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National General Industries Ltd.

BSE: 531651 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE654H01011
BSE 00:00 | 06 Oct 197.00 9.15
(4.87%)
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180.00

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197.00

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NSE 05:30 | 01 Jan National General Industries Ltd
OPEN 180.00
PREVIOUS CLOSE 187.85
VOLUME 63
52-Week high 839.85
52-Week low 51.55
P/E 437.78
Mkt Cap.(Rs cr) 109
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 180.00
CLOSE 187.85
VOLUME 63
52-Week high 839.85
52-Week low 51.55
P/E 437.78
Mkt Cap.(Rs cr) 109
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

National General Industries Ltd. (NATLGENINDS) - Auditors Report

Company auditors report

To

The Members of

M/s NATIONAL GENERAL INDUSTRIES LTD.

New Delhi.

Opinion

We have audited the accompanying Standalone Ind AS financial statementsof M/s NATIONAL GENERAL INDUSTRIES LTD. (the Company) which comprise the Balance Sheet asat March 31 2021 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Change in Equity for the year thenended and a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Ind AS Financial Statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the Ind AS accounting principles generally accepted in India of the stateof affairs of the Company as at 31st March 2021 its profit including Other ComprehensiveIncome its Cash Flows and the Statement of Change in Equity for the year ended on thatdate.

Basis of Opinion

We conducted our audit in accordance with the Standards on Auditingspecified under section 143(10) of the Company Act 2013 Our responsibilities under thoseStandard are further described in the Auditor's Responsibilities for the Audit of theStandalone Ind AS financial statement section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by ICAI and we have fulfilled ourother ethical responsibilities in accordance with the provisions of the Companies Act2013. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis of opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Emphasis of Matter

We draw attention to the following matters in the notes to FinancialStatements:

The Note 33 & 34 related to preparation of standalone financialstatement which explains Covid 19 has caused significant auditing and accountingchallenges. Once a challenge being the management was not able to conduct the physicalcounting of inventory on regular periodic interval however physical counting for the postlockdown period was conducted time to time. Further Covid 19 has caused significantdisruption to businesses across India. The management has considered the possible effectsif any that may impact the carrying amounts of property plant and equipmentinvestments inventories receivables other current assets. In making the assumptions andestimates relating to the uncertainties as at the balance sheet date in relation to therecoverable amounts the management has considered subsequent events internal andexternal information and evaluated economic conditions prevailing as at the date ofapproval of these financials results. The management expects no impairment to the carryingamounts of these assets. The management will continue to closely monitor any changes tofuture economic conditions and assess its impact on the operations.

Some of the Debtors and Creditors balances are subject to Confirmationfrom the Parties although mails have been sent for confirming the same. "Our Opinionis not modified in respect of this matter".

Other Matter

Due to spreading of COVID-19 across India the Government Authoritiesimposed a corona lockdown in April 2021 across State which is still going on withrelaxations in parts. This has resulted in restriction on physical visit to clientlocations and the need for carrying alternative audit procedures as per the Standards onAuditing prescribed by the Institute of Chartered Accountants of India (ICAI).

In view of above stated situation the entire audit was carried outbased on remote access of the data as provided by the management. This has been carriedout based on the advisory on "Specific Considerations while conducting Distance Audit/ Remote Audit / Online Audit under current Covid- 19 situation" issued by theAuditing and Assurance Standards Board of ICAI. We have been represented by the managementthat the data provided for our audit purposes is correct complete and reliable and aredirectly generated by the accounting system of the Company without any further manualmodifications.

We bring to the attention of users that the audit of the financialstatements has been performed in the aforesaid conditions.

Information Other than the Financial Statement and Auditor's ReportThereon

The Company's Board of Directors is responsible for 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 statement and our auditor's report thereon.

Our opinion on the financial statement does not cover the otherinformation and we do not express and form of assurance conclusion thereon.

In connection with our audit of financial statement our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistence with the financial statement or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required 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 statedin Section 134(5) of the Companies Act 2013 with respect to the preparation of thesefinancial statements that give a true and fair view of the Financial Position FinancialPerformance including Other Comprehensive Income Cash flows and the Statement of Changein Equity of the Company in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards (Ind AS) specified under Section 133 ofthe Act read with Companies (Accounting Standards) Rule 2015 as amended.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and 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 which have been used for the purpose ofpreparation of the Standalone Ind AS financial statement by the Directors of the Companyas aforesaid.

In preparing the Standalone Financial Statements management isresponsible 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. That Board of Directors are alsoresponsible for overseeing the Company's financial reporting process.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether theStandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Ind AS financialstatements.

A further description of the auditor's responsibilities for the auditof the Standalone Ind AS financial statement is included in Annexure A. This descriptionforms part of our auditor's report.

Our Opinion on the Standalone Ind AS financial statement and ourreport on Other Legal and Regulatory Requirement below is not modified in respect of theabove matters with respect to our reliance on the work done and the reports of the othersauditors and the financial statement / financial information certified by the Management.

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 of the Act we give in the Annexure B statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable:

2. As required by section 143(3) of the Act based on our audit wereport that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of our auditof the aforesaid Standalone Ind AS financial statement;

b) In our opinion proper books of account as required by law relatingto preparation of the aforesaid Standalone Ind AS financial Statement have been kept bythe Company so far as it appears from our examination of those books;

c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Incomethe Statement of Cash Flow Statement and Statement of Changes inEquity dealt with by this Report are inagreement with the books of account;

d) In our opinion the aforesaid Standalone Ind AS financial statementcomply with the Indian Accounting Standards specified underSection 133 of the Act readwith Companies (Indian Accounting Standards) Rules 2015 as amended;

e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director interms of Section 164 (2) of the Act;

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the company and the operating effectiveness of such controls referto our separate report in Annexure C; our report express an unmodified opinion on theadequacy and operative effectiveness of the company's internal financial controls overfinancial reporting and

g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the company to its directors during the year is in accordancewith the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

a. The Company has no pending litigations having impact on itsfinancial statements.

b. The Company did not have any long-term contract including derivativecontracts which may lead to any foreseeable losses.

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

For N R & Company
Chartered Accountants
FRN - 015095C
Sd/-
Place: New Delhi Naveen Sawhney
Dated: 30.06.2021 Partner
Membership No.073713
UDIN: 21073713AAAAAG4245

Annexure 'A' to Auditors Report Responsibilities for Audit of Ind ASFinancial Statement

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

> Identify and assess the risks of material misstatement of theStandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraud mayinvolve collusion forgery intentional omissions misrepresentations or the override ofinternal control.

> Obtain an understanding of internal control relevant to the auditin order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls with reference toFinancial Statement in place and the operating effectiveness of such controls.

> Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

> Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists 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 Ind AS financial statements or if such disclosuresare inadequate 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 conditions maycause the Company to cease to continue as a going concern.

> Evaluate the overall presentation structure and content of theStandalone Ind AS financial statements including the disclosures and whether theStandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.

> Obtain sufficient appropriate audit evidence regarding thefinancial information of the entity or business activities to express an opinion on theStandalone Ind AS financial statement. We are responsible for the direction supervisionand performance of the audit of the financial statement of such entries included in thefinancial statement of which we are the independent auditors. For the other entityincluded in the Standalone Ind AS financial Statement.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the Standalone IndAS financial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

For N R & Company
Chartered Accountants
FRN - 015095C
Sd/-
Place: New Delhi Naveen Sawhney
Dated: 30.06.2021 Partner
Membership No.073713
UDIN: 21073713AAAAAG4245

ANNEXURE 'B' TO THE AUDITOR'S REPORT (Referred to in our Report of evendate)

The Annexure referred to in independent Auditor's report to the membersof the Company on the financial statements for the year ended 31st March 2021we report that :

1) (a) The Company has maintained proper records though to be updatedshowing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us the management has physically verified all thefixed assets during the year in a phased periodical manner which in our opinion isreasonable having regard to the size of the Company. We have been informed that nomaterial discrepancies were noticed on such physical verification during the year.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

(2) (a) The inventory has been physically verified during the year bythe management in phased manner.

(b) In our opinion and according to the information and explanationsgiven to us the procedure of physical verification of inventory followed by themanagement is reasonable and adequate in relation to the size of the Company and thenature of its business.

(c) The Company has maintained proper records of inventories. Asexplained to us the discrepancies noticed on physical verification as compared to bookrecords were not material and have been dealt with in the books of account.

(3) According to the information and explanation given to us thecompany has not granted any loans secured or unsecured to companies firms or otherparties covered in the register required to be maintained under section 189 of the Act.Accordingly paragraph 3 (iii) of the order is not applicable.

(4) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans and investments and providing guarantees and securities asapplicable.

(5) In our opinion and according to the information and explanationsgiven to us the company has not accepted any deposits from the public.

(6) In our opinion Company is not required to maintain cost recordsunder section 148(1) of the Companies Act 2013 read with rule 4 of the Companies (CostRecords and Audit) Amendment Rules 2014.

(7) (a) The Company is generally regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income-tax Salestax Service Tax Duty of Custom Duty of Excise Value Added Tax Cess and any otherstatutory dues applicable to it with the appropriate authorities.

(b) According to the information and explanations given to us noamounts payable in respect of Income-tax Service Tax Sales-tax Duty of Custom Duty ofExcise Cess and other aforesaid statutory dues were outstanding as at 31st March 2021for a period of more than six months from the date they became payable.

(8) Based on our audit procedures and as per the information andexplanation given by the management we are of the opinion that the Company has notdefaulted in repayment of loan to any bank or government debenture holder or anyfinancial institutional borrowing during the year.

(9) The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.Accordingly paragraph 3 (ix) of the Order is not applicable.

(10) According to the information and explanations given to us nofraud by the Company or on the Company by its officers or employees has been noticed orreported during the course of our audit.

(11) According to the information and explanations give to us and basedon our examination of the records of the Company the Company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

(12) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

(13) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

(14) According to the information and explanations give to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

(15) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

(16) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For N R & Company
Chartered Accountants
FRN - 015095C
Sd/-
Place: New Delhi Naveen Sawhney
Dated: 30.06.2021 Partner
Membership No.073713
UDIN: 21073713AAAAAG4245

Annexure - C to the Auditors' Report

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

We have audited the internal financial controls over financialreporting of National General Industries Ltd ("the Company") as of 31 March 2021in 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India ('ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our 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 aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Financial Statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:

(1) pertains to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorization of management and directors of thecompany; and

(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the Financial Statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2021 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For N R & Company
Chartered Accountants
FRN - 015095C
Sd/-
Place: New Delhi Naveen Sawhney
Dated: 30.06.2021 Partner
Membership No.073713
UDIN: 21073713AAAAAG4245

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