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Madhusudan Industries Ltd.

BSE: 515059 Sector: Others
NSE: MADSUDIND ISIN Code: INE469C01023
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NSE 05:30 | 01 Jan Madhusudan Industries Ltd
OPEN 16.00
PREVIOUS CLOSE 16.00
VOLUME 100
52-Week high 20.05
52-Week low 13.21
P/E
Mkt Cap.(Rs cr) 9
Buy Price 16.00
Buy Qty 400.00
Sell Price 16.80
Sell Qty 100.00
OPEN 16.00
CLOSE 16.00
VOLUME 100
52-Week high 20.05
52-Week low 13.21
P/E
Mkt Cap.(Rs cr) 9
Buy Price 16.00
Buy Qty 400.00
Sell Price 16.80
Sell Qty 100.00

Madhusudan Industries Ltd. (MADSUDIND) - Auditors Report

Company auditors report

Independent Auditors' Report

To

The Members of Madhusudan Industries Limited

Report in the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Madhusudan IndustriesLimited ("the Company") which comprise the balance sheet as at 31stMarch 2018 and the statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the 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 Ind ASfinancial 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 financial statements basedon our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderissued under section 143(11) of the Act.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the Ind AS financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 the explanationsgiven to us the aforesaid 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 including the Ind AS of the state ofaffairs (financial position) of the Company as at 31st March 2018 and itsprofit financial performance including other comprehensive income its cash flows and thechanges in equity for the year ended on that date.

Other Matters

The comparative financial information of the company for the year ended 31stMarch 2017 and the transition date opening balance sheet as at 1st April 2016prepared in accordance with Ind AS included in these Ind AS financial statements have beenaudited by the predecessor auditor who had audited the financial statements for therelevant periods. The report of the predecessor auditor on the comparative financialinformation and the opening balance sheet dated 25th May 2017 expressed anunmodified opinion.

The comparative financial information of the Company for the year ended 31st March 2017and the transition date opening balance sheet as at 1st April 2016 included in these IndAS financial statements are based on the previously issued statutory financial statementsprepared in accordance with the Companies (Accounting Standards) Rules 2006 audited bythe predecessor auditor whose report for the year ended 31st March 2017 and 31stMarch 2016 dated 25th May 2017 and 26th May 2016 respectively expressed anunmodified opinion on those financial statements as adjusted for the differences in theaccounting principles adopted by the Company on transition to the Ind AS which have beenaudited by us.

Our opinion on the Ind AS financial statements and our report of Other Legal andRegulatory Requirements below is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the Order.

2. As required by Section 143(3) of the Act based on our audit we report to theextent applicable that :

a) 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.

b) 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.

c) The Balance Sheet the Statement of Profit and Loss including Other comprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in termsof Section 164(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 controlsover financial 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:

1. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements

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

3. there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Shailesh Shah & Associates

Chartered Accountants
Firm Reg. No. 109877W
Shailesh A. Shah
Place : Ahmedabad Proprietor
Date : 28th May 2018 Membership No. 32205

Annexure – A to Independent Auditors’ Report

Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date to the members of MADHUSUDANINDUSTRIES LIMITED on the Ind AS financial statements as of and for the year ended 31stMarch 2018.

1. In respect of its fixed assets :

(a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals in a phased periodical manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies between the book records and the physical inventory have been noticed inrespect of the assets physically verified.

(c) The title deeds of immovable properties are held in the name of the company.

2. As explained to us the company does not hold any physical inventories during theyear. Thus paragraph 3(ii) of the Order is not applicable to the Company.

3. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loan secured orunsecured to companies firms Limited Liability Partnerships or other parties covered inthe register maintained under Section 189 of the Companies Act 2013.

4. According to the information and explanations given to us the company has compliedwith the provisions of Section 185 and 186 wherever applicable in respect of loansinvestments guarantees and securities given by the company.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public in accordance with the provisions ofSection 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Accordingly paragraph 3(v) of the Order is not applicable to the Company.

6. In our opinion and according to the information and explanations given to us thecompany is not required to maintain cost records specified by the Central Government undersub-section (1) of section 148 of the Companies Act.

7. (a) According to the records of the company undisputed statutory dues includingProvident Fund Employees’ State Insurance Income-tax Sales-tax Service Tax Dutyof Customs Duty of Excise Value Added Tax Goods and Service Tax Cess and otherstatutory dues have been generally regularly deposited with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of the aforesaid dues were outstanding as at 31st of March 2018 fora period of more than six months from the date they became payable.

(b) According to the information and explanations given to us following disputedstatutory dues have not been deposited on account of disputed matters pending beforeappropriate authorities are as under :

Sr. No. Name of Statute Nature of Dues Forum where dispute is pending Amount Rs. (In Lacs)
1 Gujarat Sales Tax Act Sales-tax Gujarat Sales Tax Tribunal 139.34
2 Central Excise Act Central Excise Duty CESTAT 97.76

8. The company does not have any loans or borrowings from any financial institutionbank government or debenture holders during the year. Accordingly paragraph 3(viii) ofthe order is not applicable.

9. The Company has not raised any moneys by way of initial public offer further publicoffer (including debt instruments) and term loans. Accordingly the provisions of Clause3(ix) of the Order are not applicable to the Company.

10. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no fraud on the Company by its officers oremployees has been noticed or reported during the year.

11. According to the information and explanations given to us the managerialremuneration has been paid or provided in accordance with the requisite approval mandatedby the provisions of section 197 read with schedule V to the Companies Act 2013.

12. The Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable toit the provisions of clause 3 (xii) of the Order are not applicable to the Company.

13. According to the information and explanations given to us all transactions withthe related parties are in compliance with Section 177 and 188 of the Act whereapplicable and the details have been disclosed in the Financial Statements as required bythe applicable Indian Accounting Standards. 14. According to the information andexplanations given to us and based on our examination of the records of the Company theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year. Accordingly the provisions of Clause3(xiv) of the Order are not applicable to the Company.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with him and hence provisions of section192 of the Companies Act 2013 are not applicable.

16. According to information and explanations given to us the Company is not requiredto be registered under Section 45-IA of the Reserve Bank of India Act 1934. Accordinglythe provisions of Clause 3(xvi) of the Order are not applicable to the Company.

For Shailesh Shah & Associates

Chartered Accountants Firm Reg. No. 109877W

Shailesh A. Shah

Place : Ahmedabad Proprietor

Date : 28th May 2018

Membership No. 32205

Annexure – B to Independent Auditors’ Report

Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements’ Section of our Report of even date to the members of MADHUSUDANINDUSTRIES LIMITED on the financial statements for the year ended 31st March2018.

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 MADHUSUDANINDUSTRIES LIMITED ("the Company") as of March 31 2018 in conjunction with ouraudit of the Ind AS financial statements 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 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 (the "Guidance Note").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 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 Guidance Note and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to and audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain evidence about the adequacy of theinternal financial controls system over financial reporting and their operatingeffectiveness. Our audit 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally 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 details 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 authorities 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.

Opinion

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 2018 based on theinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

For Shailesh Shah & Associates
Chartered Accountants
Firm Reg. No. 109877W
Shailesh A. Shah
Place : Ahmedabad Proprietor
Date : 28th May 2018 Membership No. 32205