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M K Exim (India) Ltd.

BSE: 538890 Sector: Industrials
NSE: N.A. ISIN Code: INE227F01010
BSE 00:00 | 02 Aug 87.65 4.15
(4.97%)
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87.60

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87.65

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NSE 05:30 | 01 Jan M K Exim (India) Ltd
OPEN 87.60
PREVIOUS CLOSE 83.50
VOLUME 30313
52-Week high 87.65
52-Week low 15.65
P/E 9.74
Mkt Cap.(Rs cr) 79
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 87.60
CLOSE 83.50
VOLUME 30313
52-Week high 87.65
52-Week low 15.65
P/E 9.74
Mkt Cap.(Rs cr) 79
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

M K Exim (India) Ltd. (MKEXIMINDIA) - Auditors Report

Company auditors report

To the members of M.K. EXIM (INDIA) LIMITED

Report on the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of M.K. EXIM(INDIA) LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2020 the Statement of Profit and Loss (including Other Comprehensive Income)statement of changes in equity and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the "Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31 st March 2020; and its profit totalcomprehensive income the change in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are

relevant to our audit of the standalone financial statements under the provisions ofthe Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence obtained by us is sufficient and appropriate to provide a basisfor our opinion on the standalone financial statements.

Information Other than the Financial Statements and Auditor's Report Thereon

* The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Board's Report including Annexuresto Board's Report Management Discussion and Analysis Report and Business ResponsibilityReport but does not include the consolidated financial statements standalone financialstatements and our auditor's report thereon.

* Our opinion on the standalone financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

* In connection with our audit of the standalone financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

* If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management for Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financial statementsto give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the company in accordancewith the Ind AS and accounting principles generally accepted in India including theIndian Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with provisions of the Act for safeguarding ofthe 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 standalone financial statements that give a true andfair view and are free from material misstatements whether due to fraud and error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

 

IndAS-19 for Employees Benefits) in respect of Provision for Gratuity. The Provisionfor Gratuity provided by the company is inadequate and its effect on liabilities andprofit of the Company is unascertainable. Further requisite disclosures are not made inrespect of retirement benefits.

Our opinion is not modified in respect of this matter.

Other Matter

We have relied upon the audit report of other auditors for the financial statements ofits office at Mumbai reflecting total assets atRs. 875.40 lacs total revenue of Rs.1988.02 lacs and net profit of Rs.262.66 lacs for the year ended on that date asconsidered in Standalone financial statements and our report in terms of sub sections 3& 11 of section 143 of the Act in so far as it relates to the aforesaid office.

These financial statements have been audited by the other auditors whose reports havebeen furnished to us by the Management and our opinion on the standalone financialstatements in so far as it relates to the amounts and disclosures included in respect ofthe branch and our report in terms of subsection (3) of Section 143 of the Act in so faras it relates to the aforesaid branch is based solely on the reports of the otherauditors.

Our opinion on the standalone financial statements and our report on Other Legal andRegulatory requirements below is not modified in respect of the above matters withrespect to our reliance on the work done and the report of the other auditors andfinancial statements certified by the management. Report on Other Legal and RegulatoryRequirements

1. As required by the Companies (Auditors' Report) Order 2016 issued by the CentralGovernment of India in terms of Section 143(11) of the Act we give in the Annexure A astatement on the matters specified in paragraphs 3 and 4 of the said order.

2. As required by Section 143(3) of the Act based on our audit and on theconsideration of the reports of the other auditors on the financial statements of thebranch at Mumbai referred to in the Other Matters section 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 including Other ComprehensiveIncome the statement of changes in equity and the statement of Cash Flow dealt with bythis report are in agreement with the relevant books of account.

d. In our opinion the aforesaid Standalone Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Companies Act 2013 read with rule7 of the Companies (Accounts) Rules 2014.

e. On the basis of written representations received from the Directors as on 31stMarch 2020 and taken on record by the Board of Directors we report that none ofthe directors is disqualified as on 31st March 2020 from being appointed as adirector in terms of 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 the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 ofthe Act.

h. With respect to the other matter to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements.

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.

For Rishabh Agrawal & Associates
Chartered Accountants
(FRN: 018142C)
Place: Jaipur (Rishabh Agrawal)
Dated: 31s July 2020 Partner
M. No. 412963
UDIN : 20412963AAAACF7488

ANNEXURE A REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNTS OF M.K. EXIM (INDIA)LIMITED FOR THE YEAR ENDED ON 31st MARCH 2020

1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All the assets have been physically verified by the management at the end of theyear which in our opinion is reasonable having regard to the size of the company and thenature of its assets. No material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties as disclosed in fixed assets are held inthe name of the company.

2. The inventory excluding stocks with third parties has been physically verifiedduring the year at reasonable intervals by the management. The procedure of physicalverification of inventories followed by the management is adequate in relation to the sizeof the company and the nature of its business. The company is maintaining proper recordsof inventory. No material discrepancies were noticed on physical verification.

3. The company has not granted any loans to companies firms or other parties coveredin the register maintained under section 189 of the Companies Act 2013.

4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of sec. 185 & 186 of the Companies Act 2013in respect of the loans and investments made and guarantees and security provided by it.

5. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public within the meaning of sections 7374 75 & 76 of the Act and Rules framed thereunder. And hence reporting under clause(5) of the order is not applicable.

6. We have been explained that the maintenance of cost records has not been prescribedby the Central Government under sub section (1) of Section 148 of the Companies Act 2013.

7. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income tax Goods and Service TaxCustoms Duty cess and other material statutory dues applicable to it to the appropriateauthorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income- tax Goods and Service Tax Customs Duty cess and other materialstatutory dues in arrears as at March 312020 for a period of more than six months fromthe date they became payable.

(c) There are no disputed dues of Customs Duty Sales Tax Service Tax and State ValueAdded Tax which have not been deposited as on March 31 2020. Disputed dues payable inrespect of income tax under Income tax Act 1961 relating to assessment year 2017-18 isRs. 330967/-. Appeal is pending with Commissioner of Income tax (Appeals)- 1 Jaipur

8. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to financial institutions banksgovernment and debenture holders as at the balance sheet date. The Company has not takenany loans or borrowings from government. The Company has not issued any debentures.

9. The company has applied the term loan the purpose for which the loan was obtained.The Company has not raised moneys by way of initial public offer or further public offer(including debt instruments).

10. According to the information and explanations given to us no material fraud on orby the company or by its officers or employees has been noticed or reported during theyear.

11. The company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V of theAct.

12. As the company is not a Nidhi company and the Nidhi Rules 2014 are not applicableto it. Accordingly the provisions of clause 3(xii) of the order are not applicable to thecompany.

13. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 188 and 177 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

14. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of clause 3(xiv) of the order are not applicable to the company.

15. The company has not entered into any non cash transactions with its directors orpersons connected with him. Accordingly the provisions of clause 3(xv) of the order arenot applicable to the company.

16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of clause 3(xvi) of the order are notapplicable to the company.

For Rishabh Agrawal & Associates
Chartered Accountants
(FRN: 018142C)
Place: Jaipur (Rishabh Agrawal)
Dated: 31s July 2020 Partner
M. No. 412963
UDIN : 20412963AAAACF7488

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph in the Independent Auditors' Report of even date to themembers of M.K. Exim (India) Limited on the standalone financial statements for the yearended 31st March 2020.

Report on the Internal Financial Controls under Cause (i) of Sub-section 3 of Section143 of the Act

1. We have audited the internal financial controls over financial reporting of M.K.Exim (India) Limited ("the Company") as of 31st March 2020 in theconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

2. 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 Act.

Auditor' 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 prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls. Thosestandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 and 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.

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 controls systemover 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

i. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

ii. 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 authorisations of management and directors of the company; and

iii. Provide reasonable assurance regarding prevention of timely detection ofunauthorised 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 subj ect 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 31st March 2020based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

Other Matters

9. Our aforesaid reports under section 143(3)(i) of the Act adequacy and operatingeffectiveness of the internal financial controls over financial reporting insofar as itrelates to the branch at Mumbai is based on the corresponding report on the auditors ofMumbai branch of the company. Our opinion is not qualified in respect of this matter.

For Rishabh Agrawal & Associates
Chartered Accountants
(FRN: 018142C)
Place: Jaipur (Rishabh Agrawal)
Dated: 31st July Partner
M. No. 412963
UDIN : 20412963AAAACF7488