To The Members M/S. NOUVEAU GLOBAL VENTURES LIMITED Report on the Audit of theStandalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of M/S. NOUVEAUGLOBAL VENTURES LIMITED ("the Company") which comprise the Balance Sheet asat March 31 2021 the Statement of Profit and Loss (including statement of OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information (herein after referred to as "the standalone FinancialStatements").
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 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 India ofthe state of affairs of the company as at March 31 2021 its loss total comprehensiveincome its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the standalone financial statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the standalone financial statements under the provisions ofthe Act and the Rules there under 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 opinion standalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.
|The key audit matter description ||How our audit addressed the key audit matter |
|Bad Debts / Provision for doubtful debts ||Our procedures included the following: |
|In Financial Year 2020-21 Sundry debtors and Borrowers defaulted in payment and the same was adjudged unrecoverable by the management hence written off in books of accounts. ||? Obtaining an understanding from the management with regard to details. |
|The matter has been determined to be a key audit matter in view of write off Sundry debtors of Rs. Rs.246169/- Loans and Advances of Rs. 1500000/- ||? Obtaining documentation of process followed by the management in pursuing recovery of amount. |
|Deposits(Assets)740770/-and inventories of Rs 502500/- being non recoverable written off in books of accounts and made provision for doubtful debts of Rs.2160767/- ||? Analyzing process followed by the management in relation to the efforts put in for recovery of amount outstanding. |
| ||Based on the above procedures the judgement of non- recovery lies with the management and accordingly we have taken representation for the same. The management has adjudged the amount as non-recoverable and hence written off and made provision for doubtful debts in books of accounts for the period ending 31st March 2021. |
Information Other than the Financial Statements and Auditor's Report Thereon
? The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the company's Annual Report but doesnot include the standalone financial statements and our auditor's report thereon.
? Our opinion on the standalone financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
? In connection with our audit of the standalone financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.
? If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.
Management's Responsibilities for the Standalone Financial Statements
The Company's Board of Directors are 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 including other comprehensive income Cash Flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) prescribed under Section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
? Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
? Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.
? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
? Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
? Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
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.
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 the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in the"Annexure B" a statement on matters specified in paragraph 3 and 4 of the Order.
2. As required by section 143(3) of the Act we further 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 appears from our examination of those books.
c) The Standalone Balance Sheet the standalone statement of Profit and Loss (includingOther Comprehensive Income) standalone Cash Flow Statement and standalone Statement ofChanges in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with theapplicable Ind AS specified under Section 133 of the Act.
e) On the basis of written representations received from the directors as on March 312021 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct.
f) With respect to the adequacy of internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer to our separateReport in "Annexure A". Our report expresses an unmodified opinion on theadequacy and operating effectiveness of Company's internal financial controls overfinancial reporting.
3. With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended 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 in its standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.
iii. There were no amounts which were required to be transferred to the investor andEducation and
Protection Fund by the Company.
4. 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.
ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in (f) of Paragraph 2 under the heading of "Report on Other Legal andRegulatory Requirements" 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 with reference to financial statementsof M/S NOUVEAU GLOBAL VENTURES LIMITED ("the Company") as at March 312021 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.
Management's Responsibilities for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued 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 theStandards on Auditing issued by
ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls 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 systemwith reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
A Company's internal financial control with reference to financial statements is aprocess 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 control overfinancial 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 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 with reference to financialstatements
Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
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 controlswith reference to financial statements and such internal financial controls with referenceto financial statements were operating effectively as at March 31 2021 based on theinternal control with reference to financial statements criteria 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.
ANNEXURE - B TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our Report of even date)
(i) a). The Company is maintaining proper records showing full particulars includingquantitative details and situations of property plant and equipment.
b). The property plant and equipment are physically verified by the managementaccording to phased program designed to cover all items over a period of 3 years whichin our opinion is reasonable having regard to the size of the company and the nature ofits assets. Pursuant to the program a portion of the property plant and equipment hasbeen physically verified by the management during the year. According to the informationand explanations given to us no material discrepancies were noticed on such verification.
c). According to the information and explanations given to us the records examined byus we report that the title deeds of immovable properties comprising Freehold Land andBuilding are held in the name of the Company.
(ii) As per the representation by the management and explanation given to us theinventories have been physically verified by the management during the year. In ouropinion the frequency of such verification is reasonable. The discrepancies noticed onverification between the physical stocks and the book records were not material and havebeen dealt with in books of account.
(iii) The Company has not granted any secured or unsecured loans to companies firmsand other parties covered in the register maintained under section 189 of the companiesAct 2013. Therefore the provisions of clause 3(iii) of the said Order are not applicableto the Company.
(iv) As per the information and explanation given to us the Company has not grantedany Loan or provided any guarantee or security in connection with a loan taken by othercompany and has not made any investment therefore provisions of section 185 and section186 of the Companies Act 2013 are not applicable to the Company. Accordingly paragraph3(iv) of the Order is not applicable to the Company.
(v) The Company has not accepted any deposits from the public within the meaning ofsections 73 to 76 of the Act and Rules framed there under to the extend notified.Therefore the provisions of clause 3(v) of the said Order is not applicable to theCompany.
(vi) As per the information and explanation given to us the Central Government has notprescribed the maintenance of cost records under section 148(1) of the Act for any of theservices rendered by the Company. Therefore the provisions of clause 3(vi) of the Orderis not applicable to the Company.
(vii) a). According to the information and explanations given to us and on the basis ofour examination of the records of the company in respect of undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax duty ofcustoms duty of excise value added tax cess and other material statutory dues have beengenerally regularly deposited during the year by the company with appropriate authorities.
b). According to the information and explanation given to us no undisputed amountspayable in respect Income Tax Sales Tax Goods and Service Tax Service Tax Duty ofcustoms Value Added Tax Cess and other material statutory dues were in arrears as at31st March 2021 for a period of more than six months from the date they become payable.
c). According to the information and explanations given to us there are no dues ofIncome Tax Goods and Services Tax Sales Tax Service Tax Custom Duty Excise Duty andCess which have not been deposited with appropriate authorities on account of any disputeother than those mentioned below:
|Name of the Statute ||Nature of dues ||Amount (Rs.) ||Period to which it relate ||Forum where dispute is pending |
|Income - tax Act 1961 ||Against order passed u/s 143(3) r.w.s.153C ||62563460/- ||A.Y. 2010-11 ||CIT (A) 52 Mumbai |
|Income - tax Act 1961 ||Against order passed u/s 143(3) r.w.s.153C ||41314760/- ||A.Y. 2011-12 ||CIT (A) 52 Mumbai |
|Income - tax Act 1961 ||Against order passed u/s 143(3) r.w.s.153C ||134301990/- ||A.Y. 2012-13 ||CIT (A) 52 Mumbai |
|Income - tax Act 1961 ||Against order passed u/s 143(3) ||3802440/- ||A.Y. 2015-16 ||CIT (A) 52 Mumbai |
(viii) In our opinion and according to the information and the explanations given tous the Company has not defaulted in repayment loans or borrowings to any financialinstitutions or banks or government. As explained to us the Company has not issued anydebentures.
(ix) In our opinion and according to the information explanation and managementrepresentation given to us the Company has not raised money by way of initial publicoffer (including debt instruments) or term loans. Therefore the provisions of clause3(ix) of the Order is not applicable to the Company.
(x) According to the information and explanations given to us we have neither comeacross any instance of material fraud by the company or on the company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the management.
(xi) The Company has paid the managerial remuneration in compliance of the provisionsof section 197 read with schedule V to the Companies Act 2013.
(xii) As the Company is not a Nidhi company and the Nidhi Rules 2014 are notapplicable to it Therefore the provisions of clause 3(xii) of the Order is notapplicable to the Company.
(xiii) In our opinion and on the basis of management representation all transactionswith the related parties are in compliance with the provisions of section 177 and 188 ofthe Companies Act 2013 where applicable and the details have been disclosed in financialstatements as required by the applicable Indian Accounting Standards.
(xiv) According to the information 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 year.Therefore the provisions of clause 3(xiv) of the Order is not applicable to the Company.
(xv) The Company has not entered into any non-cash transactions with its directors orperson connected with him. Therefore the provisions of clause 3(xv) of the Order is notapplicable to the Company.
(xvi) According to the information and the explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.
| ||For Sunil Vankawala & Associates |
| ||Chartered Accountants |
| ||Firm Registration No: 110616W |
|Place: Mumbai ||(Sunil T. Vankawala) |
|Dated: 30th June 2021 ||Proprietor |
| ||Membership No. 033461 |
| ||UDIN :- 21033461AAAAEK3906 |