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Shree Narmada Aluminium Industries Ltd.

BSE: 513127 Sector: Others
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Shree Narmada Aluminium Industries Ltd
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Shree Narmada Aluminium Industries Ltd. (SHNARMADAALUM) - Auditors Report

Company auditors report

To the Members Of

Shree Narmada Aluminium Industries Limited Report on the Financial Statements

We have audited the accompanying financial statements of Shree Narmada AluminiumIndustries Limited ("the Company") which comprise the Balance

Sheet as at March 31 2020 the Statement of Profit and Loss statement of changes inequity and Cash Flow Statement for the year then ended and includingasummaryofsignificant accounting policies and other explanatory information.

Basis of Qualified Opinion

The Company is a sick Company under Sick Industrial Companies Act 1985. The order ofthe Honorable High Court of Gujarat dated May 16 2008 for rehabilitation is under theprocess of implementation. Meanwhile a secured creditor filed an application before Debtrecovery Tribunal-IIl (DRT-III} and the court receiver now having the possession ofproperty. Despite net worth of the Company fully eroded the Management is of the opinionthat the

Going Concern Assumption is sustainable and accordingly the accounts of the Companyhave been prepared on going concern basis. (Refer Note 18 of financial statements).

In our opinion and to the best of our information and according to the explanationsgiven to us except in respect of consequential possible impacts of the matters mentionedunder para ‘Basis of Qualified Opinion' the aforesaid financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2020 and profit/loss changes in equity its cashflows for the year ended on that date.

and

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143({10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current

period. These matters were addressed in the context of our audit ofthe financialstatements as a whole and in forming our opinion thereon and we do

not provide a separate opinion on these matters.

Management's Responsibility for the 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 ofthe financial positionfinancial performance changes in equity and cash flows

of the Company in accordance with the accounting principles generally accepted inIndia including the Accounting Standards specified under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 presentationofthe financial statements that givea true and fair view and are free from material misstatement whether due to fraud orerror.

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 orto cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financialreporting process. Auditors' Responsibility

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatementwhen it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure "A" a statement on the matters specified inparagraphs 3 and

4 of the Order to the extent applicable.

As required by section 143(3) of the Act we report that:

We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit; a) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. b) The Balance Sheet Statement of Profit andLoss and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account; c) Inouropinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. d) Onthe basis of the written representations receivedfrom the directors as on 31st March 2020 taken on record by the Board of Directors noneofthe directors is disqualified as on 31st March 2020 from being appointed as a directorin terms of Section 164 (2) of the Act e) With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate report in "Annexure B". f) With respectto the other matters to be included in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules

2014 in our opinion and to the best of ourinformation and according to theexplanations given to us:

The Company has disclosed the impact of pending litigations on its financialposition-Refer Note No. 16and 17 of the financial statement.

Il.

Il. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; Ill. There were no amountswhich wererequired to be transferred to the Investor Education and Protection Fund by the Company.

For KM Swadia & Company Chartered Accountants

(Firm Registration No. (110740w)

Sd/-

CAR K Rajput

Partner

Membership No. 125333

Place : Vadodara

Date: 30thJune 2020

UDIN :20125333AAAADH4708

Annexure A to Independent Auditors' Report

(Referred to paragraph 1 of "Report on Other Legal and RegulatoryRequirements" section of our report of even date}

Inrespect of Company's fixed assets:

(a) According to the information and explanations given to us the Company ismaintaining records showing full particulars including quantitative details andsituations ofall the fixedassets.

(b) According to the information and explanations given to us the all the fixed assetsare in possession of the court receiver. Hence during the year physical verification wasnot conducted by the Management. (Refer note 18 of financial statement) (c) According tothe information and explanations given to us the title deed of immovable property is inthe name of the Company.

The company is a trading company; it does not hold any inventories. Thus clause 3(ii)(a) (b) & (c) of the order regarding physical verification of inventories andmaintenance of records is not applicable.

According to the information and explanations given to us the Company has not grantedany loans secured or unsecured to companies Limited Liability Partnerships firms orother parties covered in the register maintained under Section 189 of the Companies Act2013. Accordingly clause

3(iii)(a) to 3(iii)(c) are not applicable to the Company.

According to the information and explanations given to us the Company has notgiven/made any loans investments guarantees and security accordingly provisions ofsection 185 and 186 of the Companies Act 2013 are not applicable.

The Company has not accepted any public deposits within the meaning of sections 73 to76 of Companies Act 2013 and rules framed thereunder; vi. As the Company is not amanufacturing concern the clause 3(vi) of the Order regarding maintenance of cost recordsunder sub-section (1) of section 148 of the Companies Act 2013 is not applicable to theCompany. vii. (a) In our opinion and according to the information and explanations givento us Company is generally regular in depositing applicable undisputed statutory duesincluding provident fund employees' state insurance income tax Goods and Service taxsales tax wealth tax service tax custom duty duty of excise value added tax cess andany other statutory dues with the appropriate authorities during the year and no such duesare outstanding for more than six months from the date they became payable as on March 312020.

(b) As at March 31 2020 according to the records of the Company and the informationand explanations given to us disputed dues payable by the Company on account Tax / SalesWealth Tax/Service Tax / Duty of Custom/Duty of Excise are as under:

ofIncome Tax /

Nature of Dues we Name of Statute dene en 312019 Period Forum
1 The Bombay Sales Tax Act Sales Tax Interest and Penalty 114000 1991-92 Before Honorable Tribunal Filed by Company
2 The Bombay Sales Tax Act Sales Tax Interest and Penalty 2217000 1992-93 Before Honorable Tribunal Filed by Company
3 The Bombay Sales Tax Act Sales Tax Interest and Penalty 2618000 1993-94 Before Honorable Tribunal Filed by Company
4 The Bombay Sales Tax Act Sales Tax Interest and Penalty 918000 1994-95 Before Honorable Tribunal Filed by Company
5 The Bombay Sales Tax Act Sales Tax Interest and Penalty 200000 1995-96 Before Honorable Tribunal Filed by Company
6 The Bombay Sales Tax Act Sales Tax Interest and Penalty 8000 1999-00 Before Honorable Tribunal Filed by Company

viii. According to the information and explanationsgiven to us and on the basis of ourexaminationofthe books of accounts in our opinion the Company has not defaulted inrepayment of dues to banks government and any financial institutions. The Company did nothave any debentures outstanding as the year end. ix. According to the information andexplanations given to us by the management the Company has not raised any fund by way ofpublic issue orfrom term loan. x. According to the information and explanation given tous we have not come across any instance of fraud by the Company or any fraud on the itsofficers or employees either noticed or reported duringyear on or by the Company.

Companyby the

xi. To the best of our knowledge and according to the information and explanationsgiven to us the Company has neither paid nor provided for any managerial remunerationduring the year and hence reporting under clause (xi) of the Order is not applicable. xii.According to the information and explanation given to us in our opinion the Company isnot a Nidhi Company as prescribed under section 406 the Act. xiii. According to theinformation and explanations given to us all transactions with the related parties are incompliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed innoteno-: 21 of the financial Statements as required by theapplicable accounting standards; xiv. The Company has not made any preferential allotmentor private placement ofsharesor fully or partly convertible debentures during the year.xv. According to the information and explanations given to us the company has not enteredinto any non-cash transactions with directors or persons connected with him and henceclause 3(xv) of the Order is not applicable to the Company. xvi. The Company is notrequired to be registered under section 45-IA ofthe Reserve Bank of India Act1934.

For K M Swadia & Company
Chartered Accountants
(Firm Registration No.110740w)
Sd/-
CAR K Rajput
Partner
Membership No. 125333

Place: Vadodara

Date: 30th June 2020

UDIN: 20125333AAAADH4708

Annexure B to The Independent Auditor's Report of Even Date on The Financial Statementsof Shree Narmada Aluminium Industries Limited. Report on the Internal FinancialControlsunder 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 ShreeNarmada Aluminium Industries Limited. ("the Company") as of March 31 2020 inconjunction with the financial statements of the Company for the on that date. our auditof year ended

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the criteria established by the Company considering the sizeof Company and essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over

Financial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act2013.

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 ICAl and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 overfinancial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about theadequacyofthe internal financial controls system over financial reporting and theiroperating effectiveness.

Our audit of internal financial financial reporting included obtaining an understandingof internal financial controls over financial reporting controls over

assessing the risk that a material weakness exists and testing and evaluating thedesign and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the judgment including the assessment auditor's ofthe risksof material misstatement ofthe 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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

ACompany's internal financial control over financial reporting is a process designed toprovide 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 offinancial statements in accordance with generally accepted accountingprinciples and

that receipts and expenditures of the Company are being made only in accordance withauthorizations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the Company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal FinancialControls over Financial Reporting

Becauseofthe inherent limitations of internal financial controls overfinancialreporting 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 becauseofchanges in conditions or that thedegree 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 controlswere operating effectively as at March 31 2020 based on the assessment of essentialcomponents of internal controls over financial reporting stated in the Guidance Notecarried out by the Company and representation to that effect is made availableto us by theCompany.

For KM Swadia & Company

Chartered Accountants

FRN (110740W)

Sd/-

CAR K Rajput

Partner

M.No.125333

Place: Vadodara

Date: 30th June 2020

UDIN: 20125333AAAADH4708

.