The Members of
TRIJAL INDUSTRIES LIMITED
We have audited the standalone financial statements of TRIJAL INDUSTRIES LIMITED("the Company") which comprise the balance sheet as at 31st March2019 and the statement of Profit and Loss (including other comprehensive income)statement of changes in equity and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.
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 Act in the manner so required and give a true and fair view in conformity withaccounting principles generally accepted in India of the state of affairs of the companyas at 31st March 2019 and its loss total comprehensive income the changes in equityand 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 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.
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 standalone financial statements that give a true and fair view of the financialposition and financial performance 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 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 Ind. AS 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 is also responsible foroverseeing the Company's financial reporting process.
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 matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
Ind. AS 115 has become applicable on the Company with effect from April 1 2018 whichprescribes detailed guidance for various elements of revenue recognition and requiresdetailed contract assessment as per the accounting principles prescribed under the newlyapplicable accounting standard. The application of new revenue accounting standardinvolves certain key judgments and interpretations relating to identification of separateperformance obligations principal versus agent considerations recognition of revenueover the period and recognition of contract acquisition costs. Accordingly the matter hasbeen identified as KAM.
The procedures performed includes following:
Assessed the Company's process to identify the impact of adoption of new revenueaccounting standard;
Selected a sample of contracts and evaluated them along with supporting evidence todetermine whether various elements of revenue recognition are assessed in accordance withthe principles prescribed under Ind. AS 115; Read and assessed the disclosure made in thefinancial statements for assessing compliance with disclosure requirements.
Auditor's Responsibility for the Audit of the Financial Statements
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 misstatement when 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.
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 financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness 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 ofour auditor's report. However future events or conditions may cause the Company to ceaseto continue 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.
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 influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
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. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships 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 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 (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act we give in theAnnexure a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. 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 and Statement of Profit and Loss dealt with by this Report are inagreement with the books of account;
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act.
For Mukesh & Associates
FRN - 106599W
(CA. Mukesh Shah)
DATE : 30th May 2019.
PLACE : Mumbai.
ANNEXURE REFERRED TO IN POINT 1 OF REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS OFTHE REPORT OF THE AUDITORS ON THE ACCOUNTS OF TRIJAL INDUSTRIES LIMITED FOR THE YEAR ENDED31st MARCH 2019
1 (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) A major portion of the assets has been physically verified by the management inaccordance with the phased program of verification adopted by the company. In our opinionthe frequency of verification is reasonable. To the best of our knowledge no materialdiscrepancies have been noticed on such verification.
(c) The title deeds of immovable property are held in the name of the company.
2 The inventory has been physically verified by the management during the year atreasonable intervals. In our opinion the frequency of verification is reasonable. On thebasis of our examination of stock records we are of the opinion that no materialdiscrepancies were noticed on physical verification.
3 The company has not granted any secured or unsecured loans to any companies firmslimited liability partnership or other parties covered in the register maintained undersection 189 of the Companies Act 2013.
4. The company has no such transaction during the year to which the provisions ofsection 185 and 186 of the Companies Act 2013 gets attracted.
5. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public within the meaning of section 73 to76 of the Companies Act 2013 or any other relevant provisions of the Act and the rulesframed there under.
6. The company is not covered under the clause regarding maintenance of cost records asprescribed by the Central Government under section 148 (1) of the Companies Act 2013 andas certified by the cost auditor the company has maintained proper accounts and recordsfor the same.
7. (a) According to the records of the company the company is regular in depositingwith appropriate authorities undisputed statutory dues including provident fundemployees' state insurance income tax sales tax service tax custom duty excise dutyvalue added tax cess and other statutory dues applicable to it.
(b) According to the records of the company there are no dues of sales tax servicetax custom duty excise duty or value added tax on account of any dispute except dues ofSales Tax Department (The Case is under appeal) as follows:
Financial Year 2010-11 Demand Raised Rs.2388767/- (Appeal Allowed) Order passed incompany's Favour New Demand Rs. NIL Financial year 2012-13 Demand raised Rs. 2379101/-(Appeal Pending)
8. According to information and explanation given to us the company has not defaultedin repayment of dues to any financial institution bank or government. The company has notissued any debentures.
9. The company has not raised money by way of initial public offer or further publicoffer (including debt instrument) during the year. According to the information andexplanation given to us the term loan of the company were applied for the purpose forwhich those are raised.
10. No fraud on or by the company has been noticed or reported during the year.
11. According to information and explanation given to us the company has paid orprovided the managerial remuneration in accordance with the requisite approvals mandatedby the provisions of section 197 of the Companies Act 2013.
12. The said company is not a Nidhi company. Hence the provisions of Nidhi company arenot applicable.
13. According to information and explanation given to us the company has disclosed allthe transactions with the related parties in compliance with the sections 177 and 188 ofthe Companies Act 2013 and details have been enclosed in the Financial Statements asrequired by applicable accounting standard.
14. The company has not made any preferential allotment or private placements ofshares.
15. According to information and explanation given to us the company has not enteredinto any non-cash transactions with directors or persons connected with them.
16. The company is not required to registered under section 45-IA of the Reserve Bankof India Act 1934.
For Mukesh & Associates
FRN - 106599W
(CA. Mukesh Shah)
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF TRIJAL INDUSTRIES LIMITED.
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 TRIJALINDUSTRIES LIMITED ("the Company") as of March 31 2019 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 168 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.
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; TRIJALINDUSTRIES LIMITED.
(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 March 31 2019 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 Mukesh & Associates
FRN - 106599W
(CA. Mukesh Shah)