To The Members of
N G INDUSTRIES LIMITED
Report and Opinion on the Audit of Financial Statements
I. Report on the Audit of the Financial Statements
1. Opinion
A. We have audited the accompanying Financial Statements of N G Industries Limited
("the Company"), which comprise the Balance Sheet as at March 31, 2023, the
Statement of Profit and Loss for the year ended on that date, cash flow statement as on 31st
March, 2023 and a summary of the significant accounting policies and other explanatory
informations (hereinafter referred to as "the Financial Statements").
B. In our opinion and to the best of our informations and according to the explanations
given to us, the aforesaid Financial Statements give the informations required by the
Companies Act 2013 ("the Act") in the manner so required and give a true and
fair view in conformity with the Accounting Standards prescribed under section 133 of the
Act read with the Companies (Accounting Standards) Rules, 2021. ("AS") and other
accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31, 2023, and its profit for the year ended on that date.
2. Basis for Opinion
We have conducted our audit of the Financial Statements in accordance with the
Standards on Auditing specified under section 143(10) of the Act (SAs). Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India (ICAI) together with the ethical requirements that are
relevant to our audit of the financial statements under the provisions of the Act and the
Rules made there under, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAIs Code of Ethics. We believe that the
audit evidences that we have obtained are sufficient and appropriate to provide a basis
for our audit opinion on the Financial Statements.
3. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Financial Statements of the current period. These matters
were addressed in the context of our audit of the Financial Statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
4. Information other than the Standalone Financial Statements and Auditors Report
thereon
A. The Companys Board of Directors is responsible for the preparation and presentation
of its report (herein after called as "Board Report") which comprises various
informations required under section 134(3) of the Companies Act 2013 but does not include
the financial statements and auditors report thereon.
Our opinion on the financial statements does not cover the Board Report and we do not
express any form of assurance or conclusion thereon.
B. In connection with our audit of the financial statements, our responsibility is to
read the Board Report and in doing so, consider whether the Board Report is materially
inconsistent with the financial statements or our knowledge obtained during the course of
our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement in this Board Report; we are required to report that fact. We have nothing to
report in this regard.
4. Managements Responsibility for the Financial Statements
A. The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these Financial Statements that give
a true and fair view of the financial position and financial performance of the Company in
accordance with the AS and other accounting principles generally accepted in India. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or
error.
B. In preparing the Financial Statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so. The Board of Directors are responsible for overseeing the
Companys financial reporting process.
5. Auditors Responsibilities for the Audit of the Financial Statements
A. Our objectives are to obtain reasonable assurance about whether the Financial
Statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these Financial Statements.
B. As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
i) Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal controls.
ii) Obtain an understanding of internal controls relevant to the audit in order to
design audit procedures that are appropriate in the circumstances but not for the purpose
of expressing an opinion on the effectiveness of the Companys internal control systems.
iii)Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
iv)Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidences obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the Financial Statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidences obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
v) Evaluate the overall presentation, structure and contents of the Financial
Statements, including the disclosures, and whether the Financial Statements represent the
underlying transactions and events in a manner that achieves fair presentation
C. Materiality is the magnitude of misstatements in the Financial Statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the Financial Statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the Financial Statements.
D. We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal controls that we identify during our audit.
E. We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
II. Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained all the informations and explanations which to the best
of 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 the
Company so far as it appears from our examination of those books. c) The Balance Sheet,
the Statement of Profit and Loss dealt with by this Report are in agreement with the
relevant books of account.
d) In our opinion, the aforesaid financial statements comply with the AS prescribed
under Section 133 of the Act, read with the Companies (Accounting Standards) Rules, 2021.
e) With respect to the adequacy of the internal financial controls with reference to
standalone financial statements of the Company as on 31 March 2023 and the operating
effectiveness of such controls, refer to our separate Report in Annexure B, wherein we
have expressed an unmodified opinion; and
f) On the basis of the written representations received from the directors as on March
31, 2023 and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2023 from being appointed as a director in terms of Section
164 (2) of the Act.
g) In our opinion, the provisions of Section 143(3)(i) with regard to opinion on
internal financial controls with reference to financial statements and operating
effectiveness of such controls is not applicable to the company.
2. With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in
our opinion and to the best of our informations and according to the explanations given to
us:
i. The Company has disclosed the impact of pending litigations if any on its financial
position in its Financial Statements.
ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
iv. a) The management has represented that, to the best of its knowledge and belief, no
funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the company to or in any other person or
entity, including foreign entities ("intermediaries") with the understanding,
whether recorded in writing or otherwise, that the intermediary shall, whether directly or
indirectly lend or invest in other person or entity identified in any manner whatsoever by
or behalf of the company ("ultimate beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate beneficiaries.
b) The management has represented, that, to the best of its knowledge and belief, no
funds have been received by the company from any person or entity including foreign
entities ("Funding Parties") with the understanding, whether recorded in writing
or otherwise, that the company shall, whether directly or indirectly, lend or invest in
other person or entity identified in any manner whatsoever by or behalf of the Funding
Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
ultimate beneficiaries; and c) Based on such audit procedures that were considered
reasonable and appropriate in the circumstances, nothing has come to our notice that has
caused us to believe that representations under sub clause (a) and (b) contain any
material mis-statement.
v. The Company has neither declared nor paid any dividend during the year and has not
contravened any provisions of section 123 of the Companies Act, 2013.
vi. With respect to the matter to be included in the Auditors Report under Section
197(16) of the Act, in our opinion and according to the informations and explanations
given to us, the permissible managerial remuneration paid by the company to its, directors
are within the limits specified under section 197 of the companies act 2013 and there is
no violation on this account.
6. CARO 2020 REPORT
As required by the Companies (Auditors Report) Order, 2020 (“the CARO
Order”), issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Companies Act, 2013, vide order number, S.O. 849 (E) dated 25/02/2020
(CARO-2020); we give in the “Annexure A” to our report, a statement on the
matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable to the
Company.
For and on behalf of
M.R. SINGHWI& CO
Chartered Accountants Firm Registration Number: 312121E
C.A. Bal Krishan Poddar
Partner
Membership Number: 054613
UDIN: 23054613BGZHLD1498
Place: Kolkata Date: 19-05-2023
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
Report as required by the Companies (Auditors Report) Order, 2020 (the CARO Order),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013 (Refer to paragraph ‘7 of our report of even date.
With reference to the Annexure A referred to in the paragraph ‘7 of the
Independent Auditors Report to the members of the Company on the financial statements for
the year ended March 31, 2023, we report the following:
1. In respect of the Companys Property, plant and equipment:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of property, plant and equipment. Further the Company
does not have intangible assets. (b) The Company has physically verified all the
major property, plant and equipment as per a phased program of verification. In our
opinion, the periodicity of physical verification is reasonable having regard to the size
of the Company and the nature of its assets. The discrepancies reported on such
verification were not material and have been properly dealt in the books of accounts. (c)
According to the information and explanations given to us, and the records examined by
us and based on the examination of the records/deeds provided to us, we report that the
title deeds of all the immovable properties other than self-constructed immovable
properties (Building and Factory sheds etc.) are held in the name of the Company. (d) The
Company has not revalued any of its property, plant and equipments during the year. (e)
No proceedings have been initiated or are pending against the Company for holding any
benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and
rules made there under.
a) The inventories were physically verified during the year by the Management at
reasonable intervals. In our opinion and according to the information and explanations
given to us, the coverage and procedure of such verification by the Management is
appropriate having regard to the size of the Company and the nature of its operations. No
discrepancies of 10% or more in the aggregate for each class of inventories were noticed
on such physical verification of inventories when compared with books of account_ _ _ The
Company did not have any working capital limits from banks or financial institutions of
any kind either during or as at the end of the year, hence clause (ii)(b) of paragraph 3
of the order is not applicable to the company._
3. During the year, the company has not made any investments in, provided any guarantee
or security or granted any loans or advances in the nature of loans, secured or unsecured,
to companies, firms, Limited Liability Partnerships or any other parties. Therefore, the
provisions of clause 3(iii)(a) of the said Order are not applicable to the company.
4. In terms of requirement of reporting under clause (iii)(b) of the order; the
management has reported that since no loans have been given by the company during the year
hence, reporting under clause 3 (iii) (b) of the Order is not applicable.
5. In terms of requirement of reporting under clause (iii)(c) (iii)(d) and (iii)(e);
Company has not granted any loans or advances in the nature of loans during the year and
is not having any outstanding balance of any loans or advances in the nature of loans at
the beginning of the current year and end of the year. Hence, reporting under clause 3
(iii) (c), (d), (e) of the Order is not applicable.
6. In terms of requirement of reporting under clause (iii)(f) of the order; the
management has reported that it has not given any loan during the year to promoters and or
to any related party as defined under section 2(76) of Companies Act, 2013.
7. No reporting under clause (iv) of the order is required as the company has not given
any loans to any of its Directors or to any other entity covered under section 185 of
Companies Act, 2013, and further the provisions of section 186 of Companies Act, 2013 are
also not applicable to the Company.
8. In terms of requirement of reporting under clause (v) of the order; it is stated
that the company has not accepted any deposits or amounts which are deemed to be deposits
during the year under review and has not contravened or violated any provisions of section
73 to 76 of Companies Act, 2013.
9. In terms of requirement of reporting under clause (vi) of the order; as explained to
us, the Central Government of India has not specified the maintenance of cost records
under sub-section (1) of Section 148 of the Act as the company is not engaged in any
manufacturing activity. Therefore, the provisions of Clause (vi) of paragraph 3 of the
order are not applicable to the Company.
10. In terms of requirement of reporting under clause (vii)(a) & (b) of the order;
in our opinion, and according to the information and explanations given to us, undisputed
statutory dues including goods and services tax, provident fund, employees state
insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value
added tax, cess and other material statutory dues, as applicable, have generally been
regularly deposited with the appropriate authorities by the Company, though there have
been slight delays in a few cases. Further, no undisputed amounts payable in respect of
aforesaid taxes and duties that are outstanding as at March 31, 2023 for a period of more
than 6 months from the date they became payable. Further there are no disputes of any type
with respect to aforesaid taxes and duties.
11. In terms of requirement of reporting under clause (viii) of the order; there are no
transactions not recorded in the books of accounts that have been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961.
12. In terms of requirement of reporting under clause (ix) of the order; it is stated
as under:- a) The Company has neither taken nor defaulted in repayment of any loan or
other borrowings or any interest due thereon to any lender.
b) The company has not been declared a willful defaulter by any bank or financial
institution or any other lender.
c) The company has neither applied for nor taken any term loans.
d) There are no funds raised by the company on short term basis which have been
utilized for long term purposes.
e) The company has not taken any funds from any entity or person on account of or to
meet the obligations of its subsidiaries, associates or joint ventures.
f) The company has not raised loans during the year on the pledge of securities held in
its subsidiaries, joint ventures or associate companies.
13. In terms of requirement of reporting under clause (x) of the order; The Company has
not raised money by way of initial public offer or further public offer (including debt
instruments), or through preferential allotment or private placement of shares or
convertible debentures during the year and thus the provisions of section 42 and section
62 of the Companies Act, 2013.
14. In terms of requirement of reporting under clause (xi)(a) of the order; We have not
noticed any case of fraud by the company or any fraud on the Company by its officers or
employees during the year. The management has not reported any case of fraud during the
year.
15. In terms of requirement of reporting under clause (xi)(b) & (c) of the order;
According to the information and explanations given to us including the representation
made to us by the management of the Company, no report under sub-section 12 of section 143
of the Act has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of
Companies (Audit and Auditors) Rules, 2014, with the Central Government for the period
covered by our audit. We also did not receive any whistle- blower complaint during the
year.
16. In terms of requirement of reporting under clause (xii) of the order; it is
reported that the company is not a Nidhi Company and hence no reporting required.
17. In terms of requirement of reporting under clause (xiii) of the order; all
transactions with the related parties are in compliance with sections 177 and 188 of
Companies Act, where applicable, and the details thereof have been disclosed in the
financial statements, as required by the applicable accounting standards. Identification
of related parties were made and provided by the management of the company.
18. In terms of requirement of reporting under clause (xiv) of the order; the company
in terms of parameters of capital and turnover provided in section 138 of the Companies
Act, 2013, is not required to appoint internal auditors. However the company does have an
in-house internal audit system commensurate with nature and size of its business.
19. In terms of requirement of reporting under clause (xv) of the order; the Company
has not entered into any non-cash transactions with its directors or persons connected
with him/them for the year under review.
20. In terms of requirement of reporting under clause (xvi) of the order; The Company
is not required to be registered under section 45-IA of the Reserve Bank of India Act,
1934. Accordingly, reporting under clauses 3(xvi)(a),(b) and (c) of the Order are not
applicable to the Company. Based on the information and explanations given to us and as
represented by the management of the Company, the Group (as defined in Core Investment
Companies (Reserve Bank) Directions, 2016) does not have any CIC.
21. In terms of requirement of reporting under clause (xvii) of the order; the company
has not incurred any cash losses in the current financial year as well in the immediately
preceding financial year.
22. In terms of requirement of reporting under clause (xviii) of the order; it is
stated that no resignation of Statutory Auditor has taken place during the year under
review.
23. In terms of requirement of reporting under clause (xix) of the order; it is stated
that on the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other informations accompanying the
financial statements, and the auditors knowledge of the Board of Directors and its
management plans, we are of the opinion that no material uncertainty exists as on the date
of the audit report that company is incapable of meeting its liabilities existing at the
date of balance sheet as and when they fall due within a period of one year from the
balance sheet date.
24. In terms of requirement of reporting under clause (xx) of the order; according to
the information and explanations given to us, the Company does not have any unspent
amounts towards Corporate Social Responsibility in respect of any ongoing or other than
ongoing project as at the end of the financial year. Accordingly, reporting under clause
3(xx) of the Order is not applicable to the Company.
25. In terms of requirement of reporting under clause (xxi) of the order; the company
does not have any subsidiary or associate company. Therefore, the company is not required
to prepare the consolidated financial statements and no further reporting under this
clause is required.
26. In terms of Para 4 of the CARO order it is stated that we, the auditors state that
in paragraph 3 of CARO order there were no unfavorable or qualified answers and we have
not come across any specific matters on which we were unable to express our opinion.
For and on behalf of
M.R. SINGHWI& CO
Chartered Accountants Firm Registration Number: 312121E
CA BAL KRISHAN PODDAR
Partner
Membership Number: 054613
UDIN: 23054613BGZHLD1498
Place: Kolkata
Date: 19-05-2023
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
Independent Auditors Report on the internal financial controls with reference to the
standalone financial statements under Clause (i) of Subsection 3 of Section 143 of the
Companies Act, 2013 (‘the Act)
1. In conjunction with our audit of the standalone financial statements of N G
Industries Limited (‘the Company) as at and for the year ended 31 March 2023, we
have audited the internal financial controls with reference to standalone financial
statements of the Company as at that date.
Responsibilities of Management and Those Charged with Governance for Internal Financial
Controls
2. The Companys Board of Directors is responsible for establishing and maintaining
internal financial controls based on the internal financial controls with reference to
standalone financial statements criteria established by the Company considering the
essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting (‘the Guidance Note) issued by the
Institute of Chartered Accountants of India (‘ICAI). These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of the Companys
business, including adherence to the Companys policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Act.
Auditors Responsibility for the Audit of the Internal Financial Controls with
Reference to Standalone Financial Statements
3. Our responsibility is to express an opinion on the Companys internal financial
controls with reference to standalone financial statements based on our audit. We
conducted our audit in accordance with the Standards on Auditing issued by the ICAI
prescribed under Section 143(10) of the Act, to the extent applicable to an audit of
internal financial controls with reference to standalone financial statements, and the
Guidance Note issued by the ICAI. Those Standards and the Guidance Note require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls with reference to financial
statements were established and maintained and if such controls operated effectively in
all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy
of the internal financial controls with reference to standalone financial statements and
their operating effectiveness. Our audit of internal financial controls with reference to
standalone financial statements includes obtaining an understanding of such internal
financial controls, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditors judgement, including the
assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls with
reference to financial statements.
Meaning of Internal Financial Controls with Reference to Standalone Financial
Statements
6. A companys internal financial controls with reference to standalone financial
statements is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A companys internal
financial controls with reference to financial statements include those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorisations of management and directors of the company; and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorised
acquisition, use, or disposition of the companys assets that could have a material effect
on the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Standalone
Financial Statements
7. Because of the inherent limitations of internal financial controls with reference to
standalone financial statements, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of the internal financial
controls with reference to standalone financial statements to future periods are subject
to the risk that the internal financial controls with reference to standalone financial
statements may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, adequate internal
financial controls with reference to standalone financial statements and such controls
were operating effectively as at 31 March 2023, based on the internal financial controls
with reference to standalone financial statements criteria established by the Company
considering the essential components of internal control stated in the Guidance Note
issued by ICAI.
For and on behalf of
M.R. SINGHWI& CO
Chartered Accountants Firm Registration Number: 312121E
CA BAL KRISHAN PODDAR
Partner
Membership Number: 054613
UDIN: 23054613BGZHLD1498
Place: Kolkata
Date: 19-05-2023
+91-9892691696
