Mapro Industries Ltd.
|BSE: 509762||Sector: Infrastructure|
|NSE: N.A.||ISIN Code: INE848M01019|
|BSE 00:00 | 04 Mar||Mapro Industries Ltd|
|NSE 05:30 | 01 Jan||Mapro Industries Ltd|
|BSE: 509762||Sector: Infrastructure|
|NSE: N.A.||ISIN Code: INE848M01019|
|BSE 00:00 | 04 Mar||Mapro Industries Ltd|
|NSE 05:30 | 01 Jan||Mapro Industries Ltd|
To the Members of
MAPRO INDUSTRIES LMITED
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of MaproIndustries Limited ("the Company") which comprise the Balance sheet asat 31st March 2019 and the statement of Profit and Loss statement of changes in equityand statement of cash flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.
In our opinion and to the best of our information and accordingto the explanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2019 and profit changes in equity and its cashflows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and the Rules there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.
Key Audit Matters
Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the financial statements of thecurrent period. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.
Mapro Industries Limited ("the Company") is a publicCompany domiciled in India and is incorporated under the provisions of the Companies Act1956. Its shares are listed on Bombay Stock Exchange (BSE) in India but the said companyis suspended from Bombay Stock Exchange in India with effect from 27th August 2015. TheCompany is primarily engaged in the business of execution of civil construction contractsthrough sub-contracting. But from this year the company has generated its revenue fromshare trading and investment activity which is not in relation to the main object of thecompany. Since the company has started dealing in shares and securities and speculationbusiness it is required to take the NBFC license as per the RBI regulations for whichcompany has not complied with the same.
Responsibilities of Management and Those Charged with Governancefor the Standalone Financial Statements
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance changes in equity and cash flows of theCompany in accordance with1 the accounting principles generally accepted in Indiaincluding the accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateimplementation and maintenance of accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement 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 responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the FinancialStatements
Our objectives are to obtain reasonable assurance about whetherthe financial statements as a whole are free from material misstatement whether due tofraud or error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.
Report on Other Legal and Regulatory Requirements
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 the Companies Act 2013 we give in the Annexure a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
As required by Section 143(3) of the Act we report that:
a) We have sought and obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposesof our audit.
b) In our opinion proper books of account as required by lawhave been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss theStatement of Changes in Equity and the Cash Flow Statement dealt with by this Report arein agreement with the books of account.
d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from thedirectors as on 31st March 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2019 from being appointed as a director interms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure A".
g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us:
i. The Company does not have any pending litigations which wouldimpact its financial position. ii. The Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeable lossessubject to the fact that company is dealing in shares/securities business. iii. There wereno amounts which were required to be transferred to the Investor Education and ProtectionFund by the Company.
ANNEXURE "A" TO THE AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report tothe members of the Company on the standalone financial statements for the year ended 31stMarch 2019 we report that:
(i) The company does not possess any Fixed Assets during theyear therefore provisions of Clause 3(i)(a) to 3(i)(c) of the Companies (Auditor'sReport) Order 2016 are not applicable.
(ii) The company does not possess any Inventory during the yeartherefore provisions of Clause 3(ii) of the Companies (Auditor's Report) Order 2016 arenot applicable.
(iii) According to the information and explanations given to usduring the year the Company has not granted any unsecured loans to any party covered inthe register maintained under section 189 of the Companies Act 2013. Hence Para (a) (b)and Para (c) are not applicable.
(iv) According to the information and explanations given to usthe Company has not complied with provision of section 185 and 186 of Act with respect tothe loan and investment made. We observed that company has given loans and advances duringthe audit period for which company has not obtained the board resolution for the samehence not complied with the Companies Act 2013.
(v) The Company has not accepted any deposits from the public.
(vi) In our opinion and according to information and explanationsgiven to us maintenance of cost records has not been prescribed by the Central Governmentunder sub-section (1) of section 148 of the Companies Act 2013. (vii) (a) According tothe information and explanations given to us and on the basis of our examination of therecords the Company is regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Cess Custom Duty Goods &Service Tax and other material statutory dues with the appropriate authorities.
According to information and explanations given to us followingare the undisputed statutory dues outstanding for more than six months:-
(b) According to the information & explanations given to usand books and records examined by us there are no undisputed amount payable in respect ofProvident Fund Employees' State Insurance Income Tax Cess Custom Duty Goods &Service Tax and other material statutory dues outstanding as at 31st March 2019 for aperiod exceeding six months from the date they become payable.
(viii) The company has no dues to any bank financial institutionor debenture holders therefore the provisions of Clause 3(viii) of the Companies(Auditor's Report) Order 2016 are not applicable to the company.
(ix) The company has not raised any moneys by way of publicissue follow on offer and term loans; therefore the provisions of Clause 3(ix) of theCompanies (Auditor's Report) Order 2016 are not applicable to the company.
(x) According to the information and explanations given to usno material fraud on or by the Company has been noticed or reported during the course ofour audit.
(xi) According to the information and explanations given to usthe managerial remuneration has been paid during the period under the prescribed limit incompliance with section 197 read with schedule 5 of the Companies' Act 2013.
(xii) In our opinion and according to the information andexplanations given to us the company is not Nidhi Company. Accordingly paragraph 3(xii)of Order is not applicable.
(xiii) According to the information and explanations given to usand based on our examination of the record of the Company transactions with relatedparties are in compliance with sections 177 and 188 of the Act where applicable and thedetails have been disclosed in the financial statements as required by the applicableAccounting Standards.
(xiv) During the year the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review therefore the provisions of Clause 3(xiv) of the Companies(Auditor's Report) Order 2016 are not applicable to the company.
(xv) According to the information and explanations given to usand based on our examination of the record of the Company the Company has not enteredinto any non-cash transactions with directors or persons connected with him.
(xvi) The company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934.
ANNEXURE "B" TO THE AUDITORS' REPORT
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Mapro Industries Limited (the Company') as of 31st March 2019 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.
Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reportingis a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 OverFinancial Reporting
Because of the inherent limitations of internal financialcontrols over financial reporting including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.
In our opinion the Company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at 31st March2019 based on internal control over financial reporting criteria established by thecompany considering the essential components of internal control stated in the guidancenote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India.