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Fiem Industries Ltd.

BSE: 532768 Sector: Auto
NSE: FIEMIND ISIN Code: INE737H01014
BSE 00:00 | 27 Oct 1265.10 20.20
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NSE 00:00 | 27 Oct 1269.05 24.75
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OPEN 1275.00
PREVIOUS CLOSE 1244.90
VOLUME 37252
52-Week high 1342.00
52-Week low 470.35
P/E 19.56
Mkt Cap.(Rs cr) 1,665
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1275.00
CLOSE 1244.90
VOLUME 37252
52-Week high 1342.00
52-Week low 470.35
P/E 19.56
Mkt Cap.(Rs cr) 1,665
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Fiem Industries Ltd. (FIEMIND) - Auditors Report

Company auditors report

To the Members of Fiem Industries Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Fiem IndustriesLimited ("the Company") which comprise the balance sheet as at 31st March 2021the statement of profit and loss (including other comprehensive income) standalonestatement of changes in equity and standalone statement of cash flows for the year thenended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information. (hereinafter referredto as "the standalone financial statements" or "financial statements")

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 Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2021 the profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

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 theStandalone Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities 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 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. Wehave determined the matters described below to be the key audit maters to be communicatedin our report.

S. No. Key Audit Matter Auditor's Response
1 Revenue Recoginition Principal Audit Procedures
Revenue from sale of goods is recognised when control of the products being sold is transferred to the customer and when there are no longer any unfulfilled obligations. Our audit procedures included:
• Assessing the appropriateness of the revenue recognition accounting policies by comparing with applicable accounting standards.
The performance obligations in the contracts are fulfilled at the time of dispatch delivery or upon formal customer acceptance depending on customer terms and conditions. Revenue is measured at fair value of the consideration received or receivable after deduction of any discounts/ rebates and any taxes or duties collected on behalf of the government such as goods and services tax etc. Customer acceptance is used to estimate the provision for price increase/ decrease. Revenue is only recognised to the extent that is highly probable a significant reversal will not occur. • Evaluating the integrity of the information and technology general 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 by selecting samples of revenue transactions recorded during the year by verification of underlying documents.
• Testing on a sample basis key customer contracts/ purchase order to identify terms and conditions relating to goods acceptance and price adjustments.
• Testing on a sample basis the supporting documents for sales transactions recorded during the period closer to the year end and subsequent to the year end to determine whether revenue was recognised in the correct period.
2 Evaluation of uncertain tax positions Principal Audit Procedures
The Company has uncertain tax positions matters under dispute which involves significant judgment to determine the possible outcome of these disputes. Refer Notes 33 to the Standalone Financial Statements Obtained details of completed tax assessments upto the year ended March 31 2021 from management. We considered the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. We also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions.
Additionally we considered the effect of new information in respect of uncertain tax positions as at April 1 2020 to evaluate whether any change was required to management's position on these uncertainties
3 Carrying value of investment in subsidiaries associates and joint ventures Principal Audit Procedures
Our audit procedures include:
The Company carries its investments in subsidiaries associates and joint ventures at cost (net of provision) at an aggregate amount of Rs 2909.49 lakhs as at 31st March 2021. • Comparing the carrying amount of investments with audited financial statements of investee companies to identify whether their net assets being an approximation of their minimum recoverable amount were in excess of their carrying amount.
The amount being significant to the standalone financial statements the determination of impairment charge required the application of significant judgments by management in particular with respect to determination of recoverable/fair value amount of these investments which in aggregate is significant to the standalone financial statements.
• Obtaining and reviewing recoverable amounts as determined by the management for each investment.

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 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 financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's management and Board of Directors are responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thestate of affairs profit/loss and other comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing 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 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 professional 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the companyhas adequate internal financial controls with reference to financial statements in placeand the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• 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 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 standalonefinancial statements 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 standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

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 auditors' report unless law or regulation precludes public disclosure about thematter or 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) Order2016 ("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 inthe paragraph 3 and 4 of the Order to the extent applicable.

2. A. 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 appears from our examination of those books.

c. the balance sheet the statement of profit and loss including other comprehensiveincome statement of changes in equity and cash flow statement and dealt with by thisReport are in agreement with the books of account.

d. In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act

e. On the basis of written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms ofSection 164(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

B. With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us :

a. The Company has disclosed the impact of pending litigations as at 31st march 2021 onits financial position in its financial statements - Refer Note 33(A) to the standaloneInd AS financial statements;

b. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;

c. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

d. The disclosures in the standalone financial statements regarding holdings as well asdealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made in these standalone financial statements since they do not pertainto the financial year ended 31st March 2021.

C. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and according to the explanations given to us the remuneration paid bythe Company to its directors during the year is in accordance with the provisions ofsection 197 of the Act. The remuneration paid to any director is not in excess of thelimit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has notprescribed other details under Section 197(16) which are required to be commented upon byus.

for V. Sachdeva & Associates
Chartered Accountants
Firm Registration Number -004417N
Sd/-
(V. Sachdev)
Proprietor
Place: Rai Sonepat (HR.) Membership No.:-083435
Dated: 30/06/2021 UDIN 21083435AAAAGG1332

Annexure-A to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone Ind AS financial statements for the year ended on 31.03.21 wereport that:

1. A. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets (property plant and equipment).

B. As explained to us the company has a planned programme for physically verifying allfixed assets once in three years which in our opinion is reasonable having regard to thesize and nature of assets. During the year the fixed assets have been physically verifiedby the management in accordance with the programme and no material discrepancies wereidentified on such verification.

C. According to the information and explanations 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 the company except for freehold land situated in Ahmedabad Gujaratacquired during the FY 1617 for Rs 18.23 Lakhs wherein final registration is pending asdisclosed in Note 2 on "Property Plant and equipment "to the standalone Ind ASfinancial statements.

2. The inventories have been physically verified by the management at regular intervalsduring the year. In our opinion the frequency of verification is reasonable and therewere no material discrepancies noticed on physical verification of the inventory ascompared to the book of accounts.

3. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of theOrder are not applicable to the Company.

4. In our Opinion and as per information and explanation given to us the company hascomplied the provisions of section 185 section 186 of the companies act 2013.

5. The company has not accepted any deposits from the public. Accordingly paragraph3(v) of the order is not applicable to the Company.

6. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 and are of the opinion that prima facie the specifiedaccounts and records have been made and maintained. However no detailed examination ofthe same has been carried out by us.

7. A. According to the records of the company and also the information and explanationsgiven to us the company is generally regular in depositing with appropriate authoritiesall undisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax Goods and Service tax duty of customs duty of excise valueadded tax cess and other material statutory dues applicable to it.

According to the information and explanations given to us there are no undisputedamounts payable in respect of provident fund employees' state insurance income taxsales tax service tax duty of customs duty of excise value added tax cess and othermaterial statutory dues as at the year end for a period of more than six months from thedate they became payable.

B. According to the records of the Company the dues outstanding of income taxsales-tax wealth tax service tax Goods and Service tax duty of customs duty of exciseand cess on account of any dispute are as follows

S. No. Name of Statue Nature of Due Period to which it Pertains Amount Involved Amount Deposited Net Amount Forum where dispute is Pending
1 The Central Excise Act 1944 Custom Duty demand on sale of Moulds F.Y. 2007-08 57.87 14.47 43.40 CESTAT Chennai
2 Haryana Value Added Tax 2003 Sales tax Assessment Dues F.Y 2010-11 23.75 3.75 20.00 High Court Punjab and Haryana
3 Tamil Nadu VAT act 2006 Sales tax demand on reversal of input tax credit pertaining to CST Sales F.Y. 2014-15 150.07 150.07 High court Chennai
4 Income Tax Act 1961 Disallowance of Loss on account of foreign exchange derivative contracts For Assessment Year 2011-12 617.71 See Note * 617.71 ITAT New Delhi
Total 849.40 18.22 831.18

Note:- No demand is outstanding as on the reporting date as the matter has been decidedin favour of the company by the CIT (Appeal). However the issue has been challenged inITAT by the income tax department.

8. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to a financial institution or banks.

9. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not raised any moneys by way ofinitial public offer or further public offer (including debt instruments) and has notobtained any term loans during the year. Accordingly paragraph 3 (ix) of the Order is notapplicable to the Company.

10. According to the information and explanations given to us no material fraud on orby the company by its officers or employees has been noticed or reported during the courseof our audit.

11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the provisions of section 197 read with Schedule V to theAct.

12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

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 sections 177 and 188 of the Act wherever applicable and details of suchtransactions have been disclosed in the standalone Ind AS financial statements as requiredby the applicable accounting standards.

14. According to the information and explanations give 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 explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any noncashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is 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. Accordingly paragraph 3(xvi) of the Order is not applicable tothe company.

for V. Sachdeva & Associates
Chartered Accountants
Firm Registration Number -004417N
Sd/-
(V. Sachdev)
Proprietor
Place: Rai Sonepat (HR.) Membership No.:-083435
Dated: 30/06/2021 UDIN 21083435AAAAGG1332

Annexure "B" to the independent auditor's report of even date on thestandalone ind as financial statements of fiem industries limited

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")

Opinion

1. We have audited the internal financial controls over financial reporting of FIEMINDUSTRIES LIMITED ("the Company") as of March 31 2021 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date.

2. In our opinion the Company has in all material respects adequate internalfinancial controls with reference to financial statements and such internal financialcontrols were operating effectively as at 31st March 2021 based on the internal financialcontrols with reference to financial statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

3. 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.

Auditors' Responsibility

4. 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 to the extent applicable toan audit of internal financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

5. Our audit involves performing procedures to obtain 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 judgement including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.

6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion on the Company's internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

7. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of Ind AS financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASfinancial statements.

Inherent Limitations of Internal Financial Controls Over Financial

Reporting

8. 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.

for V. Sachdeva & Associates
Chartered Accountants
Firm Registration Number -004417N
Sd/-
(V. Sachdev)
Proprietor
Place: Rai Sonepat (HR.) Membership No.:-083435
Dated: 30/06/2021 UDIN 21083435AAAAGG1332

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