TO THE MEMBERS OF MANAKSIA INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying standalone financial statements of Manaksia IndustriesLimited (the Company) which comprise the Balance Sheet as atMarch 31 2016 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.
Managements Responsibility for the financial statements
The Companys Board of Directors is responsible for the matters stated in section134(5) of the Companies Act2013 (the Act) with respect to thepreparation and presentation of these standalone financial statements that give a true andfair view of the financial position financial performance and cash flows of the companyin accordance with the accounting principles generally acceptedin India -ing standardsspecified under Section 133 of the Act read with rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities selection andapplication of appropriate accounting policies making judg -ments and estimates that arereasonable and prudent and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and pre -sentation ofthe financialstatements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordance with the standards on auditing specified undersection 143 (10) of the Act those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditors judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Companys preparation of the financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the ac -counting estimates made by theCompanys Directors as well as evaluating the overall presentation of thefinancialstatements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2016 and its loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 (theOrder) 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 thematters specified in the paragraph 3 and 4 of the said order to the extent applicable.
2. As required by Section 143 (3) of the Act we report that : which to a. thebest of Wehavesoughtandobtainedalltheinformation our knowledge and belief were necessaryfor the purposes of our audit.
b. In our opinion proper books of account as required by law have been kept by theCompany 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 statementdealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid standalone financial statements comply with theaccounting standards specified under section 133 of the Act read with rule 7 of theCompanies (Accounts) Rules 2014.
e. On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of directors none of the directors isdisqualifiedas on 31st March 2016 from being appointed as a director in terms of section164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". g. With respect to the other matters to beincluded in the auditors report in accordance with rule 11 of the companies (Auditand Auditors) Rules 2014 in our opinion and to the best of ourinformationandaccordingtotheexplanationsgiven to us:
i. The Company has disclosed the impact of pending litigations on its financial &30 to the financial statements).
ii. The Company does not have any long-term contracts including derivative contracts.Accordingly no provision for material foreseeable losses have been made; and iii. Therehas been no delay in transferring amounts required to be transferred to the InvestorEducation and Protection Fund by the Company.
Annexure-A to the Independent Auditors Report
The Annexure referred to in our Independent Auditors Report to the members of ManaksiaIndustries Limited (the Company) on the stand-alone financial statements for the yearended March 31 2016 we report that :
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assetsby which all fixed assets are verified in a phased manner over a period of two years. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. Pursuant to such program a portion offixed asset has been physically verifiedby the management during the year and no materialdiscrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations given the name ofthe Company.
ii. (a) The inventory has been physically verified by the management during the year.In our opinion the frequency of such is reasonable.
(b) The discrepancies noticed on the aforesaid verification between the physical stocksand book records were not material.
(iii) (a) According to the information and explanations given to us the terms andconditions in respect of the loans granted by the Company (secured/unsecured loans) to thecompanies/firms/limited maintained under section 189 of the Act are not prima-facieprejudicial to the interest of the Company.
(b) In respect of the aforesaid loans the parties are repaying the principal amountsas stipulated and are also regular in payment of interest where applicable.
(c) In respect of the aforesaid loans there is no overdue amount for a periodexceeding 90 days.
iii. The Company has not granted any loans secured or unsecured to companies firmspartiescovered in the register maintained orother under section 189 of the Companies Act2013 (the Act). Accordingly paragraph 3(iii)(a) and 3(iii)(b) of the Order isnot applicable to the Company in respect of repayment of the principal amount.
iv. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services. During the course of our audit we have not observed any majorweakness or continuing failure to correct any major weakness in the internal controlsystem of the company in respect of these areas.
v. The Company has not accepted any deposits from the public.
vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules prescribed by the Central Government for maintenance of cost records undersection 148 (1) of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained.
vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employeesstate insurance income-tax sales tax service tax duty of customs duty of excisevalue added tax cess and other material statutory dues have been generally regularlydeposited during the year by the Company with the appropriate authorities.
(b) According to the information and explanations given to us the following dues ofduty of excise service tax & entry tax have not been deposited by the Company onaccount of disputes :
|Sl. No. ||Name of the Statute ||Nature of the Dues ||Forum where Disputes is pending ||Amount involved |
| || || || ||(Rs. In Lakhs) |
|1. ||Central Excise Act 1944 ||Excise Duty ||Commissioner Central Excise ||347.05 |
| || || ||Joint Commissioner Central Excise ||35.24 |
| || || ||Additional Commissioner Central Excise ||41.37 |
| || || ||Asst. Commissioner Central Excise ||1.17 |
| || || ||Deputy Commissioner Central Excise ||10.61 |
| || || ||Superintendent of Central Excise ||84.69 |
| || || ||Collectrate of Central Excise ||28.57 |
|2. ||Central Excise Act 1944 ||Service Tax ||Asst. Commissioner Central Excise ||42.98 |
|3. ||The West Bengal Tax on Entry of Goods into Local Area Act ||Entry Tax ||Kolkata High Court ||58.02 |
viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to any financial institutions bankers andgovernment or debenture holders during the year.
(ix) In our opinion and according to the information and explanations given to us theterm loans taken by the Company have been applied for the purpose for which they wereraised. The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year.
(x) According to the information and explanations given to us no fraud by the Companyor on by its officers or employees has been noticed or reported during the course of ouraudit.
(xi) According to the information and explanations given to us managerial remunerationhas been paid or provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with schedule V to the Companies Act.
(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph (xii) of the Order is notapplicable.
(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with section 188 of the Companies Act 2013 and the details of suchtransactions have been disclosed in the financial statements of the Company as required bythe applicable accounting standards.
(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertibledebentures duringthe year. Accordingly paragraph (xiv) of the Order is not applicable.
(xv) The Company has not entered into any non cash transactions with its directors orpersons connected with him. Accordingly the provisions of clause 3(xv) of the Order arenot applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of clause 3(xvi) of the order are notapplicable to the Company.
Annexure - B to the Independent Auditors Report
The Annexure referred to in Independent Auditors Report to the Members of ManaksiaIndustries Limited (the Company) on the Internal Financial Control over FinancialReporting for the year ended 31 March 2016 we report that :
Report on the Internal Financial ControlsunderClause(i)ofSub-section3 Act")ofSection143of the CompaniesAct2013("the
We have audited the internal financial controls over financial reporting of ManaksiaIndustries Limited in conjunction with our audit of the financial statements of theCompany for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the guidance note on audit of internal financial controls over financial reportingissued by the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to companys policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the guidance note on audit of internal financial controls over financial reporting(the Guidance Note) and the standards on auditing (the Standards)issued by ICAI and deemed to be prescribed under section 143 (10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects. Our audit involves performing procedures toobtain audit evidence about the adequacy of the internal financial controls system overfinancial reporting and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditorsjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theCompanys internal financial controls over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting includes those policies and procedures that (i) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (ii) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (iii) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompanys assets that could have a material effectonthefinancialstatements.
Inherent Limitations of Internal Financial Controls over Financial Reporting Becauseof the inherent limitations management override of controls material misstatements due toerror orfraudmayoccurandnotbedetected.Alsoprojectionsof any evaluation of the internalfinancial controls over financial reporting to future periods are subject to the risk thatthe internal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2016 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the guidance note issued by the ICAI.
| ||For SRB & Associates |
| ||Chartered Accountants |
| ||Firm Registration No. 310009E |
| ||Sanjit Patra |
|Place : Kolkata ||Partner |
|Date : 28th May 2016 ||Membership No. 056121 |