To the Members of
Shangar Dcor Limited
We have audited the accompanying Ind AS financial statements of Shangar Dcor Limitedwhich comprise the Balance Sheet as at March 31 2020 the Statement of Profit and Loss(Including Other Comprehensive Income) the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2020 its profit total comprehensiveincome its cash flows and the changes in equity for the year ended on that date.
Basis of Opinion
We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibility 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 (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.
Key Audit Matters
Key Audit matters (KAM') 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.
2. Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in the 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 and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the 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 management and Board of Directors of thecompany are responsible for assessing the ability of company to continue as a goingconcern disclosing as applicable matter related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the entity or tocease operations or has no realistic alternative but to do so.
3. Auditor's Responsibility for the Financial Statements
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation of the financialstatements that give true and fair view in order to design audit procedure that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentations of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
4. Report on Other Legal and Regulatory Requirements i. As required by theCompanies (Auditor's Report) Order 2016 ("the Order") issued by the Central
Government of India in terms of section (11) of section 143 of the Companies Act2015we give in the "Annexure-A" a statement on the matters specified in theparagraphs 3 and 4 of the Order to the extent applicable.
ii. As required by section 143(3) of the Act we report that:
a. We have obtained all the information and explanations which to the best of ourknowledge 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 Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.
d. In our opinion the aforesaid financial statements comply with the Indian AccountingStandards specified under section 133 of the Act read with the Rule 7 of the Companies(Accounts) Rules 2014.
e. On the basis of written representations received from the directors as on March 312020 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of section 164(2) of theAct.
f. With respect to the adequacy of the internal financial controls over financialreporting of the
Company and the operating effectiveness of such controls refer to our separate reportin "Annexure B"; and
g. 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 accordance to the explanation given to us:
i. The company does not have any pending litigations which would impact its financialposition.
ii. The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and
Protection Fund by the Company.
For S. D. Mehta & Co.
Chartered Accountants (FRN. 137193W)
Shaishav D. Mehta
Membership No.: 032891
Date: 30th June 2020
Annexure-A to Independent Auditors' Report
Referred to in Paragraph 5(i) under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date.
1. In respect of Fixed Assets a. The Company is maintained proper recordsshowing full particulars including quantitative details and Situations of its FixedAssets.
b. The fixed assets are physically verified by the management at regularintervals and in our opinion is reasonable having regard to the size of Company and thenature of its assets. Pursuant to the verification a portion of the fixed assets has beenphysically verified by the management during the year and no material discrepancies havebeen noticed on such verification.
c. According to the information and explanations given to us and on the basis ofour examination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.
2. In respect of its inventories:-
(a) Inventories have been physically verified by the management at reasonably regularintervals during the year.
(b) In my opinion and according to the information and explanation given to me theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) The Company has maintained proper records of inventories. As explained to me therewere no material discrepancies noticed on physical verification of inventory as comparedto the book.
3 The Company has not granted loans to parties covered in the Registermaintained under Section 189 of the Companies Act 2013. As such reporting requirementsunder this para are not applicable for the reporting period.
4 In respect of loan the provisions of section 185 and 186 have been compliedwith. There are no loans to directors; there are no investments guarantees and securitiesrequiring compliance u/s 186 of the Companies Act 2013.
5 During the year the company has not accepted any deposits from public.
6 Company is not required to maintain cost records pursuant to section 148 (1)of the Companies Act 2013.
7 In respect of Statutory Dues: a. According to the information andexplanations given to us and the records examined by us the Company is generally regularin depositing undisputed statutory dues including Income Tax Cess and any other statutorydues with the appropriate authorities. According to the information and explanations givento us there are no undisputed dues payable in respect of above as at 31st March 2020for a period of more than six months from the date on which they became payable.
b. According to the information and explanations given to us and on the basis ofour examination of books of account and record the details of aforesaid statutory dues asat March 31 2020 which have not been deposited with the appropriate authorities onaccount of any dispute are given below:
|Name of Statute ||Nature of dues ||Amount (Rs.) ||Accounting Period to which the amount relates ||Forum where dispute is pending |
|Income Tax Act 1961 ||Income Tax ||24920 ||2007-08 ||Assessing Officer |
|Income Tax Act 1961 ||Income Tax ||2298390 ||2017-18 ||CPC |
The Company has not cleared the dues of TDS default penalty to the extent ofRs.2970168/- pertaining to F.Y. 2015-16 2016-17 & 2017-18 in aggregate.
8 As the Company has not availed any term loan the question of purpose andapplication does not arise.
9 No Money raised by preferential allotment where applied for the purpose forwhich those were raised.
10 To the best of our knowledge and according to the information andexplanations given to us no material fraud on or by the Company has been noticed orreported during the year.
11 The Company has not paid or provided managerial remuneration under section197 of the Companies Act 2013 and hence the provision of paragraph 3(xi) of the Order isnot applicable to the Company.
12 The company is not a Nidhi company. As such The Nidhi rules 2014 are notapplicable.
13 All transactions with the related parties are in compliance with the sections177 and 188 of Companies Act 2013 where applicable and the details have been disclosed inthe financial statements as required by applicable accounting standards.
14 The company has not made any preferential allotment or Private placement ofshares of fully or partly convertible debentures during the year under review.
15 The company has not entered into any non cash transactions with directors orpersons connected with it.
16 Company is not required to be registered u/s. 45-IA of the Reserve Bank ofIndia Act 1934.
For S. D. Mehta & Co.
Chartered Accountants (FRN. 137193W)
Shaishav D. Mehta
Membership No.: 032891
Date: 30th June 2020
Annexure-B to Independent Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of ShangarDcore Limited ("the Company") as of 31 March 2020 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
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 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 ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions 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 have amaterial 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.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For S. D. Mehta & Co. |
| ||Chartered Accountants |
| ||(FRN. 137193W) |
Date: 30th June 2020
| ||Shaishav D. Mehta |
| ||(Partner) |
|UDIN: 20032891AAAACG9478 ||Membership No.: 032891 |