To the Members of
Nahar Industrial Enterprises Limited.
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of NaharIndustrial Enterprises Limited ("the Company") which comprise the Balance Sheetas at 31st March 2017 the Statement of Profit and Loss (including Other ComprehensiveIncome)the Statement of changes in Equity and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Ind AS 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 Standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including Other Comprehensive Income thechanges in Equity and the cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the Standalone 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 Standalone Ind AS financial statements are freefrom material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Standalone Ind ASfinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of thecompany as at 31st March 2017 and its profit total comprehensive income its cash flowand the changes in equity for the year ended on that date.
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 inparagraphs 3 and 4 of the Order.
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 purpose 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 Cash Flow Statement and the statement of changes in equity dealt with by thisReport are in agreement with the books of account.
d. In our opinion the aforesaid Standalone Ind AS financial statements comply with theAccounting Standards specified under section 133 of the Act
e. On the basis of written representations received from the
directors as on 31 March 2017 taken on record by the Board of Directors none of thedirectors is disqualified as
on 31 March 2017 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".
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 of pending litigations on its financialposition in its Standalone financial statements Refer Note 33 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
iv. The company has provided requisite disclosures in its standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes as defined in theNotification S.O. 3407(E) during the period from 9th November 2016 to 30th December2016. However we are unable to comment as the company has not maintained seperate recordsof SBN and other denomination.
For Raj Gupta and Co.
Chartered Accountants FRN : 000203N
Raj Kumar Gupta
Place : Ludhiana (Partner)
Dated : 30 May 2017 M. No. : 017039
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
Referred to in Paragraph 1 under the heading "Report on Other Legal and RegulatoryRequirements."
The Annexure referred to in Independent Auditor's Report to the members of the companyon the standalone Ind AS financial
statements for the year ended 31 March 2017 we report that:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets; (b) As explained to us the FixedAssets have been physically verified by the management in a phased manner designed tocover all the items over a period of regular intervals which in our opinion isreasonable having regard to the size of the company and nature of its business. Pursuantto the program a portion of the fixed asset has been physically verified by themanagement during the year and no material discrepancies between the books records and thephysical fixed assets have been noticed. (c) According to the information and explanationsgiven to us and on the basis of our examination of the records of the company the titledeeds of immovable properties are held in the name of the company except for Landmeasuring 66.11 acres situated at village Jalalpur chd-ambala road Lalru districtMohali. (ii) (a) According to information and explanations given the management hasconducted the physical verification of inventory at reasonable intervals. (b) Thediscrepancies noticed on physical verification of the inventory as compared to booksrecords which has been properly dealt with in the books of account were not material.(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited Liabilitypartnerships or other parties covered in the Register maintained under section 189 of theAct. Accordingly the provisions of clause 3 (iii) (a) to (c) of the Order are notapplicable to the Company and hence not commented upon. (iv) In our opinion and accordingto the information and explanations given to us the company has not granted loans orgiven guarantees and security. So the provisions of section 185 and 186 of the CompaniesAct 2013 are not applicable. However the Company has complied with the provisions ofSection 185 and 186 of the Companies Act 2013 in respect of the investments made.
(v) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.
(vi) As informed to us the maintenance of Cost Records has been specified by theCentral Government under subsection (1) of Section 148 of the Act in respect of theactivities carried on by the company and these records and accounts have been maintainedby the company. However we have not made a detailed examination of the cost records witha view to determine whether they are accurate or complete.
(vii) (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the
st on when they become payable.
b) According to the information and explanation given to us there are no dues ofCustom Duty/ Cess. However following demands of income tax sales tax service tax dutyof excise value added tax outstanding on account of any dispute.
| || ||Amount || |
| || ||(` in Lacs) || |
|The Tamil Nadu General Sales Tax Act 1959 ||Sales Tax Demand ||9.43 ||Dy. Commissioner Appeals Sale Tax Madras |
|The Punjab VAT Act 2005 ||Sales Tax Demand ||20.99 ||Commissioner of Sale Tax Patiala |
|The Central Excise Act1944 ||Sales Tax Demand ||36.75 ||Sale Tax Tribunal Chandigarh |
| ||Excise Duty Demand ||303.31 ||Commissioner Appeals Chandigarh |
| ||Excise Duty Demand ||23.81 ||CESTAT Delhi |
| ||Excise Duty Demand ||47.54 ||Commissioner Appeals Jaipur |
| ||Excise Duty Demand ||13.39 ||CESTAT Jaipur |
|The Finance Act 1994 ||Service Tax Demand ||10.09 ||Dy. Commissioner Ludhiana |
| ||Service Tax Demand ||9.27 ||The Supreme Court of India |
| ||Service Tax Demand ||5.88 ||CESTAT Jaipur |
| ||Service Tax Demand ||27.86 ||Joint CommissionerJaipur |
| ||Service Tax Demand ||199.68 ||Commissioner Appeals Chandigarh |
|The Income Tax Act 1961 ||Income Tax ||1368.90 ||CIT (Appeals) Ludhiana |
(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to banks. (ix) Based upon the auditprocedures performed and the information and explanations given by the management thecompany has not raised moneys by way of initial public offer or further public offerincluding debt instruments during the year. Term Loans have been applied by the companyfor the purposes for which they were raised. (x) Based upon the audit procedures performedand the information and explanations given by the management we report that no materialfraud by the Company or on the company by its officers or employees has been noticed orreported during the year. (xi) Based upon the audit procedures performed and theinformation and explanations given by the management the managerial remuneration has beenpaid or provided in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act; (xii) The Company is not a NidhiCompany. Therefore the provisions of clause 3 (xii) of the Order are not applicable tothe Company. (xiii) Based upon the audit procedures performed and the information andexplanations given by the management all transactions with the related parties are incompliance with
section 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Standalone Ind AS
Financial Statements as required Ind AS 24.
(xiv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon. (xv) Based upon the audit procedures performedand the information and explanations given by the management the company has not enteredinto any non-cash transactions with directors or persons connected with him. Accordinglythe provisions of clause 3 (xv) of the Order are not applicable to the Company and hencenot commented upon. (xvi) In our opinion the company is not required to be registeredunder section 45 IA of the Reserve Bank of India Act 1934 and accordingly the provisionsof clause 3 (xvi) of the Order are not applicable to the Company and hence not commentedupon.
For Raj Gupta and Co.
Chartered Accountants FRN : 000203N
Raj Kumar Gupta Place : Ludhiana (Partner)
Dated : 30 May 2017 M. No. : 017039