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Arrow Greentech Ltd.

BSE: 516064 Sector: Industrials
NSE: ARROWGREEN ISIN Code: INE570D01018
BSE 00:00 | 27 Jul 149.15 -2.95
(-1.94%)
OPEN

151.90

HIGH

154.90

LOW

148.50

NSE 00:00 | 27 Jul 151.05 -0.35
(-0.23%)
OPEN

152.85

HIGH

153.85

LOW

149.25

OPEN 151.90
PREVIOUS CLOSE 152.10
VOLUME 1417
52-Week high 179.85
52-Week low 39.10
P/E 83.32
Mkt Cap.(Rs cr) 210
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 151.90
CLOSE 152.10
VOLUME 1417
52-Week high 179.85
52-Week low 39.10
P/E 83.32
Mkt Cap.(Rs cr) 210
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Arrow Greentech Ltd. (ARROWGREEN) - Auditors Report

Company auditors report

To the Members of Arrow Greentech Limited Report on the Audit of theStandalone Ind AS Financial Statements Opinion

We have audited the accompanying Standalone Ind AS Financial Statementsof Arrow Greentech Limited ("the Company") which comprise the Balance Sheet asat March 31 2020 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and notes to the Standalone Ind AS Financial Statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "Standalone Ind AS Financial Statements")

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Ind AS Financial Statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India including the Indian Accounting Standards ("Ind AS")prescribed under Section 133 of the Act of the state of affairs of the Company as atMarch 31 2020 its profit (including other comprehensive income) changes in equity andits cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with Standards on Auditing (SAs)specified under Section 143(10) of the Act. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneInd AS Financial 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 ("ICAI") together with the ethical requirements that are relevant to ouraudit of the Standalone Ind AS Financial Statements under the provisions of the Act andRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these 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 on theStandalone Ind AS Financial Statements.

Emphasis of Matter

We draw attention to Note 48 to the accompanying Standalone Ind ASFinancial Statements which explains the uncertainties and the Management's evaluationof the financial impact on the Company due to lockdown and other restrictions on accountof COVID-19 pandemic situation for which a definitive assessment of the impact is highlydependent upon the circumstances as they evolve in the subsequent period.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Ind AS Financial Statements ofthe current year. These matters were addressed in the context of our audit of theStandalone Ind AS Financial Statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. We have determined that there areno key audit matters to communicate in our report.

Other Information

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the annualreport but does not include the Standalone Ind AS Financial Statements Consolidated IndAS Financial Statements and our auditor's report thereon.

Our opinion on the Standalone Ind AS Financial Statements does notcover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the Standalone Ind AS FinancialStatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the Standalone Ind ASFinancial Statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance forthe Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these Standalone Ind ASFinancial Statements that give a true and fair view of the financial position financialperformance (including other comprehensive income) changes in equity and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding Ind AS prescribed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; 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 Standalone Ind AS Financial Statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

In preparing the Standalone Ind AS Financial Statements Management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless Management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative 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 Standalone Ind ASFinancial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone Ind AS Financial Statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of this Standalone Ind AS FinancialStatements. As part of an audit in accordance with SAs we exercise professional judgmentand maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of theStandalone Ind AS Financial Statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal control relevant to the audit inorder to 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 with reference to Financial Statements inplace and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by Management.

Conclude on the appropriateness of Management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Standalone Ind AS Financial Statements or if such disclosuresare inadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of theStandalone Ind AS Financial Statements including the disclosures and whether theStandalone Ind AS Financial Statements represent the underlying transactions and events ina manner that achieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the Standalone IndAS Financial Statements of the current year and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 Section143(11) 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 obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsdealt with by this report are in agreement with the books of account;

d. In our opinion the aforesaid Standalone Ind AS Financial Statementscomply with the Ind AS prescribed under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended;

e. On the basis of the written representations received from thedirectors as on March 31 2020 and taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2020 from being appointed as a director in termsof Section 164(2) of the Act;

f. With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate report in "Annexure 2";

g. With respect to the other matter to be included in the Auditor'sReport in accordance with the requirements of Section 197(16) of the Act:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid/ provided by the Company to its directorsduring the year is in accordance with the provisions of Section 197 of the Act;

h. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 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 itsfinancial position in its Standalone Ind AS Financial Statements Refer Note 37 onContingent Liabilities to the Standalone Ind AS Financial Statements;

(ii) The Company did not have any long-term contracts includingderivative contracts. Hence the question of any material foreseeable losses does notarise; and

(iii) There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W / W100048
Snehal Shah
Partner
Membership No.048539
UDIN: 20048539AAAABN2435
Place : Mumbai
Date : June 30 2020

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' section in the Independent Auditor's Report of evendate to the members of Arrow Greentech Limited on the Standalone Ind AS FinancialStatements for the year ended March 31 2020]

Based on the audit procedures performed for the purpose of reporting atrue and fair view on the Standalone Ind AS Financial Statements of the Company and takinginto consideration the information and explanations given to us and the books of accountand other records examined by us in the normal course of audit we report that:

(I) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) During the year the fixed assets of the Company have beenphysically verified by the management and no material discrepancies were noticed on suchverification. In our opinion the frequency of verification is reasonable having regard tothe size of the Company and the nature of its assets.

(c) The title deeds of immovable properties recorded as fixed assets inthe books of account of the Company are held in the name of the Company except for thedetails given below:

Land/ Building Total number of cases Leasehold/ Freehold Gross Block as on March 31 2020 ( ` in ` 000) Net Block as on March 31 2020 (` in ` 000)
Office Building 1 Freehold 45 39

(ii) The inventory have been physically verified by the Managementduring the year. In our opinion the frequency of verification is reasonable. No materialdiscrepancies were noticed on physical verification carried out during the year.

(iii) The Company has granted loans secured or unsecured to companiescovered in the register maintained under section 189 of the Act. Further The Company hasnot granted any loans secured or unsecured to firms Limited Liability Partnerships orother parties covered in the register maintained under section 189 of the Act.

(a) The terms and conditions of the aforesaid loans granted by theCompany are not prejudicial to the interest of the Company.

(b) The schedule of repayment of principal and payment of interest inrespect of such loans has not been stipulated thus we are unable to comment whether therepayments or receipts are regular and report amounts overdue for more than ninety daysif any as required under clause 3(iii) (c) of the Order.

(iv) The Company has complied with the provisions of sections 185 and186 of the Act in respect of grant of loans making investments and providing guaranteesand securities as applicable.

(v) In our opinion the Company has not accepted any deposits from thepublic within the provisions of Sections 73 to 76 of the Act and the rules framed thereunder. Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) The Central Government has not prescribed the maintenance of costrecords for any of the products of the Company under sub-section (1) of Section 148 of theAct and the rules framed there under.

(vii) (a) The Company is regular in depositing with appropriateauthorities undisputed statutory dues including provident fund employees' stateinsurance income tax goods and services tax (GST) customs duty cess and any othermaterial statutory dues applicable to it except that there have been slight delay in fewcases. During the year 2017-18 sales tax value added tax service tax and duty of excisesubsumed in GST and are accordingly reported under GST.

No undisputed amounts payable in respect of provident fundemployees' state insurance income tax GST customs duty cess and any othermaterial statutory dues applicable to it were outstanding at the year end for a periodof more than six months from the date they became payable except the following:

Name of the statute Nature of the dues Amount ( ` in ‘000) Period to which the amount relates Due Date Date of Payment Remarks
Maharashtra Value Added Tax Act 2002 VAT 95 2006-2007 March 31 2007 Unpaid Maharashtra Value Added Tax Act 2002
Maharashtra Value Added Tax Act 2002 VAT 40 2007-2008 March 31 2008 Unpaid Maharashtra Value Added Tax Act 2002
Maharashtra Value Added Tax Act 2002 VAT 21 2009-2010 March 31 2010 Unpaid Maharashtra Value Added Tax Act 2002

(b) The dues outstanding with respect to income tax sales tax andvalue added tax on account of any dispute are as follows:

Name of the statute Nature of dues Amount ( ` in ‘000) Period to which the amount relates Forum where dispute is pending
Maharshtra Value Added Tax Act 2002 VAT 2839 2003-2004 Asst Commissioner of Sales Tax (Appeal) Mumbai
Central Sales Tax Act 1956 CST 442 2003-2004 Asst Commissioner of Sales Tax (Appeal) Mumbai
Maharshtra Value Added Tax Act 2002 VAT 3671 2004-2005 Asst Commissioner of Sales Tax (Appeal) Mumbai
Central Sales Tax Act 1956 CST 3521 2004-2005 Asst Commissioner of Sales Tax (Appeal) Mumbai
Central Sales Tax Act 1956 CST 12188 2007-2008 Asst Commissioner of Sales Tax (Appeal) Mumbai
Income Tax Act 1961 Income Tax 6188 A.Y.2014-2015 Income Tax Appeallate Tribunal
Income Tax Act 1961 Income Tax 51784 A.Y.2017-2018 Commissioner of Income Tax
Income Tax Act 1961 Income Tax 2345 A.Y.2015-2016 Income Tax Appeallate Tribunal

(viii) During the year the Company has not defaulted in repayment ofloans or borrowings to financial institutions.The Company has not taken any loans orborrowings from any bank or government nor has it issued any debentures.

(ix) The Company has prima facie utilized the moneys raised by way ofright issue and the term loans during the year for the purposes for which they were raisedexcept for details given below.

Nature of the fund raised Details of default (Reason /Delay) Amount (`in `000) Subsequently rectified (Yes/No) and details
Right issue The proceeds could not be utilized as the same was available for utilization for a short period of time from the date of receipt to Balance Sheet date 62086 No

(x) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of fraud by the Company or any fraud on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any suchinstance by the management.

(xi) Managerial remuneration has been paid / provided in accordancewith the requisite approvals mandated by the provisions of Section 197 read with ScheduleV to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Thereforeclause 3(xii) of the Order is not applicable to the Company.

(xiii) All transactions entered into by the Company with the relatedparties are in compliance with Sections 177 and 188 of Act where applicable and thedetails have been disclosed in the Standalone Ind AS Financial Statements as required bythe applicable accounting standards.

(xiv) The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year. Thereforeclause 3(xiv) of the Order is not applicable to the Company.

(xv) The Company has not entered into any non-cash transactions withdirectors or persons connected with them during the year and hence provisions of Section192 of the Act are not applicable.

(xvi) The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No. 103523W / W100048
Snehal Shah
Partner
Membership No. 048539
UDIN: 20048539AAAABN2435
Place: Mumbai
Date: June 30 2020

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 2(f) under ‘Report on Other Legal andRegulatory Requirements' section in our Independent Auditor's Report of evendate to the members of Arrow Greentech Limited on the Standalone Ind AS FinancialStatements for the year ended March 31 2020]

Report on the Internal Financial Controls with reference to FinancialStatements under clause (i) of sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls with reference toFinancial Statements of Arrow Greentech Limited ("the Company") as of March 312020 in conjunction with our audit of the Standalone Ind AS Financial Statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control with reference toFinancial Statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the Instituteof Chartered Accountants of India ("ICAI"). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding 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 Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to Financial Statements based on our audit. We conductedour audit in accordance with the Guidance Note and the Standards on Auditing specifiedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both issued by the ICAI. 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 with reference toFinancial Statements was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to Financial Statements andtheir operating effectiveness.

Our audit of internal financial controls with reference to FinancialStatements included obtaining an understanding of internal financial controls withreference to Financial Statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal controls basedon the assessed risk. The procedures selected depend on the auditor's judgementincluding the assessment of the risks of material misstatement of the FinancialStatements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls with reference to Financial Statements.

Meaning of Internal Financial Controls with reference to FinancialStatements

A company's internal financial control with reference to FinancialStatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Financial Statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial control with reference to Financial Statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of Financial Statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the Financial Statements.

Inherent Limitations of Internal Financial Controls with reference toFinancial Statements

Because of the inherent limitations of internal financial controls withreference to Financial Statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to Financial Statements to future periods are subject to the riskthat the internal financial controls with reference to Financial Statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2020 based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrols stated in the Guidance Note issued by the ICAI.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W / W100048
Snehal Shah
Partner
Membership No.048539
UDIN 20048539AAAABN2435
Place : Mumbai
Date : June 30 2020

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