The Members of
CENTURY EXTRUSIONS LIMITED
Report on the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of CENTURY EXTRUSIONSLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2020 and the Statement of Profit and Loss (including Other Comprehensive Income)Statement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2020 and its profit changes inequity 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) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.
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 financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
We have determined the matters described below to be the key audit matters to becommunicated in our report.
|Key Audit Matter ||How our audit addressed the key audit matter |
|Revenue Recognition ||Principal Audit Procedures |
|Revenue from the sale of goods (hereinafter referred to as "Revenue") is recognised when the Company performs its obligation to its customers and the amount of revenue can be measured reliably and recovery of the consideration is probable. The timing of such recognition in case of sale of goods is when the control over the same is transferred to the customer which is mainly upon delivery. ||Our audit approach was a combination of test of internal controls and substantive procedures including: |
|The timing of revenue recognition is relevant to the reported performance of the Company. The management considers revenue as a key measure for evaluation of performance. There is a risk of revenue being recorded before control is transferred. ||-Assessing the appropriateness of the Company's revenue recognition accounting policies in line with Ind AS 115 ("Revenue from Contracts with Customers") and testing thereof. |
|Refer Note 1 to the Standalone Financial Statements - Significant Accounting Policies ||-Evaluating the integrity of the general information and technology control environment and testing the operating effectiveness of key IT application controls. |
| ||-Evaluating the design and implementation of Company's controls in respect of revenue recognition. |
| ||-Testing the effectiveness of such controls over revenue cut off at year-end. |
| ||-Testing the supporting documentation for sales transactions recorded during the period closer to the year end and subsequent to the year end. |
| ||-Performing analytical procedures on current year revenue based on monthly trends and where appropriate conducting further enquiries and testing. |
|Assessment of litigations and related disclosure of contingent liabilities ||Principal Audit Procedures |
|As at March 31 2020 the Company has exposures towards litigations relating to various matters. ||Our audit approach was a combination of test of internal controls and substantive procedures including: |
|Significant management judgement is required to assess such matters to determine the probability of occurrence of material outflow of economic resources and whether a provision should be recognised or a disclosure should be made. The management judgement is also supported with legal advice in certain cases as considered appropriate. ||- Understanding assessing and testing the design and operating effectiveness of key controls surrounding assessment of litigations relating to the relevant laws and regulations; |
|As the ultimate outcome of the matters are uncertain and the positions taken by the management are based on the application of their best judgement related legal advice including those relating to interpretation of laws/ regulations it is considered to be a Key Audit Matter. ||- Discussing with management the recent developments and the status of the material litigations which were reviewed and noted by the audit committee; |
|Refer Note 32 to the Standalone Financial Statements - Commitments and Contingent Liabilities ||- Performing our assessment on a test basis on the underlying calculations supporting the contingent liabilities/other significant litigations made in the Standalone Financial Statements; |
| ||- Using auditor's experts to gain an understanding and to evaluate the disputed tax matters; |
| ||- Considering external legal opinions where relevant obtained by management; |
| ||- Analysis the response obtained from Company's external legal counsel to understand the interpretation of laws/regulations considered by the management in their assessment relating to a material litigation; |
| ||- Evaluating the management's assessments by understanding precedents set in similar cases and assessed the reliability of the management's past estimates/judgments; |
| ||- Assessing the adequacy of the Company's disclosures. |
| ||Based on the above work performed management's assessment in respect of litigations and related disclosures relating to contingent liabilities/other significant litigations in the Standalone Financial Statements are considered to be reasonable. |
The Company's Board of Directors is responsible for the Other Information. The otherinformation comprises the information included in the Board's Report Corporate Governanceand Shareholders Information but does not include in the financial statements and ourauditor's report theron.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusions 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 financial statements of our knowledge obtained in theaudit 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 be report that fact. We havenothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the India AccountingStandard (Ind AS) specified under section 133 of the Act read with relevant Rules issuedthereunder. This responsibility also includes maintenance of adequate accounting recordsin accordance 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 standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the standalone financial statements the Board of Directors is responsiblefor assessing 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 the Board of Directors either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
- Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
- Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of Standalone Financial Statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditors' report unless law or regulation precludes public disclosure about the matteror 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.
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 Section 143) of the Act we give inthe Annexure "A" the matters specified in paragraph 3 and 4 of the Order to theextent applicable to the Company.
2. As required by section 143(3) of the Act we report that:
2.1. We have sought and obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purpose of our audit.
2.2. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.
2.3. The Balance Sheet Statement of Profit & Loss Statement of Change in Equityand Cash Flow Statement dealt with by this report are in agreement with the books of theaccount.
2.4. In our opinion the standalone financial statements comply with the IndianAccounting Standards (Ind As) specified under section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.
2.5. On the basis of written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the director isdisqualified as on 31st March 2020 from being appointed as Director in termsof Section 164(2) of the Act.
2.6. With respect to the adequacy of internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure "B".
2.7. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 32 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich 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.
3. With respect to the matter to be included in the Auditors' Report under section197(16):
In our opinion and according to the information and explanations given to us theremuneration by way of Directors Fees paid by the Company to its directors during thecurrent year is in accordance with the provisions of section 197 of the Act. Theremuneration paid to any director is not in excess of the limit laid down under section197 of the Act. The Ministry of Corporate Affairs has not prescribed other details undersection 197(16) which are required to be commented upon by us.
ANNEXURE "A" TO THE AUDITDR'S REPORT
(Referred to in paragraph 1 of the Report on other legal and regulatory requirements ofthe Independent Auditor's Report to the
Members of the Company of even date):
1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The management has physically verified its fixed assets at reasonable intervalswhich in our opinion is reasonable having regard to the size of the Company and nature ofits fixed assets. No material discrepancies were noticed on such verification
(c) In our opinion and according to information and explanations given to us the titledeeds of immovable properties are held in the name of Company.
2) The inventories have been physically verified by the management during the year atreasonable intervals and discrepancies noticed on physical verification were not material.
3) The company has not granted any loans secured or unsecured to companies firmslimited liability partnership and other parties listed in the Register maintained underSection 189 of the Companies Act 2013 and therefore provisions on clauses 3(iii) of theOrder are not applicable to the Company
4) In our opinion and according to the information and explanations given to us theCompany has neither given any loans nor has any investments and therefore provisions ofclause (iv) of the Order are not applicable to the Company.
5) In our opinion and according to information and explanation given to us during theyear the Company has not accepted any deposits from the public as defined under sections73 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder and therefore provisions on clauses 3(v) of the Order are not applicable to theCompany.
6) The Company has maintained the cost records as prescribed by the Central Governmentunder sub section (1) of section 148 of the Act.
7) (a) According to the records of the Company the Company is regular in depositingundisputed statutory dues including Provident Fund Employees State Insurance Income TaxSales Tax Service Tax Custom Duty Excise Duty Value Added Tax
Cess and any other statutory dues applicable to it except for few cases where there wasdelay in depositing of Provident Fund and Employees State Insurance Contribution with theappropriate authorities. According to information and explanations given to us there areno undisputed amounts payable in respect of aforesaid dues which were outstanding as at 31stMarch
2020 for a period of more than six months from the date they became payable.
(b) According to the records of the Company and according to information andexplanations given to us the Company does not have any outstanding disputed statutorydues as on 31st March 2020.
8) The Company has not defaulted in payment Loan borrowed from financial institutionsor bank or government or by way of issue of debentures.
9) During the year the Company has taken term loans which have been applied for thepurposes for which they were raised.
10) In our opinion and according to information and explanations given to us duringthe year no material fraud by the Company or any fraud on the company by its officers oremployees has been noticed or reported during the course of our audit
11) According to information and explanations given to us and based on our examinationof records of the Company the Company has paid/provided for Managerial Remuneration inaccordance with requisite approval mandated by provisions of section 197 read withschedule V of the Act.
12) The Company is not a Nidhi Company and therefore provisions of clause 3(xii) of theorder are not applicable to the Company.
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 section 177 and 188 of the Act where applicable and the details of suchtransactions have been disclosed in the Financial Statements as required by theapplicable accounting standards.
14) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and therefore provisions ofclause 3(xiv) of the order are not applicable to the Company
15) According to information and explanation given to us and based on our examinationof the records of the Company the Company has not entered into any non-cash transactionswith directors or persons connected with him during the year and therefore provisions ofclause 3(xv) of the order are not applicable to the Company.
16) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
ANNEXURE "B" TO THE AUDITDR'S REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of CENTURYEXTRUSIONS LIMITED ("the Company") as of 31 March 2020 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
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.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting 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 judgment 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.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2020 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 A. K. MEHARIA & ASSOCIATES |
| ||Chartered Accountants |
| ||Firm's ICAI Regn. No. 324666E |
| ||(A.K.Meharia) |
|Kolkata ||Partner |
|Dated : 18th day of July 2020 ||Membership No. 053918 |
| ||UDIN NO. 20053918AAAABE7977 |