Mahalaxmi Seamless Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Mahalaxmi Seamless Limited ("thecompany") which comprise the Balance Sheet as at 31 March 2015 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 auditor'sjudgment 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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.
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 March
b) in the case of the Statement of Profit and Loss of the loss for the yearended on that date; 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
As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2015 we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
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 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 31 March2015 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2015 from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect to the other matters included in the Auditor's Report and to our bestof our information and according to the explanations given to us :
i) The Company does not have any pending litigations which would impact its financialposition except as below :
There are some labour related matters pending in the Labour Court at Raigad and Mumbai.The Company's Liability towards such matters cannot be ascertained. .
ii) The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
iii) The Company has Rs. 158738/- related to financial year 2007-2008 required to betransferred to investor education and protection fund.
For K C P L AND Associates LLP Chartered Accountants Firm Reg. No. 119223W
M. No. 121275
Place: Mumbai Dated: 30th May 2015
Annexure to Auditors Report
(Referred to in Paragraph 1 under the heading of "report on other legal andregulatory requirements" of our report of even date)
i) In respect of its fixed assets:
a. In our opinion Company is not maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets.
b. As explained to us the fixed assets of the Company have been physically verifiedduring the year by the management but in view of Inadequate fixed assets records we areunable to comment on discrepancies.
c. The Company has not disposed off substantial parts of fixed assets during the year.
ii) In respect of its inventories:
a. The inventory has been physical verified during the year by the management atreasonable intervals.
b. The procedures followed by the management for physical verification of stock are inour opinion reasonable and adequate in relation to the size of the company and nature ofits business.
c. In our opinion and according to the information and explanation given to us thecompany has maintained proper records of its inventories and discrepancies were noticed onverification between the physical stock & book stock were not material have beenproperly dealt with in the books of account.
iii) In respect of the loans secured or unsecured granted by the Company tocompanies firms or other parties covered in the register maintained under Section 189 ofthe Companies Act 2013:
a. The Company has not granted any loan secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Act.
b. In view of our comments in Para iii) (a) above clauses (iii) (a) and (b) of thesaid Order are not applicable to the Company.
iv) In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchases of inventory and fixed assets and for the sale ofgoods and services however in our view it needs to be further strengthened. During thecourse of our audit we have not observed any continuing failure to correct major weaknessin internal control systems.
v) The company has not accepted deposits hence clauses (v) of the said Order is notapplicable to the Company.
vi) Based on the information and explanation provided to us the Company has maintainedthe cost records prescribed by the Central Government under Section 148 (1) of theCompanies Act 2013. However we have not made detailed examination of such cost recordswith a view to determine whether they are maintained adequately.
vii) In respect of statutory dues:
a. Accordingly to the records of the Company the undisputed statutory dues includingProvident Fund ESIC Sales Tax Wealth Tax Service Tax Customs Duty Excise Duty andCess have generally been regularly deposited with the appropriate authorities exceptcertain delays. According to the information and explanations given to us there are noundisputed amount payable in respect of such statutory dues which have remainedoutstanding as at 31st March 2015 for a period more than six months from the date theybecame payable.
b. According to the information and explanations given to us the Company has no duesof Income Tax Sales Tax Wealth Tax Service Tax Custom Duty Excise Duty and Cess whichhave not been deposited on account of disputes with the related authorities except asbelow:
|Nature of Liability ||Financial year to which it concerns ||Amount (Rs.) |
|Income tax Liability ||F.Y. 2008-09 ||1293013/- |
|Income tax Liability ||F.Y. 2009-10 ||442210/- |
|Sales Tax Liability ||F.Y. 2004-05 ||6557957/- |
c. According to information and explanation given to us the Company has Rs. 158738/-related to financial year 2007-2008 required to be transferred to investor education andprotection fund in accordance with the relevant provisions of the Companies Act 1956 (1of 1956) and rules made thereunder.
viii) The accumulated losses as at the end of the financial year do not exceed 50% ofthe Net Worth and the Company has not incurred cash loss in the current financial yearhowever there was cash loss during the preceding financial year amounting to Rs.25992961/-.
ix) In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of its dues to banks and financial institutions.
x) The Company has not given any guarantees for loans taken by others from banks andfinancial institutions.
xi) There are no term loans raised during the year.
xii) In our opinion and according to the information and explanations given to us nofraud on or by the Company has been noticed or reported during the course of our audit.
For K C P L AND Associates LLP Chartered Accountants Firm No. 119223 W
M. No. 121275
Date: 30th May 2015