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Madhur Industries Ltd.

BSE: 519279 Sector: Agri and agri inputs
NSE: MADHURFOOD ISIN Code: INE110C01015
BSE 00:00 | 09 Apr 7.15 0
(0.00%)
OPEN

6.87

HIGH

7.15

LOW

6.87

NSE 05:30 | 01 Jan Madhur Industries Ltd
OPEN 6.87
PREVIOUS CLOSE 7.15
VOLUME 502
52-Week high 10.13
52-Week low 5.05
P/E 119.17
Mkt Cap.(Rs cr) 3
Buy Price 7.15
Buy Qty 2.00
Sell Price 7.15
Sell Qty 2.00
OPEN 6.87
CLOSE 7.15
VOLUME 502
52-Week high 10.13
52-Week low 5.05
P/E 119.17
Mkt Cap.(Rs cr) 3
Buy Price 7.15
Buy Qty 2.00
Sell Price 7.15
Sell Qty 2.00

Madhur Industries Ltd. (MADHURFOOD) - Auditors Report

Company auditors report

To the members of Madhur Industries Limited Report on the Ind ASFinancial Statements

We have audited the accompanying Ind AS financial statements of MadhurIndustries Limited ("the company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss including Other Comprehensive Income theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act2013 ("the Act")with respect topreparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand statement of changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (IndAS)specified under Section 133 of the Act read with rule 3 of the Companies (IndianAccounting Standards) Rules2015 and Companies (Indian Accounting Standards) AmendmentRules 2016. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; the selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit of Ind AS financial statements in accordancewith the Standards on Auditing issued by the Institute of Chartered Accountants of Indiaas specified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the Ind AS financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances but

not for the purpose of expressing an opinion on the effectiveness ofthe entity's internal control. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe management as well as evaluating the overall presentation of the Ind AS financialstatements.

We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2018 its profit other comprehensive income its cash flows and changesin equity for the year ended on that date.

Other Matters

We did not audit the financial statements/information of Mumbaibranches included in the financial statements of the Company whose financial statementsreflect total assets of Rs. 12348113 as at 31st March 2018 and total revenues of Rs.2770229 for the year ended on that date as considered in the financial statements. Thefinancial statements of these branches have been audited by the branch auditors whosereports have been furnished to us and our opinion in so far as it relates to the amountsand disclosures included in respect of the branch is based solely on the report of thatbranch auditor.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of I ndia in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act based on our audit wereport that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen kept so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss (includingOther Comprehensive Income) the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the relevant books of account;

(d) In our opinion the aforesaid Ind AS financial statements complywith the Indian Accounting Standards prescribed underSection 133 of the Act read withrule 3 of the Companies (Indian Accounting Standards) Rules 2015 and Companies (IndianAccounting Standards) Amendment Rules 2016;

Except Ind AS - 19 on retirement benefits as provision for gratuity isnot based on actuarial valuation but on other rationale basis while provision for otherbenefits such as leave encashment has not been made The effect of the same can not bequantified to that extent profit for the year and balance of Profit & Loss account isoverstated.

(e) On the basis of the written representations received from thedirectors as on 31st March 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2018 from being appointed as a director interms of Section 164 {2} of the Act.

(f) With respect to the adequacy of the internal financial controlsover financial reporting 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'sReport in accordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014 asamended in our opinion and to the best of cur information and according to theexplanations given to us:

i. There were no pending litigations which would impact the financialposition of the Ind AS financial statements.

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company; and

Emphasis of Matters

(a) The bank accounts of the company with Madhupura Mercantile CoOperative Bank was not operative because of closure of bank in the financial year 2001-02& also no balance confirmation has been obtained from other bank (except KMBL08122000006671) no provision has been made for bank balance of 3698473 DD in Transitof Rs. 32372 & doubtful advance of Rs. 50.10 lacs exceeding six months. Theconsequential effect of this is not ascertainable.

(b) Note in schedule relating to non-provision of interest on fixeddeposit (accepted previously u/s 58 of the Companies Act1956) for the year ending 31slMarch 2018 and matured/ encashed Fixed Deposits for which cheques were issued fromseparate bank account kept for F.D. but due to suspension of MMCB we are not informed ofthe further effect.

(c) Company has not paid service tax and GST under Reverse chargeMechanism on Manpower Supply Service Transportation Service and Legal Services.

Subject to the above In our opinion and to the best of our informationand according to the explanations given to us the said accounts read in conjunction withthe significant accounting policies (Note-3) Notes to Financial Statements (Note - 1 to44) give the information required by the Companies Act 2013 in the manner so requiredand give a true and fair view in conformity with the accounting policies generallyaccepted in India.

Place: Ahmedabad Date: May 30 2018

For Ram N Agarwal & Co.

Chartered Accountants

FRN: 114456W

sd/-

CA R. N. Agarwal

Proprietor M. No: 042126

Annexure A to the Auditor's report

(i) (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) As per the information given to us the fixed assets of the companyhave been physically verified by the management during the year and no materialdiscrepancies were noticed by the management on such verification.

(c) According to the information and explanations given by themanagement and on the basis of our examination of the records of the company the titledeeds of immovable property are held in the name of company.

(ii) As perthe information and explanations given to us the managementhas conducted the physical verification of inventory at reasonable intervals during theyear and no material discrepancies were noticed on such physical verification.

(iii) The company has granted loan to Five parties covered in theregister maintained under section 189 of the Companies Act 2013. The maximum balanceoutstanding during the year was Rs. 3828751.

(a) In our opinion the rate of interest and other terms &conditions of such loan are prima facie prejudicial to the interest of the company.

(b) During the year also neither the principal amount nor interest hasbeen recovered by the company from the parties covered under the aforesaid register.

c) There is a overdue amount of loans granted exceeding one lac in caseof four parties and the company is in process of recovery of the amount to the partiescovered in the register maintained u/s 1 89 of The Companies Act 2013.

(iv) According to the information and explanation provided to us thecompany has no transactions in nature of loans investments guarantees and security asper the provisions of section 185 and 186 of the Companies Act 2013. Therefore paragraph3(iv) of the Order is not applicable to the company.

(v) According to the information and explanation provided to usThecompany has not accepted any deposits except the advance money received from the customerexceeding 365 days in the ordinary course of trade within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules2014 (as amended).Accordinglythe provisions of clause 3(v) of the Order is not applicable.

(vi) According to the information and explanation given to usmaintenance of the cost records prescribed by the Central Government under section 148(1)(d) of the Companies Act 2013 is not applicable. Therefore paragraph 3(vi) of the Orderis not applicable to the company.

(vii) (a) According to the information and explanations given to us andon the basis of the examination of the books of Account the Company has been generallyregular in depositing the undisputed statutory dues including Provident fund Employeesstate insurance Investor Education & Protection Fund Income tax sales tax wealthtax excise duty custom duty Cess and any other statutory dues during the year with theappropriate authorities

(b) As per the information and explanations given to us and detailsproduced for verification there are dues of Income Tax of Rs 674762 which have not beendeposited as the said dispute is pending before CIT (Appeal).

(c) According to the information and explanations given to us thecompany has not transferred any amounts to the investor education and protection fund.

(viii) According to the information and explanation given by themanagement the Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) loans during the period.

(ix) Based on the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report no fraud by the Company orany fraud on the company by its officers or employees has been noticed or reported duringthe year.

(x) According to the information and explanations given to usmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to companies Act.

(xi) In our opinion company is not a Nidhi company. Therefore theprovisions of clause 3(xii) of the order are not applicable to the company and hence notcommented upon.

(xii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

(xiii) According to the information and explanations given to us and onan overall examination of the balance sheet the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting requirements under clause 3(xiv) are notapplicable to the company and hence not commented upon.

(xiv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intocash transactions with directors or persons connected with him.

(xv) According to the information and explanations given to us theprovisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe company.

Place: Ahmedabad Date: May 30 2018

For Ram N Agarwal & Co.

Chartered Accountants

FRN: 114456W

sd/-

CA R. N. Agarwal

Proprietor M. No: 042126

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 (!lthe Act")

We have audited the internal financial controls over financialreporting of MADHUR INDUSTRIES LIMITED ("the Company") as of 31 March 2018 inconjunction with our audit of the financial statements of the Company for the year endedon 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 overFinancial Reporting 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 underthe Companies Act 2013.

Auditors' 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 on Audit of Interna! Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 essentia! 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.

Place: Ahmedabad Date: May 30 2018

For Ram N Agarwal & Co.

Chartered Accountants

FRN: 114456W

sd/-

CA R. N. Agarwal

Proprietor M. No: 042126