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Mac Charles (India) Ltd.

BSE: 507836 Sector: Services
NSE: N.A. ISIN Code: INE435D01014
BSE LIVE 15:40 | 15 Dec 422.70 8.45
(2.04%)
OPEN

428.00

HIGH

434.00

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421.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 428.00
PREVIOUS CLOSE 414.25
VOLUME 270
52-Week high 679.00
52-Week low 401.00
P/E 22.42
Mkt Cap.(Rs cr) 554
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 428.00
CLOSE 414.25
VOLUME 270
52-Week high 679.00
52-Week low 401.00
P/E 22.42
Mkt Cap.(Rs cr) 554
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mac Charles (India) Ltd. (MACCHARLESI) - Auditors Report

Company auditors report

TO THE MEMBERS OF MAC CHARLES (INDIA) LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying Standalone financial statements of MAC CHARLES(INDIA) LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act2013 ("the Act") with respect to the preparation andpresentation of these Standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company accordancewith the accounting principles generally accepted in

India including the Indian Accounting Standards (Ind AS) specified under section 133of the Act read with relevant rules issued thereunder. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and rules made there under. We conducted our audit inaccordance with the Standards on auditing specified under section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the Standalone financial statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone financial statements. The procedures selected depend onthe auditors' judgment including the assessment of the risks of material misstatement ofthe

Standalone financial statements whether due to fraud or

In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone financial statements that give atrue and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Standalone financialstatements.

We believe that the audit evidence we have obtained is sufficientand 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 accountingpolicies and other explanations given to us the Standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India : (a) in thecase of the Balance Sheet of the state of affairs of the Company as at 31st March 2017;

(b) in the case of the Statement of Profit and Loss of thePROFIT for theyear ended on that date; and (c) in the case of the Cash Flow Statement of theCash Flows for the year ended on that date.

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 ofthe Act we give in the Annexure A a statement on the matters specifiedin paragraphs 3and 4 of the Order.

2. As required by section 143(3) of the Act we report that : a. We havesought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit; b. In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books; c. The Balance Sheet the Statement ofProfit and Loss and the Cash Flow Statement dealt with by this Report are in agreementwith the books of account; d. In our opinion the Balance Sheet the Statement of Profitand Loss and the Cash Flow Statement comply with the

Accounting Standards specified under section 133 of the

Act read with relevant rules issued thereunder; e. On the basis of the writtenrepresentations received from the directors as on 31st March 2017 taken on record by theBoard of Directors none of the directors is disqualified as on 31st March 2017 frombeing appointed as a Director in terms of section 164(2) of the Act. f. With respect tothe adequacy of the internal financial . controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate report in‘Annexure B'; and g. 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 ourinformation and according to the explanations given to us :

(i) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone financial statements as referred to in note 38 to theStandalone financial statements.

(ii) The Company did not have any long term contract for which there was anymaterial forseeable loss. (iii) There has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Company. (iv)The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th

November 2016 to 30th December 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the Company and as produced to us by the Management.

For K.B. Nambiar & Associates
Chartered Accountants
(Firm Regn. No. 002313S)
Bengaluru Ravishankar. V
8 August 2017 Partner ( M.No. 236671)

ANNEXURE A TO THE AUDITORS' REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of assets. The numbering of the fixedassets andupdating the same into the fixedassets register is not complete.

(b) The company has a regular programme of physical verification of its fixed assets.In accordance with this programme certain fixed assets were verifiedduring the year andno material discrepancies were noticed on such verification . (c) Title deeds of all theimmovable properties are in the name of the company except for the following for which notitle deeds have been executed :

Particulars Amount in Rupees
1. Purva Eternity Apartment No.604 Cochin 3923354
2. Purva Eternity Apartment No.704 Cochin 3942367
3. Purva Eternity Apartment No.804 Cochin 3961325
4. Purva Eternity Apartment No.904 Cochin 3980337
5. Purva Eternity Apartment No.1004 Cochin 3999324
6. Purva Eternity Apartment No.1703 Cochin 3942376
7. Purva Eternity Apartment No.1803 Cochin 3961326
8. Purva Eternity Apartment No.1903 Cochin 4064287

(ii) Physical verification of inventory has been conducted by the management atreasonable intervals. The discrepancies noticed on physical verification of stocks ascompared to book records are not material and have been properly dealt with in the booksof account.

(iii) The Company has granted loans to two companies covered in the register mentionedunder Section 189 of the Act.

(a) Having regard to the fact that the said loans are given to its wholly ownedsubsidiary and to its holding company and read with the terms and conditions whereverprescribed in our opinion such terms and conditions are not prejudicial to the Company'sinterest.

(b) There is no stipulation regarding the schedule of repayment of principal andpayment of interest in the case of the loan given to the wholly owned subsidiary. Therepayments and receipts are regular in accordance with the stipulations prescribed readwith the amendments thereon in the case of the loan granted to the holding company.

(c) In the case of the loan granted to the holding Company where the repayment ofprincipal and interest has been stipulated there are no amounts overdue from such party.In the case of the loan granted to the wholly owned subsidiary in the absence of anystipulation regarding repayment of principal and payment of interest this clause does notapply.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.

(v) The Company has not accepted deposits to which the directives issued by ReserveBank of India and provisions of Section 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the Companies (Acceptance of Deposit) Rules 2015 with regard tothe deposits accepted from the public are not applicable.

(vi) As informed to us the Central Government has not prescribed maintenance of costrecords under Section 148(1) of the

Companies Act 2013 for the Company.

(vii) (a) According to the records of the Company and the information and explanationsgiven to us the Company has been 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 during the year.

(b) To the best of our knowledge and belief and according to the information andexplanations given to us details of disputed statutory dues which has not been depositedin the case of Income Tax are given in the table below :

Nature of Dues Period to which the dispute relates Amount in Rupees Forum where the dispute is pending Remarks
1. Income Tax A.Y.1997-98 955691 Honorable High Court of Karnataka The amount in dispute is adjusted by Income Tax Department out of refund due to the Company.
2. Income Tax A.Y.2010-11 1034668 Appellate Commissioner of Income Tax The amount in dispute is adjusted by Income Tax Department out of refund due to the Company.

(viii) The Company has not defaulted in repayment of loans and borrowings to anyfinancial institution or bank.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by it officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the act. (xii) According to the information andexplanations given to us the Company is not a Nidhi company. Accordingly paragraph 3(xii)of the order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transaction with the related parties are incompliance with section 177 and 188 of the act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards. (xiv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into non cashtransactions with directors or persons connected with him that fall within the purview ofsection 192 of the Companies Act 2013. (xvi) The Company is not required to be registerunder section 45-IA of the Reserve Bank of India Act 1934.

For K.B. Nambiar & Associates
Chartered Accountants
(Firm Regn. No. 002313S)
Bengaluru Ravishankar. V
8 August 2017 Partner ( M.No. 236671)

ANNEXURE B TO THE AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of sub section 3 of Section143 of the Companies Act 2013 (‘the Act'). We have audited the internalfinancialcontrols over the financial reporting of MAC CHARLES (INDIA) LIMITED("the Company") as of 31 March 2017 in conjunction with our audit of theStandalone financialstatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancialcontrols based on the internal control over the financialreporting 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 internalfinancialcontrols that were operating effectively for ensuring the orderly andefficientconduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financialinformation as required under the Companies Act 2013.

Auditors' responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrolsover financialreporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting ("theguidance note") and the standards on auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of internalfinancialcontrols and both issued by the Institute of Chartered Accountants of India.Those standards and the guidance notes require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financialcontrol over financialreporting were established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financialcontrol system over financialreporting and its operatingeffectiveness. Our audit of internal financialcontrols over financialreporting includedobtaining an 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 auditors' judgment including the assessment of the risks ofmaterial misstatement of the financialstatements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a basis for audit opinion on the Company's internal financialcontrols system overfinancialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financialcontrol over financialreporting is a process designed toprovide the reasonable assurance regarding the reliability of financialreporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial controls over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflectthe transaction anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financialstatements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations of themanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financialstatements.

Inherent limitations of internal financialcontrols over financial reporting

Because of the inherent limitations of internal financialcontrols overfinancialreporting including the possibility of collusion or improper managementoverride of control material misstatement due to error or fraud may occur and not bedetected. Also projection of any evaluation of the internal financialcontrols overfinancialreporting to future periods are subject to the risks that the internal financialcontrols over financialreporting may become inadequate because of changes in conditionsor 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 internalfinancialcontrols system over financialreporting and such internal financialcontrols overfinancialreporting were operating effectively as at 31 March 2017 based on the internalcontrols over financialreporting criteria established by the Company considering theessential components of internal control stated in the guidance note on audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For K.B. Nambiar & Associates
Chartered Accountants
(Firm Regn. No. 002313S)
Bengaluru Ravishankar. V
8 August 2017 Partner ( M.No. 236671)