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Magna Eletrocasting Ltd.

BSE: 517449 Sector: Engineering
NSE: N.A. ISIN Code: INE437D01010
BSE 13:08 | 29 Jan 165.00 -6.40
(-3.73%)
OPEN

173.90

HIGH

173.90

LOW

163.50

NSE 05:30 | 01 Jan Magna Eletrocasting Ltd
OPEN 173.90
PREVIOUS CLOSE 171.40
VOLUME 703
52-Week high 205.00
52-Week low 150.00
P/E 7.67
Mkt Cap.(Rs cr) 76
Buy Price 165.00
Buy Qty 114.00
Sell Price 170.00
Sell Qty 21.00
OPEN 173.90
CLOSE 171.40
VOLUME 703
52-Week high 205.00
52-Week low 150.00
P/E 7.67
Mkt Cap.(Rs cr) 76
Buy Price 165.00
Buy Qty 114.00
Sell Price 170.00
Sell Qty 21.00

Magna Eletrocasting Ltd. (MAGNAELECTROCAS) - Auditors Report

Company auditors report

TO THE MEMBERS OF MAGNA ELECTRO CASTINGS LIMITED

Report on IND AS Financial Statements

We have audited the accompanying IND AS financial statements of Magna ElectroCastings Limited ('the Company') which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flow for the year then endedand a summary of significant accounting policies and other explanatory information.(hereinafter referred to as “IND AS financial statements”)

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 financialposition financial performance including Other Comprehensive income Cash flows andChanges in Equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (INDAS) specified underSection 133 of the Act read with relevant rules issued thereunder.

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.We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe Ind AS financial statements are free from material misstatement.

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 of theIND AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the IND AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall 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 of the Company as at 31March 2018 its profit(including st other comprehensiveincome) its cashflows and changes in the equity 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 (“the Order”)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report 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 of the aforesaidIND AS

Financial Statements.

(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 Statement of Changes in Equity and the Cash flow statement 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 (IND AS) specified under Section 133 of the Act read with therelevant Rules issued there under.

(e) On the basis of the written representations received from the Directors as on 31March 2018 st taken on record by the Board of Directors none of the Directors isdisqualified as on 31 March st 2018 from being appointed as a Director in terms ofSection 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 a separatereport has been given in “Annexure B”; and

(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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i) The Company does not have any pending litigations 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 has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Srikishen &Co
Chartered Accountants
Firm Registration No 004009S
K.Murali Mohan
Coimbatore Proprietor Auditor
30.05.2018 Membership No.14328

Annexure - A to the Independent Auditor's Report

The Annexure referred to in Independent Auditor's Report to the members of the Companyon the IND AS Financial Statements for the year ended 31 March 2018. st

According to the information and explanations sought by us and given by the Company andthe books and records examined by us during the course of our Audit and to the best of ourknowledge and belief we report the following:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets

(b) The fixed assets of the Company have been physically verified in a phasedperiodical manner by the management which in our opinion is reasonable having regard tothe size of the Company and the nature of its assets. No material discrepancies werenoticed on such verification.

(c) The title deeds of all the immovable properties of the Company shown under theFixed Assets schedule are held in the name of the Company.

(ii) The physical verification of inventory has been conducted by the management atreasonable intervals. The Company has maintained proper record of inventory and nomaterial discrepancies were noticed on the physical verification of inventories ascompared to the book records.

(iii) 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 during the financial year.

(iv) The Company has not granted loans or made investments or given guarantees andsecurities during the year and hence compliance with Section 185 and 186 are notapplicable.

(v) The Company has not accepted any deposits and therefore paragraph 3(v) of the Orderis not applicable to the Company.

(vi) The Central Government has prescribed the maintenance of cost records underSection 148(1) of the Act. We have broadly reviewed the accounts and records of theCompany in this connection and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however carried out adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

(vii) (a) The Company is regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income-Tax Sales Tax Service Tax Goods andService Tax Duty of Customs Duty of Excise Value Added Tax Cess and other materialstatutory dues with the appropriate authorities.

There are no undisputed arrears of statutory dues which were outstanding as at 31March 2018 for a period of more than six months from the date they became payable.

(b) There are no dues of Sales tax Service tax Goods and Service Tax Duty ofCustoms Duty of Excise Cess and which have not been deposited with the appropriateauthorities on account of any dispute except for the following.

Name of statute Nature of the dues Amt. as on 31.03.2017 (in?) Period to which the amt. relates Forum where the dispute is pending Remarks
Income Tax Act 1961 Regular 540247 Asst. Year 2007-2008 ITAT Assessment set aside
Income Tax Act 1961 Regular 1576640 Asst. Year 2014-15 Deputy Commissioner Rectification of mistake

(viii) The Company has not defaulted in the repayment of dues to banks. The Company hasnot taken any loan either from financial institutions or from the Government and has notissued any debentures.

(ix) The Company did not raise any money byway of initial public offer or furtherpublic offer (including debt instruments) and term loan during the year. AccordinglyClause 3(ix)of the order is not applicable.

(x) No fraud by the Company or fraud on the Company by its officers or employees hasbeen noticed or reported during the year.

(xi) The Company has paid/ provided for managerial remuneration in accordance with therequisite approval mandated bythe provisions of Section 197 read with Schedule VoftheAct.

(xii) The Company is not a Nidhi Company and therefore this Clause is not applicable.

(xiii) All transactions with the related parties are in compliance with Section 177 andSection 188 of the Act and details of such transactions have been disclosed in thefinancial statements as required by the applicable accounting standards.

(xiv) The Company has not made preferential allotment or private placement of shares orissued any debentures during the year.

(xv) The Company has not entered into non-cash transactions with Directors or personsconnected with them.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For Srikishen &Co
Chartered Accountants
Firm Registration No 004009S
K.Murali Mohan
Coimbatore Proprietor Auditor
30.05.2018 Membership No.14328

Annexure - B to the Auditor's Report

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 MagnaElectro Castings Limited (“the Company”) as of 31 March 2018 in conjunction withour audit of the IND AS 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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's 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 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 judgment including the assessment of the risks ofmaterial misstatement of the Ind AS 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the IND AS 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 to the best of our information and according to the explanation given tous the Company has in all material respects an adequate internal financial controlssystem over financial reporting and

such internal financial controls over financial reporting were operating effectively asat 31 st March 2018 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.

For Srikishen & Co
Chartered Accountants
Firm Registration No 004009S
K. Murali Mohan
Coimbatore Proprietor Auditor
30.05. 2018 Membership No.1432