To the Members of
Vikas Proppant and Granite Limited
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of Vikas Proppant and Granite
Limited ("the Company"), which comprise the standalone balance sheet as at March
31,2021, and the standalone statement of profit and loss (including other comprehensive
income), the standalone statement of changes in equity and standalone statement of cash
flows for the year then ended, and notes to the standalone financial statements, including
a summary of significant accounting policies and other explanatory information
(Collectively referred to as ‘standalone financial statements’).
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone 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 (financial position) of the Company as at March 31,2021, and its loss (financial
performance including other comprehensive income), changes in equity and its cash flows
for the year ended on that date.
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 Auditor’s Responsibilities for the Audit of
the Standalone 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 standalone 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 opinion on
the standalone financial statements.
Emphasis of Matter
a) As disclosed in Note 6 to the standalone financial results, the Company has
outstanding Income tax liability of Rs.1198.25 lacs as on 31st March, 2021 pertaining to
previous years. Management has informed to clear the outstanding tax liability at the
earliest.
b) We draw your attention to Note No 3 to the standalone financial results which
explain the uncertainties and the management’s assessment of the financial impact due
to the COVID 19 pandemic situation and associated internal and external factors, for which
a definitive assessment of the impact in the subsequent period is highly dependent upon
the circumstances as they evolve.
Our opinion is not modified in respect of these matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
We have determined the matter described below to be key audit matters to be
communicated in our report.
| The Key Audit Matters |
How the matter was addressed in our audit |
| Impairment assessment for Investments, loans and interest on loan and receivables |
|
| Such investments / loans / receivables individually assessed forimpairment as per Ind
AS 36 - Impairment ofAssets. |
Our audit procedures, in respect of testing impairment assessment in case of
investments, loans given, interest accrued on loans and receivables included the
following: |
|
- Obtained understanding of the process,evaluated the effectiveness of controls in
respect of impairment assessment of investments. |
|
- Held discussions with management regarding appropriate implementation of policy on
impairment. |
|
- Confirmations for above exposure. |
|
- We evaluated the impairment assessment performed by management taking into account
the requirements of Ind AS 36Impairment of Assets |
Other Information
The Company’s management and Board of Directors is responsible for the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Board’s Report including Annexures to Board’s Report,
Business Responsibility Report, Corporate Governance and Shareholder’s Information,
but does not include the standalone financial statements and our auditor’s report
thereon.
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 standalone 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 in the 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.
Responsibilities of Management and Those Charged with Governance for the Standalone
Financial Statements
The Company’s management and Board of Directors are 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 equityand cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Indian Accounting Standards
(‘Ind AS’) specified under section 133 of the Act. 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 standalone financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financial statements, management and Board of Directors are
responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors 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. Auditor’s Responsibilities for the Audit of the
Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s 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
As part of an audit in accordance with Standards on Auditing (‘SAs’), we
exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the standalone
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 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls with reference to financial statements 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 management’s 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
Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the standalone 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 auditor’s 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 standalone
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 standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters
in our auditor’s 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
1. As required by the Companies (Auditor’s Report) Order, 2016 ("the
Order"), issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the "Annexure A" a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought andobtained 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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including
other comprehensive income), the Standalone Statement of Changes in Equityand the
Standalone Cash Flow Statement dealt with by this Report are in agreement with the books
of account.
d. In our opinion,the aforesaid standalone financial statements comply with the Indian
Accounting Standards prescribed under Section 133 of the Act read with Companies (Indian
Accounting Standard) Rules 2016.
e. On the basis of the written representations received from the directors as on March
31,2021 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31,2021 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 with reference to
financial statementsof the Company and the operating effectiveness of such controls, refer
to our separate Report in "Annexure B".
g. 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 information and explanations given to us, the
Company has paid/ provided for managerial remuneration in accordance with the requisite
approvals mandated by provisions of section 197 read with Schedule V to the Act. The
Ministry of Corporate Affairs has not prescribed other details under section 197(16) of
the Act which are required to be commented upon by us.
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:
i. The Company has disclosed the impact of pending litigations on its financial
position in its financial statements
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to
theInvestor Education and Protection Fund by the Company.
For Singh Ajai and Co.
Chartered Accountants
Firm Registration No. :- 007495C
CA. Priyank Mittal
Partner
M. No. : 405669
Place: Sri Ganganagar
Date: 23.06.2021
Annexure ‘A’
Annexure referred to in paragraph 1 under the heading "Report on other legal and
regulatory requirements" of our report of even date
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified by the
management in a phased periodical manner, which in our opinion is reasonable, having
regard to the size of the Company and nature of its assets. No material discrepancies were
noticed on such physical verification.
(c) According to the information and explanations given to us, the immovable properties
of the Company have not been mortgaged with the lenders and the original title deeds are
held with the Company. Based on the confirmation given by the trustee and verification of
the copies of the title deeds / lease deeds in respect of immovable properties of free
hold land, buildings and immovable properties of land that have been taken onl ease and
disclosed as fixed assets in the financial statement are held in the Company’s name
or in the Company’s erstwhile name or in the name of companies amalgamated with the
Company in past.
(ii) The Inventories of finished goods, stores, spare part and raw materials have been
physically verified by the management. In our opinion the frequency of verification is
reasonable. On the basis of our examination of the records of inventory, we are of the
opinion that the discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly dealt with in the books of accounts.
(iii) The According to the information and explanations given to us, 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
Companies Act, 2013. Accordingly, the provisions of clause 3(iii)(a), (b) and (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, the
Company has not advanced loans to directors / to a company in which the Director is
interested to which provisions of section 185 of the Act apply and hence not commented
upon. In our opinion and according to the information and explanations given to us,
provisions of section 186 of the Act in respect of loans and advances given, investments
made and, guarantees, and securities given have been complied with by the Company to the
extent applicable to it.
(v) According to the information and explanations given to us, the company has not
accepted any deposit from the public within the meaning of section 73 to 76 of the Act and
the rules framed thereunder. Therefore, the provision of clause 3(v) of the Order is not
applicable to the Company.
(vii) According to the information and explanation given to us, dues in respect of TDS
and provident fund, which were outstanding at the yearend for a period of more than six
months from the date they were became payable are as follows :
| Name of the statute |
Nature of the dues |
Amount (Rs.) |
Period to which the amount relates |
Due Date |
Date of Payment |
| Income Tax Act, 1961 |
TDS |
36,719 |
F.Y 2016-17 |
Between Apr-Mar 2017 |
Not paid |
|
|
99,213 |
F.Y 2017-18 |
Between Apr-Mar-2018 |
Not paid |
|
|
2,35,727 |
F.Y 2018-19 |
Between Apr-Mar-2019 |
Not paid |
|
|
7,093 |
F.Y 2019-20 |
Between Apr-Sep-2019 |
Not paid |
|
Income tax |
6,91,98,440 |
F.Y 2018-19 |
Between 2018-19 |
Not paid |
| The Employees Provident Fund and Miscellaneous Provisions Act, 1952 |
Provident fund |
18,801 |
F.Y 2017-18 |
Between Apr-Mar 2018 |
Not paid |
|
24,600 |
F.Y 2018-19 |
Between Apr-Mar 2019 |
Not paid |
|
7,268 |
F.Y 2019-20 |
Between Apr-Sep 2019 |
Not paid |
(viii) In our opinion and according to the information and explanations given to us,
the Company has no delayed in repayment of dues to financial institutions and banks during
the year related to principal loans amount and interest on loans and to debenture holders
for interest on debenture.
(ix) The Company has not raised money by way of initial public offer or further public
offer (including debt instruments)or term Loan during the year and hence clause (ix) of
paragraph 3 of the Order is not applicable to the Company.
(x) Based upon the audit procedures performed for the purpose of reporting the true and
fair view of the financial statements and according to the information and explanations
given by the management, we report that no fraud on or by the officers and employees of
the Company has been noticed or reported during the year.
(xi) Based on our audit procedures performed for the purpose of reporting the true and
fair view of the financial statements and according to the information and explanations
given by the management, we report that the managerial remuneration has been paid /
provided in accordance with the requisite approvals mandated by the provisions of section
197 read with Schedule V to the Act.
(xii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund /
society. Therefore, the provisions of clause 3(xii) of the Order are not applicable to the
Company and hence not commented upon.
(xiii) Based on our audit procedures performed for the purpose of reporting the true
and fair view of the financial statements and according to the information and
explanations given by the management, transactions with the related parties are in
compliance with section 177 and 188 of Act, where applicable and the details have been
disclosed in the notes to the standalone financial statements, as required by the
applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall
examination of the balance sheet, the company has made preferential allotment ESOP
amounted to Rs. 85.00 Lac only .
(xv) Based on our audit procedures performed for the purpose of reporting the true and
fair view of the financial statements and according to 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.
(xvi) According to the information and explanations given to us, the provisions of
section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
For Singh Ajai and Co.
Chartered Accountants
Firm Registration No. :- 007495C
CA. Priyank Mittal
Partner
M. No. : 405669
Place: Sri Ganganagar
Date: 23.06.2021
Annexure ‘B’
Annexure to the independent auditor’s report of even date on the Standalone
Financial Statements of Vikas Proppant and Granite Limited
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 with reference to financial statements
of Vikas Proppant & Granite Limited ("the Company") as of March 31,2021 in
conjunction with our audit of the standalone financial statements of the Company for the
year ended on that date.
According to the information and explanations given to us and based on our audit, the
following material weakness hasbeen identified as at March 31,2021:
The Company has not provided the Depreciation on its fixed assets, due to non-operation
in the company.
A ‘material weakness’ is a deficiency, or a combination of deficiencies, in
internal financial control with reference to financial statements, such that there is a
reasonable possibility that a material misstatement of the Company’s annual or
interim financial statements will not be prevented or detected on a timely basis.
We have considered material weakness identified and reported above in determining the
nature, timing, and extent of audit tests applied in our audit for the year ended March
31,2021, and these material weaknesses affect our opinion on financial statements of the
Company for the year ended March 31,2021.
In our opinion, except for the effects / possible effects of the material weakness
described above the achievement of the objectives of the control criteria,the Company has,
in all material respects, an adequate internal financial controls system with reference to
financial statements and such internal financial controls were operating effectively as on
March 31, 2021, based on the internal financial control with reference to 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 issued by the Institute of Chartered Accountants of India ("the
Guidance Note").
Management’s Responsibility for Internal Financial Controls
The Company’s management and Board of Directors are responsible for establishing
and maintaining internal financial controls based on the internal financial controls with
reference to financial statements criteria established by the Company considering the
essential components of internal control stated in the Guidance Note. 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 Company’s 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
Our responsibility is to express an opinion on the Company’s internal financial
controls with reference to financial statements based on our audit. We conducted our audit
in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and
deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an
audit of internal financial controls with reference to financial statements. 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 was established and maintained
and whether 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 with reference to financial statements and their operating
effectiveness. Our audit of internal financial controls with reference to financial
statements included 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 auditor’s Judgment, including the assessment of the risks of
material misstatement of the standalone 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 Company’s internal financial controls
with reference to financial statements.
Meaning of Internal Financial Controls with reference to Financial Statements
A company’s internal financial control with reference to 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 company’s internal financial control
with reference to 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 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 company’s assets that could have
a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to Financial
Statements
Because of the inherent limitations of internal financial controls with reference to
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 financial statements to future periods are subject to the risk that the
internal financial control with reference to financial statements may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
For Singh Ajai and Co.
Chartered Accountants
Firm Registration No. :- 007495C
CA. Priyank Mittal Partner
M. No. : 405669
Place: Sri Ganganagar Date: 23.06.2021
+91-9892691696
