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Emmbi Industries Ltd.

BSE: 533161 Sector: Industrials
NSE: EMMBI ISIN Code: INE753K01015
BSE 00:00 | 18 Aug 92.10 0.40
(0.44%)
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91.10

HIGH

94.00

LOW

90.75

NSE 00:00 | 18 Aug 91.90 1.25
(1.38%)
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92.35

HIGH

93.75

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OPEN 91.10
PREVIOUS CLOSE 91.70
VOLUME 5408
52-Week high 121.00
52-Week low 76.50
P/E 9.27
Mkt Cap.(Rs cr) 163
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 91.10
CLOSE 91.70
VOLUME 5408
52-Week high 121.00
52-Week low 76.50
P/E 9.27
Mkt Cap.(Rs cr) 163
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Emmbi Industries Ltd. (EMMBI) - Auditors Report

Company auditors report

O THE MEMBERS OF T EMMBI INDUSTRIES LIMITED.

Report on the Financial Statements

Opinion

We have audited the accompanying financial statements of Emmbi Industries Limited("the Company") which comprise the Balance Sheet as at March 31 2021 theStatement of Pro t and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of the significant accoun ng policies and other explanatory informa on (hereina erreferred to as "the financial statements").

In our opinion and to the best of our informa on and according to the explana ons givento us the aforesaid financial statements give the informa on required by the CompaniesAct 2013 ("the Act") in the manner so required and give a true and fair view inconformity with the Indian Accoun ng Standards prescribed under sec on 133 of the Act readwith the Companies (Indian Accoun ng Standards) Rules 2015 as amended ("IndAS") and other accoun ng principles generally accepted in India of the state of aairs of the Company as at March 31 2021 the profit and total comprehensive incomechanges in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAudi ng specified under sec on 143(10) of the Act (SAs). Our responsibili es under thoseStandards are further described in the Auditor's Responsibili es for the Audit of theStandalone Financial Statements sec on of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Ins tute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe standalone financial statements under the provisions of the Act and the Rules madethereunder and we have fulfilled our other ethical responsibili es in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe financial statements.

Key Audit Ma ers

Key audit ma ers are those ma ers that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These ma erswere 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 ma ers. Wehave determined the following ma er to be the key audit ma er to be communicated in ourReport.

Key Audit Ma er Auditor's Response
Evalua on of uncertain tax posi on
The company has material uncertain tax posi ons including ma ers under dispute which involves significant judgement to determine the possible outcome of these disputes. Our audit procedures include the following :-
- Gained an understanding of the process of iden ca on of claims li ga ons and con ngent liabili es and iden ed key controls in the process. For selected controls we have performed tests of controls.
Refer Note 26 to the Standalone Financial Statements. - Obtained the summary of Company's legal and tax cases and cri cally assessed management's posi on through discussion with the Legal Counsel on both the probability of success in significant cases and the magnitude of any poten al loss.

Informa on Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the prepara on of the other informaon. The other informa oncomprises the informa on included in the Management Discussion andAnalysis Board's Report including Annexures to Board's Report Business ResponsibilityReport Corporate Governance and Shareholder's Informa on but does not include thefinancial statements and our auditor's report thereon. Our opinion on the financialstatements does not cover the other informa on and we do not express any form of assuranceconclusion thereon. In connec on with our audit of the financial statements ourresponsibility is to read the other informa on and in doing so consider whether theother informa on is materially inconsistent with the 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 informa on we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the ma ers stated in sec on 134(5)of the Act with respect tothe prepara on of these financial statements that give a trueand fair view of the financial posi on financial performance total comprehensive incomechanges in equity and cash

flows of the Company in accordance with the Ind AS and other accoun ng principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccoun ng records in accordance with the provisions of the Act for safeguarding the assetso he Company and for preven ng and detec ng frauds and other irregulari es; selec on andapplica on of appropriate accoun ng policies; making judgments and es mates that arereasonable and prudent; and design implementa on and maintenance of adequate internalfinancial controls that were opera ng e ec vely for ensuring the accuracy andcompleteness of the accoun ng records relevant to the prepara on and presenta on of thefinancial statements 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 con nue as a going concern disclosing as applicable ma ers relatedto going concern and using the going concern basis of accoun ng unless management eitherintends to liquidate the Company or to cease opera ons or has no realis c alterna ve butto do so. The Board of Directors are responsible for overseeing the Company's financialrepor ng process.

Auditor's Responsibili es for the Audit of the Financial Statements

Our objec ves are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SA's willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements. As part of an audit in accordance with SAs we exerciseprofessional judgment and maintain professional scep cism throughout the audit.

We also:

Iden fy 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 detec ng a material misstatement resul ng from fraud ishigher than for one resul ng from error as fraud may involve collusion forgery intenonal omissions misrepresenta ons 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 sec on143(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 opera ng e ecveness of such controls.

Evaluate the appropriateness of accoun ng policies used and the reasonableness ofaccoun ng es mates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccoun ng and based on the audit evidence obtained whether a material uncertainty existsrelated to events or condi ons that may cast significant doubt on the Company's ability tocon nue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw a en on in our auditor's report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or condi ons may cause the Company to cease to con nue as agoing concern.

Evaluate the overall presenta on structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransac ons and events in a manner that achieves fair presenta on.

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 maybe in uenced. We considerquan ta ve materiality and qualita ve factors in (i) planning the scope of our audit workand in evalua ng the results of our work; and (ii) to evaluate the effect of any iden edmisstatements in the financial statements.

We communicate with those charged with governance regarding among other ma ers theplanned scope and ming of the audit and significant audit findings including anysignificant deficiencies in internal control that we iden fy 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 rela onships and other ma ers that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the ma ers communicated withthose charged with governance we determine those ma ers that were of most significance inthe audit of the financial statements of the current period and are therefore the keyaudit ma ers.

We describe these ma ers in our auditor's report unless law or regula on precludespublic disclosure about the ma er or when in extremely rare circumstances we determinethat a ma er should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunica on.

Report on Other Legal and Regulatory Requirements

1. As required by Sec on 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the informa on and explana ons which to the best ofour 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 examina on of those books.

c) The Balance Sheet the Statement of Pro t and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Sec on 133 of the Act.

e) On the basis of the wri en representa ons 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 Sec on 164 (2) of theAct.

f) With respect to the adequacy of the internal financial controls over financial reporng of the Company and the opera ng e ec veness of such controls refer to our separateReport in"Annexure A". Our report expresses an unmodi ed opinion on theadequacy and opera ng e ec veness of the Company's internal financial controls overfinancial repor ng.

g) With respect to the other ma ers to be included in the Auditor's Report inaccordance with the requirements of sec on 197(16) of the Act as amended: In our opinionand to the best of our informa on and according to the explana ons given to us theremunera on paid by the Company to its directors during the year is in accordance with theprovisions of sec on 197 of the Act.

h) With respect to the other ma ers to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our informa on and according to the explana ons given tous:

i. The Company has disclosed the impact of pending li ga ons on its financial posi onin its financial statements.

ii. The Company doesn't have any long term contracts including deriva ve contractsrequiring provision for material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Educa on and Protec on Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Sec on 143(11) of the Act we give in"AnnexureB" a statement on the ma ers specified in paragraphs 3 and 4 of the Order.

For R DALIYA & ASSOCIATES
Chartered Accountants
(ICAI FRN: 102060W)
Daliya K.
Place : Mumbai Partner
Date : 25.06.2021 (M No. 166874)
UDIN: 21166874AAAAAX4674

Independent Auditor's Report

Annexure A

(Referred to in Paragraph 1 (f) of the Report on Other Legal and RegulatoryRequirements in our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub Sec on 3 of Sec on 143 of the Companies Act 2013 ("the Act")

1. We have audited the internal financial controls over financial repor ng of EmmbiIndustries Ltd. ("the Company") as of 31 March 2021 in conjunc on with ouraudit of the Ind AS financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on internal controls over financial repor ng criteria establishedby the company considering the essen al components of internal controls stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Ins tute of Chartered Accountants of India ("ICAI"). These responsibili esinclude design implementa on and maintenance of adequate internal financial controls thatwere opera ng e ec vely for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preven onand detec on of frauds and errors the accuracy and completeness of the accoun ng recordsand the mely prepara on of reliable financial informa on as required under the CompaniesAct 2013 (" the Act").

Auditor' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial repor ng based on our audit. We conducted our audit with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Audi ng deemed to be prescribed under Secon 143 (10) of the Act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of internal financial controls and both issued byICAI. Those Standards and the Guidance Note require that we comply with the ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial repor ng was established andmaintained and if such controls operated e ec vely in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial repor ng and their opera ng e ecveness. Our audit of internal financial controls over financial repor ng includedobtaining an understanding of internal financial controls over financial repor ngassessing the risk that a material weakness exists and tes ng and evalua ng the designand opera ng e ec veness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risk ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.

5. 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 control systemover financial repor ng.

Meaning of Internal Financial Controls Over Financial Reporting

6. A company's internal financial controls over financial repor ng is a processdesigned to provide reasonable assurance regarding the reliability if financial repor ngand the prepara on of financial statements for external purposes in accordance withgenerally accepted accoun ng principles. A company's internal financial control overfinancial repor ng includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransac ons and disposi ons of the assets of the company; (2) provide reasonable assurancethat transac ons are recorded as necessary to permit prepara on of financial statements inaccordance with generally accepted accoun ng principles and that receipts andexpenditures of the company are being made only in accordance with authoriza ons ofmanagement and directors of the company; and (3) provide reasonable assurance regardingpreven on or mely detec on of unauthorized acquisi on use or disposi on of the company'sassets that could have a material effect on the financial statements.

Inherent Limita ons of Internal Financial Controls over Financial Reporting

7. Because of the inherent limita ons of internal financial controls over financialrepor ng including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projec ons of any evalua on of the internal financial controls over financial reporng to future periods are subject to the risk that the internal financial controls overfinancial repor ng may become inadequate because of changes in condi ons or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial repor ng and such internal financial controlsover financial repor ng were opera ng e ec vely as at 31 March 2021 based on the internalcontrols over financial repor ng criteria established by the Company considering the essenal components of internal controls stated in the Guidance

For and on behalf of
R Daliya & Associates
Chartered Accountants
Place : Mumbai FRN :. 102060W.
Date : 25.06.2021 K. Daliya
Partner
Membership No. :- 166874
UDIN: 21166874AAAAAX4674

Annexure - B

(Referred to in Paragraph 2 of the Report on Other Legal and Regulatory Requirements inour report of even date)

(i) (a) The Company has maintained proper records showing full par culars includingquan ta ve details and situa on of the property plant and equipment on the basis ofavailable informa on.

(b) As explained to us the property plant and equipment have been physically veri edby the management during the year at regular intervals and no material discrepancies wereno ced on such veri ca on.

(c) According to the informa on and explana ons given to us and on the basis of ourexamina on of the records of the Company the tle deeds of Immovable Proper es asdisclosed in Note 5 on the property plant and equipment to the Ind AS financialstatements are held in the name of the Company. In respect of immovable proper es beentaken on lease and disclosed as property plant and equipment in the Ind AS financialstatements the lease agreements are in the name of the company.

In respect of immovable proper es been taken on lease and disclosed as property plantand equipment in the Ind AS financial statements the lease agreements are in the name ofthe Company.

(ii) The management has conducted physical veri ca on of inventory at reasonableintervals. No material discrepancies were no ced on physical veri ca on.

(iii) As informed to us during the year the Company has granted any loans secured orunsecured to companies rms or other parties covered in the register maintained under Secon 189 of the Act. The company has granted loan to Limited Liability Partnership theterms and condi ons of the grant of such loans are in our opinion prima facie notprejudicial to the Company's interest. Details of the same have been men oned in Note 37.

(iv) In our opinion and according to the informa on and explana ons given to us theCompany has complied with the provisions of Sec on 185 and 186 of the Act with respect tothe loans given investments made guarantees and securi es given.

(v) According to the informa on and explana ons given to us the company has notaccepted any deposits during the year within the meaning of provisions of Sec on 73 to 76of the Companies Act 2013 any other relevant provisions of the Act and the rules framedthere under to the extent no ed.

(vi) As informed to us the Central Government has not prescribed maintenance of costrecords under sub-sec on (1) of Sec on 148 of the Act.

(vii) (a) According to the records informa on and explana on provided to us thecompany is regular in deposi ng with appropriate authori es undisputed amount of ProvidentFund Employees' State Insurance Income Tax Custom Duty Goods and Service Tax Cess andother statutory dues applicable to it and no undisputed amounts payable were outstandingas at 31st March 2021 for a period of more than six months from the date they becamepayable.

(b) According to the informa on and explana on given to us and as per our veri ca on ofrecords of the company the disputed amounts of Income Tax which are not deposited withappropriate authori es as at 31st March 2021 are as follows:

Amount is due under Income Tax Act 1961 as Income Tax amoun ng Rs. 39005030/-forthe period 01.04.2010 to 31.03.2011 which is reduced by ITAT to Rs 5850760/-. Appealwith H'ble Bombay High Court is preferred for the remaining part. Amount is due underIncome Tax Act 1961 as Income Tax Penalty amoun ng Rs. 3947758/- for the A.Y.:2011-2012 which is pending with CIT Appeal.

(viii) Based on our audit procedures and on the informa on and explana on given to usthe company has not defaulted in repayment of dues or borrowings to any financial ins tuon or bank or Government or dues to Debenture holders as at the balance sheet date.

(ix) The company has not raised any money by way of ini al public offer further publicoffer (including debt instruments) money raised by term loans have been applied by thecompany during the year for the purpose for which those are raised.

(x) To the best of our knowledge and accordingly to the informa on and explana onsgiven no material fraud by the company or on the company by its o cers has been no ced orreported during the course of our audit.

(xi) The Company has paid / provided for Managerial Remunera on in accordance with therequisite approvals mandated by the provisions of Sec on 197 read with Schedule V of theAct.

(xii) According to the informa on and explana ons given to us in our opinion thecompany is not a Nidhi Company as prescribed under Sec on 406 of the Act.

(xiii) According to the informa on and explana ons given to us and based on our examinaon of the records of the Company all transac ons with the related parties are incompliance with sec on Sec ons 177 and 188 of the Act where applicable and details ofsuch transac ons have been disclosed in the Ind AS financial statements as required by theapplicable accoun ng standards.

(xiv) During the year the company has not made any preferen al allotment of shares toparties and companies covered in the register maintained u/s 42 of the Companies Act2013. Accordingly the provisions of Clause 3(xiv) of the Order are not applicable to theCompany.

(xv) In our opinion and according to informa on and explana on given to us the Companyhas not entered into any Non Cash Transac ons with the Directors or person connected withhim during the year. Accordingly the provisions of Clause 3(xv) of the Order are notapplicable to the Company.

(xvi) The company is not required to be registered under sec on 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For and on behalf of
R Daliya & Associates
Chartered Accountants
Place :- Mumbai FRN :. 102060W
Date : 25.06.2021 K. Daliya
Partner
Membership No. :- 166874
UDIN: 21166874AAAAAX4674

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