Independent Auditors' Report
The Members Mahabir Metallex Limited New Delhi
Report on the Financial Statements
We have audited the accompanying financial statements of M/s Mahabir Metallex Limitedwhich comprise the Balance Sheet as at March 31 2016 and the Statement of Profit andLoss and Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in Section 134(5) ofthe Companies Act 2013 ("the act") with respect to preparation of thesefinancial statements that give a true and fair view of the financial position andfinancial 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) Rule 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the company and forpreventing and detecting the frauds and other irregularities selection and application ofappropriate accounting policies making judgments and estimates that are reasonable andprudent and design implementation and maintenance of adequate internal financial controlthat were operating effectively for ensuring the accuracy and completeness of accountingrecords relevant to the preparation and fair presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.
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 there under and under section 143(11) of the Act.
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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by management as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidences we have obtained are sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
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 subject to the note no.11where we do not express any opinion in conformity with the accounting principlesgenerally accepted in India of the state of Affairs of the Company as at March 31 2016and 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') issuedby the Central Government in terms of Section 143(11) of the Act we enclose"Annexure A" giving a Statement on the matters specified in Paragraphs 3 and 4of 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 appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by 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) On the basis of written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms of Section164(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 we enclose"Annexure B" giving our separate report.
g) With respect to the other matters included in the Auditor's Report and to the bestof 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 has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts.
iii. There has been no amount required to be transferred to the Investor Education andProtection Fund by the Company.
|For VAPS & Co. || |
|Chartered Accountants || |
|Firm Regn. No. 003612 N || |
|(Vipin Aggarwal) || |
|Partner ||Place: New Delhi |
|M.N.082498 ||Dated: 30.05.2016 |
Annexure to the Independent Auditors' Report
Annexure "A" to the Independent Auditors Report Re: Mahabir MetallexLimited
Referred to in our report of even date
1. a) The company has maintained proper records showing full particulars includingquantitative details
and situation of fixed assets.
b) A substantial portion of the fixed assets has been physically verified by themanagement during the period and in our opinion the frequency of verification isreasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such physical verification.
c) According to the information given to us the title deeds of all the immovableproperties are held in the name of the company.
2. The inventories have been physically verified during the period by the management atreasonable intervals. The discrepancies noticed on verification between the physicalstocks and the book records were not material and have been properly dealt with in thebooks of account.
3. The company has not granted any loans secured or unsecured to any company firmLimited Liability Partnership or other Parties covered in the register maintained undersection 189 of the companies Act 2013.
4. In our opinion and according to the information and explanations given to us thecompany has not granted any loans investments guarantees and security and theprovisions of Section 185 and 186 of the Companies Act 2013 have been complied with.
5. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits within the meaning of provisions of sections of 73to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthere under.
6. The company has maintained books of account relating to materials labour and otheritems of cost pursuant to the Rules made by the Central Government for the maintenance ofcost records under section 148 (1) of the Companies Act 2013. We have not made however adetailed examination of the record with a view to determine whether they are accurate orcomplete.
7. a) According to the records of the company the company is regular in depositingwith appropriate
authorities undisputed statutory dues including Provident Fund Employees StateInsurance Income Tax Sales Tax Wealth Tax Custom Duty Excise Duty Service Tax ValueAdded Tax Cess and other material statutory dues as applicable with the appropriateauthorities.
b) There were no undisputed amounts payable in respect of Provident Fund EmployeesState Insurance Income Tax Sales Tax Wealth Tax Custom Duty Excise Duty Service TaxValue Added Tax Cess and other material statutory dues in arrears as at 31stMarch 2016 for a period of more than six months
from the date they became payable.
c) According to the information and explanation given to us and records of the companyexamined by us the particulars dues of Sales Tax Income Tax Customs Duty Wealth TaxExcise Duty Service Tax Value Added Tax Cess which have not been deposited on accountof any dispute are NIL
8. In our opinion and according to the information and explanations given by themanagement we are of the opinion that the company has not defaulted in the repayment ofdues to a financial institution bank or debenture holders.
9. In our opinion the moneys raised by term loans have been applied for the purposefor which they were raised.
10. Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud on or by the company has been noticed or reportedduring the course of our audit.
11. According to the information given to us and based upon our audit procedures themanagerial remuneration has been paid in accordance with the provisions of Section 197read with Schedule V of the Companies Act 2013.
12. The company is not a Nidhi Company and hence the company is not governed by NidhiRules 2014.
13. In our opinion the transactions with the related parties are in compliance withSections 177 and 188 of the Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
14. The company has not made any preferential allotment or private allotment of sharesor fully or partly paid convertible debentures during the year under review.
15. On the basis of information provided to us the company has not entered into anynon-cash transactions with directors or parties connected with him under Section 192 ofthe Companies Act 2013.
16. The company is not required to get registered under Section 45-IA of the ReserveBank of India Act 1934.
For VAPS & Company
Firm Regn. No. 003612N
Place: New Delhi
Annexure "B" to the Independent Auditors Report -31st March2016
(Report on the Internal Financial controls under clause (i) of section 143 (3) of theComapanies Act 2013)
We have audited the internal financial controls over financial reporting of MahabirMetallex Limited (the Company) as of 31 March 2016 in conjunction with our audit of thefinancial statements of the company 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 controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ("ICAI").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 ("theAct").
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 audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout 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 controls based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material 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 control systemover financial reporting.
Meaning Of Internal Financial Controls Over Financial Reporting
A company's internal financial controls 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 controls 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 statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the
company are being made only in accordance with authorizations of management anddirectors of the company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorized 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 to the risk that the internal financial controlsover 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 control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by ICAI.
For VAPS & Company
Chartered Accountants Firm Regn. No. 003612N
(Vipin Aggarwal) Partner M.N.082498
Place: New Delhi