You are here » Home » Companies » Company Overview » Minal Industries Ltd

Minal Industries Ltd.

BSE: 522235 Sector: Others
NSE: N.A. ISIN Code: INE097E01028
BSE 10:22 | 11 Jul Minal Industries Ltd
NSE 05:30 | 01 Jan Minal Industries Ltd
OPEN 0.53
52-Week high 0.53
52-Week low 0.00
Mkt Cap.(Rs cr) 10
Buy Price 0.53
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.53
CLOSE 0.51
52-Week high 0.53
52-Week low 0.00
Mkt Cap.(Rs cr) 10
Buy Price 0.53
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00

Minal Industries Ltd. (MINALINDUS) - Auditors Report

Company auditors report


Report on the Financial Statements

We have audited the accompanying financial statements of MINAL INDUSTRIES LIMITED ("theCompany") which comprise the Balance Sheet as at March 31 2015 the Statement ofProfit and Loss and the Cash Flow Statement for the year ended on that date and a summaryof the 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) Rules2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities selection and application of theappropriate accounting policies making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial controls 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.

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 theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financials control relevant to the Company’spreparation of the financial statements and give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating the overall presentation of 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.

Basis for Qualified Opinion

a) Attention is invited to Note No. 11 to the financial statement relating toinventories in respect of stock of polished diamonds cost is based on technical estimateby the management to avoid distortion in valuation. In view of the nature of variation inthe value of individual diamonds the differentials in their costs it is not practicableto compute the cost of polished diamonds using either FIFO or weighted average cost. Inview of multiple grades it is not practicable to use specific cost. The basis ofcomputing cost used on consistent basis though in line with generally accepted industrypractice is a deviation from the method prescribed by Accounting Standard (AS) - 2 ‘Valuation of Inventories’. The impact of profit for the year reserves and surplusand inventories as at 31st March 2015 if any due to the above deviations is notascertainable.

b) Attention is invited to Note no. 31 to the financial statement relating to TradeReceivables amounting to Rs.5150734145/- and Loans and Advances receivable amountingto Rs. 4109826/- are outstanding for more than three years. We are unable to ascertainwhether such balances as at the balance sheet date are fully recoverable. Accordingly weare unable to ascertain the impact if any that may arise in case any of theseReceivables and Loans and advances are subsequently determined to be doubtful of recovery.Had the company provided provision for the same the loss for the year would have beenhigher by the said amount.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effect of the matter described in the Basis for QualifiedOpinion paragraph above the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas on 31st March 2015 and its Loss and its cash flows for the year ended on that date.

Emphasis of Matter

a) We draw attention to Note No. 26 to the financial statement relating to share ofloss of partnership firm M/s RSBL Jewels excludes effect of exchange rate difference atthe year end as the Trade payable / Trade receivable are not been restated at the year endexchange rate which is not as per AS-11 The Effects of change in Foreign Exchange Rates.The impact thereof on the financial statements is not ascertainable and quantifiable.

b) We draw attention to Note No. 27 to the financial statement Gratuity and leaveencashment is accounted on cash basis which is not as per AS-15 Employee Benefits.

Our opinion is not qualified in respect of the above matter

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") issued by the Central Government of India in exercise of powers conferred bySection 143 (11) of the Act we enclose in the Annexure a statement on the mattersspecified in paragraphs 3 and 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 purpose 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 Companies (Accounts)Rules 2014.

e) On the basis of written representations received from the Directors as on March 312015 taken on record by the Board of Directors none of the Directors are disqualified ason March 31 2015 from being appointed as a Director in terms of Section 164(2) of theAct.

f) With respect to the other matters to be included in the Auditors’ 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 22 to the financial statements;

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

iii. There has been delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company – Refer Note 29 (b) to thefinancial statements.

For R H Modi & Co.
Chartered Accountants
(Firm Reg. No. 106486W)
Place : Mumbai Proprietor
Date : 30/05/2015 Membership No. : 37643