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Nilachal Refractories Ltd.

BSE: 502294 Sector: Engineering
NSE: N.A. ISIN Code: INE416N01013
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NSE 05:30 | 01 Jan Nilachal Refractories Ltd
OPEN 30.00
PREVIOUS CLOSE 30.00
VOLUME 2
52-Week high 47.00
52-Week low 27.50
P/E
Mkt Cap.(Rs cr) 61
Buy Price 26.15
Buy Qty 25.00
Sell Price 30.00
Sell Qty 74.00
OPEN 30.00
CLOSE 30.00
VOLUME 2
52-Week high 47.00
52-Week low 27.50
P/E
Mkt Cap.(Rs cr) 61
Buy Price 26.15
Buy Qty 25.00
Sell Price 30.00
Sell Qty 74.00

Nilachal Refractories Ltd. (NILACHALREFRACT) - Auditors Report

Company auditors report

TO THE MEMBERS OF NILACHAL REFRACTORIES LIMITED

Report on the Standalone Financial Statement

Opinion

We have audited the standalone financial statements of NILACHAL REFACTORIES LIMITED ("theCompany") which comprise the balance sheet as at 31st March 2019 and the statementof Profit and Loss statement of changes in equity and statement of cash flows for theyear then ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory informati on.

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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2019 and profit changes in equity and its cash flows for the year endedon that date .

Basis for 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 Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

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. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone 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.

Report on Other Legal and Regulatory Requirements

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 Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and exp lanations which to thebest of 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 Statement of Change inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account.

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 the written representations received from the directors as on31st March 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act.

f) With respect to the adequacy of the internal finanical controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact itsfinancial position.

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For T. MORE & CO.
Chartered Accountants
Firm Regn. No. 327844E
Place : KOLKATA TANISHA MORE
Proprietor
C.A. Membership N o. 301569
Dated the 30th day of May 2019 UDIN :19301569AAAAAS6132

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT OF NILACHAL RE FRACTORIESLIMITED

The Annexure referred to in paragraph 1 under 'Report on other legal and regulatoryrequirements' section of our report of even date to in our independent Auditors' Report tothe members of the Company on the standalone financial statements for the year ended 31stMarch 2019 we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified during the year by the management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and the records examinedby us we report that the title deed comprising all the immovable properties of land andbuildi ng which are freehold were mortgaged with the lenders and confirmation wasobtained from them during the audit of the preceding year and from the documents verifiedby us it was held in the erstwhile name of the company as at the preceding Balance Sheetdate in respect of immovable properties of self constructed buildings on leasehold landwhich are disclosed as fixed assets in the financial statements were mortgaged with thetenders and confirmation is obtained from them during the audit of the preceding year andfrom the documents verified by us the land lease agreement was in the erstwhile name ofCompany where the company is the lessee in the agreement as at the preceding BalanceSheet date.

However at the time of audit during the year underconsideration we are informed thatthe loans have been repaid in full and the tenders are in the process of releasing thetitle documents for which the documents could not be physically verified by us.

(ii) As explained to us the inventories were physically verified during the year bythe management at reasonable intervals and no material discrepancies were noticed onphysical verification

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnership or other parties covered in the register maintained undersection 189 of the Companies Act 2013.

(iv) The Company has not granted any loans made investments or provided guarantee andhence reporting under clause (iv) of the CARO 2016 is not applicable.

(v) According to the information and explanation given to us the Company has notaccepted any deposits in terms of directives issued by the reserve Bank of India and theprovisions of Section 73 to 76 or any other relevant provisions of the Act and the rulesframed there under.

(vi) We are informed that the central Government has not prescribed the maintenance ofcost records under section 148(1) of the Act for any of the products dealt in by theCompany

(vii) According to the information and explanations given to us in respect of statutorydues:

(a) The company has been regular in depositing undisputed statutory dues includingprovident fund employee state insurance income-tax sales tax service tax customsduty excise duty value added tax cess and other material statutory dues applicable toit to the appropriate authorities. There have been few instances of delayed deposit

(b) There were no undisputed amount payable in respect of provident fund employeestate insurance wealth tax customs duty excise duty cess and other material statutorydues in arrears as on 31st March 2019 for period of more than six months from the datethey became payable. The particulars of dues of sales tax and Entry tax as at March 312019 which have not been deposited on account of a dispute are as follows:

Nature of Statutes (nature of dues) Fourm where dispute is pending Period to which the amount relates Amount involved Rs. In Lakhs Amount Unpaid Rs. In Lakhs
Sales Tax Additional Commissioner of Sales Tax Central Zone Cuttack Orrisa (Sales Tax) 1999-2000 to 2001-02 72.18 72.18
Entry Tax Additional Commissioner of Commercial Taxes Range - II Cuttack Orissa (Entry Tax) 2001-02 3.38 3.38
Entry Tax Joint Cimmissioner of Commercial Tax Angul Range Angul Orrisa (Entry Tax) 2002-03 0.79 0.79
Sales Tax Joint Cimmissioner of Commercial Tax Angul Range Angul Orrisa (Entry Tax) 2002-03 24.10 24.10

(vii) In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of loans or borrowings to financial institutionsbank and Governm ent.

(viii) The company has not raised money by way of initial public offer or furtherpublic offer of equity shares convertible securities and debt securities hence reportingunder clause (ix) of the CARO 2016 order is not applicable.

(ix) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the company or any fraud on the company by its officers oremployees has been noticed or reported during the year.

(x) In our opinion and according to the information and the explanations given to usthe company has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013

(xi) The company is not a Nidhi Company and hence reporting under clause (xii) of theCARO 2016 is not applicable

(xii) In our opinion and according to the information and the explanations given to usthe company is in compliance with section 188 and 177 of the Companies Act 2013 whereapplicable for all transaction with the related parties and the details of related partytransaction have been disclosed in the notes to the financial statements as required bythe applicable accounting standards.

(xiii) In our opinion and according to the information and the explanations given tous during the year the company has not entered into any non cash transactions with itsdirectors or persons connected with him and hence provisions section 192 of the CompaniesAct 2013 are not applicable.

(xiv) The company is not required to be registered under section 45-1 of the ReserveBank of India Act 1934.

For T. MORE & CO.
Chartered Accountants
Firm Regn. No. 327844E
Place : KOLKATA TANISHA MORE
Proprietor
C.A. Me m bership N o. 301569
Dated the 30th day of May 2019 UDIN : 1 9301569AAAAAS6132

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT OF NILACHAL RE FRACTORIESLIMITED

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

We have audited the internal financial controls over financial reporting of NILACHALREFRACTORIES LIMITED (The Company) as of 31st March 2019 in conjunction with ouraudit of the standalone financial statements of the company for the year ended on thatdate.

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 the internal controlstated in the Guidance Note on Audit or Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientcon duct 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 of 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") issued by the nstitute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal Financial Control. Those Standards andthe G uidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assur ance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statement 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 reporfing.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporfing is a process designedto provide reasonable assurance regarding the reliability of financial reporfing and thepreparafion of financial statements for external purposes in accordance with generallyaccepted accounfing principles. A company's internal financial control over financialreporfing includes these policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transacfions anddisposifions of the assets of the company (2) provide reasonable assurance thattransacfions are recorded as necessary to permit preparafion of financial statements inaccordance with generally accepted accounfing principles and that receipts andexpenditures of the company are being made only in accordance with authorizafions ofmanagement and directors of the company and (3) provide reasonable assurance regardingprevenfion or fimely detecfion of unauthorized acquisifion use or disposifion 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 override ofcontrols material misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations 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 31st March 2019 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 T. MORE & CO.
Chartered Accountants
Firm Regn. No. 327844E
Place : KOLKATA TANISHA MORE
Proprietor
C.A. Membership No. 301569
Dated the 30th day of May 2019 UDIN : 19301569AAAAAS6132

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