To the Members of La Tim Metal & Industries Limited Report on the StandaloneFinancial Statements Opinion
We have audited the accompanying standalone financial statements of La Tim Metal &Industries Limited ("the Company") which comprises of the balance sheet as at31st March 2020 and the statement of Profit and Loss (including othercomprehensive income) and the Statement of changes inequity and statement and we do notexpress any form of assurance of cash flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.
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 Accounting Standards) Rules other accounting principles ofaffairs of the Company as at 31 March 2020 and its loss total comprehensive income itscash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section Standards are further described in theAuditor's Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of
Accountants of India Ethics issued by the
(ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the rules there under and wehave fulfilled our other ethical responsibilities in Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion on the standalone financial statements. controls that were
Emphasis of Matter
We draw attention to Note - 40 of the Financial Statements which describes theuncertainties and the impact of COVID 19 pandemic on the Company's operations and resultsas assessed by the management. Our opinion is not modified in respect of this matter
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other informationconclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
the Companies(Indian If based on the work we have performed we conclude that there is2015asamended("IndAS")and a material misstatement of this otherinformation; we are required generally accepted in India of the state to report thatfact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position equity and cash flows 143(10)ofthe Act .Our responsibilities 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.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds accordance with these requirements and the ICAI'sand other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial give a true and fair view and arefree from material misstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
to obtain reasonable assurance about whether the Our as a whole are free from materialmisstatement financial whether due to fraud or error and to issue an auditor's reportthat includes our opinion. Reasonable assurance is a high level of assurance but is not aguarantee that an audit conducted in accordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesefinancial
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 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 collusionforgery ance inthe audit of signific intentional omissions misrepresentations or the override ofinternal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal 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 ant doubt signific that may cast related to events or conditions 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 cause the Company to cease to continue asagoing concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and represent the underlying transactions the financial andevents in a manner that achieves fair presentation.
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 ofany identified misstatements in the standalone financial statements. We communicate withthose charged with governance regarding among other matters the planned scope and timingof the audit and significant audit findings including any significant deficiencies ininternal 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 standalone financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's report unlesslaw or regulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits 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 we give in the Annexure A a statement on the matters specified paragraph 3 and 4of the order.
2. As required by Section 143 (3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit.
b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books; c. The balance sheetthe statement of profit and loss and the cash flow statement dealt with by this Report arein agreement with the books of account;
d. In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e. On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in termsof Section 164 (2) of the Act; 197 of the Act
f. With respect to the adequacy of the internal financial controls over financial theoperating effectiveness of such controls refer to our separate report in "AnnexureB"; and
g. 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 wherever necessary of pending litigations onits financial position in its financial statements;
ii. The Company has made provision as required under the applicable law or IndianAccounting Standards for material foreseeable losses if any on long-term contractsincluding derivative contracts;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
With respect to the matter to be included in the Auditors' Reportunder Section Act:197(16) ofthe
In our opinion and according to the information and explanations to its directorsduring the current year is in accordance with the The remuneration provisions of Sectionto any director is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of not prescribedotherdetailsunderSection197(16) which are of the Company andrequired to be commented upon by us.
For Dhirubhai Shah & Co LLP
Chartered Accountants Firm's registration number: 102511W/W100298
Harish B Patel
Partner Membership number: 014427
Place: Ahmedabad Date: 31st July 2020
Annexure - A to the Auditors' Report
The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31st March 2020 wereport that:
(i) a. The Company has maintained proper records showing full particulars includingquantitative details and situation fixed assets.
b. The Company has a regular program of physical verification of its fixed assets. Inaccordance with program fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.
c. According to the information and explanations given us none of the immovableproperties as on the reporting date are held as Fixed Assets. Therefore reporting underparagraph 3(i)(c) of the said Order is not applicable to the
(ii) As explained to us the inventories have been physically verified during the yearby the management. In our opinion the frequency of verification is reasonable.Discrepancies verification of inventory as compared to noticed book records were notmaterial.
(iii) The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Actand therefore the provisions of clauses (iii)(a) & (iii)(b) of the Order are notapplicable to the Company.
(iv) In our opinion and according to the information explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.
(v) In our opinion and according to the information has not accepted any explanationsdeposits covered by the provisions of Sections other relevant provisions of the CompaniesAct 2013 and the rules framed there under.
(vi) In our opinion and according to the information and explanations given to us andbased on books of account and explanations maintenance of cost records under section148(1) of the Companies Act 2013 is not applicable to the company and hence paragraph3(vi) of the Order is not applicable.
(vii) (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income tax sales tax service tax duty ofcustoms duty of excise value added tax cess Goods and Service Tax and any otherstatutory dues with the appropriate authorities. of According to the information andexplanations given to us in our opinion no undisputed amounts payable in respect ofstatutory dues including Provident Fund Employees' State Insurance Income Tax ValueAdded Tax Central Sales Tax Wealth Tax Service Tax Custom Duty Excise Duty CessGoods and Service Tax and other statutory dues applicable to it were in arrears as at thebalance sheet date for a period of more than six months from the date they became payable.
(b) According to the records of the Company there are no dues outstanding of IncomeTax Sales Tax (including Value Added Tax Central Sales Tax and Goods and Service Tax)Service Tax Custom Duty Excise Duty or Cess on account of any dispute.
(viii) In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of dues to a financial institution banksGovernment or debenture holder during the year.
(ix) The company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. According tofurther information and explanations given to us the term loans raised during the yearwere applied for the purpose for which those were raised.
(x) Based upon the audit procedures performed and according to the information andexplanations given by the management we report that no fraud on or by the Company hasbeen and noticed or reported during the course of our audit.
(xi) 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. 73 to 76 or any (xii) In our opinion and according to the information andexplanations given to us the Company is not a Nidhi company. Accordingly paragraph3(xii) of the Order is not applicable.
given to us (xiii)According to the and based on our examination of the records of theCompany transactions with the related parties are in compliance with sections 177 and 188of the Act where applicable and details of such transactions have been disclosed in thefinancial statements as required by the applicable Ind AS.
(xiv) According to the information and explanations given to us based on ourexamination of the records of the Company the Company has not made preferential allotmentof shares during the year.
(xv) According to the information and explanations given to and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
(xvi) The Company is not required to be registered under section IA of the Reserve Bankof India Act 1934.
For Dhirubhai Shah & Co LLP
Chartered Accountants Firm's registration number: 102511W/W100298 us
Harish B Patel
Partner Membership number: 014427
Place: Ahmedabad Date: 31st July 2020
Annexure - B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of La TimMetal & Industries Limited ("the Company") as of 31st March 2020in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that
Management's Responsibility for Internal Financial Controls
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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientof its business including adherence to company's policies the safeguarding of itsassets the prevention and detection of and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial as required under theCompanies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial criteria controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system financial reporting and their operatingeffectiveness. Our internal financial controls over financial reporting included anunderstanding of internal financial controls over financial reporting assessing the riskthat a material testing and evaluating the design and operating effectiveness internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the standalonefinancial statements whether due to fraud or error.
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
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial designed to provide reasonableassurance regarding the reliability date. of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements. frauds
Inherent Limitations of Internal Financial Controls Over Financial Reporting
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 financial Wereporting 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.
In our opinion the Company has in all material respects an adequate . internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2020 based on theinternal control over financial reporting by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
For Dhirubhai Shah & Co LLP
Chartered Accountants of Firm's registration number: 102511W/W100298
Harish B Patel
Partner Membership number: 014427
Date: 31st July 2020