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Machino Plastics Ltd.

BSE: 523248 Sector: Industrials
NSE: N.A. ISIN Code: INE082B01018
BSE LIVE 15:15 | 17 Nov 233.00 10.70
(4.81%)
OPEN

227.00

HIGH

233.00

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227.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 227.00
PREVIOUS CLOSE 222.30
VOLUME 572
52-Week high 341.75
52-Week low 140.00
P/E
Mkt Cap.(Rs cr) 143
Buy Price 227.05
Buy Qty 250.00
Sell Price 233.00
Sell Qty 130.00
OPEN 227.00
CLOSE 222.30
VOLUME 572
52-Week high 341.75
52-Week low 140.00
P/E
Mkt Cap.(Rs cr) 143
Buy Price 227.05
Buy Qty 250.00
Sell Price 233.00
Sell Qty 130.00

Machino Plastics Ltd. (MACHINOPLASTICS) - Auditors Report

Company auditors report

TO THE MEMBERS OF MACHINO PLASTICS LIMITED Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Machino PlasticsLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss (including other comprehensive income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of the state of affairsprofit and loss (including other comprehensive income) cash flows and changes in equityof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards specified under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments 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 Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the 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 Ind AS financial statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsas well as evaluating the overall presentation of the Ind AS financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs of the Company as at 31st March 2017 and its profit (including othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.

Emphasis of Matters

We draw attention to the Note 37 in the Notes to the Ind AS financial statements whichdescribes the uncertainty related to the outcome of the lawsuit filed by the Companyagainst Caparo Maruti Limited.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. 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 it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

(g) With respect to the other matters 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 has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements - Refer Note 41 to the financial statements;

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in its Ind AS financial statementsas to holdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 53 to the Ind AS financial statements.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For Goel Garg & Co

Chartered Accountants (Firm's Registration No. 000397N)

Sd/-

(Ashok Kumar Agarwal)

(Partner)

(Membership No. 084600)

Place of Signature: Gurgaon Date:26th May 2017

Annexure ‘A' to the independent auditor's report of even date on the Ind ASfinancial statements of MACHINO PLASTICS LIMITED

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 internal financial controls over financial reporting of MachinoPlastics Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the Ind AS financial statements 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 maintain 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both issued by the Institute ofChartered Accountants of India. Those standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting 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 auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

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

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Ind AS 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 (1) pertain to themaintenance of records that in reasonable details accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASfinancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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 over financial reporting tofuture periods are subject to the risk that the internal financial control over financialreporting may become inadequate because of changed in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

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 March 31 2017 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 CharteredAccountant of India.

For Goel Garg & Co

Chartered Accountants (Firm's Registration No. 000397N)

Sd/-

(Ashok Kumar Agarwal)

(Partner)

(Membership No. 084600) Place of Signature: Gurgaon Date: 26th May 2017

ANNEXURE ‘B' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 of Report on Other Legal and Regulatory Requirements of theauditors' report of even date to the members of Machino Plastics Limited on the Ind ASfinancial statements for the year ended 31st March'2017)

In terms of information and explanations given to us and the books and records examinedby us we report that:

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

(b) According to the information and explanations given to us the fixed assets werephysically verified during the year by the management in accordance with the programme ofverification which in our opinion is reasonable having regard to the size of the companyand the nature of its assets. To the best of our knowledge no material discrepancies werenoticed on verification conducted during the year as compared with the book records.

(c) Based upon the audit procedures performed the title deeds of the immovableproperty are held in the name of the company.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year. No material discrepancies were noticed on physical verificationcarried out at the end of the year.

(iii) As informed the Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013. Accordingly sub-clause (a) and(b) are not applicable.

(iv) In our opinion and according to the information and explanations given to us thecompany has not given any loan made any investment given any guarantee and provided anysecurity which is covered by Section 185 and 186 of the Companies Act 2013. Accordinglythe provisions of clause 3(iv) of the Companies (Auditor's Report) Order 2016 are notapplicable to the Company.

(v) The Company has not accepted any deposits from the public. Accordingly theprovisions of clause 3(v) of the Companies (Auditor's Report) Order 2016 are notapplicable to the Company.

(vi) To the best of our knowledge and as explained the Central Government has notprescribed maintenance of cost records under clause (d) of sub-section (1) of section 148of the Companies Act 2013 for the products of the Company.

(vii) (a) According to the information and explanations given to us and the records ofthe company examined by us

in our opinion the company is regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess andother statutory dues as applicable with the appropriate authorities. There was noundisputed amounts payable were in arrears as at March 31st 2017 for periodof more than six months from the date they became payable.

(b) According to the information and explanations given to us particulars of dues ofIncome tax sales tax wealth tax service tax duty of customs duty of excise valueadded tax and cess as at March 31st 2017 which have not been deposited onaccount of a dispute have been stated below:

Name of the Statute Nature of dues Amount (Rs.) Amount Deposit under protest Period Forum where dispute is pending
The Central Excise Act1944 Excise Duty 74743777 Nil October99 to September04 Commissioner Of Central Excise Delhi-III
The Central Excise Act1944 Excise Duty 18706867 Nil October04 to September05 Commissioner Of Central Excise Delhi-III
The Central Excise Act1944 Excise Duty 2258355 Nil F.Y 2003-04 & 2004-05 Commissioner Of Central Excise Delhi-III
The Central Excise Act1944 Excise Duty 15826495 Nil F.Y 2005-06 & 2006-07 (upto May 2006) Commissioner Of Central Excise Delhi-III
The Income Tax Act1961 Income Tax 1646625 Nil A.Y. 2009-10 Commissioner of Income Tax ( Appeals) New Delhi

(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of dues to any bank.

(ix) Based on information and explanations given to us by the management term loanswere applied for the purpose for which the loans were obtained. The company has not raisedany money by way of initial public offer or further public offer (including debtinstruments).

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the Ind AS financial statements and as per the information and explanationsgiven by the management we report that no fraud by the company or any fraud on theCompany by its officers or employees has been noticed or reported during the course of ouraudit.

(xi) Based upon the information and explanations given to us by the management theCompany has paid or provided the managerial remuneration in accordance with the requisiteapprovals mandated by provisions of section 197 read with Schedule V to the Companies Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly the provisionsof clause 3(xii) of the Companies (Auditor's Report) Order 2016 are not applicable to theCompany.

(xiii) Based on information and explanations given to us by the management alltransactions with the related parties are in compliance with section 177 and 188 of theCompanies Act 2013 where applicable and the details have been disclosed in the Ind ASfinancial Statements as required by the applicable Indian Accounting Standards.

(xiv) Based on information and explanations given to us by the management the Companyhas not made any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the period under review. Accordingly the provisions ofclause 3(xiv) of the Companies (Auditor's Report) Order 2016 are not applicable to theCompany.

(xv) In our opinion and according to the information and explanations given to us thecompany has not entered into any non-cash transaction with directors or person connectedwith him which is covered by Section 192 of the Companies Act 2013. Accordingly theprovisions of clause 3(xv) of the Companies (Auditor's Report) Order 2016 are notapplicable to the Company.

(xvi) In our opinion and according to the information and explanations given to us thecompany is not required to be registered under section 45 IA of the Reserve Bank of IndiaAct 1934. Accordingly the provisions of clause 3(xvi) of the Companies (Auditor'sReport) Order 2016 are not applicable to the Company.

For Goel Garg & Co

Chartered Accountants

(Firm's Registration No. 000397N)

Sd /-

(Ashok Kumar Agarwal)

(Partner)

(Membership No. 084600)

Place of Signature: Gurgaon

Date : 26th May 2017