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Mallcom (India) Ltd.

BSE: 539400 Sector: Industrials
NSE: N.A. ISIN Code: INE389C01015
BSE 00:00 | 06 Dec 201.00 0.50
(0.25%)
OPEN

201.00

HIGH

201.00

LOW

201.00

NSE 05:30 | 01 Jan Mallcom (India) Ltd
OPEN 201.00
PREVIOUS CLOSE 200.50
VOLUME 50
52-Week high 279.70
52-Week low 193.00
P/E 7.42
Mkt Cap.(Rs cr) 125
Buy Price 191.00
Buy Qty 35.00
Sell Price 209.00
Sell Qty 115.00
OPEN 201.00
CLOSE 200.50
VOLUME 50
52-Week high 279.70
52-Week low 193.00
P/E 7.42
Mkt Cap.(Rs cr) 125
Buy Price 191.00
Buy Qty 35.00
Sell Price 209.00
Sell Qty 115.00

Mallcom (India) Ltd. (MALLCOMINDIA) - Auditors Report

Company auditors report

To

The Members of

MALLCOM (INDIA) LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of MALLCOM(INDIA) LIMITED ("the Company") which comprise the Balance Sheet as at 31s*March 2018 and the Statement of Profit and Loss (including other comprehensive income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of significant accounting policies and other explanatory notes for the yearended on that date (herein after referred to as "Standalone Ind AS FinancialStatements").

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matter stated in section 134(5)of the Company's Act 2013 ("the Act") with respect to the preparation of theseStandalone Ind AS financial statements that gives a true and fair view of the state ofaffairs (financial position) profit or (loss) (financial performance including othercomprehensive income) cash flows and changes in Equity of the Company in accordance withthe accounting principles generally accepted in India including the Accounting StandardsInd AS prescribed under Section 133 of the Act.

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 standalone IndAS financial 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 standalone Ind AS financialstatements based on our audit.

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 thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fairview in orderto design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sBoard of Directors as well as evaluating the overall presentation of the standalone IndAS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fairview in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs (financial position) of the Company as at 31st March 2018 and its profit(financial performance including other comprehensive income) its cash flows and thechanges in 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 section 143 (11) of the Act we givein the Annexure 'A' a statement on the matters specified in paragraphs 3 and 4 of theOrder.

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 are to thebest of our knowledge 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 it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andthe Statement of Changes in Equity dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act read with Rule 7 ofCompanies (Accounts) Rules 2014.

(e) On the basis of written representations received from the Directors as on 31stMarch 2018 and 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 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'p 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 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 standalone Ind AS financial statements - Refer note 32 to the itsstandalone Ind AS financial statements;

(ii) The Company did not have any long term contracts including any derivativecontracts for which there were any material foreseeable losses;

(iii) There has been no delay in tranferring amounts required to be transferred to theInvestor Education and Protection Fund by the Holding Company.

For S. K. Singhania & Co.

Chartered Accountants

Firm Registration No. 302206E

Rajesh Kr. Singhania

Partner Membership No. 52722

Place: Kolkata

Dated: 30th May 2018

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in Paragraph 1 under the heading "Report on other legal andregulatory requirements" of our report of even date)

In respect of its fixed assets :

1. a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) According to the information and explanations given to us fixed assets have beenphysically verified by the management during the year. In our opinion the frequency ofverification of the fixed assets by the management is reasonable having regard to the sizeof the company and the nature of its assets. No material discrepancies were noticed onsuch verification.

c) Based upon the audit procedure performed and according to the records of thecompany the title deeds of all the immovable properties are held in the name of thecompany.

In respect of its inventories :

2. a) The inventories have been physically verified by the management.

In our opinion the frequency of verification is reasonable b) The discrepanciesnoticed on verification between the physical stocks and the book records were not materialand have been properly dealt with in the books of accounts.

3. Since the company has not granted any loans secured or unsecured clause (a) (b)& (c) of section (iii] of para 3 of the Order is not applicable.

4. Since the company does not have any loan as such provisions of section 185 and 186of the Act are not applicable.

5. Since the company has not accepted any deposits section (v) of Para 3 of the Orderis not applicable.

6. We have broadly reviewed the accounts and records maintained by the company pursuantto the Companies (Cost Records and Audit] Rules 2014 read with Companies (Cost Recordsand Audit] Amendment Rules 20U specified by the Central Government under section 148 ofthe Act and are of the opinion that prima facie the prescribed cost records have beenmade and maintained. We have however not made a detailed examination of the records witha view to determine whether they are accurate or complete.

7. a] According to the information and explanations given to us the company hasgenerally been regular in depositing with appropriate authorities undisputed statutorydues including Provident Fund Employees State Insurance Income Tax Sales Tax ValueAdded Tax Service Tax Custom Duty Excise Duty Cess and other material statutory duesapplicable to it. b] According to the information and explanations given to us thedetails of disputed amount of Income Tax Value Added Tax Sales Tax Excise Duty CustomsDuty and Service Tax not deposited by the Company are as follows :

Name of the Statue Nature of the dues Amount Period to which Forum where the dispute is pending CIT (Appeal)
(Rs. in Lacs) amount relates
Income Tax Act Income Tax demand 13.46 A.Y. 2015-16
15.31 A.Y. 2014-15
9.04 A.Y. 2013-14
51.08 A.Y. 2012-13
Income Tax Act Income Tax demand 45.90 A.Y. 2011-12 Income Tax Tribunal
Service Tax Service Tax 31.88 2009-10 to 2011-12 CESTAT Kolkata

8. In our opinion and according to the information and explanations given to us thecompany has not defaulted in the repayment of loans or borrowings from Banks. The companydid not have outstanding loans from Financial Institutions Debenture Holders orGovernment.

9. Since the Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments] and term loans during the year section (ix] ofpara 3 of the Order is not applicable.

10. According to the information and explanations give to us no fraud by the Companyor in the Company by its officers or employees has been noticed or reported during theyear.

11. 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 provisions of section 197 read with Schedule V to the Companies Act2013.

12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company as such section fxii] of Para 3 of the Order is notapplicable.

13. In our opinion and according to the information and explanations given to us alltransactions with the related parties are in compliance with Sections 177 and 188 of theCompanies Act 2013 where applicable and details of such transactions have been disclosedin the Standalone Ind AS financial statements as required by the applicable Indianaccounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year clause 3(xiv] of the order is not applicable.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them as such section (xv) of Para 3of the Order is not applicable.

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

ForS.K. Singhania & Co.

Chartered Accountants

Firm Registration No. 302206E

Rajesh Kr. Singhania

Partner Membership No. 52722

Place: Kolkata

Dated: 30th May 2018

ANNEXURE B TO THE AUDITORS' REPORT

(Referred to in Paragraph 2(f) under the heading "Report on other legal andregulatory requirements" of our report of even date)

Report on the Internal Financial Controls under Clause (i) of subsection 3 of SectionM3 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of MALLCOM(INDIA) Limited ("the Company") as of 31st March 2018 in conjunction with ouraudit of the Standalone Ind AS financial statements of the Company for the year 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 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 the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired underthe 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 were 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 transaction 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 of theManagement 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 Limitation 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 period 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 31st March 2018 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 S.K. Singhania & Co.

Chartered Accountants

Firm Registration No. 302206E

Rajesh Kr. Singhania

Partner Membership No. 52722

Place: Kolkata

Dated: 30th May 2018