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M K Exim (India) Ltd.

BSE: 538890 Sector: Industrials
NSE: N.A. ISIN Code: INE227F01010
BSE LIVE 13:06 | 08 Dec 8.65 0.41
(4.98%)
OPEN

8.65

HIGH

8.65

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8.10

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 8.65
PREVIOUS CLOSE 8.24
VOLUME 1602
52-Week high 11.20
52-Week low 7.00
P/E 72.08
Mkt Cap.(Rs cr) 6
Buy Price 8.65
Buy Qty 7800.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.65
CLOSE 8.24
VOLUME 1602
52-Week high 11.20
52-Week low 7.00
P/E 72.08
Mkt Cap.(Rs cr) 6
Buy Price 8.65
Buy Qty 7800.00
Sell Price 0.00
Sell Qty 0.00

M K Exim (India) Ltd. (MKEXIMINDIA) - Auditors Report

Company auditors report

To the members of M.K. EXIM (INDIA) LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of M.K. EXIM(INDIA) LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management's responsibility for Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements to give a true and fair view of the financialposition financial performance and cash flows of the company in accordance with theaccounting principles generally accepted in India including the Accounting 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 provisions of the Act for safeguarding of the assets of the company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatementswhether due to fraud and error.

Auditors' Responsibility

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 thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditors'judgement including the assessment of the risks of material misstatements of financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the company's directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016; and its profit and cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:AS-15 for Employees Benefits (Revised 2005) in respect of Provision for Gratuity. TheProvision for Gratuity provided by the company is inadequate and its effect on liabilitiesand profit of the Company is unascertainable. Further requisite disclosures are not madein respect of retirement benefits.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

As required by Companies (Auditors' Report) Order 2016 issued by the CentralGovernment of India in terms of Section 143(11) of the Act we give in the Annexure A astatement on the matters specified in paragraphs 3 and 4 of the said order.

As required by Section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof 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 thecompany so far as 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 referred to in Section 133 of the Companies Act 2013 read with rule7 of the Companies (Accounts) Rules 2014.

e. On the basis of written representations received from the Directors as on 31stMarch 2016 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31st March 2016 from being appointed as a director interms of Section 164(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 matter to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The company does not have any pending litigation which would impact its financialposition.

ii. The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.

For Vimal Agrawal & Associates
Chartered Accountants
(FRN: 004187C)
sd/-
(V. K. Agrawal)
Place : Jaipur Partner
Date : 30th May 2016 M.No.071627

ANNEXURE A REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNTS OF M.K. EXIM (INDIA)LIMITED FOR THE YEAR ENDED ON 31ST MARCH 2016

1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All the assets have been physically verified by the management at the end of theyear which in our opinion is reasonable having regard to the size of the company and thenature of its assets. No material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties as disclosed in fixed assets are held inthe name of the company.

2. The inventory excluding stocks with third parties has been physically verifiedduring the year at reasonable intervals by the management. The procedure of physicalverification of inventories followed by the management is adequate in relation to the sizeof the company and the nature of its business. The company is maintaining proper recordsof inventory. No material discrepancies were noticed on physical verification.

3. The company has not granted any loans to companies firms or other parties coveredin the register maintained under section 189 of the Companies Act 2013.

4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of sec. 185 & 186 of the Companies Act2013in respect of the loans and investments made and guarantees and security provided by it.

5. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public within the meaning of sections737475 & 76 of the Act and Rules framed thereunder.

6. We have been explained that the maintenance of cost records has not been prescribedby the Central Government under sub section (1) of Section 148 of the Companies Act 2013.

7. (a) The company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income tax Sales tax Wealth taxService tax Duty of Customs Duty of Excise Value Added tax Cess and any otherstatutory dues with the appropriate authorities and there were no arrears of outstandingstatutory dues as at the last day of the financial year for a period of more than sixmonths from the date they became payable.

(b) According to the information and explanations given to us dues of Income taxamounting to Rs 102140/- have not been deposited and the matter is pending before CIT(Appeals)-I Jaipur .

8. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to financial institutions banksgovernment and debenture holders as at the balance sheet date.

9. The company has applied the term loan the purpose for which the loan was obtained.

10. According to the information and explanations given to us no material fraud on orby the company or by its officers or employees has been noticed or reported during theyear.

11. The company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V of theAct.

12. As the company is not a Nidhi company and the Nidhi Rules 2014 are not applicableto it. Accordingly the provisions of clause 3(xii) of the order are not applicable to thecompany.

13. The company has entered into transactions with related parties in compliance withthe provisions of the sections 177 & 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard 18 Related Party Disclosures specified under section 133 of the Act read withRule 7 of the Companies(Accounts) Rules 2014.

14. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of clause 3(xiv) of the order are not applicable to the company.

15. The company has 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.

16. 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.

For Vimal Agrawal & Associates
Chartered Accountants
(FRN: 004187C)
sd/-
Place : Jaipur (V. K. Agrawal)
Date : 30th May 2016 Partner
M.No.071627

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph in the Independent Auditors' Report of even date to themembers of M.K. Exim (India) Limited on the standalone financial statements for the yearended 31st March 2016.

Report on the Internal Financial Controls under Cause (i) of Sub-section 3 of Section143 of the Act

1. We have audited the internal financial controls over financial reporting of M.K.Exim (India) Limited ("the Company") as of 31st March 2016 in the conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

2. The Company's 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor' Responsibility

3. Our responsibility is to express an opinion on the Company's 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 deemed to be prescribedunder section 143 (10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining and understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A company's 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 company's internal financial control overfinancial reporting includes those policies and procedures that

i. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

ii. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

iii. Provide reasonable assurance regarding prevention of timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Vimal Agrawal & Associates
Chartered Accountants
(FRN: 004187C)
sd/-
(V. K. Agrawal)
Place : Jaipur Partner
Date : 30th May 2016 M.No.071627