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Mahip Industries Ltd.

BSE: 542503 Sector: Industrials
NSE: N.A. ISIN Code: INE00CX01017
BSE 00:00 | 26 Apr Mahip Industries Ltd
NSE 05:30 | 01 Jan Mahip Industries Ltd
OPEN 3.50
PREVIOUS CLOSE 3.43
VOLUME 8000
52-Week high 3.50
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.50
CLOSE 3.43
VOLUME 8000
52-Week high 3.50
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mahip Industries Ltd. (MAHIPINDUSTRIES) - Auditors Report

Company auditors report

On The Financial Statement of Mahip Industries Limited To

THE MEMBERS OF

Mahip Industries Limited

(Formerly Known As Care Corupack Ltd)

Report on the Financial Statements

We have audited the accompanying standalone financial statements of MAHIP INDUSTRIESLIMITED (Formerly Known As Care Corupack Ltd) ("the Company") which comprisethe Balance Sheet as at March 31 2020 the Statement of Profit and loss and the Cash FlowStatement for the Period then ended and a summary of significant accounting policies andother explanatory information.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion section of our report the aforesaid financial statements give the informationrequired by the Companies Act 2013 ("The Act") in the manner so required andgive a true and fair view in conformity with the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 and otheraccounting principles generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2020;

b) in the case of the Profit and Loss Account of the profit/Loss for the period endedon that date.

c) In case of Cash Flow Statement of the Cash Flow for the period ended on that date.

Basis for Qualified Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the standalone financial statements.

1. We draw attention to the non-provision of interest on NPA accounts of banks. Theexact amounts of the said non provisions are not determined and accounted for by theCompany. Had the provision been made in the financial statements; Finance cost Banker'sloan liability and loss for the year would have been higher by the amount of suchprovision and the Shareholder's funds as per the Balance sheet would have been lower bythe same amount.

2. In the absence of the actuarial valuation report the impact on loss for the year onaccount of such valuation is not ascertainable and relevant disclosures not been given.The Company has not made provision for gratuity and leave encashment for the year. This isnot in compliance with AS-15 Employee Benefits. Had the provision been made in thefinancial statements Employee Benefits and loss for the year as per the Statement ofProfit & Loss would have been higher by the amount of such provision and the long-terminvestments long-term and short-term loans and advances and the Shareholder's funds asper the Balance Sheet would have been lower by the same amount.

3. Certain Debit and Credit transactions appearing in the Financial Statements aresubject to confirmation and reconciliation.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined that there are no key audit matters to communicate in our report.

Management's Responsibility for the Financial Statements

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 and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding assets of the Company and forpreventing 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

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. Those Board of Directors are also responsible foroverseeing the Company's financial reporting process.

Auditor's Responsibility

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.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2017 ("the Order")issued by the Central Government of India in terms of subsection (11) of Section 143 ofthe Act we give in the "Annexure A" statement on the matters specified inparagraph 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 obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.

c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (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 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 has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

FOR A N A M & ASSOCIATES.

CHARTERED ACCOUNTANTS

Firm Regn. No. : 005496S

CA NAZIM F. RAJAIWALA PARTNER

UDIN : 20131829AAAAKO9051

Membership No. : 131829

Date: 14.09.2020

Place: Ahmedabad

"Annexure - A"

To the Independent Auditors' Report on Financial Statement of Mahip Industries Limited.

Referred to in the Paragraph 8 under the heading ‘Report on the Other Legal andRegulatory Requirements' of our report of even date on the financial statements of theCompany for the period ended on March 31 2020

I. In respect of its fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b. All the assets have not been physically verified by the management during the yearbut there is a regular program of verification which in our opinion is reasonable havingregard to the size of the company and the nature of its assets. No material discrepancieswere noticed on such verification.

c. As per the information and explanations provided to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties aregenerally held in the name of the Company except the land situated in the Dholka which hasbeen taken on lease.

d. In our opinion and according to the information and explanations given to us nomajor part of fixed asset has been disposed during the year and therefore does not affectthe going concern assumption.

II. In respect of its Inventories:

a. As explained to us the inventory has been physically verified during the year bythe management. In our opinion the frequency of verification is reasonable.

b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the management are reasonableand adequate in relation to the size of the Company and the nature of its business.

c. As explained to us no material discrepancy were noticed on physical verification

III. In respect of loans granted and taken to / from parties covered in the registermaintained u/s 189 of the Companies Act 2013

According to the information and explanations given to us during the year coveredaudit the Company has granted interest free loans to the companies covered in theRegister required to be maintained under Section 189 of the Companies Act 2013. Inrespect of such loans

(i) the terms and conditions of the grant of such loans are not prejudicial to thecompany's interest.

(ii) the schedule of repayment of principal and payment of interest has been stipulatedand whether the repayments or receipts are regular.

(iii) There are no overdue amount as at the period-end in respect of both principal andinterest.

IV. In respect of loans investments and guarantees u/s. Section 185 and 186 of theCompanies Act 2013.

In our opinion and according to the information and explanations given to us Inrespect of loans investments and guarantees whether provisions of Section 185 and 186 ofthe Companies Act 2013 have been complied with.

V. In respect of deposits from public:

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 theprovisions of clause 4(vi) of CARO are not applicable to the Company.

VI. In respect of maintenance of cost records:

Pursuant to rules made by the Central Government for the maintenance of cost recordsunder sub-section (1) of section 148 of the Companies Act 2013 in respect of certainmanufacturing activities as informed to us the Company has maintained cost records.

VII. In respect of statutory dues:

(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Income taxWealth tax and any other material statutory dues have generally been not regularlydeposited during the year by the Company with the appropriate authorities except thefollowing. According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has outstanding dues of Rs.82047/- payable towards the Employee's Provident fund and Rs.1990653/- payable towardsIncome Tax (Tax deducted at source) related to F.Y. 2018-19 not deposited to the accountsof government. And Rs.1071703/- payable towards Income Tax (Tax deducted at source)related to F.Y. 2019-20 not deposited to the accounts of government and the liabilitytowards the Employee's Provident fund have not been determined for the F.Y. 2019-20.

Except above the company did not have any dues on account of Employees' StateInsurance Custom Duty and Excise duty. According to the information and explanationsgiven to us there are no undisputed statutory dues payable in respect of Employees StateInsurance Sales-tax Wealth Tax Custom Duty Excise Duty Cess which are outstanding asat 31.3.2020 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there is no amount whichhave not been deposited on account of any disputed amount payable in respect of Incometax Sales tax Service tax Customs Excise or Value added tax and Cess.

VIII. In respect of dues to financial institution / banks / debentures:

Based on our audit procedures and on the basis of information and explanation given bythe management we are of the opinion that the company has defaulted in the repayment ofinstalments of the loans obtained from Banks NBFC and financial institution and inpayment of interest on such loans. In the absence of information and material records weare unable to comment on amount of default in loan liability including interest and othercharges payable thereon.

IX. In respect of application of money raised by Initial public offer further publicoffer (including debt instruments) and term loans.

According to the information and explanations given to us company has not issued anyshares and has not raised money from initial public offer and not raised money fromfurther public offer (including debt instruments).

According to the information and explanations given to us and based on the documentsand records examined by us on an overall basis the term loan has been applied for thepurpose for which the loans were obtained.

X. In respect of fraud:

To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the course of our audit.

XI. In respect of Managerial Remuneration.

In our opinion and according to the information and explanations given to us and on thebasis of our examination of the records managerial remuneration has been paid or providedin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

XII. In respect of Nidhi Company

In our opinion and according to the information and explanations given to us Companyis not Nidhi Company. Hence Compliance related to Net owned fund is not applicable tocompany.

XIII. In Respect of Related parties Transactions

In our opinion and according to the information and explanations given to us alltransactions with the related parties are in compliance with Section 188 and 177 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements etc as required by the accounting standards and Companies Act 2013.

XIV. In Respect of Preferential Allotment/Private Placement of shares.

According to the information and explanations given to us the company has not made anypreferential allotment or private placement of shares or fully

or partly convertible debentures during the year under review and if so complianceunder section 42 of the Companies Act 2013 need not complied with.

XV. In Respect of Bonus Shares issued.

According to the information and explanations given to us the company has not issuedany Bonus shares during the year to the equity shareholders including directors of thecompany from the balance available to the extent of security premium and remaining fromreserve & surplus account.

XVI. In Respect of Non-Cash transactions with Directors

According to the information and explanations given to us the company has not enteredinto any non-cash transactions with directors or persons connected with him and socompliance under section 42 of the Companies Act 2013 need not complied with.

XVII. In Respect of Registration of Nidhi Company.

The company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.

FOR A N A M & ASSOCIATES.

CHARTERED ACCOUNTANTS

Firm Regn. No. : 005496S

CA NAZIM F. RAJAIWALA PARTNER

UDIN : 20131829AAAAKO9051

Membership No. : 131829

Date: 14.09.2020

Place: Ahmedabad

"ANNEXURE B"

TO THE INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS OF MAHIP INDUSTRIESLIMITED.

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 MahipIndustries Limited ("the Company") as of 31st March 2020 in conjunction withour audit of the standalone financial statements of the Company for the period ended onthat 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').

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 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 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 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) error or fraud may occur and not bedetected.

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.

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 override of controls

by the Management material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the Internal Financial Controls overfinancial reporting to future periods are subject to the risk that the Internal FinancialControl over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate

Basis for Disclaimer of Opinion

The system of internal financial controls over financial reporting with regard to theCompany were not made available to us to enable us to determine if the Company hasestablished adequate internal financial control over financial reporting and whether suchinternal financial controls were operating effectively as at March 31 2020.

Disclaimer of Opinion

According to the information and explanation given to us and as stated in "basisof disclaimer of opinion " paragraph above the Company does not have adequateinternal financial control over financial reporting on criteria based on or 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. Because of this reason we are unable to obtain sufficientappropriate audit evidence to provide a basis for our opinion whether the Company hasadequate internal financial controls over financial reporting and whether such controlswere operating effectively as at March 31 2020.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the financial statements of the Company andthe disclaimer has affected our opinion on the financial statements of the Company and wehave issued qualified opinion on the financial statements.

FOR A N A M & ASSOCIATES.

CHARTERED ACCOUNTANTS

Firm Regn. No. : 005496S

CA NAZIM F. RAJAIWALA PARTNER

Membership No. : 131829

UDIN : 20131829AAAAKO9051

Date: 14.09.2020

Place: Ahmedabad

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