To the Members of
YASHO INDUSTRIES LIMITED
REPORT ON THE IND AS STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying IND AS standalone Financial statementsof Yasho Industries Limited ("the Company") which comprise the balance sheet asat 31st March 2021 and the statement of Profit and Loss (including Other ComprehensiveIncome) statement of cash flows Statement of changes in Equity for the year then endedand notes to the Financial statements including a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as "The IND ASStandalone Financial Statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid IND AS standalone Financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 its profit (including other comprehensiveincome) its cash flows and the changes in equity 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 standalone Financial statements of thecurrent period. These matters were addressed in the context of our audit of the Financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.
|Key Audit matter ||How our audit addressed the key audit matter: |
|1. Adoption of IND AS: ||Our audit procedure on adoption of IND AS includes: |
|As stated in Note No. 2.6 of standalone Financial statements the company has adopted INDAS during the year. The application and transition in IND AS is complex and is an area of focus as the key matter in our audit of the company. || Assessed and tested new process and controls in respect of transition in IND AS |
| || Assessed the Company's evaluation in the identification of transition process |
| || Evaluated the method of transition and related adjustments |
| || Assessed and tested the presentation and disclosures relating to transition in IND AS_ |
|2. Capital Expenditure || Obtained an understanding of management's process and evaluated design and tested operating effectiveness of controls around measurement of capital expenditure |
|The company has incurred capital expenditure towards purchase / construction of tangible fixed assets amounting to 'Rs. 982.11 Lakh during the Financial year. || |
|Considering that this amount is substantial and errors in measurement can lead to material impact on carrying amount of tangible fixed assets as well as profit for the year we have considered this as a key audit matter || Assessment of deviations from budgeted expenditure if any and enquiry into reasons thereof. |
| || We undertook substantive audit procedures to test whether any revenue expenditure is classified as capital expenditure or capital expenditure is classified as revenue expenditure. |
| || We tested the adherence to Accounting Standard 10 "Property Plant & Equipment" and Accounting Standard 16 "Borrowing Costs" to verify accuracy of measurement of expenditure and adequacy of disclosures made. |
Due to COVID-19 pandemic and lockdown & other restrictions imposedby the Government and local authorities the audit process carried out subsequent tocommencement of lockdown was based on the remote access and evidence shared digitally. Ouropinion is not modified in respect of these matters.
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS' REPORTTHEREON
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annual Reportbut does not include the Financial statements and our auditor's report thereon.
Our opinion on the Financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
MANAGEMENT'S RESpONSIBILITY FOR THE STANDALONE Financial STATEMENTS
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these IND AS standalone Financial statements that give a true and fair viewof the Financial position Financial performance including other comprehensive incomecash flows and changes of equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate implementation and maintenance ofaccounting 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 IND AS standalone Financialstatement 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 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. Those Board of Directors are also responsible foroverseeing the Company's Financial reporting process.
AUDITOR'S OR THE AUDIT OF THE Financial STATEMENTS
Our objectives are to obtain rRESPONSIBILITIES Feasonable assuranceabout whether the IND AS standalone Financial statements as a whole are free from materialmisstatement whether due to fraud or error and to issue an auditor's report thatincludes our opinion. Reasonable assurance is a high level of assurance but is not aguarantee that an audit conducted in accordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of theseFinancial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
I dentify and assess the risks of material misstatement of theIND AS standalone Financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal 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 the entity has adequate internal Financial controls system in place and theoperating effectiveness 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 in preparation of IND AS standalone Financial statements andbased on the audit evidence obtained whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the appropriateness of thisassumption. If we conclude that a material uncertainty exists we are required to drawattention in our auditors' report to the related disclosures in the IND AS standaloneFinancial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditors'report. However future events or conditions may cause the company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of theFinancial statements including the disclosures and whether the Financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Obtain sufficient appropriate audit evidence regarding theFinancial information of business activities within the company to express an opinion onthe Financial statements. We are responsible for the direction supervision andperformance of the audit of Financial information of such entities.
We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on 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 any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave 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.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the IND ASstandalone Financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditors' report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
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 have beenkept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss (including 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 standalone Financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal Financial controls overFinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".
g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on itsFinancial position in its IND AS standalone Financial statements - Refer Note 39 to theFinancial statements;
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.
Annexure "A" Auditors' Report
Annexure referred to in Paragraph 1 under the heading of "Reporton Other Legal and Regulatory Requirements" of the Independent Auditor's Report onthe Accounts of YASHO INDUSTRIES LIMITED ('the company') for the year ended 31st March2021.
I) In respect of Fixed Assets:
(a) The company has maintained the fixed assets register showing fullParticulars including quantitative details and situation of fixed assets on the basis ofavailable information.
(b) As explained to us all the fixed assets have been physicallyverified by the management during the year at reasonable intervals which in our opinionis reasonable having regard to the size of the company and the nature of assets. Nomaterial discrepancies were noticed on such physical verification.
(c) According to the information and explanations given to us and onthe basis of the records of the Company examined by us the title deeds of immovableproperties are held in the name of the Company.
II) In respect of Inventories:
(a) As explained to us the inventory has been physically verified bythe management at regular intervals during the year.
(b) In our opinion and according to the information and explanationsgiven to us and on the basis of our examination of the records of inventory the Companyhas maintained proper records of inventory and there were no material discrepanciesnoticed on physical verification of inventory as compared to the book records.
III) In respect of loans secured or unsecured the company has notgranted to companies firms or other parties covered in the register maintained undersection 189 of the Companies Act.
The company has not granted any loans therefore sub clause (iii) (a)(b) and (c) are not applicable.
IV) According to the information and explanations given to us thecompany has complied with the provisions of section 185 & 186 of The Act in respect ofloans investments guarantees and securities.
V) The company has not accepted deposits therefore the clause (v) isnot applicable.
VI) We have broadly reviewed the cost records maintained by the companypursuant to the Rules made by the Central Government for the maintenance of cost recordsunder sub section (1) of section 148 of the Companies Act and are of the opinion thatprima facie the prescribed cost records have been made and maintained as per thedocumentary evidence provided by the management. We have however not made a detailedexamination of the records with a view to determining whether they are accurate orcomplete.
VII) In respect of statutory dues:
(a) According to the information & explanation given to us thecompany was generally regular in depositing dues in respect of Employees Provident FundEmployees State Insurance Fund Income Tax (including TDS) GST and other statutory dueswith the appropriate authority during the year.
(b) According to records examined by us and the information andexplanation given to us there are no undisputed amounts due in respect of income taxsales tax GST excise duty Employees Provident Fund Employees State Insurance Fund andother statutory dues at the end of the year.
However the following dues have not been deposited by the Company onaccount of disputes:
|Nature of the Statute ||Nature of Dues ||Forum where dispute is pending ||Period to which the amount relates ||Amount |
|The Customs Act 1962 ||Custom Duty ||CESTAT ||FY 2014-15 ||17536407 |
|The Customs Act 1962 ||IGST ||Commissions of Customs ||FY 2017-18 & FY 2018-19 ||82226562 |
VIII) Based on our audit procedures and on the basis of information andexplanations given by the management the company has not defaulted in the repayment ofdues to bank Financial institution and Debentures holders during the year.
IX) In our opinion and according to the information and explanationsgiven to us the Company has utilized the money raised by way of term loans during theyear for the purposes for which those were raised.
X) In our opinion and according to the information and explanationsgiven to us no fraud on or by the Company has been noticed or reported during the yearthat causes the Financial statements to be materially misstated.
XI) In our opinion and according to the information and explanationsgiven managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 with Schedule V to the Companies Act2013.
XII) In our opinion the company is not a Chit Fund Nidhi or MutualBenefit activity and therefore the provisions of Clause 3(xii) of the said order are notapplicable.
XIII) In our opinion and according to the information and explanationsall transactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 and details are disclosed in the IND AS standalone Financial statementas per Accounting Standard 18.
XIV) The company has not made any preferential allotment to parties andcompanies covered under register maintained under section 42 of the Companies Act 2013during the year therefore the provisions of Clause 3(xiv) of the said order are notapplicable.
XV) In our opinion according to the information and explanationscompany has not entered into any non-cash transaction with directors or persons connectedwith him as per provision of section 192 of Companies Act 2013.
XVI) According to the information and explanations given to us companyis not required to be registered under section 45-IA of the Reserve Bank of India Act1934.
Annexure "B" Auditors' Report
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 Yasho Industries Limited ("the Company") as of March 31 2021 inconjunction with our audit of the IND AS standalone Financial statements of the Companyfor the year ended 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 overFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal Financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable Financial information as required under the Act.
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 deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal Financial controls both applicable to an audit of internal Financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal Financial controls over Financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
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 judgement 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 internal Financialcontrols 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
a) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
b) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and
c) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on 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 the Company has in all material respects an adequateinternal Financial controls system over Financial reporting and such internal Financialcontrols over Financial reporting were operating effectively as at March 31 2021 basedon the internal control over Financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
| ||For V J SHAH & CO |
| ||Chartered Accountants |
| ||Firm Registration No.: 109823W |
| ||CHINTAN V SHAH |
| ||Partner |
|Place: Mumbai ||Membership No.164370 |
|Date: 12.05.2021 ||UDIN: 21164370AAAACZ4870 |