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Modi Rubber Ltd.

BSE: 500890 Sector: Auto
NSE: MODIRUBBER ISIN Code: INE832A01018
BSE LIVE 13:42 | 20 Nov 112.95 2.95
(2.68%)
OPEN

112.95

HIGH

112.95

LOW

112.95

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 112.95
PREVIOUS CLOSE 110.00
VOLUME 500
52-Week high 128.00
52-Week low 37.00
P/E 61.05
Mkt Cap.(Rs cr) 283
Buy Price 107.10
Buy Qty 200.00
Sell Price 113.45
Sell Qty 49.00
OPEN 112.95
CLOSE 110.00
VOLUME 500
52-Week high 128.00
52-Week low 37.00
P/E 61.05
Mkt Cap.(Rs cr) 283
Buy Price 107.10
Buy Qty 200.00
Sell Price 113.45
Sell Qty 49.00

Modi Rubber Ltd. (MODIRUBBER) - Auditors Report

Company auditors report

To the members of Modi Rubber Limited

Report on the Financial Statements

We have audited the accompanying standalone financial statements of Modi RubberLimited ("the Company") which comprise the Balance Sheet as at March 312016 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theAccounting Principles generally accepted in India including 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 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.

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 and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat 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 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 financial control relevant to the Company’spreparation of the financial statements that 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 financialcontrol system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas 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 standalone 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 of the state of affairs of the Company as at March31 2016 and its profit and the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of subsection (11) ofsection 143 of Act and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationgiven to us we give in the Annexure ‘A’ a statement of the matters specified inparagraphs 3 and 4 of the Order.

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 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 written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of section 164 (2) ofthe 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 information and according to the explanations given to us:

• the Company has disclosed the impact of pending litigations as at March 31 2016on its financial position in its financial statements;

• the Company has made provision as required under applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts; and;

• there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312016

For P D M and Company
(Firm Registration No. 007966N)
Chartered Accountants
Place : New Delhi CA. Prabhat Jain
Date : 27.05.2016 Partner
(M. No. 086756)

ANNEXURE ‘A’ REFERRED IN OUR REPORT ON STANDALONE FINANCIAL STATEMENTS TO THEMEMBERS OF MODI RUBBER LIMITED FOR THE YEAR ENDED 31st MARCH 2016

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

b) The fixed assets (except the assets which the company has no access) have beenphysically verified by the management during the year. Material discrepancy noticed duringsuch verification have been properly dealt with in the books of accounts.

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 all the immovable propertiesare held in the name of the Company except the following cases:-

S.No. Nature of Property Gross Block (Rs. Lacs) Net Block (Rs. Lacs)
1 Building (Flat) 165.00 27.49
2 Building 98.73 18.96

(ii) Physical verification of the inventories of the company has been conducted atreasonable intervals. However in some cases physical verification has not been conducteddue to non-access of the inventory. As explained to us material discrepancies noticed onphysical verification of inventories as compared to book records have been properly dealtwith in the books of accounts.

(iii) The Company has granted an unsecured loan to one of its wholly owned subsidiarycompany covered in the register maintained under section 189 of the Act.

a) The terms and conditions of the aforesaid loan are not prejudicial to interest ofthe Company;

b) The loan granted was repaid as per schedule; and;

c) There is no overdue amount in respect of such loan.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofloans investments guarantees and securities.

(v) According to the information and explanation given to us the company has notaccepted any deposits within the meaning of sections 73 and 76 of the Act and the rulesframed thereunder to the extent notified. Accordingly paragraph 3(v) of the Order is notapplicable.

(vi) The Central Government has prescribed maintenance of Cost Records under clause (d)of sub-section (1) of Section 148 of the Act. However no Cost Records are maintained dueto the suspension of manufacturing operations.

(vii) a) According to the information and explanation given to us the company isgenerally regular in depositing undisputed statutory dues including Provident FundEmployees’ State Insurance Income Tax Sales Tax Service Tax Duty of Customs Dutyof Excise Value Added Tax Cess and any other statutory dues with the appropriateauthorities except amount of Rs. 126.26 lacs due to various Sales Tax Authorities as atthe last day of the financial year concerned for a period of more than six months from thedate they become payable.

b) According to information and explanations given to us the dues of Income Tax SalesTax Service Tax Duty of Customs Duty of Excise or Value Added Tax which have not beendeposited on account of any dispute and the forum where the dispute is pending are asunder :-

S. Name of the Statute No. State Amount Rs. Lacs Forum Where Dispute is pending Period Which It Relates to
I. EXCISE/DGFT LIABLITY
1 Central Excise Act 1944 Central Excise Act 1944 1604.72 High Court and Appelate Tribunals 1992-2002
2 Foreign Trade Development and Regulation Act 1992 Delhi 200.00 Additional DGFT Commissioner (A) 1995-1996
3 Custom Act 1962 551.42 Commissioner (A) 1996 2000 2001
II. SALES TAX LIABILITY
1 U.P Trade/VAT Act Uttar Pradesh 323.82 Tribunal Add. Comm.(A) D.C. (A) 1977-2002
2 Bihar Finance Act Bihar 374.85 Jt. Comm. (A) 1990-2002
3 Delhi ST Act Delhi 337.08 D.C. (A) 1976-2002
4 Maharashtra ST Act Mumbai 790.52 D.C. (A) 1975-2002
5 Jharkand ST Act Jamshedpur 65.42 D.C. (A) 2000-2002
6 Jharkand ST Act Ranchi 27.96 D.C. (A) 2000-2002
7 A.P GST Act Andhra Pradesh 95.58 Comm. (A) 1999-2002
8 Haryana CST Act Haryana 63.05 Jt. Comm. (A) 1999-2003
9 J & K ST Act Jammu & Kashmir 42.33 D.C. (A) 2001-2002
10 M.P Comm. Tax Act Madhya Pradesh 134.40 D.C. (A) 1993-2002
11 Uttaranchal ST Act Uttranchal 20.29 Jt. Comm. (A) 2000-2002
12 Pondicherry ST Act Puducherry 0.73 D.C. (A) 1999-2000

(viii) The Company does not have any loans or borrowings from any financialinstitutions banks government or debenture holders during the year. Accordinglyparagraph 3(viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the Order is not applicable.

(x) According to the information and explanation given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

(xi) According to the information and explanations given to us and on the basis of ourexamination of the records the Company has paid managerial remuneration in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Act.

(xii) In our opinion and according to 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 on the basis ofour examination of the records of the Company transactions with the related parties arein compliance with sections 177 and 188 of the Act where applicable and the details ofsuch transactions have been disclosed in the financial statements as required byapplicable accounting standards.

(xiv) According to the information and explanations given to us and on the basis of 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 on the basis of ourexamination of the records the Company has not entered into any non-cash transactionswith directors or persons connected with them. Accordingly paragraph 3(xv) of the Orderis not applicable.

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

For P D M and Company
(Firm Registration No. 007966N)
Chartered Accountants
Place : New Delhi CA. Prabhat Jain
Date : 27.05.2016 Partner
(M. No. 086756)