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MRO-TEK Realty Ltd.

BSE: 532376 Sector: Consumer
NSE: MRO-TEK ISIN Code: INE398B01018
BSE 00:00 | 25 May 23.00 1.05
(4.78%)
OPEN

23.00

HIGH

23.00

LOW

23.00

NSE 00:00 | 22 May 20.20 0
(0.00%)
OPEN

20.00

HIGH

20.20

LOW

20.00

OPEN 23.00
PREVIOUS CLOSE 21.95
VOLUME 3
52-Week high 66.20
52-Week low 18.50
P/E 6.73
Mkt Cap.(Rs cr) 43
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 23.00
CLOSE 21.95
VOLUME 3
52-Week high 66.20
52-Week low 18.50
P/E 6.73
Mkt Cap.(Rs cr) 43
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

MRO-TEK Realty Ltd. (MRO-TEK) - Auditors Report

Company auditors report

TO THE MEMBERS OF MRO-TEK REALTY LIMITED (formerly known as "MRO-TEKLimited") Report on the Financial Statements

We have audited the accompanying financial statements of

MRO-TEK Realty Limited ("the Company") which comprise the Balance Sheet asat 31 March 2017 and the Statement of Profit and Loss and the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in sub-section(5) of Section 134 of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under

Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. 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 appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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.

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 thereunder. We conducted our audit in accordancewith the Standards on

Auditing specified under Section 143(10) of the Act. Those

Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors' 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 presentationof the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

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 31March

2017 and its Profit and its 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 (‘the Order') issuedby the Central Government of India in terms of sub-section (11) of Section 143 of the Actwe give in the Annexure A a statement on the matters specified in the paragraphs 3 and 4of the Order.

As required by sub-section (3) of Section 143 of the Act we report that: a) we havesought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit; b) in our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books; c) the Balance Sheet the Statement of Profitand Loss and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account; d) in our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014; e) on the basis of the written representations receivedfrom the Directors as on 31 March 2017 taken on record by the Board of Directors none ofthe

Directors are disqualified as on 31 March 2017 from being appointed as a Director interms of sub-section (2) of Section 164 of the Act; f) with respect to the adequacy of theinternal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate report in the Annexure B; and g)with respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:

1. the Company has confirmed that there is no pending litigation against the Companybearing any financial implication except as disclosed in note-26(II) (o); 2. the Companydid not have any long-term contracts including derivative contracts for which there wereany material foreseeable losses; and

3. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended 31stMarch 2017.

4. The Company has provided requisite disclosures in financial statements as toholdings as well as dealings in Specified Bank Notes during the period from November 82016 to December 30 2016. Based on audit procedures and relying on the Managementrepresentation we report that the disclosures are in accordance with books of accountsmaintained by the Company and as produced to us by the Management. Refer Note 26(II)(s).

For K.S.Aiyar & CO

Chartered Accountants

ICAI Firm's Registration number-100186W

Ramamohan R Hegde

Place: Bangalore Partner Date: 26/05/2017 Membership No: 23206

Annexure ‘A' to the Independent Auditor's Report – 31 March 2017

With reference to the Annexure A referred to in the

Independent Auditor's Report to the Members of the

Company on the financial statements for the year ended 31

March 2017 we report the following:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich the fixed assets are verified by the Management according to a phased programmedesigned to cover all the items over a period of three years. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. In accordance with the policy the Company hasphysically verified certain fixed assets during the year and we are informed that nodiscrepancies were noticed on such verification

(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 immovable properties asdisclosed in Note 10 to the financial statements are held in the name of the Company.

(ii) The inventory other than stocks lying with third parties has been physicallyverified by the Management during the year. In our opinion the frequency of suchverification is reasonable. In respect of stocks lying with third parties at the year-endwritten confirmations have been obtained. The discrepancies noticed on verificationbetween the physical stocks and the book records were not material and have been dealtwith in books of account.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theCompanies Act 2013 (‘the Act'). Accordingly paragraphs 3 (iii) (a)

(b) and (c) of the Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanation given to us theCompany has not granted any loans or provided any guarantees or security to the partiescovered under Section 185 of the Act. The Company has complied with the provisions ofSection 186 of the Act in respect of the loans given and investments made.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits as per the directives issued by the Reserve Bank ofIndia and the provisions of Sections 73 to 76 or any other relevant provisions of the Actand the rules framed thereunder. Accordingly paragraph 3(v) of the Order is notapplicable to the Company.

(vi) According to the information and explanations provided to us the Company ismaintaining cost records in accordance with requirements of the subsection (1) of section148 of the Companies Act 2013 read with Companies (Cost Records and Audit) Rules 2014.Consequently further comment under this clause does not arise.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees' StateInsurance

Income-tax Sales-tax Service tax duty of customs duty of excise value added taxcess and other material statutory dues have been generally regularly deposited during theyear with the appropriate authorities.

(b) According to the information and explanations given to us there are no dues ofIncome-tax Sales tax Service tax Duty of customs Duty of excise and Value added tax asat 31 March

2017 which have not been deposited with the appropriate authorities on account of anydispute except as provide below:

Name of the Statute Nature of dues Amount Period to which amount relates Forum where the dispute is pending
(Rs. in Lacs)
Central Excise Act 1944 Central Excise Duty 46690550/- FY 2010-11 Customs Excise & Service Tax Appellate Tribunal Bangalore

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to a financial institution or thegovernment or bank. Consequently further comment under this clause does not arise.

(ix) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not raised any moneys by way ofinitial public offer or further public offer (including debt instruments) and has notobtained any term loans during the year. Accordingly paragraph 3(ix) of the Order is notapplicable to the

Company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

(xi) In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company and the Nidhi Rules 2014 are not applicable to it.Accordingly paragraph 3(xii) of the Order is not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to usthe Company has entered into transactions with related parties in compliance with theprovisions of Sections 177 and 188 of the Act where applicable and the details of suchrelated party transactions have been disclosed in the financial statements as required byAccounting Standard (AS)

18 Related Party Disclosures specified under Section

133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) According to the information and explanations given to us and based on 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. Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable to the Company.

(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 the Reserve

Bank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicableto the Company.

For K.S.Aiyar & CO

Chartered Accountants

ICAI Firm's Registration number-100186W

Ramamohan R Hegde

Place: Bangalore Partner Date: 26/05/2017

Membership No: 23206

Annexure ‘B' To The Independent Auditor's Report – 31 March 2017

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 the Companyas of 31 March 2017 in conjunction with our audit of the financial statements of theCompany 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 (‘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.

Auditor's 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 Act to the extent applicable to an auditof internal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI of India. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 auditors' judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.