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Munjal Auto Industries Ltd.

BSE: 520059 Sector: Auto
NSE: MUNJALAU ISIN Code: INE672B01032
BSE 15:44 | 19 Jan 88.65 4.90
(5.85%)
OPEN

83.20

HIGH

91.55

LOW

82.50

NSE 15:48 | 19 Jan 88.20 4.20
(5.00%)
OPEN

84.65

HIGH

91.80

LOW

83.00

OPEN 83.20
PREVIOUS CLOSE 83.75
VOLUME 120155
52-Week high 97.60
52-Week low 44.90
P/E 24.83
Mkt Cap.(Rs cr) 887
Buy Price 0.00
Buy Qty 0.00
Sell Price 88.65
Sell Qty 15.00
OPEN 83.20
CLOSE 83.75
VOLUME 120155
52-Week high 97.60
52-Week low 44.90
P/E 24.83
Mkt Cap.(Rs cr) 887
Buy Price 0.00
Buy Qty 0.00
Sell Price 88.65
Sell Qty 15.00

Munjal Auto Industries Ltd. (MUNJALAU) - Auditors Report

Company auditors report

To

THE MEMBERS OF

MUNJAL AUTO INDUSTRIES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Munjal Auto IndustriesLimited ("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementationand maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 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 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 is sufficient and appropriate toprovide a basis for our audit opinion on the 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 31stMarch 2017 and its profit and its cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (‘the order')issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Act we give in the "Annexure-A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

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 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

(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 the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164 (2) of the 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".

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11of 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 has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. The Company did not have long term contracts including derivative contractsrequiring provision for material foreseeable losses.

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

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the Company and as produced to us by the Management.

For VAKIL JAIN & HINDOCHA
Chartered Accountants
Firm Registration No.112894W
SURENDRA MODIANI
Place : Vadodara Partner
Date : May 22 2017 Membership No.047966

ANNEXURE A TO INDEPENDENT AUDITOR'S REPORT

Annexure referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of the Independent Auditor's Report to the members of MunjalAuto Industries Limited for the year ended 31st March 2017

i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) These fixed assets have been physically verified by the management at reasonableintervals. We are informed that no material discrepancies were noticed on suchverification;

(c) According to the information and explanations given to us and on the basis of ourexamination of therecords of the Company the title deeds of immovable properties whichare freehold are held in the name of the Company. In respect of immovable propertieswhich are leasehold and disclosed as fixed assets in the financial statements the leaseagreementsare in the name of the Company.

ii) The physical verification of inventory has been conducted at reasonable intervalsby the management and no material discrepancies were noticed on physical verification.

iii) The Company has not granted any loans secured or unsecured to companies firm orother parties covered in the register maintained under section 189 of the Companies Actand therefore the matters referred in clauses (iii)(a) (iii)(b) and (iii)(c) ofparagraph 3 of the order are not applicable.

iv) The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Section 185 and 186. Therefore theprovisions of clause (iv) of paragraph 3 of the said Order are not applicable to theCompany.

v) The Company has not accepted any deposits during the year and does not have anyunclaimed deposits.

vi) According to our information the Central Government of India has not specified themaintenance of cost records under sub-section (1) of the section 148 of the Companies Actfor the products of the company.

vii) According to the information and explanations given to us and as shown by ourexamination of the books of accounts:

(a) The Company is regular in depositing undisputed statutory dues including providentfund employees' state insurance income-tax sales-tax wealth tax service tax duty ofcustoms duty of excise value added tax cess and othermaterial statutory dues applicableto it to the appropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income tax value added tax service tax orduty of customs which have not been deposited on account of any dispute.

The particulars of dues of Sales Tax and Duty of Excise which have not been depositedas on March 31 2017 on account of disputes are as under;

Name of the statute Amount involved (Rs.) Period to which amount relates Forum where dispute is pending
Gujarat Sales Tax Act 2549704/- (out of total demand of Rs.3188704/-) Financial year 2002-03 Commissioner of Commercial Tax (Appeals)
The Central Excise Act 1944 5876332/- June2008 to March2009 Commissioner of Customs Excise and Service Tax (Appeals)

viii) The Company has not defaulted in repayment of loans or borrowings to Bank. Thereare no loans or borrowings from financial institutions and government and the Company hasnot issued any debentures.

ix) The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) or term loans during the year.

x) To the best of our knowledge and according to the information and explanations givento us no fraud by the Company and no fraud on the Company by its officers or employeeshas been noticed or reported during the year.

xi) The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

xii) As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause (xii) of paragraph 3 of the Order are not applicable tothe Company.

xiii) The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year. Accordingly the provisions ofClause (xiv) of paragraph 3 of the Order are not applicable to the Company.

xv) The Company has not entered into any non cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause (xv) of paragraph 3 ofthe Order are not applicable to the Company.

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

For VAKIL JAIN & HINDOCHA
Chartered Accountants
Firm Registration No.112894W
SURENDRA MODIANI
Place : Vadodara Partner
Date : May 22 2017 Membership No.047966

ANNEXURE B TO INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 2(f) under the heading "Report on Other Legal andRegulatory Requirements"of the Independent Auditor's Report to the members of MunjalAuto Industries Limited for the year ended 31st 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 MunjalAuto Industries Limited ("the Company") as of March 31 2017 in conjunctionwith our audit of the financial statements of the Company for the year ended on thatdate.

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 criteriaestablishedby the Company considering theessential 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 andmaintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct ofitsbusiness including adherence to company's policies the safeguarding of its assetstheprevention 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.

Auditors' 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 ofInternal 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 CompaniesAct2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting wasestablished and maintained and if suchcontrols operated effectively in all material respects.

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 judgement 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 anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statementsinaccordance with generally accepted accountingprinciples and that receipts and expendituresof the company are being made only in accordance with authorisations of management anddirectors of the Company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorised acquisition use or disposition of the company's assetsthat could have a material effect on the financial 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 tothe 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

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 VAKIL JAIN & HINDOCHA
Chartered Accountants
Firm Registration No.112894W
SURENDRA MODIANI
Place : Vadodara Partner
Date : May 22 2017 Membership No.047966