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Mahalaxmi Seamless Ltd.

BSE: 513460 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE257F01017
BSE 00:00 | 25 Feb Mahalaxmi Seamless Ltd
NSE 05:30 | 01 Jan Mahalaxmi Seamless Ltd
OPEN 7.46
PREVIOUS CLOSE 7.46
VOLUME 100
52-Week high 9.12
52-Week low 4.99
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.46
CLOSE 7.46
VOLUME 100
52-Week high 9.12
52-Week low 4.99
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mahalaxmi Seamless Ltd. (MAHALAXMISEAM) - Auditors Report

Company auditors report

Report on the Financial Statements

We have ^audited the accompanying Financial Statements of Mahalaxmi Seamless Limited("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement Oi Profit and Loss and the Cash Flow Statement for the year then ended and asummary 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 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 rauds 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 financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the FinancialStatements that give a true and fair view and are free from material misstatement whetherdue 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 accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Financial Statements are free from materialmisstatement.

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.

i) The Company does not have any pending litigations which would impact its financialposition except as below:

ihere 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 derivative contracts forwhich there were any material foreseeable losses.

iii) The Company has Rs. 9964.50/- relating to financial year 2007-2008 required to betransferred to the Investor Education and Protection Fund.

iv) The Company had provided requisite disclosures in its financial statement in NoteNo. 36 as to holding as well as dealing in specified bank notes during the period from 08thNovember 2016 to 30th December 2016 and the same are in accordance with thebooks of accounts maintained by the Company.

For K C P L And Associates LLP

Chartered Accountants

Firm Regn. No.: 119223W/W100021

Rakesh Agarwal Partner

M. No. : 170685

Place: Mumbai.

Date: 30th May 2017.

Annexure 'A' to Auditors Report

Annexure referred to in Independent Auditors' Report to the members of MahalaxmiSeamless Limited ("the Company") on the financial statements for the yearended 31st March 2017 we report that:

(i) a) The Company has maintained proper records showing full particulars

including quantitative details and situation of fixed assets from Financial Year2006-2007. Prior to that the Company has not maintained proper records for Fixed Assets.

b) The Company has not physically verified its fixed assets during the year underaudit. Since the Company has not done physical verification of its fixed assets we areunable to comment on discrepancies with books of accounts.

c) As per information and explanation provided to us and on the basis of ourexamination of records produced us for verification by the Company the title deeds ofimmovable properties are held in the name of the Company.

(ii) The inventories have been physically verified by the management once in a yearwhich is reasonable having regards to its size and nature of the business. Discrepanciesnoticed on verification between physical stock & book stock were not material and havebeen properly dealt with in the books of accounts.

(iii) As informed and explanation provided to us the Company has not granted anyloans secured or unsecured to companies firms limited liabilities partnerships orother parties covered in the register maintained under section 189 of the Companies Act2013 hence clause (iii) (a) (iii) (b) and (iii) (c) of the Order are not applicable tothe Company.

(iv) Based on the information and explanations provided to us the Company has compliedwith the provisions of section 185 and section 186 of the Companies Act 2013 in respect ofloans investments guarantee and securities.

(v) As per the information and explanation given to us the Company has not acceptedany deposits from the public and consequently the directives issued by the Reserve Bankof India the provision of sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and rules made there under are not applicable.

(vi) In our opinion as per the explanation and information provided to us requirementregarding maintenance of cost records under sub section (1) of section 148 of theCompanies Act 2013 does not apply to the company.

(vii) a) According to the information and explanation given to us and on the basis ofour examination of records of the Company amounts deducted/ accrued in the books ofaccounts in respect of undisputed statutory dues including provident fund employees stateinsurance income-tax sales tax service tax duty of custom duty of excise value addedtax cess and any other statutory dues have been regularly deposited during the year bythe Company with the appropriate authorities though there has been a slight delay in fewcases.

According to the information and explanation given to us no undisputed amounts payablein respect of provident fund employees state insurance income-tax sales tax servicetax duty of custom duty of excise value added tax cess and any other statutory dueswere in arrear as at 31st March 2017 for a period of more than six months fromthe date they became payable except as below:

Sr. No. Name of Statute Amount (Rs.) Assessment

Year

1. Income Tax 12680/- 2008-09
2. Income Tax 225741/- 2009-10
3. Income Tax 27080/- 2011-12
4. Income Tax 50892/- 2009-10
5. Income Tax 212190/- 2009-10
6. Income Tax 14040/- 2006-07
7. Income Tax 6930/- 2010-11

b) According to the information and explanation given to us and on the basis of ourexamination of books of accounts there are no dues of income tax sales tax service taxduty of custom and duty of excise and value added tax as at the end of financial yearwhich have not been deposited on account of any dispute except as stated below:

Sr. No. Name of Statute Amount (Rs.) Period to which the amount relates Forum where dispute is pending
1. Income Tax 442210/- Assessment Year 2010-11 CIT (Appeal)
2. Income Tax 1293013/- Assessment Year 2009-10 CIT (Appeal)
3. Sales Tax *7057957/- Financial Year 2004-05 Joint Commissioner of Sales Tax (Appeal)

* Rs. 500000/- has been deposited against the same under protest.

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowing to financial institutions bank governmentand dues to debentures holders wherever availed except for Working Capital loan availedfrom Oriental Bank of Commerce as below:

Particulars Amount (Rs.) Default Period
Principal 59767/- 16 days
Interest 478335 March 2017

(ix) In our opinion and according to the information and explanation given to us theCompany has not raised any money by way of initial public offer or further public offer orterm loan during the year under audit hence clause (ix) of the Order is not applicable.

(x) According to information and explanation given to us no fraud by the Company or onthe Company by its officers or employee has been noticed or reported during the yearcourse of our audit.

(xi) In our opinion and according to the information and explanations given to us theCompany has provided or paid managerial remuneration with the requisite approvals mandatedby provisions of section 197 read with Schedule V of the Companies Act 2013.

(xii) The company is not a Nidhi Company hence clause (xii) of the Order is notapplicable.

(xiii) In our opinion and according to the information and explanations provided to usall the transactions with related parties are in compliance with section 177 and 188 ofthe Companies Act 2013 wherever applicable and the details has been disclosed in thefinancial statements etc. as required by the applicable accounting standards.

(xiv) In our opinion and according to the information and explanations provided to usthe Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures under section 42 of the Companies Act 2013 henceclause (xiv) of the Order is not applicable.

(xv) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him thus provision under section 192 of the Companies Act 2013 are not applicableat Company hence clause (xv) of the Order is not applicable.

(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 Reserve Bank of India Act1934.

For K C P L And Associates LLP

Chartered Accountants

Firm Regn. No.: 119223W/W100021

Rakesh Agarwal Partner

M. No. : 170685

Place: Mumbai Date: 30th May 2017.

Annexure 'B' to Auditors Report

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF MAHALAXMI SEAMLESS 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 MahalaxmiSeamless Limited (''the Company") as of March 31 2017 in conjunction with ouraudit 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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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

According to the information and explanation given to us the Company is in the processof formally establishing its internal financial control over financial reporting oncriteria based on or considering the essential components of internal control stated inthe Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India. Accordingly we are unable to obtainsufficient appropriate audit evidence to provide a basis for our opinion whether theCompany has adequate internal financial controls over financial reporting and whether suchinternal financial controls were operating effectively as at March 31 2017.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the standalone financial statements of theCompany and the disclaimer does not affect our opinion on the standalone financialstatements of the Company.

For K C P L And Associates LLP

Chartered Accountants

Firm Regn. No.: 119223W/W100021

Rakesh Agarwal Partner

M. No.: 170685

Place: Mumbai.

Date: 30th May 2017.