TO THE MEMBERS OF TRIO MERCANTILE AND TRADING LIMITED REPORT ON THE
1. We have audited the accompanying Ind AS financial statements of Trio Mercantile andTrading Limited ("the Company") which comprise the Balance Sheet as at March31 2021 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Indian Accounting Standards(Ind AS') specified under section 133 of the Act of the state of affairs of theCompany as at March 31 2021 and total comprehensive income (comprising of loss for theyear and other comprehensive income) its cash flows and changes in equity for the yearended on that date.
Basis for opinion
3. We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the audit of Ind AS 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') togetherwith the ethical requirements that are relevant to our audit of financial statements underthe provisions of the act and the rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
Key Audit Matters
4. 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 Ind AS financial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters. We have determined the matters described below to be the key audit matters to becommunicated in our report.
|Sr. Key Audit Matter No. ||Auditor's Response |
|1 External Confirmations || |
|COVID-19 has impacted the procedure of external confirmation request to vendors and customers at the year-end and therefore positive external confirmation request was sent through electronic mode. ||Our audit procedures included among others the following: |
|However due to suspension of business activities of the many confirming parties most confirmations were not received.The Company seeks and had sought confirmations from vendors and customers during the year. In such events we auditors performed alternative audit procedures. ||Revised assessed risk and modify our audit procedures to mitigate these risks; |
|This matter is considered to be key audit matter given the circumstances of the year-end confirmations under COVID-19 vis-a-vis non-COVID-19 scenario. ||Obtained a reliable assurance pertaining to transactions with confirming parties in sense for accurate and complete process of routine and significant classes of transactions such as revenue purchases etc.; |
| ||Selected samples and tested the effectiveness of controls related to accuracy and completeness of transactions in totality considering the frequency and regularity of transactions; |
| ||Performed alternative audit procedures like |
| ||For accounts receivable balances: scrutiny of ledger accounts and verification of subsequent receipts; |
| ||For accounts payable balances: scrutiny of ledger accounts and other documents/records such as bills from vendors and subsequent payments |
|2 Carrvina value of Receivables ||Principal Audit Procedures |
|As at March 31 2021 receivables constitutes approximately 38.89% of total assets of the Company. The ||Tested the ageing of trade receivables and receipts subsequent to the year-end; |
|Company is required to regularly assess the recoverability of its Receivables. ||Evaluated Management's assessment of the current financial situation of the major entities whose balances are receivable as at the year-end. |
|Recoverability of Receivables was highly significant to our audit due to the value of amounts which also represents significant portion of the Company's working capital. ||Assessed the Company's expected credit loss calculations made in determining the recoverable amount. |
|Expected credit loss involves judgement as it must reflect information about past events current conditions and forecasts of future conditions as well as the time value of money. Management has made provision for expected credit loss of ' 133 54 Lakh ||Sent and obtained confirmations for major parties possible. |
| ||On the basis of above audit procedures performed we conclude that there have been substantial delays in receipts and subsequent receipts have not been significant. |
| ||In view of the above we are unable to obtain sufficient and appropriate audit evidence and are unable to comment on adequacy of loss provision valuation and recoverability of balance outstanding. |
Information other than the Financial Statements and Auditor's Report thereon
5. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe Ind AS financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the Ind AS financial statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated. If based on the work we haveperformed
we conclude that there is a material misstatement of this other information; we arerequired to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the FinancialStatements
6. 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 Ind AS financial statements to give a true and fair view of the financial positionfinancial performance cash flows and changes in equity 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 includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
7. 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.
8. The Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
9. Our objectives are to obtain reasonable assurance about whether the Ind AS 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 withStandards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.
10. As part of an audit in accordance with Standards on Auditing we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Ind AS 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 todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for explaining our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of 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 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions 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 Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
11. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
12. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
13. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the Ind AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
14. As required by the Companies (Auditor's Report) Order 2016' issued by theCentral Government of India in terms of subsection (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order.
15. 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 Balance sheet Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this report are in agreement with the books of account;
d) in our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standard specified under Section 133 of the Act;
e) on the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312021 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 ourseparate report in "Annexure B"; and
g) with respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition;
ii. the Company does not have any long term contract including derivative contracts forwhich there are any material foreseeable losses;
iii. There has been no delay in transferring amount required to be transferred to theInvestor Education and Protection Fund.
h) Form MSME-1 which is required to be furnished to ROC semi-annually in respect ofoutstanding payments to Micro and Small Enterprises is yet to be filed by the Company.
For Bilimoria Mehta & Co. Chartered Accountants
Firm Registration Number: 101490W
CA Jalpesh K Vora
Partner Membership No.: 106636
UDIN : 21106636AAAAIF2258
Mumbai 30th JUNE 2021
Annexure A to the Independent Auditor's Report
Referred to in paragraph 14 of the Independent Auditors' Report of even date to themembers of Trio Mercantile and Trading Limited on the Ind AS financial statements for theyear ended March 31 2021.
|i (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. |
|(b) The Company has a regular programme for physical verification of its fixed assets by which its fixed assets are verified in a phased manner. In our opinion this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its fixed assets. However physical verification of fixed assets which were not verified during the year as planned due to outbreak of Covid-19 pandemic. As represented by the management these will be covered for verification in the subsequent period. |
|(c ) According to the information and explanations given to us and on the basis of our examination of the records of the Company the title deeds of immovable properties as disclosed in Note 2 on fixed assets to the Ind AS financial statements are held in the name of the Company. |
|ii The inventory excluding stocks with third parties has been physically verified by the management at regular intervals which we consider to be reasonable. No material discrepancies were noticed on physical verification of inventories as compared to book records. |
|iii According to information and explanation given to us the Company's has not granted any loan secured or unsecured to companies firms Limited Liability Partnership firm or other parties covered in the register maintained under section 189 of the Companies Act 2013 and hence sub clause (a) (b) and (c) are not applicable. |
|iv In our opinion and according to the information and explanations given to us the Company has complied with the provisions of Section 185 and 186 of the Companies Act 2013 in respect of the loans and investments made. |
|v The Company has not accepted any deposits from the public within the meaning of Sections 73 74 75 and 76 of the Act and the Rules framed there under to the extent notified. |
|vi According to the information and explanation given to us the rules made by the Central Government of India the Company is not required to maintain cost records as specified under sub section (1) of section 148 of the Companies Act 2013 in respect of its products. Accordingly provision of Clause 3(vi) of the Order is not applicable. |
|vii (a) According to the information and explanations given to us the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund Employees' State Insurance Income Tax Goods & Service Tax Custom Duty Cess and other material statutory dues applicable to it as per the available records as far as ascertained by us on our verification. According to the information and explanations given to us The amount of Vat Rs. 9391/- were arrears as at 31st March 2021 for a period of more than six months from the date they became payable. |
|(b) According to the information and explanation given to us there no dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax which have not been deposited with the appropriate authorities on account of any dispute. |
|viii According to the records of the Company examined by us and the information and explanation given to us the Company has not defaulted in repayment of dues of loans taken from banks. There are no loans or borrowings payable to government and financial institution and the company has not issued any debentures. |
|ix The Company did not raise any money by way of initial public offer or further public offer (including debt instruments). In our opinion the term loans were applied for the purposes the loans were obtained. |
|x During the course of our examination of the books and records of the Company and according to information and explanation given to us we have neither come across any instance of fraud on or by the Company its officers or employees noticed or reported during the period nor have we been informed of such case by the management. |
|xi According to the information and explanations given to us and based on our examination of the records of the Company the Company has paid or provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act. |
|xii In our opinion and according the information and explanation given to us the Company is not a Nidhi Company. Accordingly provision of Clause 3(xii) of the Order is not applicable. |
|xiii According to the information and explanation given to us and based on our verification of the records of the Company and on the basis of review and approval by the Board and Audit Committee the transactions with related parties are in compliance with Section 177 and 188 of the Act where applicable and the details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards. |
|xiv According to the information and explanation given to us and based on our examination of the records of the Company the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the period under review. Accordingly the provision of Clause 3(xiv) of the Order is not applicable. |
|xv According to the information and explanation given to us and based on our examination of the records of the Company the Company has not entered into any non-cash transactions with its directors or persons connected with them. Accordingly the provision of Clause 3(xv) of the Order is not applicable. |
|xvi The Company is not required to be registered under Section 45- IA of the Reserve Bank of India Act 1934. |
For Bilimoria Mehta & Co.
Chartered Accountants Firm
Registration Number: 101490W CA Jalpesh K Vora
Partner Membership No.: 106636
UDIN : 21106636AAAAHP1275
Mumbai 30th JUNE 2021
Annexure B to the Independent Auditor's Report
Referred to in paragraph 15(f) of the Independent Auditors' Report of even date to themembers of Trio Mercantile and Trading Limited on the Ind AS financial statements for theyear ended March 31 2021.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013
1. We have audited the internal financial controls over financial reporting of TrioMercantile and Trading Limited ("the Company") as of March 312021 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on that date.
Management's Responsibility for Internal Financial Controls
2. 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
3. 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 deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 Ind AS financial statements whether due to fraud or error.
5. 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
6. 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 Ind AS 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
i. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
ii. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Ind AS 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
iii. 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 Ind AS financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. 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.
8. 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 2021 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 Bilimoria Mehta & Co.
Chartered Accountants Firm
Registration Number: 101490W CA Jalpesh K Vora
Partner Membership No.: 106636
UDIN : 21106636AAAAHP1275
Mumbai 30th JUNE 2021