You are here » Home » Companies » Company Overview » Vardhman Acrylics Ltd

Vardhman Acrylics Ltd.

BSE: 531106 Sector: Industrials
NSE: VARDHACRLC ISIN Code: INE116G01013
BSE 05:30 | 01 Jan Vardhman Acrylics Ltd
NSE 00:00 | 18 Jan 67.95 -2.15
(-3.07%)
OPEN

71.85

HIGH

72.40

LOW

67.25

OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Vardhman Acrylics Ltd. (VARDHACRLC) - Auditors Report

Company auditors report

To the Members of Vardhman Acrylics Limited

Report on the Audit of the Financial Statements Opinion

We have audited the accompanying financial statements of Vardhman Acrylics Limited("the Company") which comprise the Balance Sheet as at 31st March 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash flows for the year then statements includinga summary of the significant accounting policies and other explanatory information(hereinafter referred to as "the financial Statements").

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 Act2013 ("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 asamended("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2021 the profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial 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 position Statements under the provisions of the Act and the Rules there underand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

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. We havedetermined that there are no key audit matters to communicate in our report.

endedandnotestothe financial Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the company's annual report (but doesnot include the financial statements and our auditors' 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 financial statements our responsibility is to readthe other information identified above and in doing so consider whether the otherinformation is materially inconsistent with the financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed on the other information we conclude thatthere is a material misstatement of this other information we are required to report thatfact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparationofthesefinancial that give a true andfinancial fairviewofthefinancial performance total comprehensive income changes inequity and cash flows of the Company in accordance with the Indian Accounting Standards(Ind AS). This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

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 or to cease operations or has no realisticalternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities 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 Financial Statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional 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 the management and Board ofDirectors.

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 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 Financial Statementsincluding the disclosures and whether the Financial Statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually 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 also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of sub section (11) of section 143 of the Actwe give in "Annexure A" a statement on the matters specified in paragraphs 3 and4 of the Order.

2. As required by Section 143(3) of the Act based on our audit 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 book;

(c) The Balance sheet the statement of profit and loss ( including other comprehensiveincome) statement of changes in equity and the statement of cash flows dealt with bythis Report are in agreement with the relevant books of account;

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015.

e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a Director in terms of Section164(2) of the Act ;

(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" Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting

(g) With respect to the matters to be included in the Auditor's Report in accordancewith the requirements of section 197(16) of the Act

In our opinion and according to the explanations given to us the remuneration paid bythe Company to its directors during the year is in accordance with the provisions ofsection 197 of the Act.

(h) 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 according to the explanations given to us:

i. The company has disclosed the impact of pending litigations on its financialposition in its Financial Statements. Refer Note 35 to the financial statement;

ii. The company did not have any long term contracts including derivatives contractsfor which there were any material foreseeable losses and

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

Annexure – "A" to the Independent Auditors' Report

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Vardhman Acrylics Limited of evendate)

(i) In respect of the Company's fixed assets:-

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a phased program of physical verification of its fixed assetswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. As part of this program the management has physically verifiedcertain fixed assets during the year. According to the information and explanations givento us no discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company title deed of the immovable property is held inthe name of the company.

(ii) According to the information and explanations given to us physical verificationhas been conducted by management at reasonable intervals in respect of finished goodsstores and spares and raw material Further stock in the possession and custody of thirdparties and stock in transit as at 31 March 2021 has been verified by the management withreference to confirmation and statement of accounts or correspondence with the third partyor subsequent receipt of goods. In our opinion the frequency of such verification is

According to the information and explanations given to us no discrepancies werenoticed on such verification.

(iii) According to the information and explanations given to us we report that theCompany has not granted any limited loans secured or unsecured to companies firmsliability partnership or other parties covered in the register maintained under section189 of the Companies Act 2013. Therefore the provisions of paragraph 3(iii) of the Orderare not applicable to the Company.

(iv) According to the information and explanations given to us there are no loansguarantees and securities given in respect of which provision of section 185 of theCompanies Act 2013 applies and hence not commented upon.

In our opinion and according to the information and explanations given to us there areinvestments made by the company in respect of which section 186 of the Companies Act 2013is applicable and have been complied with by the company.

(v) According to the information and explanations given to us the Company has notaccepted any deposits covered under the provisions of sections 73 to 76 and any otherrelevant provision of the Companies Act 2013 and the rules framed there under andtherefore the provisions of the clause 3(v) of the order are not applicable to thecompany.

(vi) We have broadly reviewed the cost records maintained by the company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Act and are of the opinion that prima facie the prescribed cost recordshave been made and maintained. We have however not made a detailed examination of suchrecords with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and on the basis ofthe records of the Company examined by us in our opinion the Company has been regular indepositing undisputed statutory dues including provident fund employees' state insurance. income tax goods and services tax service tax duty of custom duty of excise valueadded tax cess sales tax and other applicable statutory dues with the appropriateauthorities.

(b) According to the information and explanation given to us no undisputed amounts inrespect of statutory dues payable were outstanding as on the last day of the financialyear for a period of more than six months from the date they became payable.

(c) According to the records of the company the dues of value added tax central salestax service tax and income tax which have not been deposited with appropriateauthorities on account of dispute are as follows:

Nature of Statue Nature of Dues Forum at which dispute is pending Total Demand (In Lakhs) Paid under Protest (In Lakhs) Unpaid Financial year to which it relates
The Punjab VAT Act 2005 VAT and CST VAT Tribunal Punjab 10.47 2.62 7.85 2016-17
The Finance Act 1994 Service tax Assistant Commissioner / Superintendent 31.87 -- 31.87 2005-06 To 2009-10 and 2016-17 to 2017-18
The Income Tax Act 1961 Income Tax ITAT & CIT(A) 93.72 22.26 71.42 2011-12 to 2014-15 and 2018-19

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to a financial institution bank orgovernment.

The Company has not issued any debentures during the year or in the preceding year.

(ix) In our opinion and according to the information and explanations given to us thecompany has not raised any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly the provisionsof the clause 3 (ix) of the Order is not applicable to the company.

(x) According to the information and explanations given to us no fraud by the companyor on the company by its officers or employees has been noticed or reported during theyear.

(xi) According to information and explanation given to us and based on our examinationof records of the company the company has paid/ provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) According to the information and explanation given to us the company is not aNidhi Company. Therefore the provisions of paragraph 3(xii) of the Order are notapplicable to the company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and the details of thetransactions have been disclosed in the Financial Statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us the company has notmade preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under audit. Thus the provisions of paragraph 3(xiv) of theOrder are not applicable to the company.

(xv) According to information and explanations given to us and based on ourexamination of the records of the company the company has not entered into non-cashtransactions with directors or person connected with them. Accordingly provisions ofparagraph 3 (xv) of the Order are not applicable to the company.

(xvi) According to the information and explanations given to us the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934 andhence reporting under clause 3(xvi) of the order is not applicable to the company.

Annexure – "B" TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the members of Vardhman Acrylics Limited of evendate)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial control over financial reporting of VardhmanAcrylics Limited ("the Company") as of 31st March 2021 in conjunction with ouraudit of financial statements of company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on 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 the 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 Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these financial statements based onour audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the "Guidance Note") andthe Standards on Auditing prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting with reference to these financial statements were established and maintained andif such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls over financial reporting with reference to these financialstatements and their operating effectiveness. Our audit of internal financial controlsover financial reporting included obtaining an understanding of internal financialcontrols over financial reporting with reference to these financial statements assessingthe risk that a material weakness exists and testing and evaluating the design andoperating 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 financialcontrolsoverfinancialreporting with reference to these financial statements.

Meaning of Internal Financial Controls over Financial Reporting with reference to theseFinancial Statements

A company's internal financial control over financial reporting with reference to thesefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial control over financial reporting with reference to these financialstatements includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflectthe 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 withreference to these financial statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these financial statements including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to these financialstatements to future periods are subject to the risk that the internal financial controlover financial reporting with reference to the financial statement may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these financial statements and suchinternal financial controls over financial reporting with reference to these financialstatements were operating effectively as at 31st March 2021 based on the internalfinancial 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 SCV & Co. LLP
Chartered Accountants
Firm Reg. No.000235N/N500089
(Sanjiv Mohan)
Partner
Date: 08th May 2021 M. No. 086066
Place: Ludhiana UDIN: 21086066AAAAJD6234

.