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Nakoda Group of Industries Ltd.

BSE: 541418 Sector: Agri and agri inputs
NSE: NGIL ISIN Code: INE236Y01012
BSE 00:00 | 01 Jul 143.90 3.55
(2.53%)
OPEN

134.45

HIGH

145.00

LOW

133.35

NSE 00:00 | 01 Jul 143.65
(%)
OPEN

141.50

HIGH

144.45

LOW

130.80

OPEN 134.45
PREVIOUS CLOSE 140.35
VOLUME 5239
52-Week high 301.85
52-Week low 28.95
P/E 115.12
Mkt Cap.(Rs cr) 200
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 134.45
CLOSE 140.35
VOLUME 5239
52-Week high 301.85
52-Week low 28.95
P/E 115.12
Mkt Cap.(Rs cr) 200
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nakoda Group of Industries Ltd. (NGIL) - Auditors Report

Company auditors report

TO THE MEMBERS OF

NAKODA GROUP OF INDUSTRIES LIMITED

Report on the Audit of Financial Statements Opinion

We have audited the accompanying financial statements of NAKODA GROUP OF INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at March 31 2021the Statement of Profit and Loss and the Statement of Cash Flows for the year then endedand notes to the financial statements including a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as "the financialstatements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 and its profits and its cash flowsfor the year ended on that date.

Basis of Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe financial statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ("ICAI") together with the ethical requirements that are relevant to ouraudit of the financial statements under the provisions of the Act and the Rules madethereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were most ofsignificance in or audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

We have determined the matters described below to be the key audit matters to becommunicated to our report.

The Key Audit Matters How was the matter addressed in our Audit
Revenue Recognition
Revenue is one of the key profit drivers and is therefore susceptible to misstatements. Cut - off is the key assertion in so far as revenue recognition is concerned since an inappropriate cut -off can results in material misstatement of results for the years. Our audit procedures with regards to revenue recognition included testing controls automated and manual around dispatches / deliveries inventory reconciliations and circularization of receivable balances substantive testing for cut - off and analytical review procedures.
Recoverability of Indirect Tax Receivables
As at March 31 2021 Balances with Revenue Authorities under the head of "Short Term Loans and Advances" in respect of GST Refund Receivables amounting to Rs 4564489 which are pending for assessments processes. We have involved our internal experts to review the nature of the amount recoverable the sustainability and the likelihood of recoverability upon the final resolution.

Appropriateness of Current and Non - Current Classifications

For the purpose of Current / Non - Current classification of the assets andliabilities the Company has ascertained its normal operating cycle as twelve months. Thisis based on the nature of services and the time between the acquisition of assets orinventories for processing and their presentation in cash and cash equivalents.

The classification of assets and liabilities has been done on the basis of thedocumentary evidence. Where conclusive evidence is not available the classification hasbeen done on the basis of management's best estimates of the period in which the assetswould be realized or the liabilities would be settled. We have evaluated thereasonability of the management's estimates.

Information other than the 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 Annexure to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the consolidated financial statements standalone financial statements and ourauditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have performed we

conclude that there is a material misstatement of this other information we arerequired to report that fact. We have nothing to report in this regard.

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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciple generally accepted in India including the Accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate implementation and maintenance of accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentations of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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 financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal controls.

• Obtain an understanding of internal financial controls relevant to the audit inorder to 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 internal financial controls system with reference to financial statements inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• 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 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 may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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 inparagraph 3 and paragraph 4 of the said 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 and the Statement of Cash Flowsdealt with by this Report are in agreement with the books of account;

d. In our opinion the Balance Sheet the Statement of Profit and Loss and theStatement of Cash Flows comply with the Accounting Standards specified under Section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;

e. On the basis of the written representation received from the directors as on March31 2021 taken on the record by the Board of Directors none of directors is disqualifiedas on March 31 2021 from being appointed as a director in term of Section 164(2) of theAct.

f. With respect to adequacy of the internal financial controls over financial reportingof the Company and the operating effectiveness of such control refer to our separatereport in Annexure "B". Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

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 explanations given to us theremuneration paid by the Company to its directors during the reporting period is inaccordance with the provision of Section 197 of the Act.

h. With respect to the other matters to be included in the Independent Auditor's Reportin accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and 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 if any.

(ii) The provision has been made in financial statements as required under theapplicable law or Accounting Standards for material foreseeable losses if any on long -term contracts including the derivative contracts.

(iii) There has been no delay in transferring amounts required to be transferred toInvestor Education and Protection Fund by the Company.

For MANISH N JAIN & CO.
Chartered Accountants
FRN No. 138430W
SD/-
MANISH JAIN
Place: Nagpur Partner
Dated: May 01 2021 Membership No. 118548
UDIN No.: 21118548AAAAEG8265

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in Paragraph 1 under 'Report on the Other Legal and RegulatoryRequirements' section of our report of even date)

Report on Companies (Auditor's Report) Order 2016 ("the Order") issued bythe Central Government of India in term of Section 143(11) of the Companies Act 2013("the Act") of NAKODA GROUP OF INDUSTRIES LIMITED ("the Company").

1. In respect of the Company's fixed assets:

i) The Company has maintained proper records in the electronic mode showing fullparticulars including quantitative details and situation of fixed assets.

ii) The fixed assets were physically verified by the management in accordance withregular programme of verification which in our opinion provides for physicalverification of all the fixed assets at reasonable intervals. According to the informationand explanation given to us no material discrepancies were noticed on such physicalverification. In our opinion this periodicity of physical verification is reasonablehaving regards to the size of the Company and the nature of its assets.

iii) According to the information and explanation given to us and on the basis of ourexamination of the records of the Company produced and verified by us we report that thetitle deeds of immovable properties of land and building which are freehold are held inthe name of the Company as at the Balance Sheet date.

2. In respect of the Company's Inventories:

As explained to us inventories except goods in transits and the stock lying with thirdparties were physically verified during the year by the management at reasonableintervals. In our opinion in respect of stock lying with the third parties at the end ofthe year written confirmations have been obtained. In our opinion the frequency suchverification is reasonable. As explained to us there was no material discrepanciesnoticed on such physical verification of inventories as compared to the book records.However the discrepancies if any noticed on such physical verification have beenproperly dealt with in the books of accounts.

3. In respect of the loan secured or unsecured granted by the Company to companiesfirms limited liabilities partnerships or other parties covered in the registermaintained under section 189 of Companies Act 2013.

According to the information and explanation given to us there are no such companiesfirms limited liabilities partnership and other parties covered in the registeredmaintained under section 189 of the Companies Act 2013.

4. In our opinion and according to information and explanations given to us theCompany has complied with all the provisions of section 185 and section 186 of the Act inrespect to grant of loans making investments and providing guarantees and securities asapplicable.

5. The Company has not accepted any deposits from public within the meaning of thedirectives issued by the Reserve Bank of India provision of Section 73 to Section 76 ofthe Act any other relevant provisions and rules made thereunder during the year and doesnot have any unclaimed deposits as at March 31 2021 and therefore reporting under Clause3(v) of the Order are not applicable to the Company.

6. Reporting under clause 3(vi) of the Order is not applicable as the Company'sbusiness activities are not covered by the Companies (Cost Records and Audit) Rule 2014.

7. According to the information and explanations given to us ad on the basis of ourexamination of the records of the Company in respect of Statutory Dues we report that:

(a) The Company has generally been regular in depositing the undisputed statutory duesincluding provident fund employees' state insurance income tax sales tax value addedtax service tax duties of custom duties of excise goods and service tax cess andother material statutory dues applicable to it with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax sales taxvalue added tax service tax duties of custom duties of excise goods and service taxcess and other material statutory dues were in arrears as at March 31 2021 for a periodof more than six months from the date they became payable.

(b) According to the information and explanation given to us there are no materialdues of duties of custom income tax sales tax value added tax duties of excise servicetax and goods and service tax which have not been deposited with the appropriateauthorities on account of dispute.

8. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanation givento us we are of the opinion that the Company has not defaulted in repayment of dues ofany loans or borrowings from the banks financial institution. The Company does not haveany loans and borrowings from the Governments and had not issued any debentures during thereporting period.

9. The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the reporting period. The Company hastaken the term loans during the period and the term loan raised have been applied for thepurpose for which the loans were obtained expect the funds deployed temporarily elsewhere.

10. According to the information and explanation given to us and on the basis ofexamination of records of Company we report that no fraud by the Company or materialfraud on the Company by its officers or employees has been noticed or reported during theperiod.

11. The Company has paid or provided the Managerial Remuneration during the year inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith the Schedule - V of the Companies Act 2013.

12. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of theOrder is not applicable to the Company.

13. According to information and explanations given to us and based on our examinationof the records of the Company all transactions with the related parties are in compliancewith section 177 and section 188 of the Act where applicable and details of suchtransactions have been disclosed in the "Note No. - 33" of financial statementsunder "the transaction with the Related Parties" as required by the AccountingStandard (AS) - 18 "Related Party Disclosure" specified under section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014.

14. During the reporting period the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures and hence reportingunder clause 3(xiv) of the said Order is not applicable to Company.

15. In our opinion and according to the information and explanation given to us duringthe period the Company has not entered into any non - cash transactions with any of itsdirectors or persons connected with him and hence provisions of section 192 of Act arenot applicable. Thus reporting under clause 3 (xv) of the Order is not applicable to theCompany.

16. The Company is not required to be registered under Section 45 - IA of the ReserveBank of India Act 1934 therefore the reporting under clause 3(xvi) of the Order is notapplicable to the Company.

For MANISH N JAIN & CO.
Chartered Accountants
FRN No. 138430W
SD/-
MANISH JAIN
Place: Nagpur Partner
Dated: May 01 2021 Membership No. 118548
UDIN No.: 21118548AAAAEG8265

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in Paragraph 2(f) under "Report on the Other RegulatoryRequirements" Section of our report of even date)

Report on the Internal Financial Controls over the Financial Reporting under Clause (i)of Sub - Section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the Internal Financial Controls over the Financial Reporting of"NAKODA GROUP OF INDUSTRIES LIMITED" ("the Company") as of March 312021 in conjunction with our audit of the 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 efficientconduct 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 were 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 includesobtaining 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 auditors' 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 ofrecords that 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.

Inherent Limitations of Internal Financial Controls over the 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 to the best of our information and according to the explanation givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2021 based on the internal controlover financial reporting criteria established 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 MANISH N JAIN & CO.
Chartered Accountants
FRN No. 138430W
SD/-
MANISH JAIN
Place: Nagpur Partner
Dated: May 01 2021 Membership No. 118548
UDIN No.: 21118548AAAAEG8265

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