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Muller & Phipps (India) Ltd.

BSE: 501477 Sector: Others
NSE: N.A. ISIN Code: INE003F01015
BSE 00:00 | 13 Apr Muller & Phipps (India) Ltd
NSE 05:30 | 01 Jan Muller & Phipps (India) Ltd
OPEN 94.00
PREVIOUS CLOSE 94.00
VOLUME 50
52-Week high 115.75
52-Week low 45.70
P/E 49.21
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 94.00
CLOSE 94.00
VOLUME 50
52-Week high 115.75
52-Week low 45.70
P/E 49.21
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Muller & Phipps (India) Ltd. (MULLERPHIPPS) - Auditors Report

Company auditors report

To the Members of Muller & Phipps (India) Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Muller & Phipps(India) Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2015 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone 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 preparationand presentation of these standalone 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 theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadeaquate accounting records in accordance with the provisions of the Act for thesafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgements and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give true and fair view andfree from material misstatements whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken in to account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions 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 andthe 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 controlsrelevant to the Company’s preparation of the financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place internal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements.

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.

Basis for Qualified Opinion

The financial statements have been prepared on a going concern basis by the managementalthough the net worth of the Company has been completely eroded and there are no profitsfrom operational activities on the basis that they have business plans for profitableoperations in the future (Refer Note No. 40). However no such plans have been shown orexplained to us to our satisfaction and hence we are unable to form any opinion on thegoing concern status of the Company.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matters described in the Basis for QualifiedOpinion paragraph above the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India:

i. in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2015;

ii. in the case of the Statement of Profit and Loss of the profit for the year endedon that 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

1. As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") issued by Central Government of India in terms of sub-section (11) of section143 of the Act we give in the Annexure specified in paragraphs statementon thematters 3 and 4 of the Order to the extent applicable.

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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with rule 7 of theCompanies (Accounts) Rules 2014.

e. The going concern matter described under the Basis of Qualification paragraph abovein our opinion may have an adverse effect on the functioning of the Company.

f. On the basis of written representations received from the directors as on 31stMarch 2015 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms ofsection 164(2) of the Act.

g. With respect to 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:

a. The Company has disclosed the impact of pending litigations on its financialpositions in its financial statements Refer Note 27 to the financial statements.

b. The Company did not have any long-term contract including derivative contracts forwhich there were any material for seeable losses.

c. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Ford Rhodes Parks & Co.
Chartered Accountants
Firm’s Registration No. 102860W
Shrikant Prabhu
Place: Mumbai Partner
Date: 28th May 2015 Membership No. 35296

ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT

To the Members of Muller & Phipps (India) Limited

As referred to in Paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements’ in our Auditors’ report of even date and as required by theCompanies (Auditor’s Report) Order 2015 issued by the Central Government in termsof sub section (11) of section 143 of the Act and on the basis of such checks as weconsidered appropriate and according to the information and explanations given to usduring the course of the audit we further report that: -

1. a) The Company has not maintained proper records to show full particulars includingquantitative details and situation of fixed assets.

b) No physical verification of fixed assets has been conducted by the management duringthe year or in the recent past. In our opinion the frequency of verification needs to beimproved to be commensurate with the size of the Company and the nature of its business.

2. a) The inventory has been physically verified by the management at reasonableintervals during the year.

b) In our opinion the procedures of physical verification of inventory followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business.

c) The Company has maintained proper records of inventory. The discrepancies betweenthe physical inventory and the book records noticed on physical verification were notmaterial and have been properly dealt with in the books of account.

3. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under Section 189 of the Companies Act2013 (‘the Act’).

4. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventory fixed assets and for the sale ofgoods and services. During the course of our audit we have neither been informed nor havewe observed any continuing failure to correct major weaknesses in internal controls.

5. The Company has not accepted any deposits from the public within the meaning of theprovisions of Sections 73 to 76 or any other relevant provisions of the Act and Rulesframed thereunder.

6. The Central Government has not prescribed maintenance of cost records under section148(1) of the Companies Act 2013 for any of the products of the Company.

7. a) According to the information and explanations given to us and on the basis of theexamination of the books of account carried out by us the Company has been generallyregular in depositing undisputed statutory dues including Provident Fund Employees’State Insurance Income-tax Sales-tax Wealth Tax Service Tax Excise Duty Cess andother statutory dues wherever applicable with the appropriate authorities. There were noundisputed arrears of statutory dues outstanding as at 31st March 2015 for a period ofmore than six months from the date they became payable.

b) According to the information and explanations given to us by management and therecords of the Company examined by us there were no disputed dues in respect of SalesTax Income Tax Custom Duty Wealth Tax Service Tax Excise duty and Cess which have notbeen deposited as on 31st March 2015 except as stated below:

Nature of dues pending Amount Rs. Forum where dispute is
Income Tax A.Y 2001-02 1057725 Commissioner of Income-tax (Appeals)
Income Tax Penalty A.Y 2001-02 21000000 Commissioner of Income-tax (Appeals)
Sales Tax A.Y 2004-05 A.Y 2002-03 285000 Sales Tax Authorities Lucknow
229000
Income Tax A.Y 2011-12 279950 Commissioner of Income-tax (Appeals)

c) There were no amounts which were required to be transferred to the InvestorsEducation and Protection Fund by the Company in accordance with the relevant provisions ofthe Act and the rules made thereunder.

8. The accumulated losses of the Company as at 31st March 2015 are more than fiftypercent of its net worth. It has not incurred cash losses during the financial year endedon that date but has incurred cash losses in the immediately preceding financial year.

9. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to banks and financial institutions duringthe year. The Company has not issued any debentures

10. According to the information given to us and as per the records examined by us theCompany has not given any guarantee for the loans taken by others from banks or financialinstitutions during the year.

11. The Company has not availed / utilized any term loan.

12. According to the information and explanations given to us no material fraud on orby the Company has been noticed during the course of our audit or reported during theyear.

For Ford Rhodes Parks & Co.
Chartered Accountants
Firm’s Registration No. 102860W
Shrikant Prabhu
Place: Mumbai Partner
Date: 28th May 2015 Membership No. 35296