To the Members of
MACK TRADING COMPANY LIMITED
Report on Financial Statements
We have audited the accompanying financialstatements of MACK TRADING COMPANY LIMITED("the Company") which comprise the Balance Sheet as at March 31 2017 and theStatement of Profit and Loss and Cash Flow Statement for theyear then ended and a summaryof significant accounting policies and other explanatory information.
Management's Responsibility for Financial Statements
Management is responsible for the matters stated in section 134(5) of Companies Act2013 ("the Act") with respect to the preparation of these financialstatementsthat give a true and fair view of the financial position financial performanceandcash flows of the Company in accordance with the Accounting principles generallyaccepted in India including the accounting standards specified under section 133 of theact read with rule 7 of the companies (Accounts) Rules 2014.This responsibility alsoincludes the maintenance of adequate accounting records in accordance with provision ofthe act for safeguarding the assets of the company and for preventing and detecting thefrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgement and estimates that are reasonable and prudent; and designimplementation and maintenance of internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financialstatements that give a true and fairview and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements basedon ouraudit. We have taken into account the provision of the act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovision of the act and the rules made there under.
We conducted our audit in accordance with the Standards onAuditing specified undersection 143(10) of the Act. ThoseStandards require that we comply with ethicalrequirements and plan andperform the audit to obtain reasonable assurance about whetherthe financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about theamounts anddisclosures in the financial statements. The procedures selecteddepend on the auditor'sjudgment including the assessment of the risks ofmaterial misstatement of the financialstatements whether due to fraud or error.In making those risk assessments the auditorconsiders internal control relevantto the Company's preparation and fair presentation ofthe financial statements inorder to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe Company's internal control. Anaudit also includes evaluating the appropriateness ofaccounting policies usedand the reasonableness of the accounting estimates made bymanagement aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient andappropriate toprovide a basis for our audit opinion the financial statements.
Basis for Qualified Opinion
Company being listed company is required to appoint Internal Auditorunder section 138of Company's Act 2013but company has not complied with such provision of the Company's Act2013.
In our opinion and to the best of our information and according to theexplanationsgiven to us except for the possible effect of matter described in the basis for QualifiedOpinion paragraph the financial statements give the information requiredby the Act in themanner so required and give a true and fair view in conformitywith the accountingprinciples generally accepted in India: a) In the case of the Balance Sheet of the stateof affairs of the Company asat March 31 2017; b) In the case of Statement of the Profitand Loss Account of the "Profit" for the yearended on that date; and c)In the case of the Cash Flow Statement of the 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' issued by the CentralGovernmentof India in terms of sub-section (11) of section 143 of the Act (hereinafterreferred to as the "Order") and on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information andexplanation s given to us we give in the "Annexure A" a statement on thematters specified in paragraph 3 and 4 of Order.
2. As required by section 143(3) of the Act we report that: a) we have obtained allthe information and explanations which to the best ofour knowledge and belief werenecessary for the purpose of our audit; b) in our opinion proper books of account asrequired by law have been keptby the Company so far as appears from our examination ofthose book c) the Balance Sheet Statement of Profit and Loss and Cash FlowStatementdealt with by this Report are in agreement with the books of account. d) in our opinionthe Balance Sheet the Statement of Profit and Loss and CashFlow Statement comply withAccounting Standardsreferred to in section 133 of the companies act 2013 read with rule7 of the Companies (Accounts) Rules 2014 e) on the basis of written representationsreceived from the directors as onMarch 31 2017 and taken on record by the Board ofDirectors none ofthe directors is disqualified as on March 31 2017 from being appointedas a director in terms of clause (g) of sub-section (2) of section 164 of theCompaniesAct 2013. f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate
Report in "Annexure B". g) With respect to the other matters requiredto be included in the Auditors Report in accordance with Rule 11 of Companies (Audit andAuditors)Rules2014in our opinion and to the best of our information and according to theexplanation given to us :
i) The Company does not have any pending litigation which would impact its financialposition;
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 A K NEVATIA AND ASSOCIATES
CA ANIL KUMAR NEVATIA
Membership No. : 040403
"ANNEXURE A" TO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 1 of the Our Report of even date to the members of MACKTRADING COMPANY LIMITED on the accounts of the company for the year ended 31stMarch 2017.
i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) The fixed assets have been physically verified by the management at reasonableintervals and no material discrepancies have been noticed on such verification.
The title deeds of Immovable properties are held in the name of the Company. ii)Company does not have any Inventory.
iii) The company hasgranted unsecured loan to Onesubsidiary company covered inthe register maintained under section 189 of the Companies Act.The Company has not grantedany secured/ unsecured loans to firms or other parties covered in the register maintainunder section 189 of the Act.
(a) Terms and conditions of grant of loan are not prejudicial to the interest of thecompany
(b) In respect of the aforesaid loan the party is repaying the principal amountasstipulated and company is not charging interest on such loan.
(c)In respect of the aforesaid loan there is no overdue for more than 90 days.
iv) The company has not granted loan Investments guarantees and securities to partiescover under section 185 also provision of section 186 of Companies Act 2013 are compliedwith.
v) Company has not accepted deposits from public within the meaning of section 73 and74 of the Act and rule framed there under to the extent notified.
vi) There is no requirement of maintenance of cost records has been specified by theCentral Government under sub-section (1) of section 148 of the Companies Act.
vii) (a) According to information and explanation given to us and the records of thecompany examined by us in our opinion the company is regular in depositing theundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-Lax wealth tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues with the appropriate authorities and
(b) According to the information and explanation given to us there is no amountpayable in respect of income tax or sales tax or wealth tax or service tax or duty ofcustoms or duty of excise or value added tax or cess have not been deposited on account ofany dispute
viii) The company has not defaulted in repayment of dues to a financial institution orbank or debenture holders.
ix) The company has not raised money by way of initial public offer or further publicoffer (including debt instruments) and term loan during the year.
x) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices inIndiaandaccording to the information and explanation given to us we have not come across anyinstance of material fraud on or by the company noticed or reported during the year.
xi) Company has not paid or provided managerial remuneration in respect of whichapprovals under provision of section 197 read with schedule v to the Companies Actrequired. xii) This clause of the CARO 2016 is not applicable to the Company as thecompany is not a Nidhi Company.
xiii) Company has not entered in to transaction with related parties under section 188of Companies Act 2013. Hence compliance of provision of section 177 of the Act for thosetransactions is not required.
xiv) The company has not made preferential allotment or private placement of shares orfully or partly convertible debenture during the year under audit.
xv) Company has not entered in to any non cash transaction with director or personconnected with him & the provisions of section 192 of companies Act2013 have beencomplied with; xvi) This clause of the CARO 2016 is not applicable to the Company as thecompany is not a required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
For A K NEVATIA AND ASSOCIATES
CA ANIL KUMAR NEVATIA
Membership No. : 040403
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 ofMACK TRADINGCOMPANY LIMITED ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone 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 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
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 Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 controlover 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 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 A K NEVATIA AND ASSOCIATES
CA ANIL KUMAR NEVATIA
Membership No: 040403