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Magnanimous Trade & Finance Ltd.

BSE: 512377 Sector: Financials
NSE: N.A. ISIN Code: INE664N01018
BSE 00:00 | 28 Feb Magnanimous Trade & Finance Ltd
NSE 05:30 | 01 Jan Magnanimous Trade & Finance Ltd
OPEN 3.33
PREVIOUS CLOSE 3.33
VOLUME 1
52-Week high 3.33
52-Week low 3.03
P/E 3.11
Mkt Cap.(Rs cr) 0
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.33
CLOSE 3.33
VOLUME 1
52-Week high 3.33
52-Week low 3.03
P/E 3.11
Mkt Cap.(Rs cr) 0
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Magnanimous Trade & Finance Ltd. (MAGNANIMOUSTRAD) - Auditors Report

Company auditors report

To

The Members

MAGNANIMOUS TRADE & FINANCE LTD.

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of MAGNANIMOUSTRADE & FINANCE LTD ("the Company") which comprise the Balance Sheet as atMarch 31 2021 the statement of Profit and Loss (including other comprehensive income)Statement of Changes in Equity and Cash Flow Statement for the year ended on that dateand the notes to the financial statements including a summary of significant accountingpolicies and other explanatory information.

2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2021 its Profit total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Act and the Rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of matter

4. We draw attention to Note No. 31 to the standalone financial statements regardingoutbreak of the COVID-19 pandemic and the consequential lock-down restrictions imposed bythe Government which as per the assessment of the management has not significantlyimpacted the operations and financial position of the Company. Our opinion is not modifiedin respect of this matter.

Key audit matters

5. Key audit matters are those matters that in our professional judgement were ofmost significance in our audit of the financial statements of the current period. Thesematters were addressed in the context of our audit of the financial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters.

Key audit matters How our audit addressed the key audit matters
Compliance and disclosure requirements under the applicable Indian Accounting Standards RBI Guidelines and other applicable statutory regulatory and financial reporting framework. We have assessed the systems and processes laid down by the company to appropriately ensure compliance and disclosures as per the applicable Indian Accounting Standards RBI Guidelines and other applicable statutory regulatory and financial reporting framework. We have designed and performed audit procedures to assess the completeness and correctness of the details disclosed having regard to the assumptions made by the management in relation to the applicability and extent of disclosure requirements; and have relied on internal records of the company and external confirmations wherever necessary.

Information Other than the Standalone financial statements and Auditor's Report Thereon

6. The Company's Board of Directors is responsible for the preparation of otherinformation. The other information comprises the information included in Board's Reportincluding Annexures to Board's Report in the Annual Report of the Company for thefinancial year 2020-21 but does not include the standalone financial statements and ourauditor's report thereon. The reports containing the other information as above areexpected to be made available to us after the date of this auditor's report. Our opinionon the financial statements does not cover the other information and we will not expressany form of assurance conclusion thereon. In connection with our audit of the standalonefinancial statements our responsibility is to read the other information identified abovewhen it becomes available and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedin the audit or otherwise appears to be materially misstated. When we read the reportscontaining the other information if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance.

Responsibilities of management and those charge with governance for the Standalonefinancial statements

7. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgements and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

8. In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's responsibilities for the audit of the Standalone financial statements

9. Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements. 10. As part of an audit inaccordance with SAs we exercise professional judgement and maintain professionalskepticism throughout the audit. We also: Identify and assess the risks of materialmisstatement of the standalone financial statements whether due to fraud or error designand perform audit procedures responsive to those risks and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error asfraud may involve collusion forgery intentional omissions misrepresentations or theoverride of internal control.

Obtain an understanding of internal control relevant to the audit including internalaudit system in vogue in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the company has adequate internal financial controls with referenceto financial statements in place and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. 11. Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements. 12. We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit. 13. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards. 14. From the matterscommunicated with those charged with governance we determine those matters that were ofmost significance in the audit of the standalone financial statements of the currentperiod and are therefore the key audit matters. We describe these matters in our auditor'sreport unless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

15. 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 inthe paragraphs 3 and 4 of the order to the extent applicable. 16. As required by section143(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. (b) In ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) the 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 aforesaidstandalone financial statements comply with the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. (e) Onthe basis of the written representations received from the directors as on March 31 2021taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2021 from being appointed as a director in terms of 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 on the adequacy andoperating effectiveness of the Company's internal financial controls over financialreporting; (g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197 (16) of the Act as amended in ouropinion and to the best of our information and according to the explanations given to usthe remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act; and (h) With respect to the other mattersto be included in the Auditor's Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinion and to the best of our information and accordingto the explanations given to us: i. The Company does not have any pending litigationswhich would impact its financial position. ii. The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Chaudhary Pandiya & Co

Chartered Accountants

FRN 001903C

Sd/-

(A.K.Pandiya)

Partner

Membership No. 070747

Place: Kanpur

Dated: 30.06.2021

UDIN: 21070747AAAADA9264

Annexure A to the Independent Auditors' Report on the Standalone Financial Statements

The annexure referred to in Independent Auditors Report to the members of the Companyon the standalone financial statements for the year ended March 31 2021 we report that;

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets; (b) The fixed assets of the Companyhave been physically verified by the management at reasonable intervals during the year;No material discrepancies were noticed on such verification; (c) According to theinformation and explanation given to us and on the basis of the examination of the recordsof the company no material discrepancies were noticed on such verification and the titledeeds of the immovable properties are held in the name of the company. (ii) (a) Accordingto the information and explanation given to us and on the basis of the examination of therecords of the company the management has conducted the physical verification ofinventory at reasonable intervals. (b) There is no discrepancy noticed on physicalverification of the inventory as compared to the books of accounts as the company holdsshares and securities shops offices and flats as inventory and the same has beenproperly dealt in the books of account. (iii) According to information and explanationgiven to us the company has not granted any loan secured or unsecured to companiesfirms limited liability partnerships or other parties covered in the register requiredunder section 189 of the Companies Act 2013. Accordingly paragraph 3 (iii) of the orderis not applicable. (iv) In our opinion and according to information and explanation givento us in respect of loans and investments the Company has complied with the provisionsof sections 185 and section 186 of the Companies Act 2013. (v) According to theinformation and explanation given to us the Company has not accepted any deposits frompublic. Therefore paragraph 3(v) of the order is not applicable. (vi) The CentralGovernment of India has not prescribed the maintenance of cost records under sub-section(1) of section 148 of the Act for any of the activities of the company and accordinglyparagraph 3 (vi) of the order is not applicable. (vii) (a) According to the informationand explanations given to us and on the basis of our examination of the records of theCompany amounts deducted/ accrued in the books of account in respect of undisputedstatutory dues including provident fund employees' state insurance income-tax sales-tax service tax goods and service tax duty of customs duty of excise value added taxcess and other material statutory dues have been generally regularly deposited during theyear by the company with the appropriate authorities. (b) According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundemployees' state insurance income-tax sales-tax service tax goods and service taxduty of customs duty of excise value added tax cess and other material statutory dueswere in arrears as at March 31 2021 for a period of more than six months from the datethey became payable. (viii) In our opinion and according to the information andexplanations given to us the company has no outstanding dues to any financialinstitutions or banks or any government or any debenture holders during the year.Accordingly paragraph 3 (viii) of the order is not applicable. (ix) The Company has notraised any money by way of initial public offer or further public offer (including debtinstruments) and has not taken any term loans during the year. Accordingly paragraph 3(ix) of the order is not applicable. (x) To the best of our knowledge and according to theinformation and explanations given to us no fraud by the Company or no material fraud onthe Company by its officers or employees has been noticed or reported during the year.(xi) In our opinion and according to the information and explanations given to us theCompany has paid/ provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act. (xii)The Company is not a Nidhi Company and accordingly paragraph 3 (xii) of the order is notapplicable to the Company. (xiii) According to the information and explanations given tous and based on our examination of the records of the company transactions with therelated parties are in compliance with section 177 and 188 of the Act. Where applicablethe details of such transactions have been disclosed in the Standalone financialstatements as required by the applicable accounting standards. (xiv) According to theinformation and explanation given to us and on the basis of our examination of the recordsof the Company the Company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year. Therefore paragraph3(xiv) of the order is not applicable. (xv) According to the information and explanationgiven to us and on the basis of our examination of the records of the Company the Companyhas not entered into any non-cash transactions with the directors or persons connectedwith him as specified under section 192 of the Act. Therefore paragraph 3(xv) of theorder is not applicable. (xvi) According to the information and explanation given to usand the on the basis of our examination of the records of the company the company isrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934 andaccordingly the company is registered under section 45-IA of Reserve Bank of India Act1934 as a non-deposit taking company. Refer Note No. 37 of the balance sheet.

For Chaudhary Pandiya & Co

Chartered Accountants

FRN 001903C

Sd/-

(A.K.Pandiya)

Partner

Membership No. 070747

Place: Kanpur

Dated: 30.06.2021

UDIN: 21070747AAAADA9264

Annexure B to the Independent Auditors' Report on the Standalone financial statements

Referred to in the Independent Auditors' Report of even date to the members ofMAGNANIMOUS TRADE & FINANCE LTD ("the Company") on the Standalone financialstatements for the year ended March 31 2021.

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 MAGNANIMOUSTRADE & FINANCE LTD ("the Company") as of March 31 2021 in conjunction withour audit 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 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 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 standalone financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 authorisations ofmanagement and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the standalone 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 2021 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 our audit opinion on the Company's internal financial controlssystem over financial reporting.

For Chaudhary Pandiya & Co

Chartered Accountants

FRN 001903C

Sd/-

(A.K.Pandiya)

Partner

Membership No. 070747

Place: Kanpur

Dated: 30.06.2021

UDIN: 21070747AAAADA9264

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