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Nirbhay Colours India Ltd.

BSE: 526349 Sector: Others
NSE: N.A. ISIN Code: INE218T01010
BSE 05:30 | 01 Jan Nirbhay Colours India Ltd
NSE 05:30 | 01 Jan Nirbhay Colours India Ltd

Nirbhay Colours India Ltd. (NIRBHAYCOLOURS) - Auditors Report

Company auditors report

To The Members of Nirbhay Colours India Limited

(Formerly Known as Parth Industries Limited)

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying Financial Statements of NirbhayColours India Limited (Formerly Known as Parth Industries Limited) ("theCompany") which comprise the Balance Sheet as at March 31 2022 and the Statementof Profit and Loss (including Other Comprehensive Income) the Cash Flow Statement and theStatement of Changes in Equity for the year then ended and a summary of significantaccounting policies and other explanatory information. (hereinafter referred to as the"Financial Statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Financial Statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2022 and its profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the Financial Statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act ("SAs").Our responsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India ("ICAI") together with the ethicalrequirements that are relevant to our audit of the Financial Statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us in terms of report referred toin the Other Matters section below is sufficient and appropriate to provide a basis forour audit opinion on the Financial Statements.

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 year.These matters were addressed in the context of our audit of the Financial Statements as awhole and in forming our opinion thereon we do not provide a separate opinion on thesematters. There are no Key Audit Matters Reportable as per SA 701 issued by ICAI.

Information Other than the Financial Statements and Auditor'sReport Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Business Responsibility Report Board's Report and CorporateGovernance Report but does not include the consolidated financial statements theFinancial Statements and our audit reports thereon.

Our opinion on the Financial Statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. In connectionwith our audit of the Financial Statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the Financial Statements or our knowledge obtained during the course ofour audit 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 mattersstated in section 134(5) of the Act with respect to the preparation of these FinancialStatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; 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 FinancialStatements 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 responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. Those Board of Directors arealso responsible for overseeing the Company's financial reporting process.

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether theFinancial Statements as a whole are free from material misstatement whether due to fraudor 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 Financial Statements. As part of an audit inaccordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also: Identify and assess the risks of materialmisstatement of the Financial Statements whether due to fraud or error design andperform audit procedures responsive to those risks and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error asfraud may involve collusion forgery intentional omissions misrepresentations or theoverride of internal control.

Obtain an understanding of internal financial control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the 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 the dateof 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 andcontent of the Financial Statements including the disclosures and whether the FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the FinancialStatements that individually or in aggregate makes it probable that the economicdecisions 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. Wecommunicate with those charged with governance regarding among other matters the plannedscope and timing of the audit and significant audit findings including any significantdeficiencies in internal control that we identify during our audit. We also provide thosecharged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence and whereapplicable related safeguards. From the matters communicated with those charged withgovernance we determine those matters that were of most significance in the audit of theFinancial Statements of the current year and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and regulatory Requirements

1. 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 ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this report are in agreement with the books of account.

d) In our opinion the aforesaid Financial Statements comply with theInd AS specified under section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof 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 A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.

g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended.in our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us:

i. As inform to us the Company does not have any pending litigationswhich would impact its financial statement.

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

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

2. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government in terms of section 143(11) ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order.

For A.L.Thakkar& Co
Chartered Accountants
FRN : 120116W
Sanjiv Shah
Partner
Membership No. : 042264
UDIN : 22042264AJUWKT4096
Date : 28.05.2022
Place : Ahmedabad

Annexure "A" to the Independent Auditor's Report

(Referred to in paragraph 1(g) under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

Report on the Internal Financial Controls over Financial ReportingUnder Clause (i) of subsection 3 of section 143 of companies Act 2013 (the"Act")

We have audited the internal financial controls over financialreporting of Nirbhay Colours India Limited (Formerly Known as Parth Industries Limited)asof March 31 2022 in conjunction with our audit of the Financial Statements of the Companyfor 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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguardingof its 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 Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the Instituteof Chartered Accountants of India and the Standards on Auditing prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 judgement 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 internalfinancial controls system over financial reporting.

Meaning Of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting isa process 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 controlover financial 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.

Opinion

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 March 312022 based on thecriteria for internal financial control over financial reporting established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For A.L.Thakkar& Co
Chartered Accountants
FRN : 120116W
Sanjiv Shah
Partner
Membership No. : 042264
UDIN : 22042264AJUWKT4096
Date : 28.05.2022
Place : Ahmedabad

Annexure "B" to the Independent Auditor's Report

(Referred to in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

In terms of the information and explanations sought by us and given bythe Company and the books of account and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we state that :

(i) (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment capital work-in progress and relevant details of right-of-use assets.

(B) The Company has maintained proper records showing full particularsof intangible assets.

(i) (b) Physical verifications of the Property Plants and Equipmentwere carried out and no discrepancies were found out in physical verification and recordsand informations available with the company.

(i) (c) There are no immovable properties or any intangible asset inthe Balance sheet of the company Hence no disclosures are required.

(i) (d) The Company has not revalued any of its property plant andequipment (including Right of Use assets) and intangible assets during the year.

(i) (e) According to the information and explanations given to us noproceedings have been initiated during the year or are pending against the Company as atMarch 31 2022 for holding any benami property under the Benami Transactions (Prohibition)Act 1988 (as amended in 2016) and rules made there under.

(ii) (a) The inventories were physically verified during the year bythe Management at reasonable intervals. In our opinion and based on information andexplanations given to us the coverage and procedure of such verification by theManagement is appropriate having regard to the size of the Company and the nature of itsoperations. No discrepancies of 10% or more in the aggregate for each class of inventorieswere noticed on such physical verification of inventories when compared with the books ofaccount.

(ii) (b) According o the information records and explanations given tous which were available with company the Company has not availed any Loans from the Banksor any Non-Banking Financial institutions.

(iii) The Company has made investments in provided guarantee andgranted loans secured or unsecured to companies firms and Limited LiabilityPartnerships during the year in respect of which:

(a) The Company has not provided any loans or advances in nature ofloans or stood guarantee or provided security to any other entity during the year.

(b) The investments made guarantees provided and the terms andconditions of the grant of all the above-mentioned loans and guarantees provided duringthe year are in our opinion prima facie not prejudicial to the Company's interest.

(c) In respect of loans granted by the Company the schedule ofrepayment of principal and payment of interest has been stipulated and the repayments ofprincipal amounts and receipts of interest are regular as per stipulation.

(d) According to information and explanations given to us and based onthe audit procedures performed in respect of loans granted and advances in the nature ofloans provided by the Company there is no overdue amount remaining outstanding as at thebalance sheet date.

(e) No loan granted by the company which has fallen due during theyear has been renewed or extended or fresh loans granted to settle the over dues ofexisting loans given to the same parties.

(f) According to information and explanations given to us and based onthe audit procedures performed the Company has not granted any loans either repayable ondemand or without specifying any terms or period of repayment during the year. Hencereporting under clause (iii) (f) is not applicable.

(iv) The Company has complied with the provisions of sections 185 and186 of the Act in respect of loans granted investments made and guarantees and securitiesprovided as applicable.

(v) According to the information and explanations given to us theCompany has not accepted any deposits from the public to which the directives issued bythe Reserve Bank of India and the provisions of section 73 to 76 or any other relevantprovisions of the Act and the Companies (Acceptance of Deposit) Rules 2014 as amendedwould apply. Accordingly clause (v) of paragraph 3 of the Order is not applicable tocompany.

(vi) The maintenance of cost records has not been specified by theCentral Government under sub- section (1) of section 148 of the Companies Act 2013 forthe business activities carried out by the Company. Hence reporting under clause(vi) ofthe order is not applicable to the Company. (vii) In respect of statutory dues:

(a) The company has generally been regular in depositing undisputedstatutory dues including Goods and Service tax Provident Fund Employees' StateInsurance Income-tax Sales Tax Service Tax duty of Custom duty of Excise Value AddedTax cess and other material statutory dues applicable to it with appropriate authorities.

(b) There were no undisputed amounts payable in respect of Goods andService tax Provident Fund Income-tax Sales Tax Service Tax duty of Custom duty ofExcise Value Added Tax cess and other material statutory dues in arrears as at March 312022 for a period of more than six months from the date they became payable.

(viii) There were no transactions relating to previously unrecordedincome that were surrendered or disclosed as income in the tax assessments under theIncome Tax Act 1961 (43 of 1961) during the year.

(ix) ) (a) In our opinion the Company has not defaulted in therepayment of loans or other borrowings or in the payment of interest thereon to any lenderduring the year.

(b) The Company has not been declared wilful defaulter by any bank orfinancial institution or government or any government authority.

(c) To the best of our knowledge and belief in our opinion term loansavailed by the Company were applied by the Company during the year for the purposes forwhich the loans were obtained.

(d) On an overall examination of the financial statements of theCompany funds raised on short term basis have prima facie not been used during the yearfor long-term purposes by the Company.

(e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries. (f) On overall examination of the financialstatement of the company the Company has not raised loans during the year on the pledgeof securities held in its subsidiaries associates or joint ventures.

(x) The Company has not raised monies by way of initial public offer orfurther offer (including debt instruments) during the year and hence reporting underclause (x)(a) of the Order is not applicable. (b) The Company has not made preferentialallotment of shares during the year.The Company has not made any preferential allotment orprivate placement of (fully or partly or optionally) convertible debentures during theyear.

(xi) (a) To the best of our knowledge and according to the information& explanation given to us no fraud by the Company and no material fraud on theCompany has been noticed or reported during the year. (b) To the best of our knowledge noreport under sub-section (12) of section 143 of the Act has been filed in Form ADT-4 asprescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment during the year and up to the date of this report. (c) As represented to us bythe Management there were no whistle blower complaints received by the Company during theyear and up to the date of this report.

(xii) The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable.

(xiii) In our opinion the Company is in compliance with sections 177and 188 of the Act where applicable for all transactions with the related parties andthe details of related party transactions have been disclosed in the financial statementsas required by the applicable accounting standards.

(xiv) (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining the naturetiming and extent of our audit procedures.

(xv) In our opinion and according to the information & explanationgiven to us during the year the Company has not entered into any non-cash transactionswith any of its directors or directors of its subsidiaries or persons connected with suchdirectors and hence provisions of section 192 of the Act are not applicable to theCompany. (xvi) (a) The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934. Hence reporting under clause (xvi)(a) (b) and (c) ofthe Order is not applicable.

(b) In our opinion there is no core investment company within theGroup(as defined in the core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause (xvi)(d) of the order is not applicable.

(xvii) The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of theCompany during the year.

(xix) On the basis of the financial ratios ageing and expected datesof realization of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.

(xx) There is no liability of the company under the provision ofsection 135 of the Company Act relating to Corporate Social Responsibility. There for theprovision of Clause (xx) of the paragraph 3 of the order is not applicable to company.

For A.L.Thakkar& Co
Chartered Accountants
FRN : 120116W
Sanjiv Shah
Partner
Membership No. : 042264
UDIN : 22042264AJUWKT4096
Date : 28.05.2022
Place : Ahmedabad

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