To the Members of
Baroda Extrusion Limited.
Report on the Audit of the Standalone Financial Statements
We have audited the financial statements of Baroda Extrusion Limitedwhich comprise the Balance Sheet as at 31stMarch 2021 and the Statement ofProfit and Loss including Other Comprehensive Income Statement of Changes in Equity andStatement of Cash Flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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 accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 and its loss 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(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance 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 evidences we have obtainedsufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to the Item C of Note No 28 of the FinancialStatements which describes the pending lawsuits filed between the company and the lenderSICOM Limited on each other. The Status of these law suits are still pending as on date.The Company has not booked any interest liability during the year in respect ofoutstanding dues payable to SICOM Limited. The Balances of Loans & Advances and SundryDebtors are subject to balance confirmations. Our Opinion is not modified in respect ofthese matters.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthis matter. There is no key audit matter to communicate in our report.
Information Other than the Financial Statements and Auditor'sReport Thereon
The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report including Annexureto Board's Report Corporate Governance and Shareholder's Information but doesnot include the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.
We have not been provided the aforesaid reports and hence we havenothing to report in this regard.
Management's Responsibility for the Standalone FinancialStatements and for Internal Financial control over Financial Reporting
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position and financial performance including other comprehensive income changesin equity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the accounting standards (Ind AS) specified undersection 133 of the Act read with relevant rules issued there under.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
The Company's Management is responsible for establishing andmaintaining internal financial controls based on essential components of the internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.
In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the FinancialStatements
We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act and the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting. Our objectives are to obtain reasonableassurance about whether the financial statements as a whole are free from materialmisstatement whether due to fraud or error and to issue an auditor's report thatincludes our opinion. Reasonable assurance is a high level of assurance but is not aguarantee that an audit conducted in accordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesefinancial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism 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 ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 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 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 financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
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.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial controls over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
Report on Other Legal and Regulatory Requirements
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 of the Companies Act 2013 we give in the Annexure "A"a statement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with relevant rules issued thereunder.
(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 31st March 2021 from being appointed as a director in terms of Section164 (2) of the Act.
(f) In our opinion considering nature of business size of the operation andorganizational structure of the entity the company has in all material respects doesnot have an adequate internal financial controls system over financial reporting and suchinternal financial controls over financial reporting were not operating effectively as at31st March 2021 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.
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion to the best of our information and according to the explanations givento 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 item C of Note 28 to FinancialStatements.
ii. The Company did not have any long- term contracts including derivative contractsfor which 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 Maloo Bhatt & Co. |
| ||Chartered Accountants |
| ||CA. Shyam Sunder Lohia |
| ||Partner |
|Place: Vadodara ||(F.R.No.129572W & M No. 426642) |
|Date: 28th June 2021 ||UDIN : 21426642AAAABY6231 |
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to paragraph 1 under "report on other legal and regulatoryrequirements" of our report of even date on the accounts for the year ended on 31stmarch 2021 of Baroda Extrusion Limited)
1. In respect of its fixed assets:
(a) The Company has not updated its records of fixed assets including quantitativedetails and situation of its fixed assets.
(b) The physical verification of fixed assets have not been conducted during the yearby the management and in view of the same material discrepancy if any have not beenascertained.
(c) According to the information and explanations given to us by the managementimmovable properties are held in the name of the Company The title deeds of immovableproperties have not been produced before us for our verification.
2. The physical verification of inventory has been conducted by the Management at yearend and as informed to us no material discrepancies have been noticed on such physicalverification as compared to book records. However the frequency of verification needs tobe increased.
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.
4. According to information and explanations given to us the Company has complied withthe provisions of section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and security.
5. According to information and explanations given to us the Company has not acceptedany deposits during the year.
6. To the best of our knowledge and explanations provided by the management themaintenance of cost records has been prescribed by the Central Government under subsection (1) of section 148 of the Companies Act 2013 and are maintained accordingly.
7. According to the information and explanations given to us in respect of statutoryand other dues :
(a) The Company has been regular in depositing undisputed statutory dues includingProvident fund Employees' state Insurance Income Tax Goods & Services Taxduty of customs cess and other statutory dues to the appropriate authorities during theyear. Based on our audit procedures and according to the information and explanationsgiven to us there are no arrears of statutory dues which has remained outstanding as at31stMarch 2021 for a period of more than six months from the date they becamepayable.
(b) According to the information and explanations given to us and onthe basis the records produced before us by the Company except for the cases statedbelow there are no undisputed amounts payable in respect of income tax / sales tax /Service tax / customs duty / wealth tax / excise duty / cess which have not beendeposited on account of any dispute.
|Nature of Dues ||Related Period (FY) ||Amount Rs. |
|Income Tax ||2009-10 ||2424020/- |
|Income Tax ||2013-14 ||2000/- |
|TDS ||2007-08 to 2020-21 ||377374/- |
8. According to the records of the Company examined by us and the information andexplanation given to us the Company has defaulted in repayment of its dues to SICOM Ltd.as at Balance Sheet date to the extent of Rs. 458705234/- (exclusive of non- provisionof interest for the year 2014-15 2015-16 2016-17 2017-18 2018-19 2019- 20 and2020-21) The Company has defaulted in repayment of its dues to SICOM Ltd since last sevenyears. The Dues with the SICOM is still under litigation as on the date of approval offinancial statements.
9. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year.
10. According to the information and explanations given to us we have not noticed orreported any fraud by the company or any fraud on the Company by its officers or employeesduring the year.
11. The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act.
12. This clause of the Companies (Auditor's Report) Order 2016 is not applicable tothe Company as the company is not a Nidhi Company.
13. According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.
14. According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.
15. According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him andthe provisions of section 192 of Companies Act 2013 have been complied with.
16. This clause of the Companies (Auditor's Report) Order 2016 is notapplicable to the
Company as the company is not a required to be registered under section45-lA of the Reserve Bank of India Act 1934.
| ||For ||Maloo Bhatt & Co. |
| || |
| || |
CA. Shyam Sunder Lohia
| || ||Partner |
|Place: Vadodara || |
(F.R.No.129572W & M No. 426642)
|Date: 28th June 2021 || |
UDIN : 21426642AAAABY6231