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Matra Kaushal Enterprise Ltd.

BSE: 526671 Sector: Engineering
NSE: N.A. ISIN Code: INE265N01030
BSE 00:00 | 07 Jan Matra Kaushal Enterprise Ltd
NSE 05:30 | 01 Jan Matra Kaushal Enterprise Ltd
OPEN 2.16
PREVIOUS CLOSE 2.16
VOLUME 11
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P/E
Mkt Cap.(Rs cr) 44
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.16
CLOSE 2.16
VOLUME 11
52-Week high 2.16
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 44
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Matra Kaushal Enterprise Ltd. (MATRAKAUSHAL) - Auditors Report

Company auditors report

To the Members of

MATRA KAUSHAL ENTERPRISE LIMITED

Report on the Financial Statements

We have audited the accompanying Ind AS financial statements of MATRA KAUSHALENTERPRISE LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2020 the Statement of Profit and Loss Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information(herein after referred to as "Ind AS Financial Statements")

Management's Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that us comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

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

Basis for Qualification

During the Financial year the Company has not received the interest on Loans &Advances of Rs.13.79 crores outstanding in the books of accounts as on 31.03.2020. if thecompany has provided the interest @9% on loans & advances of Rs.13.79 Crores theProfit is increased by an amount of Rs.12406857/- i.e. from Profit of Rs.225373/- toProfit of Rs.12632230/-. The Management explained such that the parties to whom theInter Corporate Deposit is extended has written to company stating its inability to payInterest on ICD outstanding for F.Y 2019-20. However the said parties has assured toreturn the outstanding ICD of Rs.13.79crore during the current F.Y 2020-21. Hence thecompany thought it appropriate not to provide interest on the said ICD.

As Auditors of the Company we suggested the management to take stringent recovery stepsas the Parties to whom Advances have been extended had given similar assurance in theearlier financial year also.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us subject to the matter mentioned in Basis for Qualification the aforesaidfinancial statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India of the state of affairs of the Company as at March 31 2020 and itsProfit and its Cash Flow 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")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of 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 purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by the

Company so far as it appears from our examination of those books;

c. T he 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 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 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2020 from being appointed as a director in terms of Section 164 (2) of theAct.

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 ourreport 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 does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

Company.

For and on behalf of

JEEDIGUNTA & CO.

Chartered Accountants

FRN:001322S

J.Prabhakar

Chartered Accountant

M.No.026006.

Date:30.06.2020

Place: Hyderabad.

"Annexure A" to the Independent Auditors' Report

(Referred to in paragraph 1 under ‘Report on Other Legal & Regulatory

Requirements' of our report of even date)

i) The Company does not have any Fixed Assets except Intangible Assets hence clause3(i)(a)(b)(c) are not applicable to the Company for the year under review.

ii) According to the information and explanations given to us the inventories havebeen physically verified during the year by the management. In our opinion the frequencyof such verification is reasonable. The discrepancies noticed on physical verification ofinventories as compare to the book records which in our opinion were not material havebeen properly dealt with.

iii) The Company has granted unsecured loans to various parties no interest isprovided by the company on the advance amount of Rs 13.71 crores for the current financialyear and hence considered to be the prejudicial to the interest of the company for theyear under review.

iv) According to the information and explanations furnished to us there being no suchloans and investments guarantees and security by the company and hence the clause 3(iv)is not applicable to the company for the year under review.

v) According to the information and explanations given to us the Company has notaccepted any deposits from public within the meaning of Sections 73 to 76 of the Act andthe Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordingly theprovisions of clause (v) of paragraph 3 of the Order are not applicable to the Company forthe year under review

vi) As informed to m e the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company and hence clause 3(vi) is not applicable to thecompany for the year under review.

vii) In respect of statutory dues:

a. According to information and explanations given to m e and on the basis of m yexamination of the books of accounts and records the Company has t been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to me following are undisputed amounts payablein respect of the above were in arrears as at March 31 2020 for a period of more than sixmonths from the date on when they become payable.

Sl.no. Name of the Statute Name of the tax due Amount (Rs.) Period to which the amount relates
1 Income Tax Act-1961 Income Tax 706494 2011-12
2 Central sales tax act 1956 and sales tax acts of various states Sales Tax/VAT 269000 2015-16

b. According to the information and explanation given to me there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added tax andCess which have not been deposited as on 31st March 2019 on account of anydispute.

viii) According to the information and explanations given to us the Company has notobtained any loans or borrowings from any financial institution or banks or by way ofdebentures during the year hence clause 3(viii) is not applicable to the company for theyear under review

ix) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company for the yearunder review.

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 explanations given to us we have neither come across any instance ofmaterial fraud by the company or on the company by its officers or employees noticed orreported during the year nor we have been informed of any such case by the management.

xi) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

xii) As the company is not a Nidhi Company and Nidhi Rules 2014 are not applicable toit the provisions of Clause 3 (xii) of the Order are not applicable to the Company.

xiii) In my opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details of such related partytransactions have been disclosed in the Financial Statements as required under AccountingStandard - 18 Related Party Disclosures specified under section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

xiv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.

xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with them and accordingly the provisions of clause 3 (xv)of the Order are not applicable to the Company and hence not commented upon.

xvi) In my opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For and on behalf of

JEEDIGUNTA & CO.

Chartered Accountants

FRN:001322S

-SD-

J.Prabhakar

Chartered Accountant

M.No.026006.

Date:30.06.2020

Place: Hyderabad.

"Annexure B" to the Independent Auditor's Report of even date on theFinancial Statements of MATRA KAUSHAL ENTERPRISE LIMITED.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of MATRAKAUSHAL ENTERPRISE LIMITED ("the Company") as of March 31 2020.

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its 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 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 u s 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 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 system overfinancial 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 transactions 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 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 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 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 2020 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 and on behalf of

Jeedigunta & Co

Chartered Accountants

FRN: 001322S

-SD-

J. Prabhakar

Partner

M.No.:026006

Date:30.06.2020

Place: Hyderabad.

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