|BSE: 535136||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE149O01018|
|BSE 00:00 | 27 Oct||49.05||
|NSE 05:30 | 01 Jan||NIBE Ltd|
|Mkt Cap.(Rs cr)||51|
|Mkt Cap.(Rs cr)||51.11|
NIBE Ltd. (NIBE) - Auditors Report
Company auditors report
To the Members of
Nibe Limited (formerly known Kavita Fabrics Limited)
Report on the Audit of Ind AS financial statements Opinion
We have audited the accompanying Ind AS financial statements of NibeLimited (formerly known Kavita Fabrics Limited) ("the Company") which comprisethe balance sheet as at March 31 2020 the Statement of Profit and Loss (including thestatement of Other Comprehensive Income) the Statement of Cash Flows and the Statement ofChanges in Equity for the year then ended and notes to the financial statements includinga 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 Ind AS financial statements give the informationrequired by the Companies Act 2013 as amended ("the Act") in the manner sorequired and give a true and fair view in conformity with the Ind AS & accountingprinciples generally accepted in India:
a) in the case of the balance sheet of the state of affairs of theCompany as at March 31 2020; and
b) in the case of the statement of profit and loss of the lossincluding other comprehensive income for the year ended on that date.
c) in the case of the statement of cash flows of the cash flows forthe year ended on that date.
d) in the case of the statement of changes in equity of the changes inequity share capital and other equity for the year ended on that date.
Basis for Opinion
We have conducted our audit of the Ind AS financial statements inaccordance with the Standards on Auditing as specified under section 143(10) of the Act.Our responsibilities under those standards are further described in the 'Auditor'sresponsibilities for the audit of the Ind AS financial statements' section of our report.We are independent of the company in accordance with the 'Code of Ethics' issued by theInstitute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the financial statements under the provision of the Act andthe Rules thereunder and we have fulfilled our ethical responsibilities in accordancewith these requirements and the ICAI Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Ind AS financial statements.
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the Board of Directors' Report but does notinclude the Ind AS financial statements and our Auditor's report thereon.
Our opinion on the Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.
Management's Responsibility for the Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the Ind AS financial statements the 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.
The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditors Responsibility for the Audit of the Ind AS FinancialStatements
Our objectives are to obtain reasonable assurance about whether the IndAS financial statements as a whole are free from material misstatement whether due tofraud or error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs
will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Ind AS financial statements.
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 theInd AS financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate 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 fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace 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 financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of theInd AS financial statements including the disclosures and whether the Ind AS financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding amongother matters 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.
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 section143 of the
Act we give in the Annexure A a statement on the matters specified inthe
paragraph 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 explanationswhich to the best of 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 beenkept by the Company so far as appears from our examination of those books.
c) the balance sheet the statement of profit and loss including thestatement of other comprehensive income the statement of cash flows and Statement ofChanges in Equity dealt with by this report are in agreement with the books of account.
d) in our opinion the aforesaid Ind AS financial statements complywith the Indian Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended;
e) on the basis of written representations received from the directorsas on 31 March 2020 and taken on record by the Board of Directors none of the directorsis disqualified as on 31 March 2020 from being appointed as a director in terms ofSection 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 B".
g) In our opinion the managerial remuneration for the year ended 31March 2020 has been paid/provided by the Company to its directors in accordance with theprovisions of section 197 read with Schedule V to the Act;
h) with respect to the other matters to be included in Auditors Reportin accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amendedin our opinion and to the best of our information and according to explanations given tous:
i. The Company does not have any pending litigations which would impactits financial position;
ii. The Company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses;
iii. The Company was not required to transfer any amount to InvestorEducation and Protection Fund
Annexure A to the Independent Auditors' Report
Referred to in paragraph 1 of the section on "Report on otherlegal and regulatory requirements" of our report of even date
On the basis of such checks as we considered appropriate and accordingto the information and explanation given to us during the course of our audit we reportthat:
i. (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of its fixed assets.
(b) As explained to us fixed assets have been physically verified bythe management at reasonable intervals; no material discrepancies were noticed on suchverification.
(c) According to the information and explanation received by us as thecompany owns no immovable property the requirement on reporting whether title deeds ofimmovable properties held in the name of the company is not applicable.
ii. (a) As explained to us inventories have been physically verifiedduring the year by the management at reasonable intervals.
(b) In our opinion and on the basis of our examination of the recordsno material discrepancy was noticed on physical verification of stocks by the managementas compared to book records.
iii. According to the information and explanations given to us and onthe basis of our examination of the books of account the Company has not granted any loanto any associate concern covered in the register maintained under Section 189 of theCompanies Act 2013.
iv. The company has not given any loans made any investments orprovided any guarantee and security to under section 185 and section 186 of Companies Act2013.
v. In our opinion the company has not accepted any deposits within themeaning of Rule 2 (b) of Companies (Acceptances of Deposits) Rules 2014.
vi. According to the information and explanations provided by themanagement no cost records have been prescribed under section 148(1) of the CompaniesAct 2013 to be maintained by the Company.
vii. (a) According to the records of the company undisputed statutorydues including Income- tax Goods and Service Tax Custom Duty to the extent applicableand any other statutory dues have generally been regularly deposited with the appropriateauthorities. According to the information and explanations given to us there are nooutstanding statutory dues as on 31st of March 2020 for a period of more thansix months from the date they became payable.
(b) According to the information and explanations given to us there isno amounts payable in respect of income tax goods and service tax sales tax customsduty which have not been deposited on account of any disputes.
viii. Based on our audit procedures and the information andexplanations given by the management the company is not having any loan from financialinstitution bank or debenture holder so we are of the opinion that no defaults inrepayment of loans to any financial institution bank or debenture holders has occurred.
ix. Based on records of the company the company has neither raised anymoneys by way of Initial Public Offer or Further Public Offer or term loan during theyear.
x. Based on the audit procedures performed and the information andexplanations given to us we report that no fraud on or by the Company has been noticed orreported during the year.
xi. According to information and explanations given to us in ouropinion the company has paid managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.
xii. The Company is not a nidhi company. Therefore the provision ofthis clause of the Companies (Auditor's Report) Order 2016 is not applicable to theCompany.
xiii. Based on our audit procedures and on the information given by themanagement the company has complied with the sections 177 and 188 of the Companies Act2013 for all the transactions with the related parties and the details of suchtransactions have been
properly disclosed in the financial statements as required by theapplicable accounting standards.
xiv. The Company has not made any preferential allotment of sharesduring the year to parties covered in the register maintained under section 189 of theCompanies Act 2013.
xv. The company has not entered into any non-cash transactions withdirectors of the company or its subsidiary or persons connected with them.
xvi. The Company is not required to be registered under Section 45-IAof Reserve Bank of India Act 1934.
Annexure - B 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 Nibe Limited (formerly known Kavita Fabrics Limited) ("theCompany") as of March 31 2020 in conjunction with our audit of the financialstatements of the Company for the year ended 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.
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 ofthe risks of material misstatement of the financial statements whether due to fraud orerror.
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) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 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.
In our opinion to the best of our information and according to theexplanations given to us 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 31st March 2020based on the criteria for internal financial control over financial reporting establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India.