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Mangalam Cement Ltd.

BSE: 502157 Sector: Industrials
NSE: MANGLMCEM ISIN Code: INE347A01017
BSE 00:00 | 17 Aug 242.30 -0.10
(-0.04%)
OPEN

248.00

HIGH

255.00

LOW

237.40

NSE 00:00 | 17 Aug 239.75 -3.45
(-1.42%)
OPEN

244.70

HIGH

256.25

LOW

235.00

OPEN 248.00
PREVIOUS CLOSE 242.40
VOLUME 2646
52-Week high 479.55
52-Week low 178.00
P/E
Mkt Cap.(Rs cr) 647
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 248.00
CLOSE 242.40
VOLUME 2646
52-Week high 479.55
52-Week low 178.00
P/E
Mkt Cap.(Rs cr) 647
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 CementLimited ("the Company") which comprise the Balance Sheet as at 31st March2017 and the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 Ind AS financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind 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 Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' 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 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 of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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 overallpresentation 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 aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs (financial position) of the Company as at 31st March 2017 its Profit (financialperformance including other comprehensive Income) and its cash flows and the changes inequity 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 of theAct we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4of the Order.

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 the Statement of Profit and Loss the Cash Flow Statement andStatement of changes in equity dealt with by this Report are in agreement with the booksof account.

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 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 control refer to ourseparate report in "Annexure B".

(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 Ind AS 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 amount required to be transferred to theinvestor education and protection fund by the company.

iv. The company had provided requisite disclosures in its financial statements as toholdings as well as dealing in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the company.

For JAIN PRAMOD JAIN & CO.
Chartered Accountants
(FRN 016746 N)
(P.K.JAIN)
Partner
Place: New Delhi
M. No. 010479
Date: May 13 2017

Annexure ‘A' to Independent Auditors' Report of Mangalam Cement Ltd.

(Referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date) i. (a) The Company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets;

(b) Fixed assets have been physically verified by the management according to theregular programme of periodical verification in phased manner which in our opinion isreasonable having regard to the size of the company and the nature of its fixed assets. Nomaterial discrepancies were noticed on such verification;

(c) The title deeds of immovable properties are held in the name of the company.

ii. The inventories of the Company at all its locations (except stocks lying with thirdparties and in transit) have been physically verified by the management at reasonableintervals and the discrepancies which were noticed on physical verification of inventoryas compared to book records were not material;

iii. (a) Terms and conditions in respect of unsecured loan granted to a Company coveredin the Register maintained under section 189 of the Companies Act 2013 are notprejudicial to the Company's interest.

(b) In respect of such loan the schedule of repayment of principal and payment ofinterest has been stipulated and repayments are regular.

(c) There is no overdue amount in respect of such loan.

iv. In our opinion and according to the information and explanations given to us thecompany has complied with provisions of section 185 and 186 of the Companies Act 2013with respect of loans investments guarantees and securities.

v. The Company has not accepted any deposit from public.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under Section148(1) of the Companies Act 2013 and are of the opinion that prima-facie prescribedaccounts and 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 andcomplete;

vii. (a) According to the information and explanations and records of the Company thecompany is regular in depositing undisputed statutory dues including Provident FundEmployees' State Insurance Income tax Sales tax Service tax Custom Duty Excise DutyValue Added Tax Cess and other statutory dues with the appropriate authorities. There areno arrears of outstanding statutory dues for a period of more than six months from thedate they became payable as on 31st March 2017;

(b) According to the records and information and explanations given to us there are nodues in respect of custom duty that have not been deposited on account of any dispute. Inour opinion and according to the information and explanations given to us the dues inrespect of income tax or sales tax or service tax or excise duty or value added tax thathave not been deposited with the appropriate authority on account of dispute and the forumwhere the dispute is pending are given below:

(` in Lacs)

Name of Statute Nature of Dues Amount Period to which Forum where matter is pending
the amount related
Central Excise Act Cenvat 13.01 2006-2007 Rajasthan High Court
98.93 Various matters from 2006 to 2013 CESTAT. New Delhi
29.78 Various matters from 2005 to 2010 Commissioner (Appeals)
55.95 2014-15 Commissioner
106.06 2013 to 2016 Joint Commissioner
0.52 2013-14 Superintendent Kota
Excise Duty 58.75 Various matters from 2007 to 2009 CESTAT. New Delhi
3272.04 Various matters from 2008 to 2016 Commissioner
167.83 Various matters from 2008 to 2016 Asst. Commissioner
Sales Tax (M.P.) Disallowance of credit notes 0.24 2002-03 Tax Board M.P.
Disallowance of credit notes 3.84 2012-13 Tax Board M.P.
Sales Tax (Rajasthan) Rajasthan incentive 4161.84 2003-08 Rajasthan High Court
RVAT 2.00 2007-08 RTB Ajmer
RVAT 11.28 2012-13 Appellate Authority Jaipur
Service Tax Service Tax 837.71 Various matters from 2005 to 2015 CESTAT. New Delhi
104.42 2013-14 Commissioner Udaipur
453.64 Various matters from 2012 to 2016 Commissioner (Appeals)
112.31 2010 to 2015 Addl. Commissioner
20.78 2012-2015 Asst. Commissioner
0.39 2013-14 Superintendent Kota

viii. The Company has not defaulted in repayment of loans or

borrowings to a financial institution banks or government.

ix. In our opinion the term loans have been applied for the

purpose for which the loans were raised

x. Based upon the audit procedure performed and information and explanation given tous we report that no fraud by the company or any fraud on the company by its officers oremployees has been noticed or reported during the course of our audit.

xi. Managerial Remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provision of Section 197 read with schedule V of the CompaniesAct 2013.

xii. Provision of Nidhi Company is not applicable to the Company.

xiii. According to the information and explanation given to us and based on ourexamination of the records of the company all transactions with the related parties arein compliance with Section 177 and 188 of the Companies Act 2013 and the details havebeen disclosed in the financial statements as

required by the applicable accounting standard.

xiv. The company has not made any preferential allotment or private placements ofshares or fully or partly convertible debentures during the year under review.

xv. The company has not entered into any non-cash transaction

with Directors or persons connected with him.

xvi. The company is not required to be registered under section

45-1A of the Reserve Bank of India Act 1934.

For JAIN PRAMOD JAIN & CO.
Chartered Accountants
(FRN 016746 N)
(P.K.JAIN)
Partner
Place: New Delhi
M. No. 010479
Date: May 13 2017

Annexure B to the Independent Auditors' report of even date on the StandaloneFinancial Statement of Mangalam Cement Limited.

Report on the Internal Financial Controls under Clause (i) of sub –section 3 ofsection 143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of MangalamCement Limited.as at March 31 2017 in conjunction with our audit of the standalonefinancial 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 "the Internal Financial Controls Over FinancialReporting issued by the institute of Chartered Accountants of India." 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.

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 Guidance note on Audit of Internal Financial Controls over Financial Reporting(the" Guidance Note" ) and the Standard on Auditing issued by ICAI prescribedunder section 143 (10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate Internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 and 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statement 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 system over 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 details accurately and fairly reflect the transactions anddisposition of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statement 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 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 March 31 2017 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India"

For JAIN PRAMOD JAIN & CO.
Chartered Accountants
(FRN016746 N)
(P.K.JAIN)
Place: New Delhi Partner
Date: May 13 2017 M. No. 010479