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Madhav Marbles and Granites Ltd.

BSE: 515093 Sector: Others
NSE: MADHAV ISIN Code: INE925C01016
BSE LIVE 15:40 | 21 Nov 66.15 1.15
(1.77%)
OPEN

65.00

HIGH

67.50

LOW

65.00

NSE 15:30 | 21 Nov 65.95 0.60
(0.92%)
OPEN

65.90

HIGH

67.50

LOW

65.20

OPEN 65.00
PREVIOUS CLOSE 65.00
VOLUME 2902
52-Week high 79.80
52-Week low 43.65
P/E 26.67
Mkt Cap.(Rs cr) 59
Buy Price 66.15
Buy Qty 86.00
Sell Price 0.00
Sell Qty 0.00
OPEN 65.00
CLOSE 65.00
VOLUME 2902
52-Week high 79.80
52-Week low 43.65
P/E 26.67
Mkt Cap.(Rs cr) 59
Buy Price 66.15
Buy Qty 86.00
Sell Price 0.00
Sell Qty 0.00

Madhav Marbles and Granites Ltd. (MADHAV) - Auditors Report

Company auditors report

To

The Members of

Madhav Marbles and Granites Limited Report on the Financial Statements

We have audited the accompanying financial statements of Madhav Marbles and GranitesLimited ("the Company") which comprise the Balance Sheet as at March 312017the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda summary of significant accounting policies and other explanatory information.

Management's Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments 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 presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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. 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 performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditors'judgment including the assessment of the risks of material misstatement of the 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 financial statements.

Opinion

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 accounting principles generallyaccepted in India of the state of affairs of the Company as at March 312017 itsfinancial performance 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 ("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 specified in paragraphs 3and 4 of the Order.

(2) 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e. On the basis of written representations received from the directors as on March312017 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 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 B"; and

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 financial statements - Refer Note 29 on Contingent Liabilities;

(ii) The Company did not have any long-term contracts including derivative contractshence; the question of any material foreseeable losses does not arise;

(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 financial statements as toholdings as well as dealings in Specified Bank Notes during the period from November 82016 to December 30 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note no. 46 to the financial statements.

For NYATI & ASSOCIATES
Chartered Accountants
Firm Registration No. 002327C
Suresh Nyati
Partner
Udaipur May 17 2017 Membership No. 070742

Annexure - A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report of even date to the members ofthe Company on the financial statements for the year ended March 312017 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 assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) As explained to us the inventory has been physically verified at reasonableintervals during the year by the management. In our opinion the frequency of verificationis reasonable. The discrepancies between the physical stocks and the book stocks were notmaterial in relation to the operation of the Company and the same have been properly dealtwith in the books of account.

(iii) The Company has not granted loans secured or unsecured to Companies firms LLPor other parties listed in the register maintained under section 189 of the Companies Act2013 (‘the Act') .

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provision of section 185 and 186 of the Act with respect tothe loans and investment made.

(v) The Company has not accepted any deposits from the public.

(vi) We have broadly reviewed the books of account maintained by the Company in respectof products where the maintenance of cost records has been specified by the CentralGovernment under subsection (1) of Section 148 of the Act and the rules framed there underand we are of the opinion that prima facie the prescribed accounts and records have beenmade 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 income-taxsales tax value added tax duty of customs service tax cess and other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax duty ofcustoms service tax cess and other material statutory dues were in arrears as at March312017 for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us there are no dues of dutyof customs which have not been deposited with the appropriate authorities on account ofany dispute. However according to information and explanations given to us the followingdues of income tax sales tax duty of excise service tax and value added tax have notbeen deposited by the Company on account of disputes:

Name of the statute Nature of the disputed dues Amount Rs.(Lacs) Period to which the amount relates Forum where disputes are pending
Income Tax Act 1961 Disallowance of claim of deduction u/s 80IA and personal expenses. 32.34 A.Y 2013-14 CIT(A)
Income Tax Act 1961 Penalty under section 271(1) (c) 0.32 A.Y. 2011-12 CIT(A)
Income Tax Act 1961 Disallowance of expenses and employer's contribution to ESIC 1.01 A.Y. 2014-15 CIT(A)
Central Excise Duty Disallowing Exemption/ concession towards DTA sale under Notification No.23/2003 dated 31.3.2003 89.81 1st April 200830th November 2015 Central Excise & Service Tax Appellate Tribunal Commissioner (Appeals)
Departmental Appeal
Income Tax Act 1961 Relief granted by Commissioner of Income Tax (Appeals) for deduction u/s 80IA 36(1)(iii) and contribution towards PF/ESI. 35.67 2012-13 ITAT
Income Tax Act 1961 Relief granted by Commissioner of Income Tax (Appeals) for deduction u/s 80IA 36(1)(iii) and contribution towards PF/ESI. 52.12 2011-12 ITAT
Income Tax Act 1961 Relief granted by Commissioner of Income Tax (Appeals) for deduction u/s 80IA 10B and allowance of expenses 36.14 2010-11 ITAT
Income Tax Act 1961 Relief granted by ITAT for deduction u/s 36(1)(vii). 57.75 2004-05 Rajasthan High Court
Income Tax Act 1961 Relief granted by ITAT for deduction u/s 36(1)(vii) 10B and 40(a)(ia). 27.32 2005-06 Rajasthan High Court
Income Tax Act 1961 Relief granted by ITAT for deduction u/s 32 and 40(a) (ia). 7.44 2006-07 Rajasthan High Court
Income Tax Act 1961 Relief granted by ITAT for deduction u/s 40(a)(ia) and allowance of expenses. 3.17 2007-08 Rajasthan High Court
Income Tax Act 1961 Relief granted by ITAT for deduction u/s 40(a)(ia). 92.81 2008-09 Rajasthan High Court
Income Tax Act 1961 Relief granted by ITAT for deduction u/s 40(a)(ia). 3.69 2009-10 Rajasthan High Court

(viii) According to the records of the Company examined by us and the information andexplanation given to us the company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government or due to debenture holders as atbalance sheet date.

(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 its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations give 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) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(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 sections 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 give 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 convertible debentures duringthe 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. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For NYATI & ASSOCIATES
Chartered Accountants
Firm Registration No. 002327C
Suresh Nyati
Partner
Udaipur May 17 2017 Membership No. 070742

Annexure - B to the Auditors' Report

Referred to in paragraph 2(f) of the Independent Auditor's Report of even date to themembers of Company on the financial statements for the year ended March 312017 we reportthat:

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 MadhavMarbles and Granites Limited ("the Company") as of March 312017 in conjunctionwith our audit of the 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 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 company's policies the safeguarding ofits 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.

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 applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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 judgment 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) 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

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized 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

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

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 CharteredAccountants of India.

For NYATI & ASSOCIATES
Chartered Accountants
Firm Registration No. 002327C
Suresh Nyati
Partner
Udaipur May 17 2017 Membership No. 070742