to the Members of haldyn Glass Limited
report on the audit of consolidated ind as financial statements
We have audited the accompanying consolidated Ind AS financial statements of HaldynGlass Limited ("the Holding Company" or Group) and its Jointly ControlledEntity which comprise the Consolidated Balance Sheet as at March 31 2019 theConsolidated Statement of Profit and Loss (including Other Comprehensive Income) theConsolidated Statement of Cash
Flows and the Consolidated Statement of Changes in Equity for the year then ended andnotes to the consolidated Ind AS financial statements including a summary of significantaccounting policies and other explanatory info rmation (hereinafter referred to as"consolidated Ind AS financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid consolidated Ind AS financial statements give the informationrequired by the Companies Act 2013 ("the Act) in the manner so required and give atrue and fair view in conformity with the Indian Accounting Standards prescribed underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended ("Ind AS") and other accounting principles generally accepted inIndia of the consolidated state of affairs of the Group and its Jointly Controlled Entityas at March 31 2019 of consolidated profit consolidated total comprehensive incomeconsolidated changes in equity and its consolidated cash flows for the year then ended.
2. Basis for opinion
We conducted our audit of the consolidated Ind AS financial statements in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the consolidated Ind AS Financial Statements section ofour report. We are independent of the Group its jointly controlled entity in accordancewith the ethical requirements that are relevant to our audit of the consolidated Ind ASfinancial statements in India in terms of Code of Ethics issued by the Institute ofChartered Accountants of India and relevant provisions of the Companies Act 2013 and wehave fulfilled our other ethical responsibilities in accordance with these requirements.We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion on consolidated Ind AS financial statements.
3. Key audit Matter
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the consolidated Ind AS financial statements of the currentyear. These matters were addressed in the context of our audit of the consolidated Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Key audit Matter ||Auditor's response |
|i. Assessment of carrying value of receivables in respect of overdue invoices || |
|Risk of material misstatement related to estimation of expected credit loss as a result of lack of precision in their measurement. The estimates depend on number ||We performed the following tests to verify the expected credit loss of the Company : |
|of factors such as ageing credit risks and evaluation of ability of the parties to make payment. ||Assessed the company basis for determining the model internal controls based on which the Company determines the basis of provisioning compliance with and consistently applying the accounting policies. Verification of subsequent receipts and post balance sheet events if any. |
|ii. Enhancement of Company's ERP System : || |
|During the year the Company has enhanced its ERP system by migrating from ERP to SAP Business one. ||Our procedures focused on key processes and controls over the system critical to our audit. These include management of the systems access to the systems operations back-up and restore. |
|During the period of significant system change there is increased risk to the internal financial control environment following system integration migration of activities and other changes. ||We updated our understanding of the Company's application and transitions that have impacted our financial statement audit by carrying out walk through tests. |
4. Information other than the Consolidated Ind AS financial Auditor's report thereonstatements and
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the DirectorsReport Corporate Governance Report and Management Discussion and Analysis but does notinclude the consolidated Ind AS financial statements and our auditor's report thereon.These reports are expected to be made available to us after the date of our auditor'sreport.
Our opinion on the consolidated Ind AS financial statements does not cover the otherinformation and we will not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated Ind AS financial statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether the other information is materially inconsistent withthe consolidated Ind AS financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. When we read the other information includedin the above reports if we conclude that there is material misstatement therein we arerequired to communicate the matter to those charged with governance and determine theactions under the applicable laws and regulations.
5. Responsibility of Management and those charged with Governance for the ConsolidatedInd AS Financial Statements
The Holding Company's Board of Directors is responsible for the matters stated insection 134(5) of the Act with respect to the preparation of these consolidated Ind ASfinancial statements that give a true and fair view of the consolidated financialposition consolidated financial performance consolidated total comprehensive incomeconsolidated changes in equity and consolidated cash flows of the Group and its JointlyControlled Entity in accordance with the accounting principles generally accepted inIndia including the Ind AS accounting standards specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended.
The respective Board of Directors of the Holding company included in the group and ofits jointly controlled entity are responsible for maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theGroup and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error which have been used for the purpose ofpreparation of the consolidated Ind AS financial statements by the directors of theholding company as aforesaid.
In preparing the consolidated Ind AS financial statements the respective Board ofDirectors of the holding company and of its jointly controlled entity are responsible forassessing the ability of the holding company and its jointly controlled entity to continueas a going concern disclosing as applicable matters related to going concern and usingthe going concern basis of accounting unless the Board of Directors either intends toliquidate the Group or to cease operations or has no realistic alternative but to do so.
The respective Board of Directors of the Holding company and of jointly controlledentity are responsible for overseeing the financial reporting process of the group and ofits jointly controlled entity.
6. Auditor's Responsibilities for the Audit of the consolidated Ind AS FinancialStatements
Our objectives are to obtain reasonable assurance about whether the consolidated 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 Standards on auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these consolidated Ind AS financial statements.
As part of an audit in accordance with Standards on auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
i) Identify and assess the risks of material misstatement of the consolidated 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.
ii) Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3) (i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
iii) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
iv) Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe holding company and its jointly controlled entity to continue as a going concern. Ifwe conclude that a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the consolidated Ind AS financialstatements or if such disclosures are inadequate to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the group and its jointly controlled entity to ceaseto continue as a going concern.
v) Evaluate the overall presentation structure and content of the consolidated Ind ASfinancial statements including the disclosures and whether the consolidated Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
vi) Obtain sufficient appropriate audit evidence regarding the financial information ofthe entities or business activities within the Group and its jointly controlled entity toexpress an opinion on the consolidated Ind AS financial statements. We are responsible forthe direction supervision and performance of the audit of the consolidated Ind ASfinancial statements of such entities included in the consolidated Ind AS financialstatements of which we are the independent auditors. For the other entities included inthe consolidated Ind AS financial statements which have been audited by other auditorssuch other auditors remain responsible for the direction supervision and performance ofthe audits carried out by them. We remain solely responsible for our audit opinion.
We communicate with those charged with governance of the Holding Company and such otherentities included in the consolidated Ind AS financial statements of which we are theindependent auditors regarding among other matters the planned scope and timing of theaudit and significant audit findings including any significant deficien cies in internalcontrol 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 consolidated Ind AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
7. other matters
The Consolidated Ind AS Financial Statements include the Group's share of net loss ofRs.658.41 lakhs and profit in net Other Comprehensive Income of Rs. 2.39 lakhs for theyear ended 31 March 2019 as considered in the consolidated Ind AS financial statements inrespect of one jointly controlled entity whose financial statements are unaudited and havebeen furnished to us as certified by the management. Our opinion on the consolidated IndAS financial statements in so far as it relates to the amounts and disclosures includedin respect of the jointly controlled entity and our report in terms of sub-section 143 ofthe Act and in so far as it relates to the jointly controlled entity is based solely onsuch unaudited financial statements. In our opinion and according to the information andexplanations given to us by the Management these financial statements are not material tothe Group.
Our report on the consolidated Ind AS financial statements and our report on OtherLegal and Regulatory Requirements below is not modified in respect of the above matterswith respect to our reliance on the work done and the financial statements certified bythe management.
8. report on other Legal and regulatory requirements
As required by Section 143(3) of the Act based on our audit we report to the extentapplicable that a) We have sought and obtained all the information and explanations whichto the best of our knowledge and belief were necessary for the purpose of our audit ofconsolidated Ind AS Financial Statements. b) In our opinion proper books of account asrequired by law relating to preparation of the aforesaid consolidated Ind AS financialstatements have been kept so far as it appears from our examination of those books and thereports of the other auditors. c) The Consolidated Balance Sheet the ConsolidatedStatement of Profit and Loss (including consolidated other comprehensive income) theConsolidated statement of changes in equity and the Consolidated Statement of Cash
Flows dealt with by this Report are in agreement with the relevant books of accountmaintained for the purpose of preparation of the consolidated Ind AS financial statements.d) In our opinion the aforesaid consolidated Ind AS financial statements comply with theInd AS specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. e) On the basis of written representations received from thedirectors of the Holding Company as on March 31 2019 taken on record by the Board ofDirectors of the Holding company none of the directors of the Group companies isdisqualified as on March 31 2019 from being appointed as a director in terms of section164 (2) of the Act. In respect of the Jointly controlled entity since the financialstatements are unaudited and certified by the management we have relied on the managementcertification stating that none of the Directors of the jointly controlled entity isdisqualified as on March 31 2019 from being appointed as a director in terms of section164 (2) of the Act With respect to the adequacy of the internal financial controls overfinancial reporting of the Com f) pany and its Jointly Controlled Entity and the operatingeffectiveness of such controls refer to our separate Report in "Annexure A" tothis report.
g) 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 opinionand to the best of our information according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act. In respect of the Jointly controlled entitysince the financial statements are unaudited and certified by the management we haverelied on the management certification stating that no remuneration has been paid by theJointly controlled entity to directors during the year and thus it is in accordance withthe provisions of Section 197 of the Act. h) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 as amended in our opinion and to the best of our information andaccording to the explanations given to us:
1. The Company has and its Jointly Controlled Entity have disclosed the impact ofpending litigations on the financial position in its consolidated Ind AS financialstatements Refer Note 33 to the consolidated Ind AS financial statements;
2. The Company and its Jointly Controlled Entity did not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses; and
3. There has been no delay during the year in transferring the amount which wererequired to be transferred to the Investor Education and Protection Fund by the Companyand its Jointly Controlled Entity companies incorporated in India.
| ||For Mukund M. Chitale & Co. |
| ||Chartered Accountants |
| ||Firm Registration No. 106655W |
| ||s. M. chitale |
|Place : Mumbai ||Partner |
|Date : May 30 2019 ||M. No. 111383 |