TO THE MEMBERS OF
Mavi Industries Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Mavi Industries Limited whichcomprise the Balance Sheet as at 31 March 2017 the Statement of Profit and Loss for theyear then ended Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 with respect to the preparation of these financial statements thatgive a true and fair view of the financial position and financial performance of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014. This responsibility also includes themaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the Company and for preventing and detecting the frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
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 we 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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.
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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India;
a) In the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;
b) In the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and
c) In cae of Cash flow statement of the year ended on that date.
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 section143 ofthe Act we give in the Annexure A statement on the matters Specified in paragraphs 3 and4 of the Order.
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 appears from our examination of those books.
c) The Balance Sheet and the Statement of Profit and Loss dealt with by this Reportare 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 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect to the adequacy of internal financial controls over financial reportingof the company and the operating effectiveness of such controls refer to our separatereport
g) With respect to the other matters included in the Auditor's Report in accordancewith the Rule 11 of the Companies (audit and Auditor's) Rules 2014 and to our best of ourinformation and according to the explanations given to us :
1. The Company does not have any pending litigations which would impact its financialposition.
2. The Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses.
3. There were no amounts which required to be transferred to the Investor Education andProtection Fund by the Company
4. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes (SBN) during the period from 8November 2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company
For B N KEDIA & CO.
(FRN :- 01652N)
K K Kedia
Membership No.: 052461
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our report to the members of mavi Industries Limited forthe year ended 31st March 2017.
On the basis of the information and explanation given to us during the course of ouraudit we report that:
1. (a) The company has made and maintained proper records showing full particularsincluding quantitative details and situation of fixed assets. .
(b) The fixed assets have been physically verified by the management at reasonableintervals; no material discrepancies were noticed on such verification (c) According tothe information and explanations given to us the title deeds of immovable properties areheld in the name of the company
2. The company does not have any inventories physical verification of inventory hasnot been done by the management.
3 According to the information and explanations given to us and on the basis of ourexamination of the books of account company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties covered inthe register maintained under section 189 of the Companies Act 2013. Thus sub clauses ab and c of the order are not applicable to the company.
4. In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and security & provisions of section 185and 186 of the Companies Act 2013 have been complied
5. In our opinion and according to the information and explanations given to us incase the company has not accepted deposits whether the directives issued by the ReserveBank of India and the provisions of sections 73 to 76 or any other relevant provisions ofthe Companies Act 2013 and the rules framed have been complied.
6. As per information & explanation given by the management Maintenance costrecords has been not specified by the Central Government under sub-section (1) of section148 of the Companies Act 2013 are not applicable to the company.
7. (a) According to the records of the company is regular in depositing undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax duty of customs duty of excise value added tax cess and anyother statutory dues to the appropriate authorities extent applicable and companyregularly deposit with appropriate authority.
(b) According to the information and explanations given to us there is no amountspayable in respect of income tax wealth tax service tax sales tax customs duty andexcise duty which have not been deposited on account of any disputes.
8. Company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders during the year.
9. No moneys were raised during the year by way of initial public offer or furtherpublic offer (including debt instruments) and term loans.
10. No fraud by the company or any fraud on the Company by its officers or employeeshas been noticed or reported during the year
11. Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct
12. This clause have not been applicable to the company because the company is notnidhi company
13 All transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards;
14 The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review and no requirementof compliance of section 42 of the companies act and the no amount raised have been usedfor the purposes for which the funds were raised
15 Company has not entered into any non-cash transactions with directors or personsconnected with him and if so whether the provisions of section 192 of companies act 2013have been complied with;
16 The company is not required to be registered under section 45-ia of the reserve bankof India act 1934 and no registration has been obtained.
| ||for B.N. Kedia & Co. |
| ||Chartered Accountants |
|Place: Mumbai || |
|Date: 10.05.2017 || |
| ||(K.K. Kedia) |
| ||Partner |
| ||M. No. 052461 |
Annexure_ B_ to the Auditors' Report
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 MaviIndustries Limited Company") as of 31 March 2017 in conjunction with our auditof the financial 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 Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India(ICAI') .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.
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 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 mis-statement 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 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.
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 mis-statements 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.
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 31 March 2017 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 B N Kedia & Co
K K Kedia
Membership Number: 052461