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Shree Global Tradefin Ltd.

BSE: 512463 Sector: Others
NSE: N.A. ISIN Code: INE080I01025
BSE 00:00 | 26 May 7.23 -0.27
(-3.60%)
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7.79

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7.79

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7.13

NSE 05:30 | 01 Jan Shree Global Tradefin Ltd
OPEN 7.79
PREVIOUS CLOSE 7.50
VOLUME 56263
52-Week high 10.45
52-Week low 2.26
P/E
Mkt Cap.(Rs cr) 920
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.79
CLOSE 7.50
VOLUME 56263
52-Week high 10.45
52-Week low 2.26
P/E
Mkt Cap.(Rs cr) 920
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shree Global Tradefin Ltd. (SHGLOBALTRAD) - Auditors Report

Company auditors report

To The Members of M/s Shree Global Tradefin Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Ind AS Financial Statements of M/S ShreeGlobal Tradefin Limited ("the Company") which comprise the Balance Sheet asat March 31 2021 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearended on that date and Notes to the Standalone Financial Statements including a summaryof significant accounting policies and other explanatory information (hereinafter referredto as "the Standalone Financial Statements") In our opinion and to the best ofour information and according to the explanations given to us the aforesaid StandaloneFinancial Statements give the information required by the Companies Act 2013 ("theAct") in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards ("Ind AS") prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended and otheraccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2021 the loss (including other comprehensive income) its changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the

Act. Our responsibilities under those Standards are further described in theAuditor’s Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theethical requirements that are relevant to our audit of the Standalone Financial Statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI’sCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Standalone FinancialStatements.

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.

We have determined the matters described below to be the key audit matters to becommunicated in our report.

Key Audit Matters How our audit addressed the key audit matter
1) Evaluation of Contingent Liabilities
(Refer Note 32 of the Standalone Financial Statements) Our audit procedures include but is not limited to the following:
Claims against the Company not acknowledged as debts are disclosed in the notes annexed to the Standalone Financial Statements. The existence of the payments against these claims require management judgment to ensure disclosure of most appropriate values of contingent liabilities. Assessing the appropriate- ness of the management’s judgment in estimating the value of claims against the company not acknowledged as debts as given in Note 32. We have obtained details of demands/ claims as at 31 March 2021 from the management.
We assessed the completeness of details of these claims through discussion with senior management personnel.
We have also reviewed the outcome of the disputed cases at various forums.
We have also assessed the appropriateness of presentation of the contingent liabilities in the Standalone Financial Statements.
Key Audit Matters How our audit addressed the key audit matter
2) Preferential Allotment of Equity Shares and Open Offer
(Refer Note 35 of the Standalone Financial Statements) Our audit procedures include but is not limited to the following:
The Company entered into a Share Purchase Agreement with Metallurgical Engineering and Equipments Ltd and FirstIndia Infrastructure Pvt. Ltd. (Sellers) the existing promoters of Lloyds Steels Industries Ltd. (LSIL) wherein the Company acquired the collective stake of 46.12% of the sellers in the shareholding We verified whether the issue was being made in accordance with the requirements of Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulation 2018 Section 42 and 62 of the Companies Act 2013 and Rule 14 of the Companies Act 2013.
of LSIL. Against this purchase consideration the Company issued 132621156 Equity Shares at a price of ` 2.50 per Equity Share (including premium of ` 1.50 per share) on preferential allotment through swap of Equity Shares of both the Companies. Whether the Company has complied with all legal and statutory formalities and no statutory authority has restrained the Company from issuing the securities.
The aforementioned Share Purchase Agreement triggered the open offer requirement accordingly the Company made an Offer to acquire up to 233661600 Equity Shares of Rs 1 each representing 26% of the Voting Capital of LSIL at a price of Rs 1 per Equity Share payable in cash to the Public Shareholders of LSIL. We have also assessed the appropriateness of presentation and disclosure in the Standalone Financial Statements.
We verified whether the Company is in compliance with the open offer requirements as per Regulation 3(1) and 4 of SEBI (SAST Regulations) 2011.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board’s Report including Annexures to Board’s ReportCorporate Governance Report but does not include the Standalone Financial Statements andour auditor’s report thereon. Our opinion on the Standalone Financial Statements doesnot cover the other information and we do not express any form of assurance conclusionthereon. 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 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 financial statements that give a true and fair view of the financial positionfinancial performance (changes in equity)and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due 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. The Board of Directors are also responsible for overseeing theCompany’s financial reporting process.

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 aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Auditor’s Responsibility 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. 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 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) ofthe Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial control system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Management.

Conclude on the appropriateness of the management’s use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast to continue assignificant a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention 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 Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be qualitative influenced.factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

We communicate with those charged with governance regarding among other matters theplanned scope and including timing of the audit and significant we identify anysignificant 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 where 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor’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

As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Companies Act 2013 we give in the ‘Annexure B’ a statementon the matters specified in paragraphs 3 and 4 of the Order.

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 Company has no branch office and hence the company is not required to conductaudit under section 143 (8) of the Act;

d) The Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash flow statement and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account;

e) In our opinion the aforesaid Standalone Financial Statements comply with the IndianAccounting Standards (Ind AS) prescribed under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014 (as amended).

f) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2021 from being appointed as a director in terms of Section164 (2) of the Act.

g) 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 operating effectiveness of the Company’s Internal Financial Controls overFinancial Reporting; and

h) 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 (asamended):

i. The Company has disclosed the impact of pending litigations on its financialposition as per the Notes to the Financial Statement. (Refer Note 32 of the StandaloneFinancial Statement.)

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. The Company is not required to transfer any amount to the Investor Education andProtection Fund by the Company.

For Todarwal & Todarwal LLP

Chartered Accountants ICAI Reg. No.: W100231

Sd/-Raunak Todarwal

Partner M. No.: 165030

Dated: 28th June 2021 Place: Mumbai

UDIN: 21165030AAAACT4072

Annexure A to the Independent Auditors’ Report Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

Opinion

We have audited the internal financial controls over financial reporting of M/sShree Global Tradefin Limited ("the Company") as of 31st March 2021 inconjunction with our audit of the Standalone Financial Statements of the Company for theyear ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to Standalone Financial Statements and such internal financialcontrols were operating effectively as at 31st March 2021 based on the internalfinancial controls with reference to Standalone Financial Statements criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India (the "Guidance Note").

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 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 Companies Act 2013 (hereinafter referred to as"the Act").

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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and whether such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial control 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 judgement including the assessment of the risks ofmaterial misstatement of the Standalone Financial Statements whether due to fraud orerror.

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 controlswith reference to Standalone Financial Statements.

Meaning of Internal Financial over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records reflecting in the transactions anddispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea 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 procedures may deteriorate.

For Todarwal & Todarwal LLP

Chartered Accountants ICAI Reg. No.: W100231

Sd/-Raunak Todarwal

Partner M. No.: 165030

Dated: 28th June 2021 Place: Mumbai

UDIN: 21165030AAAACT4072

Annexure - B to Independent Auditor’s Report

The ‘Annexure B’ referred to in Independent Auditor’s Report to theMembers of the Company on the Financial Statements for the year ended 31st March 2021 wereport that:

(i) (a) According to the information and explanation given to us and based on therecords produced before us we are of the opinion that the Company is maintaining properrecords showing full particulars including quantitative details and situation of fixedassets.

(b) According to the information and explanation given to us fixed assets werephysically verified by the management according to a designed to cover all the locationswhich in our opinion is reasonable having regard to the size of the company and thenature of its assets.

(c) According to the information and explanation given to us and based on the recordsproduced before us the company does not possess any immovable property so this clause isnot applicable.

(ii) According to the information and explanation given to us the company has noinventory hence the above clause is not applicable.

(iii) According to the information and explanation given to us the Company has notgranted during the year any unsecured loans. Hence this clause is not applicable to theCompany.

(iv) According to the information and explanation given to us we are of the opinionthat in respect of loans investments guarantees and security provisions of section 185and 186 of the Companies Act 2013 have been complied with.

(v) According to the information and explanation given to us the company has notaccepted any deposits within the meaning of Section 73 to 76 of the Act and the rulesframed there under.

(vi) The maintenance of cost records has been prescribed by the Central Governmentunder section 148(1) of the Companies Act 2013 but the provisions of the same are notapplicable to the Company.

(vii) (a) According to the books and records as produced and audited by us inaccordance with generally accepted auditing practices in India and also Managementrepresentations undisputed statutory dues in respect of Provident fund Employees’State Insurance Income Tax Custom duty Goods and Services Tax Cess and other statutorydues if any applicable to it has generally been regularly deposited with theappropriate authorities.

(b) According to the information and explanation given to us and the records producedbefore us the disputed amount payable in case of GST Income Tax Sales Tax Wealth TaxService Tax Custom Duty Excise Duty Value Added Tax or cess is as follows:

Nature of Statue Nature of Dues Amount (Rs in Lakhs) Period to which the amount relates Forum where the dispute is pending
Income Tax Act 1961 Tax Penalty & Interest 61.29 AY 2009-10 CIT Appeals
105.46 AY 2010-11
28.46 AY 2015-16

(viii) According to the information and explanation given to us and based on therecords before us the company has not availed any loan or financial facilities fromfinancial institutions and banks. Hence this clause is not applicable to company.

(ix) According to the information and explanation given to us and the record producedbefore us the company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) or by way of any term loan during the year.

(x) During the course of our examination of the books of account carried in accordancewith the generally accepted auditing standards in India we have neither come across anyinstance of fraud on or by the Company by its officers or employees either noticed orreported during the year nor have we been informed of such case by the Management.

(xi) According to the information and explanation given to us and the record producedbefore us managerial remuneration has been paid during the year as per the provisions ofsection 197 read with Schedule V to the Act.

(xii) The Company is not a Nidhi Company as specified in the Nidhi Rules 2014. Hencethe provision of this clause is not applicable to the company.

(xiii) According to the information and explanation given to us and the record producedbefore us all transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theStandalone Financial Statements as required by the applicable Indian AccountingStandards.

(xiv) According to the information and explanation given to us and the record producedbefore us the company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review. Hence theprovision of this clause is not applicable to the company.

(xv) As per the information and explanation given to us and the records produced beforeus the company has not entered into any non-cash transactions with directors or personsconnected with him.

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

For Todarwal & Todarwal LLP

Chartered Accountants ICAI Reg. No.: W100231

Sd/-

Raunak Todarwal

Partner M. No.: 165030

Dated: 28th June 2021 Place: Mumbai

UDIN: 21165030AAAACT4072

.