To the Members of
INANI MARBLES & INDUSTRIES LTD.
Report on the Financial Statements
We have audited the financial statements of Inani Marbles &Industries Ltd. (the company) which comprise the Balance Sheet as at March31st 2021 and the Statement of Profit and Loss Statement of Changes in equity andStatement of cash flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.(hereinafter referred to as the financial statements).
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby Companies Act 2013 the Act in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended(Ind As) and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 the Profit and total compressiveincome changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the 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 independence requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules madethere under and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. Based on the facts and our professional judgment during the audit offinancial statements of the current period We have determined that there are no key auditmatters to communicate in our report.
Information other than the Financial Statements and Auditor'sReport thereon
The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report including Annexureto Board's Report Business Responsibility Report Corporate Governance andShareholder's Information but does not include the financial statements and ourauditor's report thereon.
Our opinion on the 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 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 financial statements or our knowledge obtained in the audit or otherwise appears tobe materially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information. we are required to report the fact. Wehave nothing to report in this regard
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 (the Act) with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance total comprehensive income changes in equityand cash flows of the Company in accordance with the Ind AS and other accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate implementation and maintenance ofaccounting 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 is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. That Board of Directors'are also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the FinancialStatements
Our objectives are to obtain reasonable assurance about whether thefinancial 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs 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 financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify 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 detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations 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 section143(3)(I) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate financial controls system in place and the operating effectiveness ofsuch controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
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 thecompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause thecompany to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonable knowledgeable under of the financial statements may beinfluences. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the 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 publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would be reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
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 of the Companies Act 2013 we give in Annexure A astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
As required by Section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b) In our opinion and to the best of our information and according tothe explanations given to us proper books of account as required by law have been kept bythe Company so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss including othercomprehensive income Statement of Changes in Equity and the statement of Cash Flow dealtwith by this Report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on 31stMarch 2021 and 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 of Section164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure B to this 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 opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act as amended.
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) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.
ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There are no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.
ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 2 under Report on Other Legal andRegulatory Requirements' section of our report to the Members of Inani Marbles &Industries Ltd. of even date)
(1) In respect of the Company's fixed assets:-
(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed asset (Property Plant &Equipment).
(b) The fixed assets (Property Plant & Equipment) have beenphysically verified by the Management at reasonable intervals no material discrepancieshave been noticed on such verification.
(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.
(2) Physical verification of inventory has been conducted during theyear at reasonable intervals by management.
As informed to us no material discrepancies have been noticed on suchverification.
(3) The Company has not granted any loans secured or unsecured toCompanies firms or parties covered in the register maintained under section 189 of theCompanies Act 2013.
(4) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and 186 of theAct with respect to the loans and investments made if any.
(5) The Company has not accepted deposits from the public within themeaning of Sections 73 to 76 of the Companies Act 2013 and the rules made there under.Hence this clause is not applicable.
(6) The maintenance of cost records has been prescribed by the CentralGovernment under section 148(1) of the Companies Act 2013 and as informed to us suchaccounts and records have been so made and maintained. However we have not conducted adetailed examination of the same
(7) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted in thebooks of account in respect of undisputed statutory dues like income tax tax deduct atsource and other material statutory dues have been regularly deposited during the year bythe Company with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundincome tax sales tax wealth tax service tax duty of customs value added tax cess andother material statutory dues were in arrears as at 31st March 2021 for a period of morethan six months from the date they became payable.
(b) According to the information and explanations given to us thefollowing particulars of statutory dues that have not been deposited by the Company onaccount of disputes a/c Nil:
(8) According to the records of the company examined by us and theinformation and explanation given to us and also considering the relief/ moratoriumallowed by Reserve Bank of India pursuant to Covid-19 pandemic the company has notdefaulted in repayment of loans or borrowings to any financial institution of bank orGovernment as at balance sheet date.
(9) The Company has not raised any money by way of initial public offeror further public offer (including debt instruments) According to the information andexplanations given to us and on basis of the records examined by us we state that theCompany has prima facie applied the term loan for the purpose for which they wereobtained.
(10) According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.
(11) According to the information and explanations give to us and basedon our examination of the records of the Company the Company has paid /provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.
(12) In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.
(13) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.
(14) In our opinion and according to the information and explanationgiven to us the Company has made preferencial allotment of fully paid up equity sharesduring the year and the requirement of Section 42 of the Act have been complied with andthe amount raised have been used for the purposes for which the funds were raised.
(15) The company has not entered into any non-cash transactions withits Directors or persons connected to its directors and hence provisions of section 192 ofthe companies Act 2013 are not applicable to the Company.
(16) The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934.
Accordingly the provisions of clause 3(XVI) of the order are notapplicable to the company.
ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 2(f) under Report on other Legal andRegulatory Requirements' to the Independent Auditor's Report of even date to themembers of Company on the Ind AS financial statements for the year ended 31 March 2021 wereport that;
Report on the Internal Financial Controls under Clause (i) ofsub-section 3 of Section 143 of the Companies Act 2013 (the Act')
We have audited the internal financial controls with reference to IndAS financial statements of Inani Marbles & Industries Ltd. (the Company')as of 31st March 2021 in conjunction with our audit of the Ind AS financial statements ofthe Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls with reference to Ind AS Financial Statementsbased on the internal control over financial reporting 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 (ICAI'). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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.
Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to Ind AS Financial Statements based on ouraudit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting (the Guidance Note') and theStandards on Auditing issued by ICAI and deemed to be prescribed under Section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe 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 with reference toInd AS Financial Statements was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to Ind AS FinancialStatements and their operating effectiveness. Our audit of internal financial controlswith reference to Ind AS Financial Statements included obtaining an understanding ofinternal financial controls with reference to Ind AS Financial Statements assessing therisk that a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors' judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system with reference to Ind AS Financial Statements.
Meaning of Internal Financial Controls with reference to Ind ASFinancial Statements
A company's internal financial control with reference to Ind ASFinancial Statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany's internal financial control with reference to Ind AS Financial Statementsincludes those policies and procedures that
(1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of the Management and directors of theCompany; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assetsthat could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference toInd AS Financial Statements
Because of the inherent limitations of internal financial controls withreference to Ind AS Financial Statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to Ind AS Financial Statements to future periods are subject tothe risk that the internal financial control with reference to Ind AS Financial Statementsmay become inadequate because of changes in conditions or that the degree of compliancewith the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols with reference to Ind AS Financial Statements were operating effectively as at31st March 2021 based on the internal controls with reference to Ind AS FinancialStatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.
|For: Giriraj Garg & Company ||For: B.K. Dad & Associates |
|Chartered Accountants ||Chartered Accountants |
|(FRN. 017783C) ||(FRN. 018840C) |
|CA Giriraj Garg ||CA B. K. Dad |
|Proprietor ||Proprietor |
|M.N. 415796 ||M.N. 424791 |
|UDIN : 21415796AAAABA6900 ||UDIN : 21424791AAAAAQ7414 |
|Place: Chittorgarh || |
|Date: 30.06.2021 || |