You are here » Home » Companies » Company Overview » Mac Charles (India) Ltd

Mac Charles (India) Ltd.

BSE: 507836 Sector: Services
NSE: N.A. ISIN Code: INE435D01014
BSE 00:00 | 22 Apr 292.10 -9.90
(-3.28%)
OPEN

300.50

HIGH

301.00

LOW

288.05

NSE 05:30 | 01 Jan Mac Charles (India) Ltd
OPEN 300.50
PREVIOUS CLOSE 302.00
VOLUME 665
52-Week high 419.45
52-Week low 248.00
P/E 14.96
Mkt Cap.(Rs cr) 383
Buy Price 290.00
Buy Qty 41.00
Sell Price 308.95
Sell Qty 4.00
OPEN 300.50
CLOSE 302.00
VOLUME 665
52-Week high 419.45
52-Week low 248.00
P/E 14.96
Mkt Cap.(Rs cr) 383
Buy Price 290.00
Buy Qty 41.00
Sell Price 308.95
Sell Qty 4.00

Mac Charles (India) Ltd. (MACCHARLESI) - Auditors Report

Company auditors report

TO THE MEMBERS OF MAC CHARLES (INDIA) LIMITED

Report on the Audit of the Standalone Financial Statements

We have audited the accompanying standalone financial statements of MacCharles (India) Limited (‘the Company') which comprise the balance sheet as at 31March 2018 the statement of profit and loss the statement of changes in equity and thestatement of cash flows for the year then ended and summary of significant policies andother explanatory information (herein after referred to as

"Standalone financial statements").

Management's Responsibility for the Standalone financial statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thestate of affairs profit (including other comprehensive income) changes in equity andcash flows of the Company in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards (Ind

AS) prescribed under section 133 of the Act.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalonefinancial statements based on our audit.

While conducting the audit we have taken into account the provisionsof the Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder.

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the standalone financial statements arefree from material misstatement.

Auditor's Responsibility (continued)

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud oraccounting error.

In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the standalone financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances.

An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone financialstatements.

We are also responsible to conclude on the appropriateness ofmanagement's use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant the entity's ability to continue as a going concern. If we conclude thata material uncertainty exists we are required to draw attention in the auditor's reportto the related disclosures in the financial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of the auditor's report. However future events or conditions maycause an entity to cease to continue as a going concern.

We believe that the audit evidence we have obtained is sufficientandappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31 March 2018 its profit including other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Other Matter Paragraph

The comparative financial information of the Group for the year ended31 March 2017 and restated opening balance sheet as at 1

April 2016 included in these standalone financial statements are basedon the previously issued statutory financial statements audited by the predecessorauditor whose report for the year ended 31 March 2017 and 31 March 2016 dated 8 August2017 and 3 August 2016 respectively expressed an unmodified opinion on those standalonefinancial statements.

Our opinion above on the standalone financial statements and ourreport on Other Legal and Regulatory Requirements below is not modified in respect of theabove matter.

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 in terms of

Section 143(11) of the Act we give in Annexure A a statement on thematters specified in paragraph 3 and 4 of the Order.

2. As required by Section 143 (3) of the Act we report that: (a) wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit; (b) in our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books; (c) the balance sheet the statement ofprofit and loss (including other comprehensive income) statement of changes in equity andthe statement of cash flows dealt with by this report are in agreement with the books ofaccount; (d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act.

(e) on the basis of the written representations received from thedirectors as on 31 March 2018 taken on record by the

Board of Directors none of the directors is disqualified as on 31March 2018 from being appointed as a director in terms of Section 164 (2) of the Act; (f)with respect to the adequacy of the internal financial controls with reference tofinancial statements of the

Company and the operating effectiveness of such controls refer to ourseparate report in ‘Annexure B'; and (g) with respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: a. the standalone financial statements disclose the impactof pending litigations on the financial position of the Company - refer note 40 to thestandalone financial statements; b. The Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses; c.There has been no delay in transferring amounts to the Investor Education and ProtectionFund by the

Holding Company during the year ended 31 March

2018 and; d. The disclosures in the standalone financial statementsregarding holdings as well as dealings in specified bank notes during the period from 8November 2016 to 30 December 2016 have not been made since they do not pertain to thefinancial year ended 31 March 2018. However amounts as appearing in the audited standalonefinancial statements for the period ended 31 March 2017 have been disclosed.

for B S R & Associates LLP

Chartered Accountants Firm's registration number: 116231W/ W-100024

Aravind Maiya

Partner Membership number: 217433

Bengaluru 23 May 2018

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

As referred to in our Independent Auditor's Report to the members ofMac Charles (India) Limited (‘the Company') on the

Standalone financial statements of the Company for the year ended 31March 2018 we report that: (i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of itsfixed assets by which fixed are verified every year. In our opinion the periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets. In accordance with the programme physical verification of fixedassets was carried out during the year and no material discrepancies were noted.

(c) According to the information and explanations given to us and onthe basis of our examination of the records the title deeds of immovable properties areheld in the name of the Company.

(ii) According to the information and explanations given to us and onthe basis of our examination of the records the inventories have been physically verifiedby the Management during the year. In our opinion the frequency of verification isreasonable. No discrepancies were identified on physical verification of inventoriesbetween physical stocks and book records.

(iii) According to the information and explanations given to us andassets on the basis of our examination of the records the Company has granted unsecuredloans to two companies covered in the register maintained under Section 189 of the Actand; (a) In our opinion the rate of interest and other terms and conditions on whichloans had been granted to the companies listed in the register maintained under Section189 of the Act were not prima facie prejudicial to the interest of the Company.

(b) In case of loans granted to the two companies covered in theregister maintained under Section 189 of the Act the loans and interest are repayable ondemand. According to the information and explanation given to us the borrowers have beenregular in the repayment of the principal amount.

(c) There are no overdue amounts in respect of the loan granted tocompanies covered listed in the register maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanationgiven to us the Company has complied with the provisions of Section 185 and 186 of theAct with respect to loans advanced and investments made. Further there are no guaranteesand securities given in respect of which provision of Section 185 &

186 of the Act are applicable.

(v) The Company has not accepted any deposits from the public.

(vi) According to the information and explanation given to us the

Central Government of India has not prescribed the maintenance of costrecords under Section 148(1) of the Act for any of the services rendered and goods soldby the Company.

(vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted/ accruedin the books of account in respect of undisputed statutory dues including Provident FundService tax Sales-tax Value added tax

Income tax dues Goods and Service tax Cess and other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities. As explained to us the Company did not have any dues on accountof Employee's State Insurance

Duty of Customs and Duty of Excise during the year.

According to the information and explanations given to us noundisputed amounts payable in respect of Provident

Fund Sales-tax Value added tax Goods and Service tax

Income tax Service tax Cess and other material statutory dues were inarrears as at 31 March 2018 for a period of more than six months from the date theybecame payable.

(b) According to the information and explanations given to us thereare no dues of Provident Fund Sales-tax Value added tax Income tax Service tax Goodsand Service tax Cess and other material statutory dues which have not been deposited withthe appropriate authorities on account of any dispute.

(viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of dues to its bankers financialinstitutions and debenture holders. The Company does not have any dues from thegovernment.

(ix) According to the information and explanations given to us and onthe basis of our examination of the records the Company did not raise any money by way ofinitial public offer or further public offer (including debt instruments) during the year.In our opinion and according to the information and explanations given to us the termloans taken by the Company were applied for the purposes for which they were raised.

(x) According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the year.

(xi) According to the information and explanation given to us and onthe basis of our examination of the records of the Company the Managerial Remunerationpaid by the company is in accordance with the limits as specified in Section 197 ofCompanies Act 2013.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Accordingly paragraph 3(xii) of theOrder is not applicable.

(xiii) In our opinion and according to the information and explanationsgiven to us and based on an examination of the records of the Company all transactionswith the related parties are in compliance with sections 177 and 188 of Companies Act2013 where applicable and the details have been disclosed in the financial statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares orconvertible debentures during the year. Accordingly paragraph 3(xiv) of the Order is notapplicable.

(xv) According to the information and explanations given to us theCompany has not entered into any non-cash transaction with directors or person connectedwith him as referred to in Section

192 of Companies Act 2013. Accordingly paragraph 3(xv) of the Order isnot applicable.

(xvi) In our opinion and according to the information and explanationsgiven to us the Company is not required to be registered under Section 45-IA of theReserve Bank of India

Act 1934.

for B S R & Associates LLP

Chartered Accountants Firm's registration number: 116231W/ W-100024

Aravind Maiya

Partner Membership number: 217433

Bengaluru 23 May 2018

ANNEXURE - B TO THE AUDITOR'S REPORT

Report on the Internal Financial Controls under Clause (i) ofsub-section 3 of Section 143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financialreporting of Mac Charles (India) Limited (‘the Company') as of 31

March 2018 in conjunction with our audit of the standalone 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the

Guidance Note on Audit of Internal Financial Controls over FinancialReporting (‘Guidance Note') issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding 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.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note and the

Standards on Auditing issued by ICAI and deemed to be prescribed undersection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the

Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control 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 sufficientand 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 aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2018 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance

Note on Audit of Internal Financial Controls Over Financial

Reporting issued by the Institute of Chartered Accountants of India. forB S R & Associates LLP

Chartered Accountants Firm's registration number: 116231W/ W-100024

Aravind Maiya

Partner Membership number: 217433

Bengaluru 23 May 2018