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N R Agarwal Industries Ltd.

BSE: 516082 Sector: Industrials
NSE: NRAIL ISIN Code: INE740D01017
BSE 00:00 | 13 Nov 488.55 2.75
(0.57%)
OPEN

489.95

HIGH

497.00

LOW

482.20

NSE 00:00 | 13 Nov 488.50 3.30
(0.68%)
OPEN

477.50

HIGH

499.05

LOW

477.50

OPEN 489.95
PREVIOUS CLOSE 485.80
VOLUME 1702
52-Week high 615.85
52-Week low 275.15
P/E 7.87
Mkt Cap.(Rs cr) 832
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 489.95
CLOSE 485.80
VOLUME 1702
52-Week high 615.85
52-Week low 275.15
P/E 7.87
Mkt Cap.(Rs cr) 832
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

N R Agarwal Industries Ltd. (NRAIL) - Auditors Report

Company auditors report

To

The Members of

N R Agarwal Industries Ltd.

Report on the Ind AS Financial Statements

1. We have audited the accompanying Ind AS financial statements of "N R AgarwalIndustries Ltd." ("the Company") which comprise the Balance Sheet asat March 31 2018 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Cash Flows and the Statement of Changes in Equity for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation (herein referred to as "the financial statements").

Management's Responsibility for the Ind AS Financial Statements

2. The Company's Board of Directors is responsible for the preparation of these Ind ASfinancial statements in terms of the requirements of Section 134(5) of the Companies Act2013 (hereinafter referred to as "the Act") that give a true and fair view ofthe financial position financial performance including other comprehensive incomechanges in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standardsprescribed under Section 133 of the Act read with relevant rules issued thereunder.

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 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 statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

5. We have conducted our audit of the Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers the internal financial control relevant to theCompany's preparation of the Ind AS financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Ind AS financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind AS of the state ofaffairs of the Company as at March 31 2018 and its financial performance including othercomprehensive income the changes in equity and its cash flows for the year then ended.

Report on Other Legal and Regulatory Requirements

9. 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 inparagraphs 3 and 4 of the Order to the extent applicable.

10. As required by section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit of the aforesaidInd AS financial statements;

b) In our opinion proper books of account as required by law relating to preparationof the aforesaid Ind AS financial statements have been kept so far as it appears from ourexamination of those books;

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis Report are in agreement with the books of account maintained for the purpose ofpreparation of financial statements;

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under section 133 of the Act read with relevant rulesissued thereunder; e) On the basis of written representations received from the directorsas on March 31 2018 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2018 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'; and

g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:

i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to Note 34 to the financial statements.

ii) The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.

iii) There has been no delay in transferring amounts which were required to betransferred to the Investor Education and Protection Fund by the Company.

For GMJ & Co
Chartered Accountants
Firm No. 103429W
Place: Mumbai (CA Sanjeev Maheshwari)
Date : May 14 2018 M. No. 038755

Annexure ‘A' to the Independent Auditors' Report

(Referred to in paragraph 9 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date) i. (a) The Company has maintainedproper records showing full particulars including quantitative details and situation ofProperty Plant and Equipment.

(b) Property Plant and Equipment have been physically verified by the management atregular intervals which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. No material discrepancies were noticed on suchphysical verification.

(c) According to the information and explanation given to us and on the basis of ourverification title deeds of all immovable properties are held in the name of the Company.

ii. As explained to us management has conducted physical verification of inventory atregular intervals during the year and no material discrepancies were noticed on suchphysical verification.

iii. The Company has not granted any loan secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Therefore the provisions of Clause 3 (iii)(a) (iii)(b) and(iii)(c) of the said Order are not applicable to the Company.

iv. In our opinion and according to the information and explanations given to usduring the year the Company has not granted any loans or provided any guarantees orsecurity in respect of any loans to any party covered under section 185 of the CompaniesAct 2013. In respect of loan has been given in the previous years the provision ofSection 186 of the Companies Act 2013 have been complied with.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from public within the meaning of Section 73 to 76of the Companies Act 2013 and the rules framed there under.

vi. We have broadly reviewed the books of account maintained by the Company in therespect of the products where pursuant to the Rules made by the Central Government themaintenance of Cost Records have been prescribed under section 148(1) of the Act and areof the opinion that prima facia the prescribed accounts and records have been made andmaintained. We have not however made a detailed examination of the records with a viewto whether they are accurate or complete.

vii. (a) According to the information and explanation given to us and on the basis ofour examination of our records of the Company in respect of undisputed statutory duesincluding provident fund employees' state insurance income tax wealth tax sales taxservice tax duty of customs duty of excise value added tax cess and any otherstatutory dues have generally been regularly deposited with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of the aforesaid dues were in arrears as at March 31 2018 for a periodof more than six months from the date they became payable.

(b) According to the books of accounts and records as produced and examined by us inaccordance with the generally accepted auditing practices in India as at March 312018 the following are the particulars of the dues that have not been deposited on theaccount of dispute.

Name of the Statute Nature of the Dues Amount (Rsin lakhs ) Forum where dispute is pending Financial year to which the amount relates
Central Excise Act 1944 Excise Duty* 475.70 Appellate Authority – CESTAT 2003-04 to 2016-17
Central Excise Act 1944 Custom Duty 34.90 Appellate Authority – CESTAT 2013-14 to 2014-15
Income Tax Act 1961 Income Tax** 454.00 Appellate Authority – ITAT Ahmedabad 2006-07 to 2012-13

 

Name of the Statute Nature of the Dues Amount (RsJ in lakhs ) Forum where dispute is pending Financial year to which the amount relates
Income Tax Act 1961 Income Tax** 88.99 Appellate Authority – ITAT Ahmedabad 2012-13
Income Tax Act 1961 Income Tax** 26.23 Appellate Authority – ITAT Ahmedabad 2013-14
Income Tax Act 1961 Penalty Demand Income Tax 133.55 CIT(A) 2006-07 to 2009-10
Income Tax Act 1961 Penalty Demand Income Tax 145.00 CIT(A) 2010-11 to 2011-12

* Out of the demand a sum of Rs 14.48/- Lakhs was paid under protest.

**These amount have already been paid by the Company.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to banks during the year under audit. Thereare no dues to Financial Institution Government and the Company has not issued anydebentures.

ix. According to the information and explanations given to us and based on the recordsand documents produced before us during the year the Company has not raised money by wayof initial public o_er or further public o_er and the term loans have been applied for thepurposes for which they were obtained.

x. To the best of our knowledge and belief and according to the information given tous no material fraud by the Company or on the Company by its Officers or employees hasbeen noticed or reported during the year.

xi. According to the information and explanations given to us and based on the recordsand documents produced before us managerial remuneration has been paid by the Company inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it therefore the provisions of clause (xii) of paragraph 3 of the Order are notapplicable to the Company.

xiii. According to the information and explanation given to us all transactions withthe related parties are in compliance with Sections 177 and 188 of the Companies Act2013. The details of such related party transactions have been disclosed in the financialstatements as required under Indian Accounting Standard (Ind AS) 24 Related PartyDisclosures.

xiv. According to the information and explanations given to us and based on the recordsand documents produced before us the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.

xv. According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him underthe provisions of section 192 of Companies Act 2013.

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

For GMJ & Co
Chartered Accountants
Firm No. 103429W
Place: Mumbai (CA Sanjeev Maheshwari)
Date : May 14 2018 M. No. 038755

Annexure ‘B' to the Independent Auditors' Report

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

We have audited the internal financial controls over financial reporting of "NR Agarwal Industries Ltd." ("the Company") as of March 31 2018 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on that 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and e_cientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 ICAI 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 judgment 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 audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting 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 have amaterial 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 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 financialreporting 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.

Opinion

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 March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe 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 GMJ & Co
Chartered Accountants
Firm No. 103429W
Place: Mumbai (CA Sanjeev Maheshwari)
Date : May 14 2018 M. No. 038755