Bindal Exports Ltd.
|BSE: 540148||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE564V01013|
|BSE 00:00 | 04 Feb||Bindal Exports Ltd|
|NSE 05:30 | 01 Jan||Bindal Exports Ltd|
|BSE: 540148||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE564V01013|
|BSE 00:00 | 04 Feb||Bindal Exports Ltd|
|NSE 05:30 | 01 Jan||Bindal Exports Ltd|
To the Members of
BINDAL EXPORTS LIMITED
Report on the standalone Financial Statements Qualified
We have audited the accompanying Standalone financial statements of BINDAL EXPORTSLIMITED which comprises the Balance Sheet as at March 31 2021 and the Statement ofProfit and Loss (including other comprehensive income) the statement of changes in equityand statement of cash flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.
In our opinion and to the best of our information and according to the explanationsgiven to us subject to qualifications mentioned herein after in this report theaforesaid standalone Ind AS financial statements give the information required by theCompanies Act 2013 in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2021 and its profit/loss total comprehensive income the changesin equity and cash flows for the year ended on that date.
Basis for Qualified opinion
a) In absence of ascertainment by the company of liability towards Gratuity to be paidto retiring employees through Actuarial Valuation its impact on the profits / (losses) ofthe company cannot be ascertained. b) The company is not making provision for leave salaryon accrual basis.
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 Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese 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.
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.
Information other than the financial statements and auditors' 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 Board'sReport including Annexures to Board's Report Business Responsibility Report but does notinclude the financial statements and our auditor's report thereon. The report is expectedto be made available after the date of this auditor's report.
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 standalone financial statements or our knowledge obtainedduring 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 ofthese standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the accounting Standards specified under section 133 of theAct and Companies Ind AS Rules 2016 as amended from time to time and other accountingprinciples generally accepted in India.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand 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.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
Those Board of Directors are also responsible for overseeing the company's financialreporting process.
Auditor's Responsibility 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 withStandards of Auditing (SAs) will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.
As part of an audit in accordance with 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 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 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.
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 withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
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 ofthe Companies Act 2013 we give in the Annexure A a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
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 rule 7 of the Companies(Accounts) Rules 2014;
(e) On the basis of the written representations received from the directors as on March31 2021 taken on record by the board of directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct;
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure B. Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting;
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirement of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanation given to us theremuneration paid by the company to its directors during the year is in accordance withthe provisions of section 197 of the Act; and
(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;
a. The detail of pending litigations by and against the company which would impact itsfinancial position is submitted in Annexure-1;
b. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and
c. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
Details of Tax litigation as on 31st March 2019
ANNEXURE B TO THE AUDITOR'S REPORT
(Referred to in our Report of even date an annexure on the matters specified inparagraphs 3 and 4 of the CARO on the Statements of Accounts of BINDAL EXPORTS LIMITED asat and for the Year ended March 31 2021) we report that:
1. a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The company has a regular program of physical verification of fixed assets by themanagement during the year. The procedure and periodicity of verification in our opinionis reasonable having regard to the size of the company and the nature of its assets. Nomaterial discrepancies were noticed on such verification.
c) According to the information and explanation 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 company.
2. The inventory has been physically verified during the year by the management.In our opinion the frequency of verification is reasonable.
The procedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
On the basis of our examination of the records of inventory as maintained by thecompany we are of the opinion that the company is maintaining proper records of theinventory. The discrepancies noticed on verification between the physical stocks and thebook records were not material.
3. The company has granted a short term loan of Rs. 8.00 lacs to its associateconcern Bindal Silk Mills Pvt. Ltd.
4. In Our opinion and according to the information and explanation given to usthe company has compiled with the provision of section 185 and 186 of the companies actwith respect to the loans and investment made.
5. In our opinion and according to the information and explanations given to usthe company has not accepted any deposits from the public and consequently the directivesissued by Reserve Bank of India provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under with regard to thedeposits accepted from the public are not applicable. Thus Paragraph 3(v) of the order isnot applicable to the company.
6. According to information and explanations given to us the Central Governmenthas not prescribed for the maintenance of cost records under Section 148(1) of theCompanies Act 2013.
7. According to information and explanations given to us and on the basis of ourexamination of the books of accounts the company has been regular in depositing withappropriate authorities undisputed statutory dues including provident fund employees'state insurance income tax vat excise duty Goods and service tax cess and othermaterial statutory dues applicable to it with the appropriate authorities.
According to the information and explanation given to us no undisputed amount payablein respect of VAT Goods and service tax Customs Duty and Excise Duty were outstandingas at March 31 2021 for a period of more than six months from the date they becamepayable.
8. Based on our audit procedures and according to the information andexplanation given by the management the company has not defaulted in repayment of loansor borrowing to a financial institution bank and to the government.
9. Based on our audit procedures and according to the information andexplanation given by the management the company has not raised any fund by way of publicissue during the year. The Company has not raised any term loan during the year.
10. According to the information and explanation 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. Based on our audit procedures and according to the information and explanationgiven by the management the company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V to the Companies Act.
12. In our opinion and according to the information and explanation given to us thecompany is not a nidhi company. Accordingly paragraph 3(xii) of the order is notapplicable.
13. According to the information and explanation given to us and based on ourexamination of the records of the company transaction with the related parties are incompliance with sec 177 and 188 of the Act where applicable and details of suchtransaction have been disclosed in the financial statement as required by applicableaccounting standards.
14. According to the information and explanation given 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 explanation 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 paragraph 3(xv) ofthe order is not applicable.
16. The company is not required to be registered under sec 45-IA of the Reserve Bank ofIndia Act 1934.