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MRO-TEK Realty Ltd.

BSE: 532376 Sector: Consumer
NSE: MRO-TEK ISIN Code: INE398B01018
BSE 15:06 | 17 Jan 38.00 0.95
(2.56%)
OPEN

35.20

HIGH

38.00

LOW

35.20

NSE 14:58 | 22 Jan 33.30 -1.70
(-4.86%)
OPEN

35.50

HIGH

35.50

LOW

33.30

OPEN 35.20
PREVIOUS CLOSE 37.05
VOLUME 1505
52-Week high 73.65
52-Week low 35.20
P/E
Mkt Cap.(Rs cr) 71
Buy Price 0.00
Buy Qty 0.00
Sell Price 38.00
Sell Qty 595.00
OPEN 35.20
CLOSE 37.05
VOLUME 1505
52-Week high 73.65
52-Week low 35.20
P/E
Mkt Cap.(Rs cr) 71
Buy Price 0.00
Buy Qty 0.00
Sell Price 38.00
Sell Qty 595.00

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

Company auditors report

TO THE MEMBERS OF MRO-TEK REALTY LIMITED (formerly known as MRO-TEK LIMITED)

Report on the Financial Statements

1. We have audited the accompanying financial statements of MRO-TEK REALTY LIMITED(formerly known as MRO-TEK LIMITED) ("the Company") which comprise the BalanceSheet as at March 31 2016 the Statement of Profit and Loss the Cash Flow Statement forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management’s Responsibility for the Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these 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 the 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 of 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

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. 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.

5. 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.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures 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. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

8. 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

(i) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2016;

(ii) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and

(iii) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraph 3 of the Order.

10. Subject to para 9 of this report and as required by Section 143 (3) of the Act wereport that: (a) We have sought and obtained all the information and explanations which tothe best of 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 it appears from our examination of those books.

(d) 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 and with the returnsreceived from the branches not visited by us.

(e) 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.

(g) On the basis of the written representations received from the directors and takenon record by the Board of Directors none of the directors is disqualified as on March 312016 from being appointed as a director in terms of Section 164 (2) of the Act.

(h) 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

(i) 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 our information and according to the explanations given to us:

(i) The Company discloses the does not have any pending litigations which would impactits financial position except as disclosed in note-26.II.(n) forming part of the financialstatements.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses except as disclosed in note-26.II.(n)forming part of the financial statements.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

for Singhvi Dev & Unni

Chartered Accountants

Firm Registration No. 003867S
Parthasarathy Sudarsanam
Bangalore

Partner

May 28 2016 Membership No. 205179

Annexure to the Independent Auditors’ Report

(as referred to in para 9 of the Independent Auditors’ report dated May 28 2016)

(i) (a) According to the information and explanations provided to us the Company ismaintaining proper records showing full particulars including quantitative details andsituation of fixed assets;

(b) The Company has a regular program of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of three years. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets.

In accordance with this program certain fixed assets were verified during the year andno material discrepancies were noticed on such verification. Consequently further commenton proper treatment thereof in the books of account does not arise; and

(c) According to the information and explanations provided to us the Company isholding title deeds of immovable properties owned by it in its name. However the titledeed of land at Hebbal is in the custody of to State Bank of India to facilitate overdraftfacility to the Company;

(ii) According to the information and explanations provided to us the physicalverification of inventory has been conducted at reasonable intervals by the management. Inour opinion the frequency of such verification is reasonable; We are informed that thediscrepancies between the physical stocks and the books of accounts noticed onverification were not material;

(iii) According to the information and explanations provided to us the Company has notgranted loans secured and / or unsecured to companies firms Limited Liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act. Consequently further comment under the sub-clause (a) (b) and (c) doesnot arise;

(iv) According to the information and explanations provided to us the company hascomplied with the provisions of section 185 and 186 of the Act with respect to the loansand investments made. Consequently further comment under this clause does not arise;

(v) According to the information and explanations provided to us the Company has notaccepted deposits. Consequently further comment under this clause does not arise;

(vi) According to the information and explanations provided to us the Company ismaintaining cost records in accordance with requirements of subsection (1) of section 148of 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 provided to us the Company isregular in depositing undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues with the appropriate authorities and theredoes not exist any arrears of outstanding statutory dues as at the last day of thefinancial year concerned for a period of more than six months from the date they becamepayable. Attention is however drawn to note 26.II.(u) regarding delays in payment of TaxDeduction at Source under section 192 of the Income Tax Act 1961;

(b) According to the information and explanations provided to us there does not existany dues of income tax or sales tax or service tax or duty of customs or duty of excise orvalue added tax or cess have not been deposited on account of any dispute except asprovided below:

Nature of Liability Year Appeal March 31 2016
Central Excise (CENVAT) 2009-10 Custom Excise Service Tax Appellate Tribunal South Zone Branch Appeal Number – E/546 & 547/2012 46690550

(viii) According to the information and explanations provided to us the Company hasnot defaulted in repayment of dues to a financial institution or government or bank.Consequently further comment under this clause does not arise;

(ix) According to the information and explanations given to us the Company has notraised money by issue of public offer (including debt instruments) and term loan.Consequently further comment under this clause does not arise;

(x) According to the information and explanations provided to us and based on ourexamination of the books of account maintained no fraud by the company or any fraud onthe Company by its officers or employees has been noticed or reported during the year.Consequently further comment on this clause does not arise;

(xi) According to the information and explanations provided to us and based on ourexamination of the books of account maintained the Company has paid managerialremuneration to the ‘Chairman and Managing Director’ and ‘ManagingDirector’ which is in accordance with provisions of section 197 read with Schedule Vto the Act. Consequently further comment on this clause does not arise;

(xii) According to the information and explanations provided to us the company is nota Nidhi company as per section 406 (1) of the Act. Consequently further comment on thisclause does not arise;

(xiii) According to the information and explanations provided to us all transactionswith related parties are in compliance with sections 177 and 188 of the Act and aredisclosed in note- 26.II.(h) forming part of the financial statements annexed to thisaudit report in compliance of AS-18 Related Party Disclosures;

(xiv) According to the information and explanations provided to us and based on ourexamination of the books of account maintained the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review. Consequently further comment on this clause does not arise;

(xv) According to the information and explanations provided to us the Company has notentered into any transactions with directors or persons connected with him or itssubsidiary company to transfer any assets for consideration other than cash under Section192 (1) (a) of the Act.

According to the information and explanations provided to us the Company has notentered into any transactions with directors or persons connected with him to acquire anyassets other for consideration other than cash under Section 192 (1) (b) of the Act; (xvi)According to the information and explanations provided to us the company is not requiredto be registered under section 45 IA of the Reserve Bank of lndia Act 1934. Consequentlyfurther comment on this clause does not arise.

for Singhvi Dev & Unni

Chartered Accountants

Firm Registration No. 003867S
Parthasarathy Sudarsanam
Bangalore

Partner

May 28 2016 Membership No. 205179

Annexure ’B’ to the Independent Auditors’ Report

(as referred to in para 10(h) of the Independent Auditors’ report dated May 282016)

1. We have audited the internal financial controls over financial reporting of theCompany as of March 31 2016 in conjunction with our audit of the financial statements ofthe Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

2. The Company’s management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance note on "Audit of Internal Financial controls overFinancial Reporting "(the "Guidance Note ") issued by the Institute ofChartered Accountants of India (ICAI). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company’s policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.

Auditor’s Responsibility

3. 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 to the extent applicable toan audit of internal financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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.

5. 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:

a. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

b. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and

c. provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. 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

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note.

Emphasis of Matters:

9. During the year the Company has not undertaken physical verification of inventory‘demo stock’. However the value of such inventory (net of provision forobsolescence) was ` 535655 as on March 31 2016.

10. The Company has control mechanism of independently reviewing of transactions incompliance with applicable statutory requirements. However aberrations were observed inrespect of Tax Deduction at Source under the provisions of section 192 of Income tax Act1961 which are in the process of being remediated. Attention is drawn to note-26.II.(u).

Our opinion is not modified in respect of these matters.

for Singhvi Dev & Unni

Chartered Accountants

Firm Registration No. 003867S
Parthasarathy Sudarsanam
Bangalore

Partner

May 28 2016 Membership No. 205179