To the Members of
AMRIT CORP. LIMITED
Report on the Financial Statements Opinion
We have audited the accompanying financial statements of AMRIT CORP. LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2021 andthe Statement of Profit and Loss Statement of Changes in Equity and the Cash FlowStatement for the year then ended and notes to the financial statements including asummary of significant accounting policies and other explanatory information (hereinafterreferred to as the "financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013(the "Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended"Ind AS" and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 and its profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
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 Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the financialstatements.
Emphasis of Matter
We draw attention to Note 37 of the financial statements regarding management'sassessment of COVID-19 impact on the future performance of the Company. Our opinion is notmodified in respect of this matter.
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. Wehave determined that there are no key audit matters to be communicated in our report.
Information Other than the Financial Statements and Auditor's 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 ManagementDiscussion and Analysis Director's Report Report on Corporate Governance and GeneralShareholders Information but does not include the financial statements and our auditor'sreport 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 changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate 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 statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.
The Board of Directors is 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 financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion.
The risk of not detecting a material misstatement resulting from fraud is higher thanfor one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the 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.
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
1. As required by the Companies (Auditor's Report) Order 2016 ("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' 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 Companies Act 2013 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 the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account;
d. in our opinion the aforesaid financial statements comply with the Indian AccountingStandards prescribed under Section 133 of the Act read with Companies( Indian AccountingStandards
) Rules 2015 as amended including the Companies (Indian Accounting Standards) AmendmentRules 2019;
e. on the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164 (2) of the Act; f. With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in Annexure B' ; and g. with respect to theother matters to be included in the Auditor's Report in accordance with the requirementsof section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of 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 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 financial statements Refer Note 36 to the financial statements;
ii. The Company has made necessary provision in its financial statements under theapplicable law or Indian accounting standards wherever required;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
Annexure "A" to Independent Auditors' Report Referred to in Paragraph 1 underthe heading of "report on other legal and regulatory requirements" of our reportof even date
1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The company has a phased program of physical verification of its fixed assetswhich in our opinion is reasonable having regard to the size of the company and thenature of its assets. In accordance with such program the management has physicallyverified its fixed assets during the year and discrepancies if any noticed on suchverification have been duly accounted for in the books of accounts.
(c) The title deeds of immovable properties which are freehold are held in the name ofthe company. In respect of building that has been taken on lease and disclosed asRight-of-Use asset in the financial statements the lease agreements are in the name ofthe Company.
2. According to the information and explanations given to us physical verification ofinventories is conducted by the management at periodic intervals. The procedures followedby the company for physical verification of inventories are reasonable and adequate inrelation to the size of the company and the nature of its business. The company ismaintaining proper records of inventory and discrepancies if any noticed on physicalverification have been duly accounted for in the books of accounts.
3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Consequently sub-clauses (a) (b) & (c) of thisclause are not applicable.
4. The Company has not made any transaction in respect of loans covered under section185 of the Companies Act 2013. In respect of loans investments guarantees and securitycovered under section 186 of the Companies Act 2013 the provisions of the said section186 have been duly complied.
5. The Company has not accepted any deposits from the public and consequently thedirectives issued by Reserve Bank of India the provisions of sections 73 to 76 of theCompanies Act 2013 and rules framed there under are not applicable. Accordinglyprovisions of this clause are not applicable on the Company.
6. In accordance with the information given by the management the maintenance of costrecords has not been prescribed by the Central Government under section 148 (1) of theCompanies Act 2013.Therefore reporting under this clause is not applicable to thecompany.
7. 1. According to the information and explanations given to us and on the basis of ourexamination of the books of account the company is regular in depositing the undisputedstatutory dues including provident fund employees' state insurance income tax GST dutyof customs cess and any other statutory dues as applicable to it with the appropriateauthorities.
2. According to the information and explanations given to us there was no undisputedamounts payable in respect of the above dues which were outstanding as at 31stMarch 2021 for a period of more than six months from the date of their becoming payable.
3. According to the information and explanations given to us the amounts payable inrespect of income tax which have not been deposited on account of any disputes are asunder:
|Name of the statutes ||Nature of dues ||Amount (Rs. Lakhs) ||Period to which amount relates to (Assessment Year) ||Forum where dispute is pending |
|Income Tax Act 1961 ||Withdrawal of investment Allowance against order of ITAT ||2.03 ||1979-1980 ||High Court |
|Income Tax Act 1961 ||Withdrawal of investment Allowance against order of ITAT ||66.35 ||1981-1982 ||High Court |
|Income Tax Act 1961 ||Reference Allocation u/s 256(2) ||46.84 ||1984-1985 ||High Court |
|Income Tax Act 1961 ||Appeal under Section 260-A ||69.29 ||1986-1987 ||High Court |
|Income Tax Act 1961 ||Applicability of Section 115J ||6.51 ||1989-1990 ||High Court |
|Income Tax Act 1961 ||Appeal under Section 260-A ||1.61 ||1990-1991 ||High Court |
|Income Tax Act 1961 ||Appeal under Section 246-A ||3.55 ||2015-2016 ||Commissioner of Income Tax (Appeals) |
|Total || ||196.18 || || |
8. The company has not defaulted during the year in repayment of any loans orborrowing to a financial institution bank Government or dues to debenture holders.
9. According to the information and explanations given to us during the year theCompany has raised term loans. The aforesaid term loans were applied for the purposes forwhich they are raised. The company has not raised any monies by way of initial publicoffer/further public offer during the year.
10. According to the information and explanations given to us no fraud by the companyor no fraud on the Company by its officers or employees has been noticed or reportedduring the year.
11. The company has paid managerial remuneration as per provisions of section 197 readwith Schedule V to the Companies Act 2013.
12. The company is not a Nidhi Company and hence reporting under clause 3 (xii) is notapplicable.
13. The transactions with the related parties made by the Company are in compliancewith sections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements as required by the applicable Indian AccountingStandards.
14. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year and hence reporting under clause3 (xiv) is not applicable.
15. During the year the company has not entered into any non- cash transactions withdirectors or persons connected with him and hence provision of section 192 of CompaniesAct 2013 are not applicable.
16. The company is not required to register under section 45- IA of the Reserve Bank ofIndia Act 1934.
Annexure B' to Independent Auditors' Report Referred to in Paragraph 2 (f) underthe heading of "report on other legal and regulatory requirements" of our reportof even date Report on the Internal Financial Controls under Clause (i) of Sub-section 3of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of AMRIT CORP.LIMITED ("the
Company") as of March 31 2021 in conjunction with our audit of the financialstatements 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 internal policies & procedures accounting records andessential components on the internal control over financial reporting criteria establishedby the Company as per Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the ICAI. These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required 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 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 andprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement 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 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 March 31 2021 based on theinternal financial control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in Guidance Note on Auditof Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.
|For Mukesh Aggarwal & Co. |
|Chartered Accountants |
|Firm's Registration No. 011393N |
| ||(Rishi Mittal) |
|Place : Ghaziabad ||Partner |
|Date : June 14 2021 ||Membership No. |
| ||521860 |