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Mangalam Cement Ltd.

BSE: 502157 Sector: Industrials
NSE: MANGLMCEM ISIN Code: INE347A01017
BSE 00:00 | 19 Oct 215.20 -9.20
(-4.10%)
OPEN

216.75

HIGH

219.95

LOW

213.15

NSE 00:00 | 19 Oct 216.75 -5.20
(-2.34%)
OPEN

220.60

HIGH

223.10

LOW

215.00

OPEN 216.75
PREVIOUS CLOSE 224.40
VOLUME 896
52-Week high 479.55
52-Week low 178.00
P/E
Mkt Cap.(Rs cr) 574
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 216.75
CLOSE 224.40
VOLUME 896
52-Week high 479.55
52-Week low 178.00
P/E
Mkt Cap.(Rs cr) 574
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mangalam Cement Ltd. (MANGLMCEM) - Auditors Report

Company auditors report

To The Members of Mangalam Cement Limited Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial Statement of Mangalam Cement Limited('the Company") which comprise the Balance Sheet as at 31 st March 2018 and theStatement of Profit and Loss including Other Comprehensive Income the Cash Flow Statementand the Statement of Changes in Equity for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Ind-AS Financial Statements The Company's Board ofDirectors is responsible for the matters stated in Section 134(5) of the Companies Act2013 ("the Act") with respect to the preparation of these Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act read with relevantrules issued thereunder. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Ind AS financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the Ind AS financial statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as

well as evaluating the overall presentation of the Ind AS financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the Ind AS financial statements give the information required by the Act inthe 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 its Profit including other comprehensive Income its cash flows and thechanges in equity for the year ended on that date.

Emphasis of Matters

We draw attention to Note No 32.5 regarding coal valuing Rs. 1512.64 Lacs included ininventory of Stores and Spares sent for processing and is lying with a vendor for longtime. Due to financial difficulty vendor could not supply the material but the Company ishopeful of recovery.

Our opinion is not modified in respect of the above matter.

Other Matter

The financial statements of the Company for the year ended 31 st March 2017 has beenaudited by previous auditor who expressed and unmodified opinion on May 132017.

Our Opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements As required by section 143(3) of theAct we report that:

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 Act we give in the Annexure-A statements on the matters specified in the paragraphs 3and 4 of the Order to the extent applicable.

2. (a) We have sought and obtained all the information and

explanations which to the best of our knowledge and belief were necessary for thepurposes 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under section 133 of the Act read with relevant rulesissued thereunder.

(e) The matters about coal sent for processing as described under the emphasis ofmatters paragraph above in our opinion shall have no adverse effect on the functioningof the Company.

(0 On the basis of 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.

(g) 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"; and

(h) With respect to the other matters to be included in the Auditors' 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:

a. The Company has disclosed the impact of pending litigations on its financialposition in its

financial statements - Refer Note No. 32.3 of the Financial Statements.

b. The Company has made provision wherever required under the applicable law oraccounting standards for material foreseeable losses on long term contracts includingderivative contracts.

c. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For SINGHI & CO.

Chartered Accountants Firm Registration No. 302049E

(B. K. SI PAN I)

Place: New Delhi Partner

Date: May 152018 M. No.088926

Annexure-A to the Auditor's Report

Annexure referred to in paragraph 1 of our report of even date on the other legal andregulatory requirements (Re:Mangalam Cement Limited)

i. (a) The Company has maintained proper records showing

full particulars including quantitative details and situation of fixed assets exceptin case of certain assets where the same is in process of updation.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme fixed assets were verified during the year. Thediscrepancies noticed on such physical verification were not material.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable propertiesincluded in fixed assets are held in the name of the Company.

ii. The management has conducted physical verification of inventories except stocklying with third parties during the year at reasonable interval and no materialdiscrepancies were noticed on such physical verification.

iii. The Company has granted unsecured loans to a company covered in registermaintained under section 189 of the Companies Act2013. The terms and conditions on whichthe loans were granted to above company were not prima facie prejudicial to the interestof the Company. The Company has stipulated schedule of repayment of principal includinginterest thereon. Accordingly payment of principal and interest is not overdue. TheCompany has not granted loan to firms Limited Liability partnerships or other partiescovered in the register maintained under section 189 of the Companies Act 2013.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with provisions of section 186 of the Companies Act 2013 with

respect of loan granted and investment made. According to information and explainsgiven by the management no loan or guarantee or security under section 185 and noguarantee and security under section 186 of the Companies Act 2013 have been given oroutstanding during the year.

(v) The Company has not accepted any deposits covered under section 76 of the CompaniesAct 2013 during the year. Therefore the provisions of clause 3(v) of the Order are notapplicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Companies Act 2013 and are of the opinion that prima facie theprescribed records have been made and maintained. We have however not made a detailedexamination of the said records with a view to determine whether they are accurate orcomplete.

vii. (a) According to the records of the Company the Company is regular in depositingamounts deducted/ accrued in the books of accounts in respect of undisputed statutory duesincluding Provident Fund Employee's State Insurance Income-tax Sales-tax Service TaxDuty of customs Duty of excise Value Added Tax Cess and other material statutory dueswith the appropriate authorities.There was no undisputed outstanding statutory dues as atthe yearend for a period of more than six months from the date they became payable.

(b) According to the records of the Company there are no dues outstanding on account ofIncome-tax Sales- tax Value Added Tax Service Tax Duty of customs Duty of excise andCess on account of any dispute except the followings:

Name of Statute Nature of Dues Amount (Rs in Lacs)* Period to which the amount related Forum where matter is pending
Central Excise Act Cenvat 1722.42 2006 to 2013 High Court
1944 80.90 2005 to 2016 Commissioner (Appeals)
106.06 2013 to 2016 Deputy Commissioner
7.69 2016-17 Superintendent
Excise Duty 26.22 2007-08 CESTAT
4780.18 2008 to 2017 Commissioner
125.94 2008 to 2016 Asst. Commissioner
Income Tax Act 1951 Income Tax 69.00 AY 2010-11 to 2012-13 CIT(Appeals)
Sales Tax (Rajasthan) Sales-tax Incentive and interest thereon 4161.84 2003-08 High Court
RVAT 2.00 2007-08 Rajasthan Tax Board
Finance act 1994 Service Tax 206.01 2005 to 2011 Supreme Court
38.35 2008-09 High Court
520.64 2013 to 2017 Commissioner
403.97 2013 to 2016 Commissioner (Appeals)
112.31 2010 to 2015 Addl. Commissioner
31.85 2011 to 2017 Asst. Commissioner
0.39 2013-14 Superintendent

viii. The Company has not defaulted in repayment of dues to banks. The Company did nothave any borrowing from any financial institution or Government and dues to debentureholders.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments). Further in our opinion and explanations givento us term loans were applied for the purpose for which loans were raised.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven to us no fraud by the Company or no fraud on the Company by its officers andemployees has been noticed or reported during the year.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Therefore the provisions of clause 3(xii) of the Orderare not applicable.

(xiii) According to the information and explanations given to us

and based on our examination of the records of the Company transactions with therelated parties are in compliance with sections 177 and 188 of the Act where applicableand details of such transactions have been disclosed in the financial statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations give 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.

(xv) 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 directors. Therefore the provisionsof clause 3(xv) of the Order are not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For SINGHI & CO.

Chartered Accountants Firm Registration No. 302049E

B. K. SIPANI

Place: New Delhi Partner

Date: May 15 2018 M. No.088926

Annexure - B to the Auditor's Report

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of theCompanies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of MangalamCement Limited ("the Company") as of 31 March 2018 in conjunction with our auditof the Ind-AS 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'). 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 company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 Ind-AS 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 Ind-AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind-ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the Ind-ASfinancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitation 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 31 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 however same need to be further strengthened.

For SINGHI & CO.

Chartered Accountants Firm Registration No. 302049E

B. K. SIPANI

Place: New Delhi Partner

Date: May 15 2018 M. No.088926