To,
The Members of
M/s Nath Industries Ltd.
1. Report on the Financial Statements
We have audited the accompanying financial statements of M/s Nath Industries Ltd, which
comprise the Balance Sheet as at March 31, 2023, and the Statement of Profit and Loss for
the year then ended, and a summary of significant accounting policies and other
explanatory information including the statement of Other Comprehensive Income, Cash Flow
statement and Statement of changes in Equity for the year ended and Notes to the Ind AS
Financial Statement, including a summary of significant accounting policies and other
explanatory information.
In our opinion & to the best of our information and according to the explanation
given to us, the aforesaid Ind AS financial statements give the information required by
the Companies Act, 2013,as amended (the act) in the manner so required and give a true
& 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, its profit including other
comprehensive income and its cash Flow and the changes in equity for the year ended on
that date.
2. Managements Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a
true and fair view of the financial position, financial performance in accordance with the
Accounting Standards referred to in section 129(1) of the Companies Act, 2013 read with
the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs in respect of Section 133 & Section 134(5) of the Companies Act, 2013 and in
accordance with the accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control 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.
3. Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted the audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the financial statements. The procedures selected depend on judgment,
including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, we have
considered internal control relevant to the Companys preparation and fair presentation of
the financial statements 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. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidences obtained are sufficient and appropriate to
provide a basis for our audit opinion.
6. Opinion
In our opinion and to the best of information and according to the explanations given
to us, the 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;
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at
March 31, 2023;
(b) in the case of the Statement of Profit and Loss, of the profit for the year &
its cash Flow ended on that date
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditors Report) Order, 2016, issued by the Central
Government of India in terms of subsection (11) of section 143 of the Companies Act 2013
and on the basis of such checks of the books and records of the company as we consider
appropriate and according to the information and explanations given to us, we give in the
Annexure A statement on the matters specified in paragraphs 3 and 4 of the Order.
8. As required by section 143(3) of the Act, we report that:
(i) We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of audit;
(ii) In our opinion proper books of accounts as required by law have been kept by the
Company so far as appears from examination of those books;
(iii) The Balance Sheet, Statement of Profit and Loss and cash Flow statement dealt
with by this Report are in agreement with the books of accounts;
(iv) In our opinion, the aforesaid Ind AS financial statements including the Balance
Sheet, Statement of Profit and Loss, comply with the Accounting Standards notified under
the Act, read with Rule 7 of the Companys (Accounts) Rules, 2014 & read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013.
(v) On the basis of written representations received from the directors as on March 31,
2022, and taken on record by the Board of Directors, We report that none of the director
is disqualified as on March 31, 2022, from being appointed as a director in terms of
subsection (2) of section 164 of the Companies Act, 2013.
(vi) In our opinion & to the best of our information and according to explanation
given to us, we report with respect to other matters to be included in Auditors Report in
accordance with Rule 11 of the companies (Audit & Auditors) Rule 2014 as under.
i. The company does not have any pending litigation which would impact its financial
position except Service Tax liability and excise duty as per para (vii) (b) of the
Annexure A of this report.
ii. The company did not have any long term contracts including derivative contracts, as
such the question of commenting any material foreseeable losses there on does not arise
iii. There has been no delay in transferring amounts required to be transferred, to The
Investors Education & Protection Fund by the company.
The Annexure A referred to in paragraph 7 of our Report of even date to the members
of M/s Nath Industries Ltd. on the accounts of the company for the year ended 31st
March, 2023
i) . a) The Company has maintained proper records showing full particulars including
quantitative details and situation of its Property, Plant & Equipment.
b) As informed to us, the fixed assets have been physically verified by the management
during the year at reasonable intervals and we were informed that no material
discrepancies have been noticed on such verification.
Title deeds of all immovable properties are held in the name of the company, except
immovable properties belonging to two merged companies as under:
1. Nath Pulp and Paper Mills Limited:- Freehold land
Situate at Wahegaon Gut no 319 to 324, 50/2 to 50/6, 37/3, At Issarwadi Gut no 54/1 to
54/5, At Pimpalwadi 26/1, Gut No 124 ( S No 54), Village Mudalwadi,
All above lands parcels are situated at Taluka Paithan, Dist Aurangabad,
Maharashtra - 431 148 Gross Value Rs. 5136.63 lakhs Net Rs. 5136.63 lakhs Total Area
4,93,676 sq meter
Held in the name of transferor company Nath Pulp and Paper Mills Limited since date of
merger order dated 22nd August 2019 Reason - Transfer/Registration is under process
2. Nath Industrial Chemicals Limited:-
Lease hold land situated at Plot no 294- 295, Phase 2, Industrial Estate, GIDC, Vapi-
Gujarat - 396 195.
Gross Value Rs. 4682.40 lakhs Net Rs. 4375.36 lakhs Area 39020 sq meters, Held in the
name of the transferor company Nath Industrial Chemicals Limited, since date of merger
order dated 22nd August 2019 Reason - Transfer/Registration is under process Revaluation
& holding Benami Property - Not applicable for the year ended on 31/3/2023.
ii) . a) Physical verification of the inventory has been conducted at reasonable
intervals by the management,
Procedures of physical verification of inventory followed by the management are
appropriate reasonable and adequate in relation to the size of the company and nature of
its business. No material discrepancies were noticed on physical verification
b) The company has been sanctioned working capital limits in excess of 5 crores, in
aggregate, from banks on the basis of security of current assets. Quarterly returns or
statement filed by the company with such banks are in agreement with books of accounts.
iii) . a) Company has made investments in shares, provided guarantee, & granted
unsecured loans & advances in the nature of loans to companies, firms or limited
liability Partnerships.
Aggregate amount advanced given to parties other than subsidiaries, joint ventures
& associates is Rs.2,14,50,835/- & Balance outstanding at the balance sheet date
is Rs. 46,89,331/- which consist of Rs. 44,90,272/- being advance given for CSR Expense.
Aggregate amount of Corporate Guarantee and collateral security provided is for Rs.
6,00,00,000 (Rupees Six Crores Only) to Tapovan International Trading Pvt Ltd for the loan
availed by them from Malkapur Urban Co-op Bank Ltd.
b) Investments made, guarantee provided & terms & conditions of all the loans
& advances in the nature of loans & guarantees provided are not prejudicial to the
companys interest.
c) In respect of loans & advances in the nature of loans, schedule of repayment of
principal & interest is not stipulated Receipt of the principal amount are regular.
However receipt of interest is not regular.
d) There is no overdue amount as on 31st March 2023.
e) No loans & advances in the nature of loans, has fallen due during the year.
Hence question of renew or extension or granting of fresh loan do not arise.
f) . Company has granted loans & advances in the nature of loans, either repayable
on demand without specifying any terms or period of repayment, aggregating Rs. 44,90,272/-
being advance for CSR Expenses. Percentage to total loans granted is 95.76%
Aggregate amounts of loans are granted to related parties as defined in section 2 (76)
of the companies act 2013 Rs. 44,90,272 /-
iv) . In respect of loans, investments, guarantees, provisions of section 185 and 186
of the Companies Act, 2013 have been complied with.
v) . The company has not accepted deposits, hence question of compliance with the
directives issued by the Reserve Bank of India and the provisions of sections 73 to 76
companies Act 2013 or any other relevant provisions of the companies Act 2013 and the
rules framed there under, are not applicable to the company
vi) .a). Maintenance of cost records has been specified by CG u/s 148(1) of the
Companies Act, 2013,
b). Such cost accounts & records are being made & maintained by the company.
vii).a) As per the records of the company and according to the information and
explanations given to us, the company is regular in depositing with appropriate
authorities undisputed statutory dues including Goods & Service Tax, Provident Fund,
Employees State Insurance, income tax, sales tax, Service tax, custom duty, Excise duty,
cess, value added tax and other statutory dues, to the extent applicable to it.
b) Company has not deposited disputed Service tax, & disputed Excise Duty In
respect of Vapi Plant & Aurangabad Plant respectively as under. Appeal by the company
are pending before Appellate Authorities.
| Name of statue |
Forum where the dispute is pending |
Amount Rs |
Period to which the Amount Relates |
| Service Tax |
Unit -Rama Paper- Customs Excise & Service Tax Appellate Tribunal, Ahmadabad. |
2,59,56,040/- |
16.05.2008 to 31.03.2010 |
| Excise Duty |
Unit- Nath Paper - Commissioner of appeal, Nasik has remanded back dispute to
assessing officer |
90,90,655 |
2010-2011 to 2014-2015 |
| Excise Duty |
Unit- Nath Chemicals Customs Excise & Service Tax Appellate Tribunal, Ahmadabad
for reversal of Modvat |
8,84,386 |
2003-04 to 2007-08 |
viii) . There is no unrecorded transaction or income in the books of the company which
is surrendered or disclosed as income during the year.
ix) . a) The company has not defaulted in repayment of loans from Financial institution
or bank or debenture holders.
b) Company is not declared as willful defaulter by any bank or financial institution or
any lender.
c) Company has taken term loans from Bank and term loans were applied for the purpose
for which they were obtained.
d) Funds raised on short term basis have not been utilized for long term purposes.
e) Company has not taken any funds from any entity or person on account of or to meet
the obligation of its subsidiary, associates or joint venture.
f) Company has not raised any loans during the year on pledge of any securities held in
its subsidiary associates or joint venture.
x) . The company has not raised any funds during the year by way of any public issue or
preferential allotment or private placement or debentures
xi) . a) According to the information and explanations given to us, there is no fraud
by the company or on the company during the year.
b) Auditors have not filed any report under section 143 (12)of the Companies Act 2013
with Central Government
c) Their is no whistle-blower complaint received during the year by the company
xii) In our opinion & according to the information & explanation given to us,
the company is not a nidhi company. Accordingly this clause of the order is not
applicable.
xiii) Transactions with related parties are in compliance with section 177 and 188 of
the Companies Act, 2013 where ever applicable & the details have been disclosed in
financial statements as required by the applicable accounting standards.
xiv) .a) In our opinion & according to information & explanation given to us,
company has internal audit system, commensurate with the size of the company and the
nature of its business.
b) Reports by the internal auditors has been considered by the statutory auditors.
xv) . Company has not entered in to non cash transactions with Directors or persons
connected with him as referred in section 192 of the Companies Act, 2013.
xvi) .a) Company is not required to be registered under u/s 45-IA of the Reserve Bank
of India Act, 1934.
b) Company has not conducted any non-banking financial or housing finance activities.
c) Company is not a Core Investment Company.
d) Group do not have any Core Investment Company.
xvii) . There are no accumulated losses at the end of the financial year of the company
and neither any cash losses are incurred in such financial year or in the immediately
preceding financial year.
xviii) . There is no resignation by the statutory auditors during the year.
xix) In our opinion & according to information & explanation given to us, there
is no material uncertainty exists on the date of audit report. Company is capable of
meeting its liabilities existing at the date of balance sheet and when they fall due
within a period of one year from the balance sheet date.
xx) There is no unspent amount as per provisions of section 135 of the Companies Act,
2013
xxi) In our opinion & according to information & explanation given to us, there
are no qualifications or adverse remarks by respective auditors in the CARO reports of
group companies
Annexure B to the Auditors Report
Report on the Internal Financial control 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 M/s Nath
Industries Ltd as of 31st March 2023 in conjunction with our audit of the Ind AS financial
statements of the Company for the year ended on that date.
Management 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 Control 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 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 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 Company 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 were 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 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 for external purposes in accordance with generally
accepted accounting principles. A Companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that in reasonable details, 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 preparing 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 the
management and directors of the Company and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisitions, use, or disposition of the
companys 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 31st March 2023 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 VIDYA & CO Chartered Accountants Firm Reg No. 30822E |
| Place: Mumbai Date: 30th May 2023 |
Amit Nagar Partner Membership No:-056156 UDIN: 23056156BGVRYJ2004 |
+91-9892691696
