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Baba Arts Ltd.

BSE: 532380 Sector: Media
NSE: N.A. ISIN Code: INE893A01036
BSE 00:00 | 25 May 18.55 -0.40
(-2.11%)
OPEN

19.00

HIGH

19.15

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18.00

NSE 05:30 | 01 Jan Baba Arts Ltd
OPEN 19.00
PREVIOUS CLOSE 18.95
VOLUME 2800
52-Week high 29.15
52-Week low 14.60
P/E 32.54
Mkt Cap.(Rs cr) 97
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 19.00
CLOSE 18.95
VOLUME 2800
52-Week high 29.15
52-Week low 14.60
P/E 32.54
Mkt Cap.(Rs cr) 97
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Baba Arts Ltd. (BABAARTS) - Auditors Report

Company auditors report

TO THE MEMBERS OF BABA ARTS LIMITED

Report on the Standalone Ind AS Financial Statements Opinion

We have audited the accompanying standalone Ind AS financial statements of BABA ARTSLIMITED ( the Company ) which comprise the Balance Sheet as at 31 March 2021 theStatement of Profit and Loss (including other comprehensive Income) the Statement of CashFlows and the statement of changes in equity for the year then ended and a summary of thesignificant accounting policies and other explanatory information (herein after referredto as standalone Ind AS financial statements ). In our opinion and to the best of ourinformation and according to the explanations given to us the aforesaid standalonefinancial statements give the information required by the Companies Act 2013 ( the Act )in the manner so required and give a true and fair view in conformity with the IndianAccounting Standards prescribed under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended ( Ind AS ) and other accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2021 the profit and total comprehensive income changes in equity and its cash flowsfor the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI s Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

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 there on and we do not provide aseparate opinion on these matters.

Description of Key Audit Matters as follows:-

The Key Audit Matters How the matter was addressed in our Audit
a. Adoption of Ind AS 115 – Revenue From Contracts with Customer
As described in Note No. 3(i) To the standalone financial statements The company adopted Ind AS 115 - Revenue from Contracts with Customers which is a new revenue accounting standard. The application and transition to this accounting standard is complex and is an area of focus in the audit. We Assessed the company s process to identify the impact of adoption of the new accounting standard.
Our Audit Approach consisted testing of design and operating effectiveness of the internal controls and substantive testing as follows :
* Selected a sample of contracts and performed a retrospective review of efforts incurred with estimated efforts to identify significant variances and verify whether those variations have been considered in estimating the remaining efforts to complete the contract.
* Performed analytical procedures and test of details for reasonableness of incurred and estimated efforts.
b. Evaluation of Uncertain Tax Positions
The company has material uncertain tax positions including matters under disputes which involves significant judgment to determine the possible outcome of these disputes * We obtained details of completed tax assessments and demands for the year ended March 31 2021 from management.
Refer Note No. (28) of the financial statements * We discussed with appropriate senior management and evaluated management s underlying key assumptions in estimating the tax provisions and;
* Assessed management s estimate to the possible outcome of the disputed cases.

Information Other than the Standalone 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 Board s Report including Annexure to Board s Report CorporateGovernance and Shareholder s Information but does not include the standalone financialstatements and our auditor s report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course 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.

Management's Responsibility for the Standalone Financial Statements

The Company s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ( the Act ) with respect to the preparation of thesestandalone Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with relevant rules issued there under.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error. In preparing the standalone financialstatements management is responsible for assessing the Company s ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company s financial reportingprocess.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor s report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone 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 therisks of material misstatement of the standalone financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations 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 reasonable ness 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 exists we are required to draw attention inour auditor s report to the related disclosures in the standalone financial statements orif such disclosures are inadequate to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our auditor s report. However future eventsor conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and event s in a manner that achieves fairpresentation.

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 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 chargedwith governance regarding among other matters the planned scope and timing of the auditand significant audit findings including any significant deficiencies in internal controlthat we identify during our audit. We also provide those charged with governance with astatement that we have complied with relevant ethical requirements regarding independenceand to communicate with them all relationships and other matters that may reasonably bethought to bear on our independence 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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor s report unless law or regulation precludes public disclosure about thematter or when 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.

Emphasis of Matter

We draw attention to Note: 32 to the standalone financial results which describes thatthe extent to which the COVID-19 and subsequent wave of Pandemic will impact the Company sresults will depend on future developments which are highly uncertain.

Our opinion is not modified in respect of this matter

Report on Other Legal and Regulatory Requirements

As required by Section 143(3) of the Act we report that:

1. As required by the Companies (Auditor s Report) Order 2016 ( Order ) issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure A a statement of the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

2. As required by Section 143(3) of the Act we report that: a) we have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b) in our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c) the balance sheet the statement of profit and loss(including other comprehensive income) the statement of cash flows and the statement ofchanges in equity dealt with by this Report are in agreement with the books of account; d)in our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with relevant ruleissued there under; e) On the basis of the written representations received from thedirectors as on 31 March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2021 from being appointed as a director in termsof Section 164 (2) of the Act. f) With respect to the adequacy of the Internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in Annexure B . g) With respect to the othermatters to be included in the Auditor s Report in accordance with the requirements ofsection 197 (16)of the Act as amended Company has not any remuneration to Directors(including Mg Director and Independent Directors) other than siting fees which is in limitof Companies Act 2013 h) With respect to the other matters included in the Auditor sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 and toour best of our information and according to the explanations given to us:-a. The Companyhas disclosed the impact of pending litigations on its financial position in itsstandalone Ind AS financial statements Refer Note 28 to the financial statements. b. TheCompany does not have any long-term contracts including derivatives contracts for whichthere were any material foreseeable losses. c. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany during the year ended.

FOR Arunkumar K.Shah & Co
Chartered Accountants
Firm Reg. No: 126935W
Place : Mumbai (Arunkumar.K.Shah )
Dated: 24th June 2021 Proprietor
Membership No: 034606
UDIN NO: 21034606AAAACK3457

Annexure "A" to the Independent Auditor's Report

Re: Baba Arts Limited

The Annexure referred to in our Independent Auditor s Report to the members of thecompany on the standalone Ind AS financial statements for the year ended 31st March 2021we report that :-

1. (a) The Company has maintained proper records to show full particulars includingquantitative details and situation of its fixed assets.

(b) The fixed assets of the Company have been physically verified by the Managementduring the year and no material discrepancies between the book records and the physicalinventory have been noticed. In our opinion this periodicity of physical verification isreasonable having regard to the size of the company and the nature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

2. Since the company is having only intellectual property rights as its inventorytherefore the Para 3(ii) of the order relating to physical verification of inventories isnot applicable.

3. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under Section 189 of the Companies Act.Hence the requirements of sub clause (a) (b) & (c) to clause (iii) of paragraph 3of the said Order are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 186 of the Companies Act 2013 inrespect of loans given. The Company has not granted any loans or made any investments orprovided any guarantees or security to the parties covered under Section 185 of the Act.

5. The company has not accepted the deposits from public as per the provisions ofsections 73 to 76 or any other relevant provisions of the Companies Act and the rulesframed there under.

6. The Central Government has not prescribed the maintenance of cost records undersub-section (1) of section 148 of the Companies Act for any activities of the Company.

7. (a) In our opinion and according to explanation given to us the company is regularin depositing undisputed statutory dues including provident fund employees stateinsurance income-tax goods and service tax sales-tax wealth tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues with theappropriate authorities.

(b) There is no arrears of outstanding statutory dues as at the last day of thefinancial year concerned for a period of more than six months from the date they becamepayable.

(c) According to the information and explanations given to us and the records of thecompany examined by us there are no dues in respect of income-tax sales tax wealth taxservice tax gst excise duty custom duty and cess as at March 31 2020 which have notbeen deposited on account of any dispute. The particulars of dues of value added tax andservice tax as at March 31 2020 which has not been deposited on account of dispute is asfollows : -

Nature of Statue Nature of Dues Amount in Rs. Period to which amount relates Forum where the disputeis pending
Maharashtra Value Added Tax Sales Tax 1884486 2010-11 Sales Tax Appellate Tribunal
Maharashtra Value Added Tax Sales Tax 2853 2013-14 Commissioner of Sales Tax
Service Tax Act Service Tax 76470058 2011-15 Appeal before CESTAT

8. As per the Information & explanation given to us the company has not borrowedmoney from banks/financial institutions nor issued any debentures and hence the questionof default in repayment of dues does not arise. Accordingly clause (viii) of paragraph 3of the Order is not applicable.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly clause(ix) of paragraph 3 of the Order is not applicable.

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

11. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company has not paid/provided formanagerial remuneration.

12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company.

Accordingly clause (xii) of paragraph 3 of the Order is not applicable.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

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

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

FOR Arunkumar K.Shah & Co
Chartered Accountants
Firm Reg. No: 126935W
(Arunkumar K.Shah )
Proprietor
Membership No: 034606
Place : Mumbai
Dated : 24th June2021

ANNEXURE"B"TO THE INDEPENDENT AUDITOR'S REPORT

Referred in paragraph 2(f) under "Report on Legal and Regulatory Requirement"section of our report of even date on the Standalone Ind AS Financial Statement OfStandard Industries Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013

1. We have audited the internal financial controls over financial reporting of BabaArts Limited (the Company ) as of March 31 2021 in conjunction with our audit of thestandalone Ind As financial statements for the year ended on that date.

2. 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.

3. Auditors' Responsibility

Our responsibility is to express an opinion on the Company s internal financialcontrols over financial reporting based on our audit.

We have conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the Guidance Note ) and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and both issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects to the extent applicable.

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 includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor s judgement 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.

4. 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company;

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company s assets that could have amaterial effect on the financial statements.

ANNUAL REPORT 2020-2021

5. 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.

6. Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Arunkumar K. Shah & Co
Chartered Accountants
FRN: 126935W
(Arunkumar K. Shah)
Proprietor
Membership No:034606
Place: Mumbai
Dated : 24th June2021

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