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Nitiraj Engineers Ltd.

BSE: 538407 Sector: Engineering
NSE: NITIRAJ ISIN Code: INE439T01012
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Nitiraj Engineers Ltd. (NITIRAJ) - Auditors Report

Company auditors report

To

The Members

Nitiraj Engineers Limited Mumbai

Report on the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone financial statements of M/s. NitirajEngineers Limited ("the Company") which comprises the Balance Sheetas at March 31 2020 the Statement of Profit and Loss (statement of changes in equity)and statement of cash flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion section of our report the aforesaid financial statements give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as 31st March 2020 and profit/loss and its cash flows forthe year ended on that date.

Basis for Qualified Opinion

The Company's provision of Gratuity Liability and Leave Encashment Liability is notrecorded fully and thus is not in accordance with Accounting Standard 15 on "EmployeeBenefits" issued by the Institute of Chartered Accountants of India.

We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Companies Act 2013 and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our qualified opinion.

Key audit matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined that there are no key audit matters to be communicated in our report exceptfor

Covid Impact – In view of the highly uncertain economic environment a definitiveassessment of the impact on the subsequent periods is highly dependent on thecircumstances as they evolve.

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)i 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 the company's financialreporting process.

Auditor's Responsibility for the Audit of the Financial Statements

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

COVID Impact

Since there are increasing restrictions on travel & meetings as a result we facedpractical issues for access to the audit location in carrying out the audit.

Challenges in carrying audit at audit location

During this pandemic challenges never before faced by auditors in performing auditsare emerging. In response we need to be more agile and creative in performing audits andcomplying with the auditing standards. Now more than ever auditors might rely ontechnology in performing audit procedures. Performing auditing procedures in the middle ofthis pandemic is troublesome and we as auditor have encountered challenges in:

• Physical verification of inventory fixed assets etc

• Assessing records

• Understanding and testing internal control

• Account and balance confirmations

• Performing subsequent event procedures

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 matters specifiedin 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 explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books 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 on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (2) of the Act.

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

(g) With respect to 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 its financialposition;

ii. The Company has Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses.;

iii. There were no amounts which were required to be transferred to the Investor

Education and Protection Fund by the Company

For and on behalf of

P.D.Dalal & Co.

Chartered Accountants

Firm Registration No.102047W

(Aashish S. Kakaria)

 

Partner

Membership No.102915

UDIN : 20102915AAAACX3614

Mumbai 29th June 2020

Annexure A to the Independent Auditors Report

The Annexure referred to in our Independent Auditors' Report to the members of NitirajEngineers Limited on the standalone financial statements for the year ended 31st March2020 we report that:

(i)(a) In our opinion the Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets on the basis ofavailable information.

(b) As informed to us the Company has a regular programme of physical verification ofits fixed assets by which fixed assets are verified in a phased manner over a period ofthree years. In accordance with this programme certain fixed assets were verified duringthe year and no material discrepancies were noticed on such verification. In our opinionthis periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

(c) According to the information and explanations given to us the title deeds of theImmovable properties are held in the name of the company.

(ii) As explained to us the inventory has been physically verified by the managementduring the year at reasonable intervals. In our opinion the frequency of such verificationis reasonable. No material discrepancies noticed on physical verification of inventoriesas compared to the book record.

(iii) In our opinion the Company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act 2013 (‘the Act'). Therefore sub clauses (a) (b) and (c) are notapplicable.

(iv) In our opinion and according to the information and explanations provided to usthe Company has not granted any loans or provided any guarantees or security to theparties covered under Section 185 of the Act. The Company has complied with the provisionsof Section 186 of the Act in respect of investments made or loans or guarantee or securityprovided to the parties covered under Section 186 of the Act.

(v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits during the year from the public within the meaningof provisions of section 73 to 76 of the companies act 2013 and the rules framed thereunder and therefore the provisions of clause (v) of the Order are not applicable to thecompany.

(vi) The maintenance of cost records under sub section(1) of section 148 of theCompanies Act 2013 is not applicable in view of rule 3 of the Companies Act (Cost Recordsand Audit) Amendment Rules 2014 and therefore the provisions of clause (vi) of the Orderare not applicable to the Company.

(vii) (a)The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including Provident fund Employees' State InsuranceIncome-tax Sales-tax Goods and Services tax Duty of Custom Duty of Excise Value AddedTax Cess and Other Statutory Dues applicable to it.

(b) According to the information and explanations provided to us no undisputed amountspayable in respect of Provident fund Employees' State Insurance Income-tax Sales TaxGoods and Service tax Duty of custom Duty of excise Value added tax Cess and OtherStatutory Dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable.

(c) According to the information and explanations given to us there are no materialdues of income tax sales tax wealth tax service taxduty of customs duty of excisevalue added tax and cess which have not been deposited with the appropriate authorities onaccount of any dispute.

(viii) The Company has not defaulted in repayment of dues to financial institutions orbanks. The company did not have borrowings by way of debentures.

(ix) In our opinion the Company did not raise any money by way of Debt Instruments andterm loans during the year.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the Financial Statements and according to the information and explanationsprovided by the management we report that no fraud by the Company or no material fraud onthe Company by the officers and employees of the Company has been noticed or reportedduring the year.

(xi) According to the information and explanations provided by the management themanagerial remuneration has been paid/provided in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and the explanations given to usthe Company is not a Nidhi company and therefore the provisions of clause (xii) of theorder are not applicable to the company.

(xiii) In our opinion and according to the information and the explanations given tous and based on our examination of the records of the company all transactions with therelated parties are in compliance with section 177 and 188 of the Act where applicable andthe details have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations provided to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) of the Order are notapplicable to the Company and not commented upon.

(xv) In our opinion and according to the information and explanations given to us thecompany has not entered into any non-cash transactions with directors or persons connectedwith him.

(xvi) The company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For and on behalf of

P.D.Dalal & Co.

Chartered Accountants

Firm Registration No.102047W

(Aashish S. Kakaria)

 

Partner

Membership No.102915 UDIN : 20102915AAAACX3614

Mumbai 29th June 2020

Annexure "B" to the Independent Auditors Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of NitirajEngineers Limited as of 31st March 2020 in conjunction with our audit of the standalonefinancial statements 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 and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the institute of Chartered Accountants of India ("ICAI"). 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 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 on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the

" Guidance Note") and the Standards on Auditing issued by ICAI and deemed tobe prescribed under section 143 (10) of the Companies Act2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand 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 about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedure may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these Standalone Financial Statementsand such internal financial controls over financial reporting with reference to theseStandalone Financial Statements were operating effectively as at March 31 2020 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 and on behalf of

P.D.Dalal & Co.

Chartered Accountants

Firm Registration No.102047W

(Aashish S. Kakaria)

 

Partner

Membership No.102915

UDIN : 20102915AAAACX3614

Mumbai 29th June 2020

.