You are here » Home » Companies » Company Overview » Goodluck India Ltd

Goodluck India Ltd.

BSE: 530655 Sector: Metals & Mining
NSE: GOODLUCK ISIN Code: INE127I01024
BSE 00:00 | 21 Jan 354.90 -3.80
(-1.06%)
OPEN

349.50

HIGH

358.80

LOW

345.00

NSE 00:00 | 21 Jan 351.95 -9.70
(-2.68%)
OPEN

360.90

HIGH

360.90

LOW

345.00

OPEN 349.50
PREVIOUS CLOSE 358.70
VOLUME 2958
52-Week high 400.00
52-Week low 61.40
P/E 15.67
Mkt Cap.(Rs cr) 923
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 349.50
CLOSE 358.70
VOLUME 2958
52-Week high 400.00
52-Week low 61.40
P/E 15.67
Mkt Cap.(Rs cr) 923
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Goodluck India Ltd. (GOODLUCK) - Auditors Report

Company auditors report

To The Members of GOODLUCK INDIA LIMITED

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of GoodluckIndia Limited ("the Company") which comprises the Balance Sheet as at March 312019 the Statement of Profit and Loss (including Other Comprehensive Income) Statementof Cash Flow and the Statement of Changes in Equity for the year then ended and Notes tothe Standalone 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 Ind AS financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2019 its profitincluding other comprehensive income its cash flows and changes in equity for the yearended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements' section ofour report. We are independent of the Company in accordance with the 'Code of Ethics'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 audit opinion on the standalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements for the financialyear ended March 31 2019. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters.

For each matter below our description of how our audit addressed the matter isprovided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone Ind AS financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performanceof procedures designed to respond to our assessment of the risksof material misstatement of the standalone Ind AS financial statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

1. Assessment of litigations and related disclosure of contingent liabilities

[Refer to Note 3 to the Standalone Financial Statements - "Critical estimation andJudgements" and Note 33 to the Standalone Financial Statements - "Contingentliabilities and commitments"]

As at March 312019 the Company has exposures towards litigations relating to variousmatters as set out in the aforesaid Notes.

Significant management judgement is required to assess such matters to determine theprobability of occurrence of material outflow of economic resources and whether aprovision should be recognised or a disclosure should be made. The management judgementis also supported with legal advice in certain cases as considered appropriate.

As the ultimate outcome of the matters are uncertain and the positions taken by themanagement are based on the application of their best judgement related legal adviceincluding those relating to interpretation of laws/ regulations it is considered to be aKey Audit Matter.

How our audit addressed the Key Audit Matter

Our audit procedures included the following:

• We understood assessed and tested the design and operating effectiveness of keycontrols surrounding assessment of litigations relating to the relevant laws andregulations;

• We discussed with management the recent developments and the status of thematerial litigations which were reviewed and noted by the audit committee;

• We performed our assessment on a test basis on the underlying calculationssupporting the contingent liabilities/other significant litigations made in the StandaloneFinancial Statements;

• We considered external legal opinions where relevant obtained by management;

• We met with the Company's external legal counsel to understand theinterpretation of laws/regulations considered by the management in their assessmentrelating to a material litigation;

• We evaluated management's assessments by understanding precedents set in similarcases and assessed the reliability of the management's past estimates/ judgements;

• We evaluated management's assessment around those matters that are not disclosedor not considered as contingent liability as the probability of material outflow isconsidered to be remote by the management; and

• We assessed the adequacy of the Company's disclosures.

2. Recoverability of unutilized Minimum Alternate Tax (MAT) credits included underdeferred tax liabilities

[Refer to Note 16 to the Standalone Financial Statements- "Income Tax"]

As of March 31 2019 the Company has recognized MAT credits of Rs. 373.77 Lakhsincluded under deferred tax liabilities that can be utilized against future taxliabilities.

The analysis of the recoverability of such deferred tax assets has been identified as akey audit matter because the assessment process involves judgement regarding the futureprofitability and the likelihood of the realization of these assets in particular whetherthere will be taxable profits in future periods that support the recognition of theseassets. This requires assumptions regarding future profitability which is inherentlyuncertain. Accordingly the same is considered as a key audit matter.

Based on the above work performed management's assessment in respect of litigationsand related disclosures relating to contingent liabilities/other significant litigationsin the Standalone Financial Statements are considered to be reasonable.

How our audit addressed the Key Audit Matter

Our audit procedures included the following:

• We paid attention to the long-term forecasts and critically assessed theassumptions and judgments underlying these forecasts by considering the historicalaccuracy of forecasts and the sensitivities of the profit forecasts.

• We analyzed the key assumptions and methodologies used by the company in respectof the development of business and profitability. We also analyzed the appropriateness ofthe key assumptions.

• We analysed the underlying processes for the complete capture and measurement ofdeferred taxes and examined the controls implemented to prevent or detect and correcterrors.

• We examined on a sample basis the identification and quantification ofdifferences between the recognition and measurement of assets and liabilities according totax regulations and financial reporting pursuant to Ind AS.

• We also focused on the adequacy of the company's disclosures on deferred taxassets and uncertain tax positions and assumptions used.

• Our audit procedures did not lead to any reservations regarding the recognitionand measurement of deferred taxes.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe standalone Ind AS financial statements and our auditor's report thereon.

Our opinion on the standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.

Responsibility of Management and Those Charged with Governance for the Standalone IndAS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive Income cash flowsand changes in the equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic 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 Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial 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 Ind AS 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 Ind ASfinancial 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 system in place and the operating effectivenessof 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements for the financial year ended March 31 2019 and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

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 and on the basis of such checks of the books and record of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in 'Annexure A' a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. 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 purpose 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 ComprehensiveIncome the statement of Cash Flow and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d. In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended.

e. On the basis of written representations received from the directors as on March 312019 taken on record by the Board of Directors none of the Directors is disqualified ason 31st March 2019 from being appointed as a Director in terms of Section 164 (2) of theAct.

f. With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B" to this report.

g. In our opinion the managerial remuneration for the year ended March 31 2019 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act;

h. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 as amended inour opinion and to the best of our information and according to the explanations given tous :

(i) The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements.

(ii) 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.

(iii) There has been no delay in transferring amount required to be transferred tothe Investor Education and Protection Fund by the Company

For M AGGARWAL & ASSOCIATES
Chartered Accountants
Firm Reg. No. 016925C
(M.AGGARWAL)
Prop.
Place : GHAZIABAD M.NO. 418428
Date : 27th May 2019

ANNEXURE 'A' TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and Requirement' section ofour report of even date)

Report on Companies (Auditor's Report) Order 2016 ("the Order") issued bythe Central Government of India in terms of section 143(11) of the Companies Act 2013('the Act') of Goodluck India Limited ("the Company"):

1. In respect of Property Plant & Equipment of the Company:

a. The company has maintained proper records showing full particulars includingquantitative details and situation of property plant & equipment.

b. The Company has a regular programme for physical verification in phased periodicmanner which in our opinion is reasonable having regard to the size of the company andthe nature of its assets. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.

c. According to the information and explanations given to us and the record examined byus and based on the examination of registered sales deed/ conveyance deed / transfer deedprovided to us we report that the title deeds comprising all the immovable property ofland and acquired building which are freehold are held in the name of the Company as atthe balance sheet date except leasehold/ freehold land and building structure thereonpertaining to one subsidiary company amalgamated during fiscal year 2016-17 having grossblock amounting to Rs. 425.95 Lakhs.

2. As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals except for inventories lying with third parties whereconfirmations have been received by the management and no material discrepancies werenoticed on such verification.

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 theAct.

4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

5. The company has not accepted any deposits within the meaning of sections 73 to 76 ofthe Act and the Companies (Acceptance of deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3 (v) of the order are 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. We have not however made a detailedexamination of the same.

7. According to the information and explanations given to us in respect of statutorydues:

a. The Company has generally been regular in depositing undisputed statutory duesincluding provident fund employees' state insurance Income tax sales tax goods andservice tax service tax value added tax duty of customs duty of excise cess and anyother material statutory dues applicable to it with appropriate authorities.

b. There were no undisputed amounts payable in respect of provident fund employees'state insurance Income tax sales tax goods and service tax service tax value addedtax duty of customs duty of excise cessand any other material statutory dues in arrearsas at 31st March 2019 for a period of more than six months from the date they becamepayable.

c. According to the records of the Company the dues outstanding of income-taxsales-tax goods and service tax service tax duty of custom duty of excise value addedtax and cess on account of any dispute are as follows:

Name of the Statute Forum where dispute is pending Financial Year to which the amount relates Total Amt. (Rs. In Lakhs)
Central Excise Act Commissioner(Appeals) 2007-08 to 2017-18 121.73
Commercial Tax Commissioner(Appeals) 2011-12 7.16

8. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of loans or borrowings to the banks. The Companydoes not have any outstanding dues in respect of financial institutions and debentureholders during the year.

9. Based on the information and explanations given to us by the management term loanwas applied for the purpose the loan was raised. The Company has not raised any money byway of initial public offer or further public offer (including debt instrument).

10. According to the information and explanations given to us no material fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanations given to us the management has paidmanagerial remuneration in accordance with the provisions of section 197 read withSchedule V to the Companies Act 2013.

12. In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable.

13. According to the information and explanations given to us the transactions withthe related parties are in compliance with Section 177 and 188 of the Companies Act 2013where applicable and details have been disclosed in the notes to the standalone financialstatements as required by the applicable accounting standards.

14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures hence reporting under clause3(xiv) of the order is not applicable to the Company.

15. According to the information and explanations given to us the company has notentered in to any non-cash transaction with the director or persons connected with him asreferred to in section 192 of the Companies Act 2013.

16. According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For M AGGARWAL & ASSOCIATES
Chartered Accountants
Firm Reg. No. 016925C
(M.AGGARWAL)
Prop.
Place : GHAZIABAD M.NO. 418428
Date : 27th May 2019

ANNEXURE 'B' TO THE INDEPENDENT AUDITORS' REPORT

(Referred to paragraph 2(f) under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

Report on the Internal Financial Control Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies act 2013 ('the Act')

We have audited the internal financial controls over financial reporting of GoodluckIndia Limited ("the Company") as on March 31 2019 in conjunction with our auditof the standalone Ind AS 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 controls over financial reporting criteriaestablished by the company considering essential components of internal control stated inthe Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India (the 'Guidance Note'). 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 asset the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of the reliablefinancial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these standalone financial statementsbased on our audit. We conducted our audit in accordance with the Guidance Note on Auditof Internal Financial Controls Over Financial Reporting (the "Guidance Note")and the Standards on Auditing as specified under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls and both issuedby the Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting with reference to these standalone financial statements 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 control 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 standalone financial statements whether due to fraud orerror.

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 with reference to thesestandalone financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting with referenceto these standalone financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial 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 financialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting with reference to these standalone financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone financial statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to these standalonefinancial statements may become inadequate because of changes in conditions or that thedegree 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 March 31 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the Institute ofChartered Accountants of India.

For M AGGARWAL & ASSOCIATES
Chartered Accountants
Firm Reg. No. 016925C
(M.AGGARWAL)
Prop.
Place : GHAZIABAD M.NO. 418428
Date : 27th May 2019

.