To the Members of
MULTIPURPOSE TRADING AND AGENCIES LIMITED.
Report on the Financial Statements
We have audited the accompanying financial statements of Multipurpose Trading AndAgencies Limited (-the Company-) which comprise the BalanceSheetas at March 31 2017theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummaryof significant accounting policies and other explanatory information (collectivelyreferred to as -financial statements ).
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of theCompanies Act 2013 (-the Act-)with respect to the preparation of thesefinancialstatements that give a true and fair view of the financial position and financialperformance of the Company in accordancewith accounting principles generally accepted inIndia including the Accounting Standards specified under Section 133 of the Act. readwith Rule 7 of the Companies (Accounts) Rules 2014 (-the Rules-). Thisresponsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenanceof adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation ofthe financial statements that give a true and fairview and are freefrom material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financialstatements 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 inaccordancewith the Standards on Auditing issued by the Instituteof Chartered Accountants of Indiaas specified under Section 143(10) of the Act. Those Standards require thatwe comply withethical requirements and plan and perform theaudit to obtain reasonable assurance aboutwhether the financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidenceabout the amounts anddisclosures in the financial statements.The procedures selected depend on the auditor'sjudgmentincluding the assessment of the risks of material misstatement ofthe financialstatements whether due to fraud or error. In makingthose risk assessments the auditorconsiders internal financial controlrelevant to the Company's preparation of thefmancialstatements that give a true and fair view in order to design audit procedures thatareappropriate in the circumstances. An audit also includes evaluatingthe appropriatenessof accounting policies used and thereasonableness of the accounting estimates made bytheCompany's Directors as well as evaluating the
overall presentation of the financial statements. We believe that the audit evidence wehaveobtained is sufficient and appropriate to provide a basis for ouraudit opinion on thefinancial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:-
a) in the case of the palance Sheet of the state of affairs of the Company as at March31 2017;
b) in the case of Statement of Profit and Loss of the Profit for the year ended onthat date; and
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate
Report on Other Legal and Regulatory Requirements
1. As required by the companies (Auditor's Report) Order 2016 (-the Order-) issued bythe central government of India in terms of sub-section (11) of section 143 of theCompanies Act 2013 we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act and Companies (Audit and Auditors) Rule2014 we report that:
(a) We have sought and obtained all the information and explanationswhich to the bestof our knowledge and belief werenecessary for the purpose of our audit;
(b) In our opinion proper books of account as required bylaw have been kept by theCompany so far as it appearsfrom 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 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 fromthe directors as on March 312017 and taken on recordby the Board of Directors none of the directors isdisqualifiedas on March 31 2017 from being appointedas a director in terms of Section 164 (2) of theAct;
(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 2- to this report;
(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 our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition;
ii. The Company did not have any long-term contracts including derivative contracts forwhich there -
were any material foreseeable losses; '
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The Company had provided requisite disclosure in its Financial Statements inSpecified Bank Notes during the period from 8th November 2016 to 30th December 2016(refer note 9 of the financial statements) and these disclosures are in accordance withthe books of accounts maintained by the Company.
For NIDHI BANSAL & CO. Chartered Accountants
Varun Gupta (Partner)
Membership No. 503070 \udit Firm Reg. No. 022073N
Place: New Delhi Dated: 26.05.2017
-Annexure B- to the Independent Auditor's Report of even date on the of M/SMULTIPURPOSE TRADING AND AGENCIES LIMITED
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 M/sMultipurpose Trading And Agencies Limited (-the Company-) as of March 31 2017 inconjunction with our audit of the financial statements of the Company for the year endedon 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)-. These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
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 deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by ICAI. Those Standards and the Guidance Note require that wecomply 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 auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
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 controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit
preparation 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 (3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets that could have a material effect on thefinancial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
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.
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 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For NIDHI BANSAL & CO. Chartered Accountants
Place: New Delhi Dated: 26.05.2017
(Varun Gupta) (Partner)
Membership No. 503070 Audit Firm Reg. No. 022073N
Annexure referred to in paragraph 7 Our Report of even date to the members ofMultipurpose Trading & Agencies Limited on the accounts of the company for the yearended 31st March 2016
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that :-
i)(a) The company is maintaining proper records showing full particularsincludingquantitative details and situation of fixed assets;
(b) As explained to us all fixed assets have been physically verified by themanagement at reasonable intervals and as informed to us No discrepancies were noticed onsuch
(ii) As there are No opening inventory and trading activity during the year underreview The clause of physical verification of goods is not applicable
(iii) As informed to us the company has granted unsecured Loan to company covered inthe register maintained under section 189 of the Companies Act.
|Name ||Amount ||Balance at the year end |
|Desert River Capital Pvt. Ltd ||16597719/- ||27354724/- |
b) In our Opinion the terms and conditions on which loans have been granted to theabove companies listed in the register maintained under section 189 of the Companies Act2013 are not prima facie prejudicial to the interest of the Companies
c) Since the term of repayments have not been stipulated we are unable to commentwhether the
repayment of principal amount is regular or not.
(iv) The Company has complied with the provisions of section 185 and 186 of theCompanies Act
2013 in respect of loans& advances investments made by the company during theyear under review . k
(v) According to the information and explanations given to us the Company has notaccepted any deposits in terms of directives issued by Reserve Bank of India and theprovisions of Sections 73 to 76 or any other relevant provisions of the Companies Act andthe rules framed there under.
(vi) As informed to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of Section 148 of the Act
(vii) Provisions of Provident Fund and Employee's State Insurance are not applicable tothe company.
b) According to information and explanations given to us and the records of the companyexamined by
us. no undisputed outstanding dues of Income Tax Wealth Tax Sales Tax Custom Dutyand Excise Duty were outstanding as at 31.3.2017 for a period more than six months fromthe date
they became payable.
c) According to the information and explanations given to us and the records of thecompany examined by us there are no dues of sales tax income tax custom wealth taxexcise duty cess which has not been deposited on account of any dispute except thefollowing
|Name of the statue ||Name of the dues ||Amount (in Rs) ||Period to which the amount relate ||Status/ Forum where dispute is pending |
|Income Tax ||INCOME Tax ||Rs.640432/- ||A.Y. 2006-07 ||CIT ( Appeals) |
|Income Tax ||INCOME Tax ( Penalty ) ||Rs.570797/- ||A.Y. 2006-07 ||CIT ( Appeals) |
(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of dues to a financial institution or bank.
(ix) According to the information and explanations given to usthe Company is not raisedmoney by way of initial public offer or further public offer(including debt instruments)and term loans were applied for the purposes forwhich those are raised.
(x) Based upon the audit procedures performed and according to the information andexplanations given to us no fraud on or by the company has been noticed or reportedduring the year of our audit
(xi) The Company has provided / paid managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act
(xii) Company is not Nidhi Company hence further reporting under this clause is notapplicable
(xiii) Company has disclosed all transactions with the related parties are incompliance with sections 177 and 188 of Companies Act 2013 and the details have beendisclosed in the Financial Statements etc. as required by the applicableaccountingstandards;
(xiv) According to the information and explanations given to usthe company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year;
(xv) According to the information and explanations given to usthe company has notentered into any noncashtransactions with directors or persons connected with him
(xvi) According to the information and explanations given to usThe company is notrequired to be registered under section 45IAof theReserve Bank of India Act 1934.
For NIDHI BANSAL & CO Chartered Accountants
Place: New Delhi Dated:26.05.2017
Membership No. 50307( (F.R.No.- 022073N)
Significant Accounting Policies and Notes on Accounts
(Period ended on 31st March 2016)