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Northern Spirits Ltd.

BSE: 542628 Sector: Others
NSE: N.A. ISIN Code: INE01BL01012
BSE 15:30 | 24 Jun 23.00 -0.05
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NSE 05:30 | 01 Jan Northern Spirits Ltd
OPEN 23.00
PREVIOUS CLOSE 23.05
VOLUME 21000
52-Week high 31.75
52-Week low 16.20
P/E 10.22
Mkt Cap.(Rs cr) 37
Buy Price 22.00
Buy Qty 3000.00
Sell Price 24.00
Sell Qty 3000.00
OPEN 23.00
CLOSE 23.05
VOLUME 21000
52-Week high 31.75
52-Week low 16.20
P/E 10.22
Mkt Cap.(Rs cr) 37
Buy Price 22.00
Buy Qty 3000.00
Sell Price 24.00
Sell Qty 3000.00

Northern Spirits Ltd. (NORTHERNSPIRITS) - Auditors Report

Company auditors report

TO THE MEMBERS OF NORTHERN SPIRITS LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of NORTHERN SPIRITSLIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2019 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting standards prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the company as at March 31 2019 and profit/loss and its cash flowsfor the year ended on that date.

Basis for opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified in section 143(10) of the Act (SAs). Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Companies Act 2013 and theRules there under and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidenceobtained by us is sufficient and appropriate to provide a basis for our opinion on thestandalone financial statements.

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 Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error. In preparing the standalone financial statements 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 alsoresponsible for overseeing the Company's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statement

Our objective are to obtain reasonable assurance about whether the standalone financialstatements as a whole are free from material misstatement whether due to fraud and 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 standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section147 (3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the management.

• Conclude on the management's use of the going concern basis of accounting andbased on the audit evidence obtained whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Company's ability to continueas a going concern. If we conclude that a material uncertainty exists we are required todraw attention in our auditor's report to the related disclosures in the standalonefinancial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairrepresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonable knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and wherever applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit 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 purpose 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 including Other ComprehensiveIncome statement of changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 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 termsof Section 164 (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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Company's (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivative contracts forwhich 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 J K Sarawgi & Company
Chartered Accountants
FRN No.: 006836C
FCA Jeet Agarwal Place: Kolkata
Partner Dated: 30/05/2019
Membership No.: 064038

Re: NORTHERN SPIRITS LIMITED

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

The Annexure referred to in our Independent Auditor's Report to the members of theCompany on the financial statements for the year ended 31st March 2019 wereport that:

• Fixed Assets

i. The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

ii. The company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and natureof its assets.

• Inventories

i. The Inventories have been physically verified by the management at reasonableintervals during the year. ii. The procedures for physical verification of inventoriesfollowed by the management are reasonable and adequate in relation to size of the Companyand nature of its business. iii. The Company has maintained proper records of inventoriesand no discrepancies were noticed on physical verification as compared with the bookrecords.

Loans Given By Company i. The company has not granted any fresh securedor unsecured loan to related parties during the period under review under Section 189 ofthe Act. ii. Accordingly paragraphs 3(iii) (a) (b) and (c) of the Order are notapplicable.

Loan To Directors and Investment By The Company

No loan has been issued by the company to either of the directors' and has not givenany guarantee for loans taken by others from Bank or Financial Institution to whichprovisions of Section 185 and 186 of the Act apply.

Deposits

The company has not accepted any deposits from the public within the meaning of Section73 to 76 of the Companies Act during the period under review.

• Cost Records

Maintenance of cost records is not prescribed by the Central Government under Section148(i) of the Act.

• Statutory Dues

i. According to the information given to us and on the basis of examination of recordsof the Company the company is generally regular in depositing the amountsdeducted/accrued in the books of accounts in respect of undisputed statutory duesincluding Provident Fund Income Tax and other material statutory dues with theappropriate authorities. There is no default of the company with respect to the same.

ii. There are no undisputed amounts payable as at 31st March 2019 for a period of morethan six months from the date they become payable.

iii. There were no undisputed amounts payable in respect to Income Tax etc. as on 31stMarch 2019.

Repayment of Loans

The company did not have any outstanding dues to financial institutions banks ordebenture holders during the year.

Utilisation of Funds

No funds have been raised by the Company by way of initial public offer or furtherpublic offer during the year under review. The company has not taken any term loan duringthe year as per the information given to us.

Reporting of Fraud

During the course of audit no fraud has been committed or reported by the company orany of its employees during the year.

Approval of Managerial Remuneration

There was no managerial remuneration paid during the year and as such the provisions ofClause 3(xi) of the Companies (Auditor's Report) Order 2016 are not applicable to theCompany.

Nidhi Company

The company does not qualify as a Nidhi Company as per Section 406 of the Companies Act2013. Hence clause 3(xi) of the order is not applicable.

Related Party Transactions

The company have not entered into any transaction with related parties which are incompliance with Section 177 and Section 188 of the Companies Act2013 and as suchprovisions of Clause 3(xiii) of the Companies (Auditor's Report) Order 2016 are notapplicable to the Company. .

Private Placement of Preferential Issues

The company has made private placement of shares during the year under review and therequirements of Section 42 of the Companies Act 2013 have been complied with and theamount which were raised have been fully utilized for the purpose for which funds wereraised.

Non-Cash Transactions

The company has followed the limits and conditions as per the Companies Act 2013 inrespect of non-cash transactions with directors or their relatives. Hence reporting underclause (xv) of the Order is not applicable.

Registration under RBI Act

The company is not liable to be registered under Section 45-IA of the Reserve Bank ofIndia Act 1934. Accordingly provisions of paragraph 3(xvi) of the Order are notapplicable to the Company.

For J K Sarawgi & Co.
Chartered Accountants
FRN No.: 006836C
FCA Jeet Agarwal Place: Kolkata
Partner Dated: 30/05/2019
Membership No.: 064038

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and regulatoryRequirements' of our report of even date)

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

We have audited the internal financial controls over financial reporting of NORTHERNSPIRITS LIMITED ("the Company") as of March 31 2019 in conjunction with ouraudit of the financial 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.

Auditor's 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") issued by the Institute of Chartered Accountants of India(ICAI) and the standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement 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 financial reporting includes those policiesand procedures that: 1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; 2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and3)Provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton 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 procedures may deteriorate.

Opinion

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 2019 based on"the 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" (ICAI).

For J K Sarawgi & Co
Chartered Accountants
FRN No.: 006836C
FCA Jeet Agarwal Place: Kolkata
Partner Dated: 30/05/2019
Membership No.: 064038