You are here » Home » Companies ยป Company Overview » Mega Nirman & Industries Ltd

Mega Nirman & Industries Ltd.

BSE: 539767 Sector: Infrastructure
NSE: N.A. ISIN Code: INE216Q01010
BSE 00:00 | 27 Jan 37.05 -1.90
(-4.88%)
OPEN

37.05

HIGH

37.05

LOW

37.05

NSE 05:30 | 01 Jan Mega Nirman & Industries Ltd
OPEN 37.05
PREVIOUS CLOSE 38.95
VOLUME 206
52-Week high 48.75
52-Week low 12.06
P/E 82.33
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 37.05
CLOSE 38.95
VOLUME 206
52-Week high 48.75
52-Week low 12.06
P/E 82.33
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mega Nirman & Industries Ltd. (MEGANIRMAN) - Auditors Report

Company auditors report

To

The Members of Mega Nirman & Industries Limited Report on the IND AS FinancialStatements

We have audited the standalone financial statements of Mega Nirman & IndustriesLimited ("the Company") which comprise the Standalone Balance Sheet as at March31 2022 and the Standalone Statement of Profit and Loss (including other comprehensiveincome) Standalone Statement of Changes in Equity and Standalone Statement of Cash Flowsfor the year then ended and notes to the standalone financial statements including asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "the standalone financial statements").

Management’s Responsibility for the 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 IND AS financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standards(INDAS) specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

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 and other irregularities; selection andapplication of appropriate accounting policies; making judgements 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 standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

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

Auditor’s Responsibility for the Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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 user taken on basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

i. Identify and access the risk of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risk and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion.

The risk of not detecting a material misstatement resulting from fraud is higher thanfor one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.

ii. 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 Company hasadequate internal financial controls with reference to standalone financial statements inplace and the operating effectiveness 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 basisof accounting 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 standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

v. Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation

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 safeguard

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor’s Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our qualified opinion.

Basis for Qualified Opinion

The company has not done the reversal of GST input of Rs. 2013891 (excluding interestas payable thereon) for the tax period 2018-19 to 2020-21 due to non-payment to creditorswithin a stipulated time as prescribed in terms of 2nd provison to section16(2) of CGST Act 2017 and a pending GST demand of Rs. 355636 /- excluding interest asper GST assessment order dt. 26/10/2010 for tax period 2017-18 towards differential tax onITC claim under GST.

Accordingly the statutory liability would have been increased by Rs. 2369527/- andthe Net worth would have been reduced by Rs. 2369527/- respectively. This matter is alsodisclosed in our report on other legal and regulatory requirement in paragraph below.

As per information and according to the explanation given to us the company has notreceived any notice or demand letter on this GST input reversal from the GST department.

Qualified Opinion

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 accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2022 and profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Other Information

The Company’s management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in theCompany’s annual report but does not include the standalone financial statements andour auditors’ report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion 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 statement or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the ‘Annexure A’ a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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 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 Sheet the Statement of Profit and Loss (including other comprehensiveincome) the statement of change in equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under 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 March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 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 with reference tostandalone financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

g) With respect to the matter to be included in the Auditor’s Report under section197(16) In our opinion and according to the information and explanations given to us theremuneration paid by company to its directors during the current year is in accordancewith the provisions of section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under section 197 of 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) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has no any pending demands or litigations which would impact on itsfinancial position except the following:

- Pending GST input reversal of Rs. 2013891/- (excluding interest as payable thereon)for the tax period 2018-19 to 2020-21 due to non-payment to creditors within a stipulatedtime as prescribed in terms of 2nd proviso to section 16(2) of CGST Act 2017.

- Pending GST demand of Rs. 355636/- (excluding interest as per GST assessment orderdt. 26/10/2020 for tax period 2017-18 towards differential tax on ITC claim under GST Act2017.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. (a) The management has represented that to the best of its knowledge and beliefother than as disclosed in the notes to the accounts no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the company to or in any other persons or entities including foreignentities (intermediaries) with the understanding whether recorded in writing or otherwisethat the intermediary shall whether directly or indirectly lend or invested in otherperson or entities identified in any manner whatsoever by or on behalf of the Company(ultimate beneficiaries) or provide any guarantee security or the like on behalf of theultimate beneficiaries;

(b)the management has represented that to the best of its knowledge and belief otherthan as disclosed in the notes to the accounts no funds have been received by the companyfrom any persons or entities including foreign entities (funding parties) with theunderstanding whether recorded in writing or otherwise that the company shall whetherdirectly or indirectly lend or invest in other person or entities identified in any mannerwhatsoever by or on behalf of the funding party (ultimate beneficiaries) or provide anyGuarantee security or the like on behalf of the ultimate beneficiaries and

? based on such audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatrepresentations under sub clause (i) and (ii) of Rule 11€ as provided under (a) and(b) above contain any material mis-statement.

v. No dividend have been declared or paid during the year by the company.

For ASHM & Associates
Chartered Accountants
Firm’s Registration No. 005790C
Sd/-
Manoj Kumar Bajaj
Place: New Delhi Partner
Date: 27.05.2022 M.No-091107
UDIN: 21091107AMGOYJ3990

Annexure ‘A’

The Annexure referred to in paragraph 1 of Our Report on "Other Legal andRegulatory

Requirements".

We report that:

i.a. The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

b. As explained to us fixed assets have been physically verified by the management.

ii. As explained to us inventories have been physically verified during the year bythe management at reasonable intervals. No material discrepancy was noticed on physicalverification of stocks by the management as compared to book records.

iii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties listed inthe register maintained under Section 189 of the Companies Act 2013. Consequently theprovisions of clauses iii (a)(b) and (c)of the order are not applicable to the Company.

iv. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has any loans secured or unsecured orgranted guarantees in terms of provisions of section 185 and 186 of the Companies Act2013 and the provisions of section 185 and 186 of the Companies Act 2013 have beencomplied with.

v. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not accepted any deposits or deemeddeposits in terms of the directives issued by Reserve Bank of India and the provision ofSection 73 to 76 or any other relevant provision of the of the Companies Act 2013 and therules framed there under where applicable hence provision of clause 3 (v) of the orderare not applicable to the company. .

vi. As per information & explanation given by the management maintenance of costrecords has not been specified by the Central Government under sub-section (1) of section148of the Companies Act 2013.

vii.According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees’ StateInsuranceSales-tax Service Tax Custom Duty Excise Duty value added tax cess and anyother statutory dues to the extent applicable have generally been regularly depositedwith the appropriate authorities.

According to the information and explanations given to us the company has nooutstanding dues a son 31.03.2022 except pending GST demand of Rs. 355636/- excludinginterest as per GST assessment order date 26/10/2020 for tax period 201718 towardsdifferential tax on ITC claim under GST and pending GST input reversal of Rs. 2013 891/-for the tax period 2018-19 to 2021-22 excluding interest due to nonpayment to creditorswithin a stipulated time as prescribed in terms of 2nd provison to section16(2) of CSGT Act 2017.

According to the information and explanations given to us there is no amount payablein respect of service tax sales tax customs duty excise duty value added tax and cesswhichever applicable which have not been deposited on account of any disputes.

viii. According to the information and explanations given to us on the basis of ourexamination of books of account the company has not surrendered or disclosed as income inincome tax proceedings as to the balance sheet date.

ix. According to the information and explanations given to us on the basis of ourexamination of books of account the company has not availed financial assistance from anyfinancial institution or bank or debenture holders as to the balance sheet date.

x. According to the information and explanations given to us on the basis of ourexamination of books of account the company has not raised any money by way of publicissue/ follow on offer (including debt instruments) and term loans during the year underreview. Hence provision of this clause of the order are not applicable to the Company.

xi. According to the information and explanations given to us we report that no fraudby the company or any fraud on the Company by its officers or employees has been noticedor reported during the year by the management.

xii. The company is not a Nidhi Company. Therefore clause xii of the order is notapplicable to the company.

xiii. According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.

xiv. The company has adequate an internal audit system in accordance with its size andbusiness activities.

xv. According to the information and explanations given to us and on the basis of ourexamination of the books of account the company has not entered into any non-cashtransactions with directors or persons connected with him.

xvi. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

xvii. The company has not incurred any cash losses in the financial year and in the'immediately preceding financial year.

xviii. There has been no resignation of statutory auditors during the year underreview.

xix. On the basis of financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities and other information accompanyingthe financial statements and in absence of management plans and based on the aboveevaluation and in absence of evidences which causes us to believe that there is existenceof material uncertainty on the date of the audit report indicating that the company is notcapable of meeting its liabilities which exist as at the balance sheet date and also whensuch liabilities are due in the future. We however state that this is not an assuranceas to the future viability of the Company. We further state that our reporting is based onthe facts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

xx. The Company has no obligations under Corporate Social Responsibility as perprovisions of the Companies act 2013 consequently the provisions of clause xx of theorder is not applicable to the company.

For ASHM & Associates
Chartered Accountants
Firm’s Registration No. 005790C
Sd/-
Manoj Kumar Bajaj
Place: New Delhi Partner
Date: 27.05.2022 M.No-091107
UDIN: 22091107AMGOYJ3990

ANNEXURE-"B" TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF MEGA NIRMAN & INDUSTRIES LIMITED AS ON 31st MARCH2022

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

To the Members of Mega Nirman & Industries Limited

We have audited the internal financial controls over financial reporting of Mega Nirman& Industries Limited ("the Company") as of March 31 2022 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

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".] These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing Issued by ICAl and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting 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 controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial 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 qualified audit opinion on the Company’s internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea material effect on the financial statements.

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 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 to futureperiods are subject to the risk that the internal financial control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Qualified Opinion

According to the information and explanations given to us and based on our auditmaterial weakness has been identified in the company’s internal financial controlsover financial reporting as at March 31 2022 as regards:

i) Uncertainty for realizing the carrying value of its trade receivables and payment ofthe carrying value of its trade payables which are subject to their balance confirmationand in view of ageing analysis.

j) Non-maintenance / Updation of stock register loans and investment register foragreements or contracts with related parties and other records as prescribed underCompanies Act 2013 in respect of applicable provisions of Section 177185186188189 asapplicable.

k) No other documentary evidences in case of goods inward and outward except Sale andpurchase invoices.

l) non-accounting of reversal of GST input of Rs.2013891 /- (excluding interest aspayable Thereon) for the tax period 2018-19 to 2020-21 due to non-payment to creditorswithin a stipulated time as prescribed in terms of 2nd proviso to section 16(2) of CGSTAct 2017 and non accounting of a pending GST demand of Rs. 355636/- excluding interestas per GST assessment order dt. 26/10/2020 for tax period 2017-18 towards differential taxon ITC claim under GST.

A ‘material weakness’ is a deficiency or a combination of deficiencies ininternal financial control over financial reporting such that there is a reasonablepossibility that a material misstatement of the company’s annual financial statementswill not be prevented or detected on a timely basis.

In our opinion except for the possible effects of the material weakness describedabove on the achievement of the objectives of the control criteria the Company hasmaintained in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2022 based on the internal control over financialreporting criteria established by the Company considering the

essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For ASHM & Associates
Chartered Accountants
Firm’s Registration No. 005790C
Sd/-
Manoj Kumar Bajaj
Place: New Delhi Partner
Date: 27.05.2022 M.No-091107
UDIN: 22091107AMGOYJ3990

.