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Nandani Creation Ltd.

BSE: 538375 Sector: Industrials
NSE: JAIPURKURT ISIN Code: INE696V01013
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Nandani Creation Ltd. (JAIPURKURT) - Auditors Report

Company auditors report

(REPORT ON THE AUDIT OF STANDALONE FINANCIAL STATEMENTS)

To

The Members of

NANDANI CREATION LIMITED

Jaipur

Opinion

We have audited the standalone financial statements of NANDANI CREATION LIMITED("the company") which comprise the Balance Sheet as at 31 March 2021 and theStatement of Profit and Loss and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory 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 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the company as at March 31 2021 and its profit and its cash flows for the yearended on that date.

BASIS OF OPINION

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thosestandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

KEY AUDIT MATTERS

Key Audit Matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have not observed anything which falls under this.

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 Annexure 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 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 statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information; we are required to report that fact. We have nothing to reportin this regard.

RESPONSIBILITIES OF THE MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE STANDALONEFINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act. This responsibility also includes the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements Board of Directors is responsible for assessingthe Company's ability to continue as going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless the Boardof Directors either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

AUDITOR'S RESPONSIBILITY FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free form 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 decision 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 control.

• 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 Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness 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.

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 safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditors' 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 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 purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books and proper returns adequatefor the purposes of our audit have been received from the branches not visited by us.

c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account and the returns receivedfrom the branches not visited by us.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31 March2021 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2021 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 other matters to be included in the Auditor's Report in accordancewith the requirements of the section 197(16) of the Act;

In our opinion and to the best of our information and according to the explanationsgiven to us remuneration paid/provided by the company to its directors during the year isin accordance with the requirements of Section 197(16) of the Act;

In our opinion and to the best of our information and according to the explanationsgiven to us remuneration paid/provided by the company to is directors during the year isin accordance with the provisions of 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 Auditor's) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

I. The Company does not have any pending litigations which would impact its financialposition.

II. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

III. There were no amounts which required to be transferred to the Investor Educationand Protection Fund.

ANNEXURE A REFERRED TO IN PARAGRAPH 7 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OFNANDANI CREATION LIMITED ON THE FINANCIAL STATEMENTS OF THE COMPANY FOR THE YEAR ENDEDMARCH 312021.

1. On the basis of the information and explanation given to us during the course of ouraudit we report that:

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

b) According to the information and explanations given to us and based on the recordsof the company examined by us fixed assets have been physically verified by themanagement at reasonable intervals; and no material discrepancies were noticed on suchverification.

c) According to the information and explanations given to us and based on the recordsof the company examined by us the company does not own any Immovable property thereforereporting under this clause is not applicable on the company

2. According to the information and explanations given to us and based on the recordsof the company examined by us physical verification of inventory has been conducted atreasonable intervals by the management and no material discrepancies were noticed on suchverification.

3. The company has granted Unsecured loan of Rs.22.66 Lacs companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013. In this regard

(a) All the terms and conditions of the grant of such loan are not prejudicial to theinterest of the company.

(b) No Stipulation in regard to repayment of principal amount is stipulated howeverinterest is received as stipulated and receipts are regular.

(c) Since no stipulation for repayment is specified amount is not overdue.

4. According to the records of the company examined by us and as per the informationand explanations given to us the company has not granted any loans made investmentsprovided guarantee or security to parties listed under Section 185 and 186 of theCompanies Act 2013 therefore no reporting is applicable under these sections.

5. The company has not accepted any deposits from the public covered under section 73to 76 of the Companies Act 2013

6. As informed to us the Central Government has not prescribed maintenance of costrecords under subsection (1) of section 148 of the Companies Act 2013

7. (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is generally regular in depositingundisputed statutory dues including provident fund employee's state insuranceincome-tax Goods and service tax duty of customs cess and any other statutory dues tothe appropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of the above were in arrears as on 31st March 2021for a period of more than six months from the date on when they become payable.

(b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no outstanding dues of Income tax or Goods andService tax or Duty of Customs which have not been deposited on account of any dispute.

7. According to the information and explanations given to us and based on the recordsof the company examined by us the company hasn't made any default in repayment of loansor borrowing to a financial institution bank Government or dues to debenture holders

8. According to the information and explanations given to us and based on the recordsof the company examined by us company has not raised money by way of initial public offerduring the year. Hence clause 3(ix) of the Order is not applicable to it.

9. During the course of our examination of the books and records of the company carriedin accordance with the auditing standards generally accepted in India we have neithercome across any instance of fraud by the company or on the company by its officers oremployees noticed or reported during the course of our audit nor have we been informed ofany such instance by the Management.

10. According to the records of the company examined by us and as per the informationand explanations given to us the company has complied with the provisions of Section 197read with Schedule V to the Act. For details refer Para Number 15 of Note No 1 of thesignificant accounting policies.

11. In our opinion and according to the information and explanations given to us thecompany is not a Nidhi Company. Hence clause 3(xii) of the Order is not applicable to it.

12. According to the information and explanations given to us and based on the recordsof the company examined by us the company is in compliance with Sections 177 and 188 ofCompanies Act 2013 where applicable rules and where applicable for all transactionswith the related parties and the details of the related party transaction have beendisclosed in the financial statements in note no. 25.11a and 25.11bas required by theapplicable accounting standards.

13. According to the information and explanations given to us and based on the recordsof the company examined by us the company is a listed entity and has made preferentialallotment of Rs.1.80 Cr. during the year. All the requirements as specified U/s.42 of theCompanies Act 2013 has been complied and money so raised have been used for the purposeit was raised.

14. According to the records of the company examined in course of our audit and as perinformation and explanations given to us the company has not entered in any non-cashtransaction with directors or persons connected with him. Hence provisions of Section 192are not applicable to the company

15. According to information and explanations given to us and on the basis of recordsof the company examined by us the company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934.

ANNEXURE B REFERRED TO IN PARAGRAPH 8(G) OF OUR REPORT OF EVEN DATE TO THE MEMBERS OFNANDANI CREATION LIMITED ON THE FINANCIAL STATEMENTS OF THE COMPANY FOR THE YEAR ENDEDMARCH 31 2021.

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls over financial reporting of NANDANICREATION LIMITED. ("The Company") as of 31st March 2021 inconjunction with our audit of the financial statements of the Company for the year endedon 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'). 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 assets theprevention 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 ICAI and deemedto be prescribed under section 143(10) of the Companies

Act 2013 to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 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 Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management DATE: 30.06.2021PLACE: JAIPUR override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay 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 31 March 2021 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.

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