the dues outstanding of Central Sales Tax on account of any dispute is asper annexure of Statement of Disputed Dues.
Statement of Disputed Dues
|SR.NO ||Name of the Statute ||Name of the Dues ||Amount in Rs. ||Period to which the amount relate ||Forum where dispute is pending |
|1 ||Central Sales Tax Act (Gujarat) ||Central Sales Tax Interest and Penalty( For Non submission of C Forms) ||6335560 ||2015-16 ||Deputy Comissioner of Commercial Tax( Appeal- 2) Ahmedabad |
(8) Repayment of Loans and Borrowings
According to the information and explanation given to us the company has not defaultedin repayment of loans or Borrowings from Banks and Financial Institutions except one EMIdues to financial institution named ECL Finance Limited amounting to Rs. 323254/- hasnot been paid by the company. The company has not taken any loan from Government or hasnot issued any debenture.
(9) Utilization of Money Raised by Public Offers and Term Loan For which they Raised
According to the information and explanation given to us the company did not raisedany money by way of further public offer (including debt instruments) during the yearunder review. However the term loans raised during the year has been applied for thepurpose for which they have raised
(10) Reporting of Fraud During the Year
According to the information and explanation given to us during the year under reviewno fraud by the company or any fraud on the company by its officers or employees has beennoticed or reported.
(11) Managerial Remuneration
According to the information and explanations given to us and based on our examinationof the records of the company we report that company has complied with the provisions ofmanagerial remuneration of section 197 read with Schedule V to the Companies Act.
(12) Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio
As per information and records available with us the company is not Nidhi Company.
(13) Related party compliance with Section 177 and 188 of companies Act - 2013
According to the information and explanations given to us and based on our examinationof the records of the company all transactions with the related parties are in compliancewith section 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards.
(14) Compliance under section 42 of Companies Act - 2013 regarding Private placement ofShares or Debentures
According to the information and explanations given to us and based on our examinationof the records of the company the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review.
(15) Compliance under section 192 of Companies Act - 2013
According to the information and explanations given to us and based on our examinationof the records of the company the company has not entered into any non-cash transactionswith directors or persons
connected with him.
(16) Requirement of Registration under 45-IA of Reserve Bank of India Act 1934
The company is not required to be registered under section 45-IA of the Reserve Bank oflndia Act 1934.
|Ashok Thakkar & Co. || |
|Chartered Accountants || |
|Ashok D. Thakkar || |
|Proprietor || |
|M'ship No. 045940 ||Place: Ahmedabad |
|Firm Reg. No. 112754W ||Date: 31st July 2020 |
|UDIN : 20045940AAAABV1304 || |
ANNEXURE-B to the Independent Auditor's Report Report on the Internal Financial Controlunder Clause (i) of sub-section 3 of Section 143 of the
Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of AMBITIONMICA LIMITED ("the Company") as of 31st March 2020 in conjunction with ouraudit of the financial statement 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'). 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 assets theprevention 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.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conduct 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 plans 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 procedure 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 exist and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The procedureselected depends 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 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 purpose 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.
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 31st March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Auditing ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
|Ashok Thakkar & Co. || |
|Chartered Accountants || |
|Ashok D. Thakkar || |
|Proprietor ||Place: Ahmedabad |
|M'ship No. 045940 ||Date: 31st July 2020 |
|Firm Reg. No. 112754W || |
|UDIN : 20045940AAAABV1304 || |