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Magna Eletrocasting Ltd.

BSE: 517449 Sector: Engineering
NSE: N.A. ISIN Code: INE437D01010
BSE LIVE 15:40 | 17 Nov 198.30 1.25
(0.63%)
OPEN

202.00

HIGH

202.55

LOW

193.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 202.00
PREVIOUS CLOSE 197.05
VOLUME 6592
52-Week high 210.00
52-Week low 124.40
P/E 13.54
Mkt Cap.(Rs cr) 91
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 202.00
CLOSE 197.05
VOLUME 6592
52-Week high 210.00
52-Week low 124.40
P/E 13.54
Mkt Cap.(Rs cr) 91
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Magna Eletrocasting Ltd. (MAGNAELECTROCAS) - Auditors Report

Company auditors report

TO THE MEMBERS OF MAGNA ELECTRO CASTINGS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Magna Electro Castings Limited(‘the Company') which comprise the Balance Sheet as at 31st March 2017the 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 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 judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls and ensuring their operating effectiveness for 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.

Auditor's 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 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 performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationofthe 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 accountingprinciples generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;

b) in the case of Statement of Profit and Loss the Profit for the year ended on thatdate; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

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 specified in the paragraph3 and 4 of the order to the extent applicable.

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 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 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 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 termsof 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"; and

(g) with respect to the other matters to be included in the Auditor's Report inaccordance with Rule11 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 litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivatives contractsfor which 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 financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by the Company;

For S. KRISHNAMOORTHY & Co. For SRIKISHEN & CO.
Chartered Accountants Chartered Accountants
Registration No.001496S Registration No.004009S
K.N. SREEDHARAN K.MURALI MOHAN
Partner Auditor Proprietor Auditor
Membership No.012026 Membership No.014328
Coimbatore
26th May 2017

The Annexure A referred to in paragraph 1 of Report on Other Legal and RegulatoryRequirements

According to the information and explanations sought by us and given by the Company andthe books and records examined by us during the course of our Audit and to the best of ourknowledge and belief we report the following:

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

(b) The fixed assets of the Company have been physically verified by the managementduring the year at reasonable intervals having regard to size of the Company and nature ofits assets. No material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties of the Company shown under theFixed Assets schedule are held in the name of the Company.

(ii) The stocks of finished goods stores spares and raw materials of the Company havebeen physically verified by the management during the year at reasonable intervals. In ouropinion the frequency of such verification is reasonable and no material discrepancieswere noticed.

(iii) The Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013.

(iv) The Company has not granted any loan to directors or to any other person in whomthe Director is interested or given any guarantee or provided any security in connectionwith any loan taken by the director or such other person as contemplated in Section 185 ofthe Act. The Company has also not given any loan or made any investment as contemplatedunder Section 186 of the Act.

(v) The Company has not accepted any deposits to which the provisions of Section 73 to76 or any other relevant provisions of the Act and the rules framed there under and thedirections issued by the RBI are applicable.

(vi) We have broadly reviewed the books of account maintained by the company pursuantto the Rules made by the central government for the maintenance of cost records u/s. 148of the act and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have however not made a detailed examination of thecost records with a view to determine whether they are accurate or not.

(vii) (a) The Company is regular in depositing undisputed statutory dues includingProvident Fund

Employees' State Insurance Income tax Sales tax Service tax Duty on customs Dutyon excise Cess and any other statutory dues with the appropriate authorities and

No undisputed amounts payable in respect of Provident Fund Employees' State InsuranceIncome tax Sales tax Service tax Duty of customs Duty of excise Cess and any otherstatutory dues were in arrears as at 31.03.2017 for a period of more than six months fromthe date they became payable.

(b) There are no dues of Sales tax Service tax Duty on customs Duty on excise Cessand which have not been deposited with the appropriate authorities on account of anydispute.

The particulars of Income Tax which have not been deposited on account of a dispute areas follows:

Name of statute Nature of the dues Amt. as on 31.03.2017 (in Rs.) Period to which the amt. relates Forum where the dispute is pending Remarks
Income Tax Act 1961 Regular 432198 Asst. Year 2007-08 CIT (A) -
Income Tax Act 1961 Regular 1576640 Asst. Year 2014-15 CIT (A) -

(viii) The Company has not defaulted in the repayment of dues to bank. There are noborrowings from financial institution or Government. The Company has not issued anydebentures

(ix) The Company has not availed any term loan or raised money by initial public offeror further public offer (including debt instruments) during the year.

(x) No Material frauds by the Company or on the Company by its officers or employeeshas been noticed or reported during the course of our audit.

(xi) The Company has paid/provided for managerial remuneration in accordance with therequisite approval mandated by the provisions of Section 197 read with Schedule V of theAct.

(xii) The Company is not a nidhi company and therefore this clause is not applicable.

(xiii) All transactions with the related parties are incompliance with Section 177 andSection 188 of the Act. Details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.

(xv) The Company has not entered into non-cash transactions with directors or personsconnected with them.

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

For S. KRISHNAMOORTHY & Co. For SRIKISHEN & CO.
Chartered Accountants Chartered Accountants
Registration No.001496S Registration No.004009S
K.N. SREEDHARAN K.MURALI MOHAN
Partner Auditor Proprietor Auditor
Membership No.012026 Membership No.014328
Coimbatore
26th May 2017

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 internal financial controls over financial reporting of MagnaElectro Castings Limited ("the Company") as of 31st March 2017 inconjunction with our audit of the financial statements of the Company for the year endedon 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 authorizations 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 31st March 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For S. KRISHNAMOORTHY & Co. For SRIKISHEN & CO.
Chartered Accountants Chartered Accountants
Registration No.001496S Registration No.004009S
K.N. SREEDHARAN K.MURALI MOHAN
Partner Auditor Proprietor Auditor
Membership No.012026 Membership No.014328
Coimbatore
26th May 2017