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Elango Industries Ltd.

BSE: 513452 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE594D01018
BSE 00:00 | 16 Sep 8.37 0
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NSE 05:30 | 01 Jan Elango Industries Ltd
OPEN 7.96
PREVIOUS CLOSE 8.37
VOLUME 5573
52-Week high 14.04
52-Week low 1.95
P/E 93.00
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.96
CLOSE 8.37
VOLUME 5573
52-Week high 14.04
52-Week low 1.95
P/E 93.00
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Elango Industries Ltd. (ELANGOINDUSTRIE) - Auditors Report

Company auditors report

To the Members of Elango Industries Limited Report on the Standalone FinancialStatements Opinion

We have audited the accompanying standalone IND AS Financial Statements of ElangoIndustries Limited which comprise the Balance Sheet as at 31 March 2021 theStatement of Profit and Loss (including the statement of other Comprehensive Income) theCash Flow Statement the statement of changes in Equity for the year then ended and notesto the financial statements including a summary of significant accounting policies andother explanatory information (hereinafter referred to as ‘Standalone FinancialStatements').

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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2021 its profits including other comprehensive Income its cash flows andthe statement of changes in equity 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 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 Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis 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 standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatement as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters.

We have determined the matters described below to be the key audit matters to becommunicated in our report.

S. Key Audit Matters Auditor's Response
1 The revenue recognition accounting standard involves certain key judgments relating to identification of distinct Performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period. Read analyzed and identified the distinct performance obligations in the Operation and Maintenance contracts. Compared these performance obligations with that identified and recorded by the company.
Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration.
Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings. We reviewed the collation of information and the logic of the revenue recognition from the Operation and Management services used to prepare the disclosure relating to the periods over which the Performance obligations will be satisfied.

Emphasis of Matter

Note No. 4 of the Standalone Financial Statements consists of a balance with StatutoryAuthorities Rs.11001636/- As per explanations received this is Electricity Subsidyreceivable pending for a long period. In the absence of adequate information with regardto their present status we are unable to ascertain the recoverability of this balance.

Our opinion is not modified in respect of this matter.

Contd…3

Other Information

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditor's reportthereon.

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 in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation; we are required to report that fact. We have nothing to report in thisregard.

Responsibility 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 Companies Act 2013 (‘the Act') with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance including Other Comprehensive Income cashflows and the statement of changes in equity of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act read with Rule 7 of theCompanies (Indian Accounting Standards) Rules 2015 as amended and the relevant provisionsof the Companies Act 2013. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company1 and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error. In preparing the financialstatements the Board of Directors a r e responsible for assessing the Company's abilityto continue as a going concern disclosing as applicable matters related to goingconcern and using the going concern basis of accounting unless the Board of Directorseither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. That Board of Directors is also responsible for overseeing thecompany's financial reporting process.

Auditors' 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 with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal controls relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls. Evaluate the appropriateness of accounting policies used and thereasonableness

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of accounting estimates and related disclosures made by management and Board of

Directors.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 statement 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 standalonefinancial statement including the disclosures and whether the standalone financialstatements represent the underlying transactions and events 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 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 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 determine1 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 sub section (11) of Section 143 ofthe Act we give in the ‘Annexure A' a statement on the matters specified inparagraphs 3 and 4 of the order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that : a. We have sought 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 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 including Other

Comprehensive Income the Cash Flow Statement and statement of changes in Equity dealtwith by this Report are in agreement with the books of account;

d. In our opinion the aforesaid standalone financial statements comply with the

Accounting Standards specified under Section 133 of the Act.

e. On the basis of the written representations received from the directors as on

31 March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164 (2) of the Act;

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'; and

g. with respect to the other matters to be included in the Auditors' 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 does not have1 any pending litigations which would impact its financialposition; ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses; and

iii. There were no amounts which were required to be transferred to the investor

Education and Protection Fund during the year by the Company.

For P PATTABIRAMEN & CO.
Chartered Accountants
Firm Registration No.: 002609S
P VIJAY ANAND
Partner
Membership No: 211954
Place : Chennai
Date : May 04 2021
UDIN: 21211954AAAADN7738

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date)

(i) (a) According to the information and explanations given to us the Company isadequately maintaining proper records showing full particulars including quantitativedetails and location of fixed assets.

(b) According to the information and explanations given to us all the fixed assetshave been physically verified by the management at reasonable intervals. No materialdiscrepancies were noticed on such verification.

(c) According to information and explanations given to us the company has no immovableproperties and verification of original Title deeds does not arise.

(ii) According to the information and explanations given to us there were noinventories hence this clause (ii) is not applicable to the Company.

(iii) According to the information and explanations given to us the Company hasgranted unsecured loans to Companies Firms Limited Liability partnerships or otherparties covered in the register maintained under section 189 of the Companies Act 2013 inrespect of which: a. The terms and conditions are in our opinion prima facie notprejudicial to the interest of the Company b and c. The repayment schedule is notprescribed and therefore no overdue amounts as at the year end.

(iv) In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and security given by the Company theprovisions of section 185 and 186 of the Companies Act 2013 have been complied with.

(v) According to the information and explanations given to us the Company has notaccepted any deposits and accordingly this clause (v) is not applicable to the Company.

(vi) Maintenance of cost records has not been specified by the Central Government undersub-section (1) of Section 148 of the companies Act 2013. 1 (vii) (a) According to theinformations and explanations given to us the Company is generally regular in depositingundisputed statutory dues including Provident Fund Employees State Insurance Income TaxSales Tax Goods and Service Tax Duty of Custom Duty of Excise Value Added Tax Cessand any other statutory dues wherever applicable with the appropriate authorities duringthe year and no undisputed amounts payable were outstanding as at March 31 2021 for aperiod of more than six months from the day on which they became payable.

(b) According to the informations and explanations given to us there are no disputeddues in respect of Income Tax Sales Tax Goods and Service Tax Duty of Custom Duty ofExcise Value Added Tax Cess and any other statutory dues

Cont'd…2 applicable.

(viii) According to the information and explanations given to us the company has notobtained any loans (including debt instruments) during the year either from FinancialInstitutions or Banks or Government and hence this clause (viii) is not applicable to theCompany.

(ix)According to the information and explanations given to us the Company has notraised moneys by way of initial public offer or further public offer including debtinstruments and has not availed any term loan. Hence this clause (ix) is not applicable tothe Company.

(x) According to the information and explanations given to us no fraud by the Companyand no material fraud on the Company by its officers or employees has been noticed orreported during the period under review.

(xi)According to the information and explanations given to us the Company has notpaid/provided managerial remuneration to Managing Director and other directors during theyear. Hence this clause (xi) is not applicable to the Company.

(xii) In our opinion and according to the information and explanation given to us theCompany is not a Nidhi Company. Accordingly this clause (xii) of the Order is notapplicable to the Company.

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(xiii) In our opinion and according to the information and explanation given to ustransactions entered into with the related parties are in compliance with Section 177 and188 of the Companies Act 2013 where applicable. The details of all transactions have beendisclosed in the Financial Statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with them.

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

For P. Pattabiramen & Co. Chartered
Accountants Firm Regn.No.002609S
Vijay Anand P
Partner
Membership No. 211954
Place: Chennai. UDIN: 21211954AAAADN7738
Dated: 04th May 2021

ANNEXURE B -TO THE INDEPENDENT AUDITOR'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 ElangoIndustries Limited ("the Company") as of 31 March 2021 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 ). 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 safeguarding ofits 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 Companies Act 2013.

Auditors' Responsibility

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 obtain4 audit evidence about the adequacyof the 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 financial reporting includes those policiesand procedures that

a. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

b. 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 authorizations of management and directors of the company; and

c. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 misstatements4 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.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2021 based on the internal financialcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For P. Pattabiramen & Co.
Chartered Accountants Firm
Regn. No.002609S
P. Vijay Anand
Place: Chennai - 600040 Partner /M. No.211954
Date: May 04th 2021 UDIN: 21211954AAAADN7738

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