Nitiraj Engineers Limited Mumbai
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Nitiraj EngineersLimited which comprise the Balance sheet as at 31st March 2017 and the Statement ofProfit and Loss and the Cash Flow Statement of the company for the year then ended and asummary of significant accounting policies and other explanatory information.
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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance 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 read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on the auditors judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company s preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company s Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
According to Note 2A(g) on the Significant Accounting Policies the accounting ofGratuity Liability and Leave Encashment Liability on cash basis is not in accordance withAccounting Standard 15 on "Employee Benefits" issued by the Institute ofChartered Accountants of India.
Subject to the above in our opinion and to the best of our information and accordingto the explanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2017 its profit for the year ended on that dateand its Cash Flows for the same period.
Emphasis of Matters
There is no matter in the Notes to the financial Statements which require theimmediate attention of the members apart from the above non compliance of the AS 15 issuedby the Institute of Chartered Accountants of India
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 ofthe Act we give in the Annexure-A a statement on the matters specified in the paragraph 3and 4 of the Order to the extent applicable.
2. 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 dealt with bythis 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 2017 taken on record by the Board of Directors none of the directors aredisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act; and
(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) In our opinion and to the best of our information and according to the explanationsgiven to us with respect to the other matters to be included in the Auditor s
Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 wereport as under
i. the Company has no pending litigations having impact on its financial position;
ii. the Company does not have any material foreseeable losses on long-term contractsincluding derivative contracts; and
iii. there has been no amount required to be transferred to the Investor Educationand Protection Fund by the Company.
iv. The Company has not provided the disclosure in the standalone Ind AS financialstatements as regards its holding and dealings in Specified Bank Notes as defined in theNotification S.O. 3407(E) dated the November 8 2016 of the Ministry of Finance duringthe period from November 8 2016 to December 30 2016. As explained to us the company washaving several branches and locations across the country from where cash deposits weremade. Thus it was not possible for the company to keep a track of the denominations of thenotes in each location.
Annexure A to the Independent Auditors Report
The Annexure referred to in our Independent Auditors Report to the members of theNitiraj Engineers Limited on the standalone financial statements for the year ended 31stMarch 2017 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 given to us thecompany has not given any loan or guarantee or security. In respect of investments madethe company has complied with the provisions of 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 framedthereunder and there fore the provisions of clause (v) of the Order are not applicable tothe company.
(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) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business with regard to purchase of inventory and fixed assets and saleof goods. We have not observed any major weakness in the internal control system duringthe course of the audit.
(viii) The Central Government has not prescribed the maintenance of cost records undersection148 (1) of the Act for any of the services rendered by the Company.
(ix) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees state insurance and duty of excise.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax wealth tax service tax dutyof customs value added tax cess and other material statutory dues were in arrears as at31st March 2017 for a period of more than six months from the date they became payable.
(b) 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.
(c) According to the information and explanations given to us there were no amountswhich were required to be transferred to the investor education and protection fund inaccordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rulesthere under.
(d) According to the information and explanations given to us the company had raisedRs.2200.80 lacs by way of initial public offer by issuing 2200800 equity shares havingface value of Rs.10 each at a premium of Rs.90 during the Financial Year 2016 2017.
(x) The Company does not have any accumulated losses at the end of the financial yearand has not incurred cash losses in the financial year and in the immediately precedingfinancial year.
(xi) The Company has not defaulted in repayment of dues to financial institutions orbanks. The company did not have borrowings by way of debentures.
(xii) In our opinion the Company did not raise any money by way of Debt Instruments andterm loans during the year.
(xiii) In our opinion and according to the information and explanations given to us thecompany has paid or provided managerial remuneration in accordance with the requisiteapproval mandated by the provisions of section 197 read with schedule V of the CompaniesAct 2013
(xiv) 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.
(xv) In our opinion and according to the information and the explanations given to usand 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.
(xvi) 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.
(xvii) The company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
Annexure "B" to the Independent Auditors Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of section
143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of NitirajEngineers Limited as of 31st March 2017 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.
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 deemedto be prescribed under section 143 (10) of the Companies Act2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.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 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 authorisations 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.
In our opinion 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 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For and on behalf |
| ||P. D. DALAL & CO. |
| ||Chartered Accountants |
| ||Firm Reg No.102047W |
| ||(Aashish S. Kakaria) |
|Mumbai ||Partner |
|29thMay 2017 ||Membership No.102915 |