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Mansoon Trading Company Ltd.

BSE: 512303 Sector: Financials
NSE: N.A. ISIN Code: INE776V01013
BSE 05:30 | 01 Jan Mansoon Trading Company Ltd
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Mansoon Trading Company Ltd. (MANSOONTRADING) - Auditors Report

Company auditors report

To the Members of

Mansoon Trading Company Limited

Report on the Audit of Financial Statements Opinion

We have audited the Financial Statements of Mansoon Trading Company Limited(hereinafter referred to as "the Company") prepared as per the IndianAccounting Standards (Ind-AS) which comprise the Balance Sheet as at March 31 2020 andthe Statement of Profit and Loss including Other Comprehensive Income the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and Notes to theFinancial Statements including a summary of significant accounting policies and otherexplanatory information (collectively referred to as' Financial Statements').

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial Statements give the information required by theCompanies Act 2013 (hereinafter referred to as "the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the State of affairs of the Company as at March 31 2020its Loss Total Comprehensive Income Cash flows and the Changes in equity for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the Financial Statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

The novel corona virus (COVID-19) pandemic continues to spread across the globeincluding India. In the month of March 2020 the COVID-19 outbreak was declared a globalpandemic by the World Health Organization. COVID-19 has taken its toll on not just humanlife but all businesses industries and services including health care. Variousgovernments have introduced a variety of measures to contain the spread of the virus. TheCentral and State Governments and local bodies had announced various lock down measureswhich have significant impact on all the activities across the nation.

The operations of the Company have been affected due to multiple factors such as (a)earmarking substantial facilities for COVID related services as per the Governmentdirections (b) reduction in services related to other regular health care activities -both prevention and post care (c) suspension of activities in certain departments/areasdue to general and specific directions from authorities/management (d) general slowdown ofall activities due to the pandemic.

The management of the Company has at the time of approving the financial statementsmade a detailed assessment of the possible impact of the pandemic relating to COVID-19 onthe carrying amounts of Inventories and all the other assets / liabilities particularlyinventory investments receivables advances etc. based on internal and external sourceof information. The management has also made a detailed assessment of its liquidityposition for the next 12 months from the Balance Sheet date and believes that there is nomaterial impact foreseen on revenue and operating cashflow of the Company. Also anevaluation of impact of COVID-19 on internal financial controls over financial reportingconcluded that there is no impact of COVID-19 thereon. On the basis of such assessmentthe management has concluded that the carrying value of these assets are recoverable andno uncertainty exists on meeting the financial liabilities in the foreseeable future.However the impact assessment of COVID 19 is a continuing process given the uncertaintiesassociated with its nature and duration. Management will continue to monitor any materialchanges to future economic conditions and the impact thereof on the Company if any. Theeventual outcome of the impact of the COVID 19 pandemic on the Companys business may bedifferent from that estimated as on the date of approval of these financial statements.

Emphasis of Matter

Attention is drawn to note no.33 of the financial statements regarding management'scurrent assessment of Hospital's/Trust's assets and liabilities in view of prevailingCovid-19 pandemic and nationwide lockdown and conclusion based on such assessment that thecarrying value of the assets are recoverable and no uncertainty exists on meeting theliabilities in the foreseeable future.

Our report is not modified in respect of this matter.

Key Audit Matters

Key Audit Matters are those matters that in our professional judgment were of mostsignificance in our audit of the Financial Statements for the year ended March 31 2020.These matters were addressed in the context of our audit of the Financial Statements as awhole and in forming our opinion thereon and we do not provide a separate opinion on thesematters.

We have determined that there are no key audit matters to be communicated in ourreport.

Other Information

The Company's Board of Directors are responsible for the other information. The otherinformation comprises the information included in the annual report but does not includethe Financial Statements and our auditor's report thereon.

Our opinion on the Financial Statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the Financial Statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report the fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

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 Financial Statements that givea true and fair view of the financial position financial performance including OtherComprehensive Income Cash Flows and Changes in Equity of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in

accordance with the provisions of the Act fox safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls 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.

In preparing the Financial Statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the FinancialStatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

* Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

* Conclude on the appropriateness of management7s use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Financial Statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

* Evaluate the overall presentation structure and content of the Financial Statementsincluding the disclosures and whether the Financial Statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Financial Statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Financial Statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the Financial Statements.

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 also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Financial Statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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 ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure-A a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable to the Company during the year.

2. Further to our Comments given in the Annexure referred to in Para 1.above asrequired 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 appears from our examination of those books;

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisreport 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 written representations received from the directors as on March 312020 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164 (2) ofthe Act.

f) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended noremuneration was paid by the Company to its directors during the year is in accordancewith the provisions of Section 197 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.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with the Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to uswe report that:

i) The Company does not have any pending litigations which would impact its financialposition other than those mentioned in notes to accounts.

ii) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses; and

iii) There were no amounts which were required to be transferred to the InvestorsEducation and Protection Fund by the Company.

ANNEXURE-A TO INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in paragraph 1 under the 'Report on Other Legal and

Regulatory Requirements' our report to the members of MANSOON TRADING

COMPANY LIMITED ('the Company') for the year ended on March 31 2020. We reportthat:-

i. The Company does not own any fixed assets Clause 3 (l)(a) of the Order relating tomaintenance of records showing full particulars including quantity details and situationof fixed assets and Clause 3(1 )(b) regarding to physical verification thereof are notapplicable.

ii. In respect of its inventories:

The Company does not hold any inventory. Accordingly the provisions of Clause 3(ii) ofthe Order are not applicable to the Company.

iii. 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 and hence provisions of Clause 3(iii) of the aforesaid Order arenot applicable to the Company.

iv. The Company has not granted any loans or provided any guarantee or security to theparties covered under Section 185. Further the Company has complied with provisions ofSection 186 in respect of grant of loans and making investments as applicable. The Companybeing a Non Banking Financial Company nothing contained in the Section 186 exceptsub-section (1) shall apply.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from the public within the meaning of Sections 73 7475 and 76 of the Act and the Rules framed thereunder to the extent notified.

vi. According to the information and explanations given to us the Company does notrequire maintaining cost records as prescribed by the Central Government under sub-section(1) of Section 148 of the Act.

vii. (a) According to the records of the Company the Company is generally

regular in depositing with appropriate authorities undisputed statutory dues includingincome-tax GST and other statutory dues applicable to it. No undisputed amounts payablein respect of the above were outstanding as at 31*03-2020 for a period of more than sixmonths from the date they became payable. Keeping in view the current operations of theCompany Statutory dues pertaining to Provident Fund ESIC Customs Duty and Cess are notapplicable to the Company during the year under review.

(b) According to the records of the Company and information and explanations given tous no dues of Income tax GST Customs Duty or Cess that have not been deposited onaccount of any disputes.

viii. Based on our audit procedures and according to the information and explanationsgiven to us by the management we are of the opinion that the Company has not borrowedfrom any financial institutions/banks.

ix. The Company has not raised any money by way of initial public offer further publicoffer (including debt instruments) and term loans and hence provisions of Clause 3(ix) ofthe aforesaid Order are not applicable to the Company.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.

xi. In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of Section 197 of the Act.

xii. The Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable tothe Company and hence provisions of Clause 3(xii) of the aforesaid Order are notapplicable to the Company.

xiii. The Company has entered into transactions with the related parties in compliancewith the provisions of the Section 177 and 188 of the Act. The details of such relatedparty transactions have been disclosed in the Financial Statements as required underAccounting Standard (AS)18 Related Party Disclosures specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review and henceprovisions of Clause 3(xiv) of the aforesaid Order are not applicable to the Company.

xv. The Company has not entered into any non-cash transactions with its directors orthe persons connected with him and hence provisions of Clause 3(xv) of the aforesaid Orderare not applicable to the Company.

xvi. On examination of relevant records and according to the information andexplanations given to us the Company is required to be registered under section 45-IA ofReserve Bank of India Act 1934 and holds a valid certificate of registration under thesame.

ANNEXURE-B TO INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in paragraph 2 (g) under the 'Report on Other Legal andRegulatory Requirements' our report to the members of MANSOON TRADING COMPANY LIMITED ('theCompany') for the year ended on March 312020.

 

Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 ofSection 143 of the Act

We have audited internal financial controls over financial reporting of MANSOONTRADING COMPANY LIMITED ("the Company") as of March 31 2020 in conjunctionwith our audit of the Financial Statements of the Company for the year then ended on thatdate.

 

Management's Responsibility for the 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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India (ICAI). These responsibilities includesdesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of businessincluding adherence to Company's policies the safeguarding of the assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

 

Auditor's Responsibility

Our responsibility is to express an opinion on Company's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting ('theGuidance Note') and the Standards on Auditing deemed to be prescribed under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of internal financial controls and both issued by the ICAI.Those Standards and Guidance note require that we comply with ethical requirements andplan and perform audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedure 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 controls based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material 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 a reasonable assurance regarding the reliability of financial reporting andpreparation of Financial Statements for external purpose 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

2. Provide reasonable assurance that the transactions are recorded as necessary topermit preparation of Financial Statements in accordance with the generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the Financial Statements.

 

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 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 control 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 aspects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For and on behalf of

S K H D & Associates

Chartered Accountants

Firm Reg. No.l05929W

Hemanshu Solanki

Partner

Membership No. 132835

Place : Mumbai

Dated : July 302020

UDIN: 20132835AAAABM8917