To,
The Members of
SHREE NIDHI TRADING CO. LTD
Report on the Audit of the Ind AS Financial Statements
Opinion
We have audited the accompanying Ind AS financial statements of "SHREE NIDHI
TRADING CO. LTD" ("the Company"), which comprise the Balance Sheet as at
31st March 2021, the Statement of Profit and Loss (including Other Comprehensive Income),
the Cash Flow Statement 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 (hereinafter referred to as "the Ind AS
financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid 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, of the state of affairs of the Company,
as at 31st March, 2021, and their profit, total comprehensive income, their cash flows and
statement of changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Our responsibilities under those Standards are further
described in the Auditors Responsibilities for the Audit of the Ind AS 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, and we have
fulfilled our 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 opinion.
Managements Responsibility for the Ind AS Financial Statements
The Companys Board of Directors is responsible for the preparation of these Ind AS
financial statements in terms of the requirements of the Companies Act, 2013 (hereinafter
referred to as "the Act") that give a true and fair view of the financial
position, financial performance including other comprehensive income, cash flows and
statement of changes in equity of the Group in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed
under Section 133 of the Act. The respective Board of Directors of the companies included
in the Group are responsible for maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the Group and for preventing
and detecting frauds and other irregularities; the selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and the 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, which have been used for the purpose of preparation of the Ind AS
financial statements by the Directors of the Company, as aforesaid.
Auditors Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based
on our audit. In conducting our audit, we have taken into account the provisions of the
Act, the accounting and auditing standards and matters which are required to be included
in the audit report under the provisions of the Act and the Rules made thereunder.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the Ind AS financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
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 consolidated 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 Board of Directors, as
well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence obtained by us and the audit evidence obtained by
the other auditors in terms of their reports referred to in first sub-paragraph of the
Other Matters paragraph below, is sufficient and appropriate to provide a basis for our
audit opinion on the Ind AS financial statements.
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 sub-section (11) of Section 143 of
the Act, based on our audit we give in the "Annexure A" a statement on the
matters specified in paragraph 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit, we report, to the
extent applicable, 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 of the aforesaid
Ind AS financial statements.
(b) In our opinion, proper books of account as required by law relating to preparation
of the aforesaid Ind AS financial statements have been kept so far as it appears from our
examination of those books and the reports of the other auditors.
c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive
Income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this
Report are in agreement with the relevant books of account maintained for the purpose of
preparation of the Ind AS financial statements.
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian
Accounting Standards prescribed under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended.
e) On the basis of the written representations received from the directors as on 31st
March, 2021 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2021 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 and the operating effectiveness of such controls; refer to our separate Report
in "Annexure B", to this report.
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, as amended, in
our opinion and to the best of our information and according to the explanations given to
us:
i) The Ind AS financial statements disclose the impact of pending litigations on the
financial position of the Company in accordance with the generally accepted accounting
practice.
ii) The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
For Arun Jain & Associates Chartered Accountants ICAI Firm Registration No.:
325867E
J*)j (CA Arun Kumar Jain) W (Proprietor)
Membership No.: 053693 Kolkata, 30th day of June , 2021 UDIN : 21053693AAAAFD5040
Annexure- A
ANNEXURE - A referred to in paragraph 1 under the section, Report on Other Legal and
Regulatory
Requirements of our report of even date:
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, wc reportthat:
(i) The Company has no fixed assets so question of proper records showing full
particulars including quantitative details and situation of fixed assets does not arise.
(ii) The Company does not have any Inventory, and hence not commented upon.
(iii) The Company has not granted any loans, secured or unsecured to companies, firms,
Limited Liability partnerships or other parties covered in the Register maintained under
section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (c) of the
Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us,
thecompany hascomplied with the provisions of section 185 and 186 of the Companies Act,
2013 In respect of loans, investments, guarantees, and security.
(v) The Company has not accepted any deposits from the public and hence the directives
issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other
relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with
regard to the deposits accepted from the public are not applicable.
(vi) As informed to us, the maintenance of Cost Records has not been specified by the
Central Government under sub-section (1) of Section 148 of the Act, in respect of the
activities carried on by the company.
(vii) According to the information and explanations given to us and records examined by
us, the company is generally depositing with appropriate authorities undisputed statutory
dues including provident fund, investors education and protection fund, employees1 state
insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess,
Goods & service Tax and any other statutory dues with the appropriate authorities.
(viii) In our opinion and according to the information and explanations given to us,
the Company has not defaulted in the repayment of dues to banks. The Company has not taken
any loan either from financial institutions or from the government and has not issued any
debentures.
(ix) Based upon the audit procedures performed and the information and explanations
given by the management, the company has not raised moneys by way of initial public offer
or further public offer including debt instruments and term Loans. Accordingly, the
provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not
commented upon.
(x) Based upon the audit procedures performed by us for expressing our opinion on these
financial statements and information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during course of our
audit.
(xi) Based upon the audit procedures performed and the information and explanations
given by the management, the managerial remuneration has been paid or provided in
accordance with the requisite approvals mandated by the provisions of section 197 read
with Schedule V to the Companies Act 2013.
(xii) The Paragraph 3(xii) of the order is not applicable since the Company is not the
Nidhi Company.
(xiii) According to the information and explanations given by the management
transactions with the related parties are in compliance with section 177 and 188 of
Companies Act, 2013 where applicable and the details have been disclosed in the notes to
the financial statements, as required by the applicable accounting standards.
(xiv) Based on the information and explanations given to us by the management, the
Company has not made any preferential allotment or private placement of shares or fully or
partly convertible debentures during the year under review. Accordingly, the provisions of
clause 3 (xiv) of the Order arenot applicableto the Company and hence not commentedupon.
(xv) Based upon the audit procedures performed and the information and explanations
given by the management, the company has not entered into any non-cash transactions with
directors or persons connected with him as referred to in section 192 of Companies Act,
2013.
(xvi) The company is a Non-Banking Financial Institution without accepting Public
Deposits registered under section 45 IA of the Reserve Bank of India Act, 1934 having
valid Certificate of Registration.
For Arun Jain & Associates.
Chartered Accountants ICAI Firm Registration No.: 0325867E
119 ( 0,5^j)^:cA Arun Kumar Jain)
(Proprietor)
^^ccoiv^^Membership No.: 053693 Date:30.06.2021 Kolkata,
UDIN : 21053693AAAAFD5040
ANNEXURE B TO THE INDEPENDENT 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")
In conjunction with our audit of the Ind AS financial statements of the Company as of
and for the year ended 31st March, 2021, we have audited the internal financial controls
over financial reporting of Shree Nidhi Trading Co. Ltd (hereinafter referred to as
"the Company"), which is company incorporated in India, as of 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 the respective 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 internal financial controls over
financial reporting of the Company, 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 prescribed under
section 143(10) of the Companies Act, 2013, to the extent 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 judgement, 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 internal financial controls system over
financial reporting with reference to theses financial statements.
Meaning of Internal Financial Controls Over Financial Reporting With Reference to these
Financial Statements
A companys internal financial control over financial reporting with reference to these
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 control over financial reporting with reference to these financial
statements includes 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 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 companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting With
Reference to these Financial Statements
Because of the inherent limitations of internal financial controls over financial
reporting with reference to these 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 over financial reporting with reference to these financial
statements to future periods are subject to the risk that the internal financial control
over financial reporting with reference to these financial statements 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 to the best of our information and according to the explanations given
to us, has, in all material respects, an adequate internal financial controls system over
financial reporting with reference to these financial statements and such internal
financial controls over financial reporting with reference to these financial statements
were operating effectively as at 31st March, 2021, 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 Arun Jain & Associates
Chartered Accountants ICAI Firm Registration No.: 325867E
10.-53693j * {CA Arun Kumar Jain)
j co Jr
y^JJ (Proprietor)
gdAg^Membership No.: 053693 Date:30.06.2021 Kolkata,
UDIN : 21053693AAAAFD5040
+91-9892691696
