The Members of
Shalimar Productions Limited
Report on the Audit of the Financial Statements Opinion
We have audited the financial statements of Shalimar ProductionsLimited("the Company") which comprise the balance sheet as at 31st March2020 and the statement of Profit and Loss (statement of changes in equity) and statementof cash flows for the year ended and notes to the financial statements including asummary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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 as amended ("Ind AS") and otheraccounting principles generally accepted in
India of the state of affairs of the Company as at March 31 2020 andprofit and total comprehensive income (including other comprehensive income) 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) specified under section 143(10) of the Companies Act 2013. 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 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 judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. There is no matters to be key financial matter to be communicated in ourreport.
Responsibilities of Management for the Financial Statements
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding 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 presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements the Board of Directors 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 the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the FinancialStatements
Our objectives are to obtain reasonable assurance about whether thefinancial 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 professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risk of material misstatement of the 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 financial control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether has adequate internal financial controls systems in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exits related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exits we are required to draw attention in our auditor's report to therelated disclosures in the Financial Statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatement in the standaloneFinancial Statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Financial Statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatement in the Financial Statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding and significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wemay have complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.
(c) Balance Sheet the Statement of Profit and Loss and the Cash FlowStatement dealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules2014.
(e) On the basis of the written representations received from thedirectors as on 31st March 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2020 from being appointed as adirector in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in
(g) With respect to the other matters to be included in theAuditor's Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion 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 impactits financialposition.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeablelosses. iii. There hasbeen no delay in transferring amounts required to be transferred to the Investor
Education and Protection Fund by the Company.
2. 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 143of the Companies Act 2013 we give in the Annexure B' statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
|For S C Mehra & Associates LLP || |
|Chartered Accountants || |
|FRN. 106156W /W100305 || |
|Sd/- || |
|(CA S C Mehra) || |
|Partner || |
|M. No: 039730 || |
| ||Place : Mumbai |
| ||Date : 29.06.2020 |
|UDIN: 20039730AAAADV2347 || |
Annexure "A" to the Auditors' Report
Referred to in Paragraph 1(g) under the heading of "Report onother Legal and Regulatory Requirements" of our report to the members of ShalimarProductions Limited of even date
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the
Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Shalimar Productions Limited ("the Company") as of March 312020 in conjunction with our audit of the financial statements of the Company for the yearended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial
Controls over Financial Reporting issued by the Institute of CharteredAccountants 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 torespective company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting 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 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; and 3.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 FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to theexplanations given to us 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 2020 based on the internal control over financial reportingcriteria 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.
|For S C Mehra & Associates LLP || |
|Chartered Accountants || |
|FRN. 106156W/W100305 || |
|Sd/- || |
|CA S C Mehra || |
|Partner || |
|M. No: 039730 || |
| ||Place : Mumbai |
| ||Date : 29.06.2020 |
ANNEXURE "B" TO INDEPENDENT AUDITORS' REPORT
Referred to in Paragraph 2 under the heading of "Report on otherLegal and Regulatory Requirements" of our report to the members of ShalimarProductions Limited of even date
On the basis of such checks as we considered appropriate and in termsof the information and explanations given to us we report that: -
i. In respect of companies fixed assets:
a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of its fixed assets.
b) The Company has a regular programme of physical verification of itsfixed assets by which fixed assets are verified in a phased manner over a period of threeyears. In accordance with this programme certain fixed assets were verified during theyear and no material discrepancies were noticed on such verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.
c) According to the information and explanations given to us the titledeeds of immovable properties included in fixed assets are held in the name of theCompany.
ii. a) As explained to us management has conducted physicalverification of inventory at regular intervals during the year.
b) In our opinion and according to the information and explanationsgiven to us the procedures of physical verification of inventory followed by theManagement were reasonable and adequate in relation to the size of the Company and natureof its business.
c) In our opinion and according to the information and explanationsgiven to us the Company has maintained proper records of its inventories and no materialdiscrepancies were noticed on physical verification.
iii. According to the information and explanations given to us theCompany has not granted loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties listed in the register maintained under Section189 of the Companies Act 2013. Accordingly the provisions of clauses 3(iii) (a) (b) and(c) of the order are not applicable to the Company.
iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and 186 of theAct in respect of grant of loans making investment and providing guarantees andsecurities as applicable.
v. In respect of deposits accepted in our opinion and according to theinformation and explanations given to us directives issued by the Reserve Bank of Indiaand the provisions of Section 73 to 76 or any other relevant provisions of the CompaniesAct 2013 and the rules framed there under to the extent applicable have been compliedwith. We are informed by the management that no order has been passed by the Company LawBoard (CLB) National Company Law Tribunal (NCLT) or Reserve Bank of India (RBI) or anyCourt or any other Tribunal.
vi. The maintenance of cost records has not been specified by theCentral Government under Section 148(1) of the companies Act 2013 for the businessactivities carried out by the company thus reporting under clause 3(vi) of the order isnot applicable to the Company.
vii. a) According to information and explanations given to us theCompany has been generally regular in depositing undisputed statutory dues includingProvident Fund
Employees' State Insurance Income Tax Goods and Service TaxCustom Duty Cess Professional Tax and other material statutory dues applicable to itwith the appropriate authorities.
b) According to the information and explanations given to us noundisputed amounts payable in respect of Provident Fund Employees' State InsuranceIncome Tax Goods and Service Tax Custom Duty Cess Professional Tax and other materialstatutory dues in arrears as at March 31 2020 for a period of more than six months fromthe date they became payable.
viii. Based on our audit procedures and on the basis of information andexplanations given by the management The Company has not taken any loans from banksdebenture holders Government or any Financial Institution Therefore paragraph 3(viii)of the Order is not applicable.
ix. Based on audit procedure and on the basis of information andexplanation given by the management The Company did not raise any money by way of termloan Initial Public offer or further public offer Therefore paragraph 3(ix) of theOrder is not applicable.
x. To the best of our knowledge and according to the information andexplanations given to us no fraud by the Company or no material fraud on the company byits officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanationsgiven to us the company has not paid / provided any managerial remuneration Thereforeparagraph 3(xi) of the Order is not applicable.
xii. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Therefore paragraph 3(xii) of the Orderis not applicable.
xiii. In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Sections 177 and 188 of the Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the Standalone Financial Statements asrequired by the applicable accounting standards.
xiv. During the Year the company has not made any preferentialallotment or private placement of shares fully or partly paid convertible debentures andhence reporting under clause 3 (xiv) of the Order is not applicable to the Company.
xv. In Our opinion and according to the information and explanationsgiven to us during the year the Company has not entered into any non-cash transactionswith its Directors or persons connected to its directors and hence provisions of Section192 of the Companies Act 2013 are not applicable to the Company.
xvi. The Company is not required to be registered under section 45-IAof the Reserve Bank of India
|For S C Mehra& Associates LLP || |
|Chartered Accountants || |
|FRN : 106156W/W100305 || |
|Sd/- || |
|CA S C Mehra || |
|Partner ||Place : Mumbai |
|Membership No. 039730 ||Date: 29.06.2020 |