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M M Rubber Co Ltd.

BSE: 509196 Sector: Others
NSE: N.A. ISIN Code: INE159E01026
BSE 00:00 | 19 Jul 43.55 -2.15
(-4.70%)
OPEN

43.55

HIGH

43.55

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43.55

NSE 05:30 | 01 Jan M M Rubber Co Ltd
OPEN 43.55
PREVIOUS CLOSE 45.70
VOLUME 1500
52-Week high 68.15
52-Week low 13.50
P/E 72.58
Mkt Cap.(Rs cr) 22
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 43.55
CLOSE 45.70
VOLUME 1500
52-Week high 68.15
52-Week low 13.50
P/E 72.58
Mkt Cap.(Rs cr) 22
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

M M Rubber Co Ltd. (MMRUBBER) - Auditors Report

Company auditors report

To The Members of M M Rubber Company Limited

Report on the Financial Statements:

We have audited the accompanying financial statements of M M Rubber Company Limited(The Company) Bangalore which comprise the Balance Sheet as at 31st March 2017 and theStatement of Profit &Loss Account and the Cash Flow Statement for the year then endedand a summaryofsignificant accounting policies and the other explanatory information.(Hereinafter referred 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 the Companies Act 2013(the Act)with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the Accounting principlesgenerally accepted in India including the Accounting Standards specified under section 133of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.This responsibilityalso includes the maintenance of adequate accounting records in accordance with theprovision of the Act for safeguarding the assets of the Company and for preventing anddetecting the frauds and other irregularities: selection and application of appropriateaccounting policies: making judgments and estimates that are reasonable and prudent: anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatements whether due to fraudor 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 Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditingspecified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and performthe 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 financialstatementswhether due to fraud or error. In making those risk assessments the auditorconsiders 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 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 issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

Opinion:

In our opinion and to the best of our information and according to the explanationsgiven to us the said financial statements give the information required by the act in themanner so required subject to the non-ascertainment of impact on the accounts of thecompany in respect of matters dealt with in the Note No.21.2(Revised Accounting StandardNo.15 on Employees Retirement Benefits has been Complied with except that the Companyneither has ascertained nor provided for actuarial value of its gratuity liability andLeave Encashment as on 31.3.2017and subject to Note No 21.6(Accounting StandardAS 28 onImpairment of assets) and subject to Note no 21.1(Balances are subject to confirmations)and subject to deviation from Accounting Standard AS 2 regarding valuation of finishedgoods inventory for the reasons stated in Note No.21.5 of the notes to the accountsand read together with other notes thereon give a true and fair view in conformity withthe accounting principles generally accepted in India of the State of affairs of theCompany as at 31st March 2017and the statement of Profit &Loss Account and its CashFlow Statement for the year ended on that date.

Report on other Legal and Regulatory Requirements:

As required by the Companies (Auditor'sReport) Order 2016 ("the Order")issued by the Central Government of India n i terms of Section 143(11) of the Act basedon the comments in the Auditor's Report of the Company and on the auditor's reports issuedin accordance with the Order we give in the annexure 'A' a statement on the mattersspecified i n paragraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143(3) of the Actwe report to the extent applicable that:

1. 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.

2. 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.

3. The Balance Sheet the Statement of Profit & Loss and the Cash Flow statementdealt with by this report are in agreement with the relevant books of account maintainedfor the purpose of preparation of the financial statements.

4. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under section 133 of Act read with Rule 7 of the Companies (Accounts)Rules 2014:

5. On the basis of the written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31st March 2017 from being appointed as a director interms of Section 164(2) of the Companies Act2013

6. 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" and

7. 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: 1

a) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements as of March 312017.

b) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

c) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

d) The company has provided requisite disclosure in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountmaintained by the company - Refer Note No.21.8 to the Financial Statements.

For S R Mandre & Co
Chartered Accountants
FRN No 001962S
B S Dinesh
Place : Bangalore Partner
Date : 30.05.2017 Membership No 29624

ANNEXURE ‘A ‘TO THE AUDITOR'S REPORT

Annexure referred to in Independent Auditor's Report to the members of the company onthe financial statements for the year ended 31st March 2017 we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation

of fixed assets;

(b) The Fixed assets were physically verified by the management in accordance with aregular‘programme of verification which in our opinion provides for physicalverification of all the fixed assets at reasonable intervals. Accordingly to theinformation and explanations given to us no material discrepancies were noticed on suchverification however such records do not show updated value both in respect of GrossBlock and Net Block.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the company.

(ii) The Inventory has been physically verified during the year by the management atreasonable intervals. There were no material discrepancies noticed on such physicalverification.

(iii) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under Section 189 of the CompaniesAct2013. Hence sub clauses (a) (b) and (c) are not applicable.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013with respect to loans investments guarantees and securities made.

(v) According to information and explanations given to us the Company has not acceptedany deposit during the year and does not have any unclaimed deposit. There have been noinstances where order has been passed by Company Law Board or National Company LawTribunal for any contravention.

(vi) According to information and explanations given to us the central government hasnot prescribed the maintenance of cost records under section 148(1) of the Act for any ofthe services rendered by the company.

(vii) (a) According to the information and explanations given to us and on the basisof our examination of the records of the company amounts deducted/accrued in the books ofaccount in respect of the undisputed statutory dues including Provident Fund InvestorEducation & Protection Fund Employees State Insurance Income-tax Vat Customs DutyExcise Duty Service tax Cess and other statutory dues with the appropriate authorities.There were no undisputed amounts payable in respect of Provident Fund Investor Education& Protection Fund Employees State Insurance Income-tax Vat Customs Duty ExciseDuty Service tax Cess and other statutory dues were in arrears as at 31st March 2017for a period of more than six months from the date they became payable.

(b)The details of due of excise duty which have not been deposited as on 31st March2017 on account of disputes are given below:

Name of the Statue Nature of Dues Amount Rs in lakhs Period to Which it relates Forum where Pending
Central Excise Laws Excise Duty 1/3/1981 to 31/3/1985 Order dated 5/07/2011 96.30 1980/85 CE Tribunal Chennai

(viii) In our opinion and according to information and explanations given to us thecompany has not defaulted in repayment of dues to any financial institutions banksdebenture holder as at the balance sheet date.

(ix) The company did not raise any money by way of initial public offer including Debtinstrument or further public offer during the year. The Company has applied the term loanraised during the year under audit for the purposes they were raised.

(x) According to the information and explanations given to us no material fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the company the company has complied with the requisiteapprovals mandated by the provisions of the section 197 read with schedule 5 to the Act.

(xii) In our opinion and according to the information and explanations given to us thecompany is not a Nidhi company. Accordingly paragraph 3 (xii) of the order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable . and details of suchtransactions has been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placements of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexaminations of the records of the company the company has not entered into non -cashtransactions with directors or persons connected with him.

(xvi) The company is not required to be registered under section 45 - 1A of the ReserveBank of India^Act 1934.

For S.R.MANDRE & CO.
Chartered Accountants
Firm Reg No. 001962S
(B.S.DINESH)
Place: Bangalore Partner
Date: 30.05.2017 Membership No. 29624

ANNEXURE <B ‘TO THE AUDITOR'S REPORT:

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 M M RubberCo Ltd (the Company) as of 31st March 2017 in conjunction with our audit of the financialstatements 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 maintaing 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"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of the reliablefinancial information as required 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 Standards on Auditing prescribed under Section 143(10) of the Act and theGuidance Note on Audit of Internal Financial Controls over Financial reporting issued bythe Institute of Chartered Accountants of India to the extent applicable to an audit ofInternal Financial controls. Those Standards and the Guidance Note require that we complywith the 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 auditors' judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that 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.

Basis for Qualified Opinion:

a) The Company has in its books fixed assets with Gross block to the tune ofRs.90689452/- and net block of Rs.7829070/-. However the fixed assets records do not showupdated value both in respect of the Gross Block and Net Block.

Opinion:

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting subject to qualified opinion above and such internalfinancial controls over financial reporting were operating effectively as at March 312017 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on audit of Internal financial controls over financial reporting issued by theInstitute of Chartered Accountants of India.

For S.R.MANDRE & CO.
Chartered Accountants
Firm Reg No. 001962S
(B.S.DINESH)
Place: Bangalore Partner
Date: 30.05.2017 Membership No. 29624