On Financial Statements
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 31/03/2018. and TheStatement of Profit and Los; 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 matt its 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) or the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit o obtain reasonable assurance about whetherthe 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 inch ding the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making lose 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 as 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 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 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 2018 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 ey 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 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 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 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 terms of Section164 (2) of the Act.
f) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 1 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our inform tion and according to the explanations given to us:
i) The company does not have any pending litigations which would impact its FinancialPosition in The Company paid not have any long term contracts including derivativeContracts for which there were any material foreseeable losses on
ii) The Company is not required to transfer any amounts to the Investors Education andProtection Fund.
For Singh & Co.
FRN NO B02049E
Sunil C. Bohara
Membership No. 103395
PAN NO. ABHPB3496K
Ahmedabad 31st August 2018
"ANNEXURE' TO THE INDEPENDENT AUDITORS REPORT
Referred to in paragraph 1 under the heading Report on Other Legal &Regulatory Requirer ent' of our report of even date to the financial statements of thecompany for the year ended Ma^ch 31 2018:
1. In respect of the Company's Fixed Assets:
(a) The company has maintained proper records showing full particular 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 partnership firm Mahak Dye Chem fromwhich Mahickra Chemicals Limited a unlisted public limited company is converted. Hencetitle deeds of the fixed assets are in process of conversion of name from Mahak Dye ChemIndustries to Mahickra Chemicals Limited.
2. In respect of Company's inventories:
(a) The management during the year has conducted physical verification of the inventor& 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 sub-section (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 tax Goods & Services Tax Wealth Tax Sales Tax CustomDuty Excise Duty and Cess & Goods & Service Tax were in arrears as on 31s1of March 2018 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 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 if 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 ail 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 made private placement of shares during the yearunder review. Accordingly the provisions of clause 3 (xiv) of the Order are applicable tothe Company and the requirement of Section 42 of Companies Act. 2013 have been compliedwith nd the amount raised has been used for the purpose for which the funds were 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 with dlectors or persons connected with him. Accordingly the provisions of clause 3 (xv) of theOrder 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 f India Act 1934 and accordingly the provisions of clause 3 (xvi) of the Order arenot applicable to the Company and hence not commented upon.
Ahmedabad31st August 2018