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Mauria Udyog Ltd.

BSE: 539219 Sector: Others
NSE: N.A. ISIN Code: INE150D01019
BSE 09:30 | 02 Aug 16.25 -0.85
(-4.97%)
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NSE 05:30 | 01 Jan Mauria Udyog Ltd
OPEN 17.45
PREVIOUS CLOSE 17.10
VOLUME 2500
52-Week high 31.20
52-Week low 8.38
P/E
Mkt Cap.(Rs cr) 22
Buy Price 16.25
Buy Qty 225.00
Sell Price 17.80
Sell Qty 25.00
OPEN 17.45
CLOSE 17.10
VOLUME 2500
52-Week high 31.20
52-Week low 8.38
P/E
Mkt Cap.(Rs cr) 22
Buy Price 16.25
Buy Qty 225.00
Sell Price 17.80
Sell Qty 25.00

Mauria Udyog Ltd. (MAURIAUDYOG) - Auditors Report

Company auditors report

• To the Members of j Mauria Udyog Limited j

CIN: L51909WB1980PLC033010 '

• Report on the Audit of the Ind AS Financial Statements

Opinion

We have audited the accompanying Ind AS financial statements of Mauria Udyog Limited("the Company") which comprise the Balance Sheet as at March 31 2020 theStatement of Profit and Loss (inc!uding Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes to theInd AS financial statements including a summary of significant accounting policies andother explanatory information (hereinafter referred to as "Ind AS FinancialStatements")In our opinion and to the best of our information and according to theexplanations given to us except for the possible effects of the matter described in theBasts for Qualified Opinion section of our report the aforesaid Ind AS financialstatements give the information required by the Companies Act 2013 ("the Act")in the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including the Indian Accounting Standards("Ind AS") of the state of affairs of the Company as at March 31 2020 itsloss including other comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Qualified Opinion

1. The Company has defaulted in repayment of its borrowing taken from variousbank/NBFCs and accordingly these loans have been classified as Non-Performing Assets(NPAs) by the respective bank/NBFCs. The Company has not been recognizing interest on suchloans from the date of NPA classification by respective bank/NBFCs. Further the balancesof borrowings are subject to confirmation from the respective banks/NBFCs. The amount ofinterest expenses cannot be ascertained.

2. The Company has classified its investment in unquoted equity shares of otherentities to be Fair Valued through Profit & Loss (FVTPL). However it has notobtained/carried out fair valuation of such unquoted equity shares. The Company hasmeasured investments in unquoted equity shares based on Net Asset Value of such equityshares as at March 31 2019. The impact of fair valuation cannot be ascertained.

3. The Company has not used expected credit loss model to assess the impairpient lossor gain on trade receivables as required by Ind AS 109" Financial Instruments".The impact of such non - compliance cannot be ascertained.

4. The Company has taken various loans from banks/NBFCs in the previous years and haspaid onetime processing charges on such loans. As per Ind AS 109 processing charges paidto banks/NBFCs against the loans are charged over the tenure of borrowings using theEffective Interest Rate (EIR).

However the Company has recognized "prepaid asset" against such one-timeprocessing charges and is amortizing the same over the tenure of loan on straight linemethod.

We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Act. Our responsibilities' under those Standards are furtherdescribed in the Auditor's Responsibilities for 'the Audit of the Ind AS financialstatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India("ICAI") together with the ethical requirements that are relevant to our auditof the Ind AS financial statements under the provisions of the Act and Rules there underand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our qualified opinion.

Emphasis of Matter

We draw attention tothe following matter in the notes to the Ind AS financialstatements:

1. Note 26(7) to the Statement which explains the Management's evaluation of thefinancial impact on the Company due to lockdown and other restrictions imposed on accountof COVID-19 pandemic situation. I he assessment of the impact in the subsequent period ishighly subjective and. is dependent upon circumstances as they evolve.

Our opinion is not modified in respect of this matter.

Responsibilities of Management and Those Charged with Governance for the Ind ASFinancial Statements

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 Ind AS financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company In accordancewith the accounting principles generally accepted in India including Ind AS specifiedunder section 133 of the Act read with relevant rules issued there under. 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 appropriateaccounting 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 of theaccounting records relevant to the preparation and presentation of the Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

‘In preparing the lnd AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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 high level of assurance but isnot a guarantee that an audit conducted in accordance with SAs will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of this Ind ASfinancial statements. As part of an audit in accordance with SAs we exercise professionaljudgment • and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Ind AS 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 todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on the effectiveness of the Company's internal financial control.

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

* Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Ind AS financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may cause the. Company to cease tocontinue as a going concern. .

Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. '

. Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of a reasonablyknowledgeable user of the : . Ind A$ financial statements may be influenced. Weconsider quantitative materiality and qualitative

factors ip (i) planning the scope of our audit work and in evaluating the results ofour work; and (ii) to evaluate the effect of any identified misstatements in the financialstatements.

.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.

Other Matter

Due to COVID-19 related lockdown restrictions imposed by the government management wasable to

- perform physical verification of cash and inventory at the year end and/or subsequentto the year end. However we. were unable to physically observe the verification of cashand inventory that was carried out by the management. Consequently we have performedalternate audit procedures and relied upon internal controls to obtain comfort over theexistence and conditions of cash and inventory at the year end as per the guidanceprovided in SA 501 "Audit Evidence - Specific Consideration for Selected Items"and have obtained sufficient appropriate audit evidence to issue our unmodified opinion onthis Statement.

Our opinion is not modified in respect of this matter.

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 section 143(11) of the Act we givein "Annexure 1" a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable. ‘

(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 haye 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 including Other Comprehensiveincome the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis report are in agreement with the relevant books of account.

d. Except for the effects/possibie effects* of the matter described in the Basis forQualified Opinion section of our report in our opinion the aforesaid Ind AS financialstatements comply with the Indian

Accounting Standards specified under section 133 of the Act read with relevant rulesissued there under;

e. On the basis of the written representations received from the directors as on March31 2020 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 from being appointed as a director in terms of section164(2) of the Act; 1 .

f. The qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion section of ourreport g. With respect to the adequacy of the internal financial controls with referenceto financial statements of the Company and the operating effectiveness of such controlswe give our separate report in ' "Annexure

h. 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 lnd AS financial statements- Refer Note 26(4) to the lnd As FinancialStatements.

(ii) The Company did not have any long-term contracts including derivative contracts.Hence the question of any material foreseeable losses does not arise; .

(ili) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For L.K. Bohania & Co. Chartered Accountants ' Firm Registration No. 317136E

7/-SD-//

[Vikash Mohata]

'Partner

Membership No.304011 UDIN: 20304011AAAADN1259

Place : Kolkata

Date : 4th day of September 2020

"ANNEXURE - 1" TO THE INDEPENDENT AUDITORS' REPORT

[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'in the Independent

Auditor's Report of even date to the members of Mauria Jdyog Limited on the Ind ASfinancial statements for the . year ended March 31 2020]

i. In respect of the Company's - Property plant and equipment i.e. Fixed Assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.

(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the Company and nature of itsbusiness. Pursuant to the program a portion of the fixed assets has physically verifiedby the management during the year and no material discrepancies between the books recordsand the physical fixed assets have been noticed.

(c) According to the information and explanations given to us the records examined byus and based on examination of the conveyance deeds/registered sale deeds provided to uswe report that the title deeds comprising all the immovable properties of land andbuildings which are freehold are held in the name of the Company as at the Balance Sheetdate.

ii. In respect of its Inventories:

(a) The management has conducted the physical verification of inventory at reasonableintervals. As informed no material discrepancies were noticed on physical verificationcarried out during the year.

(b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.

iii. According to information and explanation given to us the company has grantedunsecured Joan to companies. firms Limited liability partnership and other entitiescovered in the register required under section 189 of the Companies Act 2013.

a. According to the information and explanations given to us and based on the auditprocedures conducted by us we are of the opinion that the terms and conditions of theaforesaid loans granted by the Company are not prejudicial to the interest of the Company.

b. The schedule of repayment of principal and payment of interest in respect Of suchloans has been stipulated and the repayments or receipts are regular.

c. in respect of the aforesaid loans there is no overdue amount of loans granted tocompanies firms Limited Liability Partnerships or other parties listed in the registermaintained' under Section 189 of the Act.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act2013 in respect of loans investments guarantees and security.

v. The Company has not accepted any deposits from public and hence the directivesissued by the Reserve Bank of India and the provisions of Section 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from public are not applicable.

vi. We have broadly reviewed the cost records maintained by the Company pursuant toCompanies (Cost Records and Audit) Rules 2014 read with Companies (Cost Records andAudit) Amendment Rules 2014 prescribed by the Central Government under Section 148 of theCompanies Act 2013 and are of the opinion that prima facie the prescribed cost recordshave been maintained. We have however not made a detailed examination of the cost recordswith a view to determine whether they are accurate or complete.

vii. (a) The Company is not regular In depositing with appropriate authoritiesundisputed statutory due including Provident fund Employees State insurance. Income TaxGoods and Service Tax and other statutory dues applicable to It.

j (b) ^According to the information and explanations given to us undisputed dues inrespect of provident fund employees' state insurance income tax sales tax service taxvalue added tax customs duty; . excise duty cess and any other material statutory duesapplicable to it which were outstanding at ; the year end for a period of more than sixmonths from the date they became payable are as follows':

Name of the statute Nature of the dues Amount Period to which the amount relates Due Date Date of Payment Remarks
Employees Provident Fund Act 1952 Provident fund 1834589 2019-20 Various dates Various dates Nil
Employees State Insurance Act 1948 ESI 370605 2019-20 Various dates .Not yet paid Nil
Income Tax Act 1961 TDS 216790 2019-20 Various dates Various dates Nil
Labour Welfare Fund LWF 143050 2018-19 15/01/2019 Not yet paid Nil

(c) According to the information and explanations given to us and on the basis of thedocuments and records there are no material dues of wealth tax duty of customs and cesswhich have not been deposited with the appropriate authorities on account of any dispute.

viiL In our opinion and according to the information and explanations given to us theCompany has defaulted in the repayment of loans or borrowings to financial institution(s)bank(s) and NBFC's. The company has not taken any loans from government(s) and has notissued any debentures.

ix. Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not raised money 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 and hence notcommented upon.

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 fraud by the Company or any fraud on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by themanagement.

xi. Based upon the audit procedures performed and the information and explanation givenby the management the managerial remuneration has been paid or provided in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe. Companies Act.

xii. ln our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order are not applicable to the Company.

xiii. in our opinion all transactions with the related parties are in compliance withsection 177 and 188 of the . Companies Act 2013 and the details have been disclosed inthe Financial Statements as required by the applicable Ind AS.

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. According to the information and explanation provided by the management thecompany has not entered in any non-cash transactions with the directors or personsconnected with them as referred in section 192 of the Act.

xvi. In our opinion the Company is not required to be registered under section 45 IAof the Reserve bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the* Company and hence not commented upon.

For L. K. BOHANIA & CO. Firm Registration No. 317136E Chartered Accountants
//-SD-//
VIKASH MOHATA Partner Membership No. 304011
Place : Kolkata

Date 4th day of September 2020

UDIN: 20304011AAAADN1259

"ANNEXURE -2" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF MAURI A UDYOG LIMITED

Report on the Internal Financial Control under Clause (0 of Sub-section 3 of Section143 of the Companies Act 2013 {"the Act") - Referred to in paragraph 1 of ourreport of even date to the financial statements of the Company for the year ended March31. 2020:

We have audited the internal financial controls over financial reporting of MAURlAUDYOG LIMITED ("the Company") as of March 31 2020 in conjunction with ouraudit of the Standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components ofinternal control stated in the guidance note on Audit of Internal- Financial Controls Overfinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities includes the design implementation and maintenance of adequate internalfinancial ‘ controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to respective Company's policiesthe $afeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of CharlpredAccountants-of India and the Standards on Auditing prescribed under section 143(3.0) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols. 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 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 internal financial controls system overfinancial reporting of the Company.

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

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 control-over 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 to the best of our information and according to the explanations givento us the Company has in ail material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2020 based on the internal controlover financial reporting criteria established by the.Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia

.For L. K BOHANIA & CO. Firm Registration No. 317136E Chartered Accountants
//--SD--//
VIKASH MOHATA Partner Membership No. 304011
Place: Kolkata Date : 4th day of September 2020 UDIN: 20304011AAAADN1259