To the Members of BINDAL EXPORTS LIMITED Report on the standalone Financial Statements
Qualified Opinion
We have audited the accompanying Standalone financial statements of BINDAL EXPORTS
LIMITED which comprises the Balance Sheet as at March 31, 2023, and the Statement of
Profit and Loss (including statement of other comprehensive income), the statement of
changes in equity and statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other
explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, subject to qualifications mentioned herein after in this report, the
aforesaid standalone Ind AS financial statements give the information required by the
Companies Act, 2013 in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India, of the state of affairs of the
Company as at March 31 , 2023, and its profit, including other total comprehensive income,
the changes in equity and cash flows for the year ended on that date.
Basis for Qualified opinion
a) In absence of ascertainment by the company of liability towards Gratuity to be paid
to retiring employees through Actuarial Valuation, its impact on the profits / (losses) of
the company cannot be ascertained.
b) The company is not making provision for leave salary on accrual basis.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. 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 together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion on
standalone financial statements.
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.
For each matter below, our description of how our audit addressed the matter is provided
in that context.
We have determined the matters described below to be the key audit matters to be
communicated in our report. We have fulfilled the responsibilities described in the
Auditors responsibilities for the audit of the Standalone Financial Statements section of
our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to
our assessment of the risks of material misstatement of the Standalone Financial
Statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the accompanying
Standalone Financial Statements.
| Sl. no. Key Audit Matters |
Auditors Response |
| (i) Balance with Statutory Authorities : |
|
| The company is reporting balances due and receivable from several statutory
authorities, including GST / VAT / Excise/ Service Tax, aggregating to Rs. 18.79 lacs. |
We have relied on the representation of the management that, these balances are either
refundable or may be adjusted against future liability arising o f account assessments if
any. |
| (ii) Gratuity: |
|
| The company has not made provision for Gratuity and leave encashment payable to
employees in its books of accounts. As per the policy t he payment is made to retiring
employees on an adhoc basis. |
The company should obtain Actuarial valuation report on Gratuity to be provided
depending on the strength of employees / workers and their duration of employment. The
issue has been dealt with by way of qualification in the Independent Auditors Report. |
| (iii) Trade Receivables : |
|
| Balance Confirmation from Trade Receivables having non -moving balances is not
obtained by the company. The total amount of such trade receivables are Rs. 48.20 lacs. |
We are unable to form an opinion about the early recovery of these outstanding debts.
However, management has confirmed realisation of these trade receivables within a year. |
Information other than the financial statements and auditors report thereon
The Companys board of directors is responsible for the preparation of the other
information. The other information comprises the information included in the Boards
Report including Annexures to Boards Report, Business Responsibility Report but does not
incl ude the financial statements and our auditors report thereon. The report is expected
to be made available after the date of this auditors report.
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the standalone 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 of this other information, we are required to report that fact. We have
nothing to report in this regard.
Management s Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial
position, financial performance, including other comprehensive income, changes in equity
and cash flows of the Company in accordance with the accounting principles generally
accepted in India, including the accounting Standards specified under section 133 of the
Act and Companies Ind AS Rules, 2016, as amended from time to time 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 of 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 statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
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.
Those Board of Directors are also responsible for overseeing the company s financial
reporting process.
Auditors Responsibility for the Audit of the Financial Statements
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
Standards of Auditing (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.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
- 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 control.
- Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 1 43(3) (i) of
the Companies Act, 2013, we are also responsible for expressing our opinion on whether the
company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence 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 evidence 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.
- Evaluate the overall presentation, structure and content 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.
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 control that we identify during our audit.
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.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in
our auditors report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
As required by the Companies (Auditors Report) Order, 20 20 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the Annexure "A", a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
As required by Section 1 43(3) of the Act, we report that:
(a) We have sought and obtained all the information 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, and the cash flow statement
and Statement of Changes in Equity dealt with by this report are in agreement with the
books of account;
(d) In our opinion, the aforesaid financial statements comply with the accounting
standards specified under section 133 of the Act, read with rule 7 of the Companies
(Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on March
31 , 2023 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;
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in "Annexure B". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting;
(g) With respect to the other matters to be included in the Auditors Report in
accordance with the requirement of section 197(16) of the Act and, as amended, in our
opinion and to the best of our information and according to the explanation given to us,
the remuneration paid by the company to its directors during the year is in accordance
with the provisions of section 1 97 of the Act; and
(h) With respect to the other matters to be included in the Auditor s Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us;
a. The detail of pending litigations by and against the company which would impact its
financial position is submitted in Notes to Financial Statements;
b. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses; and
c. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company.
d. (i) 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 Intermediaries shall, whether, directly
or indirectly lend or invest in other person or entity identified in any manner whatsoever
by or on behalf of the Company ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(ii) 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 on behalf of
the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries; and
(iii) Based on the audit procedures that were considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (a) and (b) contain any material misstatement.
e. The company has not declared or paid any interim or final dividend during the year.
ANNEXURE B TO THE AUDITORS REPORT
(Referred to in our Report of even date an annexure on the matters specified in
paragraphs 3 and 4 of the CARO on the Statements of Accounts of BINDAL EXPORTS LIMITED as
at and for the Year ended March 31, 2023) we report that:
1. a) The company has maintained proper records showing full particulars including
quantitative details and situation of Property Plant and Equipment.
b) The company has a regular program of physical verification of Property Plant and
Equipment by the management during the year. The procedure and periodicity of verification
in our opinion is reasonable having regard to the size of the company and the nature of
its assets. No material discrepancies were noticed on such verification.
c) According to the information and explanation given to us and on the basis of our
examination of the records of the company, the title deeds of immovable properties are
held in the name of company.
d) The Company has not revalued its Property Plant and Equipment or Intangible assets
or both during the year.
(e) There are no proceedings initiated or are pending against the Company for holding
any benami property under the Prohibition of Benami Property Transactions Act, 1988 and
rules made thereunder.
2. The inventory has been physically verified during the year by the management. In our
opinion, the frequency of verification is reasonable.
The procedures of physical verification of inventories followed by the management are
reasonable and adequate in relation to the size of the company and the nature of its
business.
On the basis of our examination of the records of inventory as maintained by the
company, we are of the opinion that the company is maintaining proper records of the
inventory. The discrepancies noticed on verification between the physical stocks and the
book records were not material.
The company has been sanctioned working capital limits in excess of Rs. 5 crores in
aggregate from Axis Bank and the stock statements filed by the company with such bank are
in agreement with the books of accounts.
3. The company has not granted any loan and advances or stood guarantee or provided
security to any other parties.
4. There are no loans, guarantees and security in respect of which provisions of
sections 1 85 of the Act is applicable.
5. In our opinion and according to the information and explanations given to us, the
company has not accepted any deposits from the public and consequently, the directives
issued by Reserve Bank of India, provisions of sections 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and the rules framed there under with regard to the
deposits accepted from the public are not applicable. Thus, Paragraph 3(v) of the order is
not applicable to the company.
6. According to information and explanations given to us the Central Government has not
prescribed for the maintenance of cost records under Section 148(1) of the Companies Act,
2013.
7. According to information and explanations given to us and on the basis of our
examination of the books of accounts, the company has been regular in depositing with
appropriate authorities undisputed statutory dues including provident fund, employees
state insurance, income tax, Goods and service tax, cess and other material statutory dues
applicable to it with the appropriate authorities.
According to the information and explanation given to us, no disputed dues payable in
respect of VAT, Goods and service tax and Customs Duty were outstanding, as at March 31 ,
2023 for a period of more than six months from the date they became payable.
The dues of service tax and Excise duty have not been deposited on account of any
dispute, are as follows:
| Name of Statue |
Nature of Dues |
Amount involved |
Amount paid |
Period |
Forum where dispute is pending |
| Service Tax |
Service Tax Interest & penalty |
1 1553954 |
|
April 19,2006 to July1 9,201 0 |
CESTAT, Ahmedabad |
| Service Tax |
Service Tax Interest & penalty |
7,06,766 |
1000000 |
Aug 01,2010 to 31st March 201 1 |
CESTAT, Ahmedabad |
| Service Tax |
Service Tax Interest & penalty |
10,22,509 |
|
April 01,201 1 to Sept 30,201 1 |
CESTAT, Ahmedabad |
| Central Excise Act,1 944 |
Excise Duty, Interest & Penalty |
1,26,60,585 |
674000 |
April 01,2009 to March 31,2010 |
Comm. of Central Excise & Customs, Surat |
| Central Excise Act, 1 944 |
Excise Duty, & Penalty |
21,316 |
|
20.02.20016 |
Asstt Comm , Central Excise Div-II, Surat-1 |
| Custom Act, 1 962 |
Custom Duty ,Intt & Penalty |
21,80,896 |
|
April 01,2010 to March 31,201 1 |
Addl. Director Customs and Excise, Mumbai |
8. The Company has not surrendered or disclosed any transaction, previously unrecorded
in the books of account, in the tax assessments under the Income Tax Act, 1961 as income
during the year. Accordingly, the requirement to report on clause 3(viii) of the Order is
not applicable to the Company.
9. Based on our audit procedures and according to the information and explanation given
by the management, the company has not defaulted in repayment of loans or borrowing to a
financial institution, bank and to the government.
10. Based on our audit procedures and according to the information and explanation
given by the management, the company has not raised any fund by way of public issue during
the year. The Company has not raised any term loan during the year.
11 . According to the information and explanation given to us, no material fraud by the
company or on the company by its officers or employees has been noticed or reported during
the course of our audit.
12. Based on our audit procedures and according to the information and explanation
given by the management, the company has paid/provided for managerial remuneration in
accordance with the requisite approvals mandated by the provisions of section 197 read
with schedule V to the Companies Act.
13. In our opinion and according to the information and explanation given to us, the
company is not a nidhi company. Accordingly, paragraph 3(xii) of the order is not
applicable.
14. According to the information and explanation given to us and based on our
examination of the records of the company, transaction with the related parties are in
compliance with sec 177 and 188 of the Act where applicable and details of such
transaction have been disclosed in the financial statement as required by applicable
accounting standards.
15. 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 year.
16. 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 non cash
transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of
the order is not applicable.
17. The Company has an internal audit system commensurate with the size and nature of
its business.
18. The provisions of section 45-IA of the Reserve Bank of India Act, 1 934, are not
applicable to the Company.
19. The Company has not incurred cash losses in the current year and preceding
financial year.
20. There has been no resignation of the statutory auditors during the year and
accordingly, requirement to report on Clause 3(xviii) of the Order is not applicable to
the Company.
21. In Our opinion and according to the information and explanation given to us,
provision of section 135 is not applicable to company. So clause 3(xx)(a) and 3(xx)(b) are
not applicable.
22. On the basis of the financial ratios disclosed in note 32 to the Standalone
Financial Statements, ageing and expected dates of realization of financial assets and
payment of financial liabilities, other information accompanying the Standalone Financial
Statements, our knowledge of the Board of Directors and managements plans and based on
our examination of the evidence supporting the assumptions, nothing has come to our
attention, which causes us to believe that any material uncertainty exists as on the date
of the audit report that Company is not capable 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. We, however, state that this is not an assurance as to the future
viability of the Company. We further state that our reporting is based on the facts up to
the date of the audit report and we neither give any guarantee nor any assurance that all
liabilities falling due within a period of one year from the balance sheet date, will get
discharged by the Company as and when they fall due.
| For and on behalf of SNK & Co. |
| Chartered Accountants |
| F.R.No.1091 76W |
| Samir B. Shah |
| Partner |
| Place : Surat |
| Date : May 27, 2023 |
| UDIN:- 23103562BGWOKC9778 |
+91-9892691696
