To the Members
MADHUR INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying standalone financial statements of MADHUR INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at March 31 2022and the Statement of Profit and for the year then ended and a summary of significantaccounting policies and other explanatory information.
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 ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased 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 there under. We conducted our audit 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 financial statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2022;
b) in the case of the Profit and Loss Account of the profit for the year ended on thatdate.
c) in case of Cash Flow Statement of the Cash Flow for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the
Central Government of India in terms of sub-section (11) of Section 143 of the Act wegive in the Annexure-A a statement on the matters specified in paragraph 3 and 4 of theOrder to the extent applicable.
2. As required by section 143 (3) of the Act we report that:
a) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164 (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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
g) 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:
i. The Company has disclosed the impact of pending litigations if any on its financialposition in its financial statements.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.
iii. There has been no delay in transferring amounts required to be transferred tothe
Investor Education and Protection Fund by the Company.
"ANNEXURE-A" TO The INDEPENDENDT AUDITOR'S REPORT
Referred to in the Paragraph 1 under the heading 'Report on the Other Legal andRegulatory
Requirements' of our report of even date on the financial statements of the Company forthe year ended March 31 2022.
I. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) According to the information and explanations given to us the fixed assets havebeen physically verified by the management during the year in a phased periodical mannerwhich in our opinion is reasonable having regard to the size of the Company and natureof its business. No discrepancies of serious nature have been noticed by the managementand almost all the items as appearing in the register have been physically verified at theend of the year.
II. In respect of its Inventories:
a) Physical verification of inventory has been conducted at reasonable intervals by themanagement and no material discrepancies were noticed.
b) The Company is valuing physical inventories at lower of cost or Net realizableValue.
III. In respect of loans granted and taken to / from parties covered in the registermaintained u/s 189 of the Companies Act 2013
IV. The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.
i. The terms and conditions of the grant of such loans are not prejudicial to thecompany's interest.
ii. The schedule of repayment of principal and payment of interest has been stipulatedand whether the repayments or receipts are regular.
V. In respect of loans investments and guarantees u/s. Section 185 and 186 of theCompanies Act 2013.
In our opinion and according to the information and explanations given to us Inrespect of loans investments and guarantees whether provisions of Section 185 and 186 ofthe Companies Act 2013 have been complied with.
VI. In respect of deposits from public:
In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from the public during the year. Therefore theprovisions of clause 4(vi) of CARO are not applicable to the Company.
VII. In respect of maintenance of cost records:
Pursuant to rules made by the Central Government for the maintenance of cost recordsunder sub-section (1) of section 148 of the Companies Act 2013 in respect of certainmanufacturing activities as informed to us the Company is not required to maintain costrecords.
VIII. In respect of statutory dues:
According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Income taxWealth tax Sales tax Value added tax cess and any other material statutory dues havegenerally been regularly deposited during the year by the Company with the appropriateauthorities. As explained to us the Company did not have any dues on account ofEmployees' State Insurance Custom Duty and Excise duty. According to the information andexplanations given to us there are no undisputed statutory dues payable in respect ofProvident Fund Employees State Insurance Income tax Sales-tax Wealth Tax Custom DutyExcise Duty Cess which are outstanding as at 31.3.2022 for a period of more than sixmonths from the date they became payable.
According to the information and explanations given to us the particulars of dues ofincome tax or sales tax or service tax or duty of customs or duty of excise or value addedtax and other material statutory dues as at 31st March 2022 which have not been depositedon account of any dispute are as follows:
|Name of the Statue ||Nature of Dues ||Amounts Involved ||Period to which the amount relates ||Forum where the dispute is pending |
|- ||- ||- ||- ||- |
IX. In respect of dues to financial institution / banks / debentures:
Based on our audit procedures and on the basis of information and explanation given bythe management we are of the opinion that the company has not defaulted in the repaymentof dues to financial institution and banks.
X. In respect of application of money raised by Initial public offer further publicoffer (including debt instruments) and term loans.
According to the information and explanations given to us company has not raised anymoney from initial public offer further public offer (including debt instruments).According to the information and explanations given to us the term loan has been appliedfor the purpose for which the loans were obtained.
XI. In respect of fraud:
To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the course of our audit.
XII. In respect of Managerial Remuneration.
In our opinion and according to the information and explanations given to us and on thebasis of our examination of the records managerial remuneration has been paid or providedin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.
XIII. In respect of Nidhi Company
In our opinion and according to the information and explanations given to us Companyis not Nidhi Company. Hence Compliance related to Net owned fund is not applicable tocompany.
XIV. In Respect of Related parties Transactions
In our opinion and according to the information and explanations given to us alltransactions with the related parties are in compliance with Section 188 and 177 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements etc as required by the accounting standards and Companies Act 2013.
XV. In Respect of Preferential Allotment/Private Placement of shares.
According to the information and explanations given to us the company has not madepreferential allotment.
XVI. In Respect of Non Cash transactions with Directors
According to the information and explanations given to us the company has not enteredinto any cash transactions with directors or persons connected with him and so complianceunder section 42 of the Companies Act 2013 need not complied with.
XVII. In Respect of Registration of Nidhi Company.
The company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Infosys Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub- section 3 of Section 143 of the Companies Act 2013 ("the Act") I
We have audited the internal financial controls over financial reporting of MADHUR
INDUSTRIES LIMITED ("the Company") as of March 31 2022 in conjunctionwith our I audit of the standalone financial statements of the Company for the year endedon that date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the
"Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the
Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls.
Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch 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.
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 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 and such internal financial controls over financialreporting were operating effectively as at March 31 2022 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
|For RAHUL KAKANI & ASSOCIATES || |
|(CHARTERED ACCOUNTANTS) || |
|Sd/- || |
|AJAY D. PATEL || |
|PARTNER ||Place: -Ahmedabad |
|M.NO.: 163596 ||Date: - 30/05/2022 |
|F.R.No. 130198W ||UDIN NO.: 22163596AJWIMB8678 |