To The Members of Mahickra Chemicals Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Mahickra Chemicals Limited("the Company") which comprise the Balance Sheet as at 31/03/2019 and theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management 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 financial statements that give a true and fair view of the financial positionfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of internal financial controls with reference tofinancial statements that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
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 ethical
Requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material 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 internal financial controls with referenceto financial statements and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of 10 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements gives the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch' 2019 and its profit and its cash flows 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 Companies Act 2013 we give in the Annexure:-A statement on the matters specified inparagraphs 3 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 best ofour 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 and the Statement of Profit and Loss and Cash Flow Statement forthe Year ended dealt with by this Report are in agreement with the books of account.
d)In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e)On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act.
f)With respect to the adequacy of the Internal financial control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B". Our reports express an unmodified opinion onthe adequacy and reporting 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 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 on
iii) The Company is not required to transfer any amounts to the Investors Education andProtection Fund.
|For Singhi & Co. |
|Chartered Accountants |
|FRN No: 302049E |
|Sunil C Bohara |
|Membership No. 103395 |
|PAN No. ABHPB3496K |
|Ahmedabad 27thMay 2019 |
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
1. Referred to in paragraph 1 under the heading Report on Other Legal &Regulatory Requirement' of our report of even date to the financial statements of thecompany for the year ended March 31 2019:
In respect of the Company's 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; no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties as disclosed in Note 8 on Fixed Assets tothe Financial Statements are held in the name of Company which was previously in the nameMahak Dye Chem Industries. The Said title deed have been transferred on date02/06/2018videRef No :- GIDC/RM/ABD/TFR/VTW/1914with Gujarat Industrial Development Corporation in thename of Mahickra Chemicals Limited.
2. In respect of Company's inventories:
(a)The management during the year has conducted physical verification of theinventories & in our opinion the frequency of verification is reasonable.
(b)In our opinion and according to the information and explanations given to us thecompany has maintained proper records of inventory. The discrepancies noticed onverification between the physical stocks and the book records were not material and havebeen properly dealt with in the books of accounts.
3. 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 Act. Accordingly the provisions of clause 3 (iii) (a) to (c) of theOrder are not applicable to the Company and hence not commented upon.
4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of Section 185 & 186 of the Companies Act2013 in respect of loans investments guarantees and security.
5. 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 thedirectives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 orany other relevant provisions with regards to deposits are not applicable to the company.
6. As informed to us the maintenance of Cost Records has not been specified by theCentral Government under subsection (1) of Section 148 of the Act in respect of theactivities carried on by the company.
7. (a) According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Goods & Services Tax Sales Tax Wealth Tax Service Tax Custom DutyExcise Duty cess & Goods & Service Tax to the extent applicable and any otherstatutory dues have generally been regularly deposited with the appropriate authorities.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of Income taxGoods & Services Tax Wealth Tax Sales Tax CustomDuty Excise Duty and Cess & Goods& Service Tax were in arrears as on 31st ofMarch 2019 for a period of more than six months from the date they became payable.
(c) According to the information and explanation gives to us there are no materialdues of wealth tax and cess which have not been deposited with the appropriate authoritieson account of any dispute.
8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to financial institutions banks anddebentures holders. Also the company has not taken any further loan from financialinstitutions or from the government and has not issued any debentures.
9. Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.
10. Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.
11. According to information and explanation given to us and based on our examinationof the records of the company the company has paid/provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V to the Act.
12. The Company is not a Nidhi Company. Therefore the provisions of clause 3 (xii) ofthe Order are not applicable to the Company.
13. According to information and explanation given to us and based on our examinationof the records of the company all the transactions with the related parties are incompliance with Section 177 and 188 of Companies Act 2013 and the details have beendisclosed in the financial statements as required by the applicable accounting standards.
14. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made private placement of shares during theyear under review. Accordingly the provisions of clause 3 (xiv) of the Order areapplicable to the Company and the requirement of Section 42 of Companies Act 2013 havebeen complied with and the amount raised has been used for the purpose for which the fundswere raised.
15. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon
16. The company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934 and accordingly the provisions of clause 3 (xvi) of the Order arenot applicable to the Company and hence not commented upon.
|For Singhi& Co. |
|Chartered Accountant |
|FRN NO: 302049E |
|Sunil C. Bohara |
|Membership No. 103395 |
|PAN No. ABHPB3496K |
|Ahmedabad 27thMay 2019 |
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 2(f) under "Report on Other Legal and regulatoryrequirements' of our report of even date)
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 MAHICKRACHEMICALS LIMITED("the Company") as of 31st March 2019 in conjunction with ouraudit of the 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 (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.
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 Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto 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.
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.
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 31stMarch 2019 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 Singhi & CO |
|Chartered Accountants |
|Firm Registration No: 302049E |
|Sunil C. Bohara |
|Membership No : 103395 |
|Date :- 27th May 2019 |
|Place :- Ahmedabad |