mount shivalik industries ltd Auditors report

To the Members of Mount Shivalik Industries Limited

Report on the Standalone Ind AS Financial Statement

We have audited the accompanying financial statements of Mount Shivalik Industries Limited ("the Company"), which comprise the balance sheet as at March 31, 2019, and the Statement of Profit and Loss (including other comprehensive income if any), the statement of cash flows and the statement of changes in equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (herein after referred to as ("standalone Ind AS financial Statement").

Information other than the financial statements and auditors report thereon

The Companys board of directors are 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 include the financial statements and our auditors report thereon.

Our opinion on the 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.

Managements responsibility for the financial statements

The Companys board of directors are responsible for the matters stated in section 134 (5) of the Act with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance Including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the Act read with relevant rules issued thereunder.

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.

Auditors responsibilities for the audit of the financial statements

Our objectives is to express an opinion on these standalone Ind AS financial statements based on our audit.

We have taken into account the provision of the Act, the accounting, auditing standards and matters which are required to be included in the audit report under the provision of the Act and the rules made thereunder.

We conducted our audit in accordance with the Standard on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirement and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statement. The procedure selected depend on the auditors judgment, including the assessment of the risk of material misstatements of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the companys preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the companys directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.

We believe that the audit we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.

Basis for opinion

In our opinion and to the best of our information and according to the explanation given to us, the aforesaid standalone Ind AS financial statements give the information required by the act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the financial position of the company as at 31^st March 2019, and its financial performance including other comprehensive income, its cash flows and the changes in the equity for the year ended on that date.

Emphasis of matter

We draw attention to the fact that the companys banker, oriental bank of commerce and other two creditors have submitted petition in NCLT. The Honble NCLT, New Delhi bench vide its order dated 12^thJune 2018 and vide case no C.P. IB-86/ND/2017 has initiated the CIRP process against the company and has appointed Mrs, Pratibha Khandelwal as a Resolution Professional.The resolution plan approved by COC has been filed with NCLT, Jaipur Bench on 5th July 2019, for its approval.

We further draw attention to the fact that no physical verification of assets in respect of computers, office equipment and furniture have been done by the management. We have relied upon the information/ reports as provided by the management to us.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditors Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of section 143(11) of the Companies Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.

2. As required by section 143(11) 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 dealt with by this report are in agreement with the books of account;

(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the accounting standards specified under section 133 of the Act, read with relevant rule issued thereunder;

(e) On the basis of the written representations received from the directors as on March 31, 2019 taken on record by the board of directors, none of the directors is disqualified as on March 31, 2019 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".

(g) 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, in our opinion and to the best of our information and according to the explanations given to us;

i. The Company does not have any pending litigations which would impact its financial position;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and

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

iv. the disclosure requirement holdings as well as dealings in specified bank notes during the period from 8^th November 2016 to 30^th December 2016 is not applicable for the financial year ended on 31^st March 2019

	For R.K.RELAN & CO
	Chartered Accountants
	Firm Registration No: 002267N
	Hemant Relan
Place: New Delhi	Partner
Date: 5th September 2019	Membership No. 085317

ANNEXURE – A TO THE AUDITORS REPORT

The Annexure referred to in Independent Auditors Report to the members of the Company on the standalone Ind AS financial statements for the year ended 31 March 2019, we report that:

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) The Companys management has done physical verification of its fixed asses and are verified in a phased manner. In accordance with the management, certain fixed assets except computer, office equipment and furniture & fixtures were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this physical verification except those assets which could not be verified by them is reasonable having regard to the size of the Company and the nature of its assets.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company. However factory area comprising 630 sq. meter was compulsory acquired by the NHAI and compensation of Rs.6,54,105/ - has been awarded against which company has filed an appeal and matter is pending for argument. Neither any book entry nor any effect has been taken in the financial statements.

(ii) The Inventories have been physically verified during the year by the management. In our opinion, frequency of verification of inventory is reasonable. There are no material discrepancies noticed by the management.

(iii) The Company has not granted any, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (‘the Act)

(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, which are applicable on the Company hence reporting under this clause in not applicable.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income-tax, sales, tax, value added tax, duty of customs, service tax, cess and other material statutory dues have not been regularly deposited during the year by the Company with the appropriate authorities According to the information and explanations given to us, undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31 March 2019 for a period of more than six months from the date they became payable are:

Name of the Statute	Nature of Dues	Amount (in Rs)	Period to which the amount relates	Due Date	Date of payment
VAT	Rajasthan VAT	24974257.09	Dec 2014 to 30th Sep 2018	14th of next respective following month	Unpaid till the date of our audit report
	Hazaribagh VAT	1000000	October-13	15.11.2013	Unpaid till the date of our audit report
	Ranch VAT	1616230	September -14	15.10.2014	Unpaid till the date of our audit report
TDS	TDS on Salary	769500	01.04.18 to 30.09.2018	7th of the next respective following month
	TDS on salary (CIRP)	220000	12.06.2018 TO 30.09.18	7th of the next respective following month
	TDS on Advertisement	17959	2016-17 01.04.2018 to 30.09.2018	7th of the next respective following month
	TDS on Contractor	115010	2016-17 01.04.2018 to 30.09.2018	7th of the next respective following month
	TDS on Contractor (CIRP)	2687	30.06.2018 TO 30.09.2018	7th of the next respective following month
	TDS on Interest	5277301	2015-16 01.04.2018 to 30.09.2018	7th of the next respective following month	Unpaid till the date of our audit report
	TDS on Professional	478659	2016-17 01.04.2018 to 30.09.2018	7th of the next respective following month
	TDS on Professional (CIRP)	32450	02.08.2018 TO 30.09.2018	7th of the next respective following month
	TDS on Rent	347223	2016-17 01.04.2018 to 30.09.2018	7th of the next respective following month
SERVICE TAX	Service Tax	10433371	Pertains to F.Y. 2015-16 TO F.Y.2018-19	6th of the following related next month in case of Apr to Feb months and 31st March in case of March month	Unpaid till the date of our audit report
EMPLOYEES STATE INSURANCE	ESI	1064456	FY 2014-15 to 2016-17	21st of the following related next month	Unpaid till the date of our audit report
STATE	Bottling fees	24183	FY 2014-2015 to FY 2015-2016	AT the time of filling the bottles	Unpaid till the date of our audit report
CENTRE	Central Sales Tax	46718	FY 2016-17 to FY 2018-19	15th of the next respective following month	Unpaid till the date of our audit report
GST	GST	849228	01.04.2018 to 30.09.2018	20th of the following related next month	Unpaid till the date of our audit report

(b) According to the information and explanations given to us, there are no dues of duty of customs which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of sales tax and value added tax has not been deposited by the Company on account of disputes:

Name of the Statute	Nature of dues	Amount (in Rs.)	Related Period	Forum
Central Sales Tax	CST	84,66,78,493/-	2009-10 to 2013-14	CST Appellate
Hazaribagh Vat	VAT	22,96,909/-	2013-14	Appeal to be filed

(viii) The company has not defaulted in the repayment of loans or borrowings to banks except cash credit account and NBFC.

(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.

(x) According to the information and explanations 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.

(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company.

Accordingly, paragraph 3(xii) of the order is not applicable.

(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations 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.

(xv) According to the information and explanations 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.

(xvi) The Company is not required to be registered under section 45-1A of the Reserve Bank of India Act, 1934.

	For R.K. Relan & Co.
	Chartered Accountants
	(Firm Registration No.002267N)
	Hemant Relan
Place: New Delhi	Partner
Dated: 05.09.2019	(Membership No.085317)

ANNEXURE –B TO THE AUDITORS REPORT

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

We have audited the internal financial controls over financial reporting of Mount Shivalik Industries Limited ("the Company") as of 31 March 2019 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting 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 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 its business, including adherence to 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 Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.

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 system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements fc external purposes in accordance with generally accepted accounting principles. A companys intern: financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions an dispositions o 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 authorizations of management and directors of the company, and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, 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 over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2019, based on the internal control over financial reporting 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 issued by the Institute of Chartered Accountants of India.

	For R.K.RELAN & CO
	Chartered Accountants
	Firm Registration No: 002267N
	Hemant Relan
Place: New Delhi	Partner
Date: 5th September 2019	Membership No. 085317