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Meera Industries Ltd.

BSE: 540519 Sector: Industrials
NSE: N.A. ISIN Code: INE343X01018
BSE 00:00 | 19 Oct 192.25 -6.75
(-3.39%)
OPEN

196.00

HIGH

196.00

LOW

192.25

NSE 05:30 | 01 Jan Meera Industries Ltd
OPEN 196.00
PREVIOUS CLOSE 199.00
VOLUME 1500
52-Week high 393.00
52-Week low 166.00
P/E 29.40
Mkt Cap.(Rs cr) 76
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 196.00
CLOSE 199.00
VOLUME 1500
52-Week high 393.00
52-Week low 166.00
P/E 29.40
Mkt Cap.(Rs cr) 76
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Meera Industries Ltd. (MEERAINDUSTRIES) - Auditors Report

Company auditors report

TO THE MEMBERS OF

MEERA INDUSTRIES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of MEERA INDUSTRIESLIMITED (“the company”) which comprise the Balance Sheet as at 31 March 2018the Statement of Pro t and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone

Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 (“the Act”) with respect to the preparation of theseStandalone Financial Statements that give a true and fair view of the nancial positionnancial performance and cash ows 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 the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal nancial control that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these

Standalone Financial Statements based on our audit.

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 thereunder.

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 Standalone Financial

Statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Standalone Financial Statements. The procedures selected depend on ourjudgment including the assessment of the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error. In making those risk assessments theauditor considers internal nancial control relevant to the Company's preparation of theStandalone Financial Statements that give true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe Standalone Financial Statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India; a) In the case of the Balance Sheet ofthe state of affairs of the Company as at March 31 2018; b)In the case of the Statementof Pro t and Loss of the profit for the year ended on that date; and c)In the case of theCash Flow Statement of the cash ows 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”)issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the “Annexure-A” a statement on the matters specified inthe paragraph 3 and 4 of the order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief 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 theStatement of Pro t and Loss and Cash Flow Statement dealt with by this Report are inagreement with the books of account. d) In our opinion the aforesaid Standalone FinancialStatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014. e) On the basis of writtenrepresentations received from the directors as on 31 March 2018 taken on record by theBoard of Directors none of the directors is disquali ed as on 31 March 2018 from beingappointed as a director in terms of Section 164(2) of the Act. f) With respect to theadequacy of the internal nancial controls over nancial reporting of the Company and theoperating effectiveness of such controls refer to our separate report in "AnnexureB"; and g) With respect to the other matters included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us: i. TheCompany has pending litigations under Gujarat Value Added Tax Act 2003 and the details ofthe same are given in Annexure A to this report read with Note No. 41 to the Financialstatements which would impact its nancial position. ii. The Company did not have anylong-term contracts including derivatives contracts for which there were any materialforeseeable losses iii. There has been no delay in transferring amounts required to betransferred to Investor Education and Protection fund by the Company and

for K A SANGHAVI AND CO LLP
Chartered Accountants
FRN : 120846W / W100289
AMISH ASHVINBHAI SANGHAVI
M. NO. 101413
1001 1002 1003 RAJHANS BONISTA
Place : SURAT RAM CHOWK GHOD DOD ROAD
Date : 29/05/2018 SURAT-395007 GUJARAT

Annexure A referred to in paragraph 1 under the heading Report on other legal andregulatory requirements of our report of even date Re: MEERA INDUSTRIES LIMITED

I. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of xed assets. b. All xed assets have not beenphysically veri ed by the management during the year but there is a regular programme ofveri cation which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. No material discrepancies were noticed on such veri cation.c. According to the information and explanations given by the management the title deedsof immovable properties included in xed assets are held in the name of the Company.

II. a. The management has conducted physical veri cation of inventory exceptgoods-in-transit at reasonable intervals during the year. b. The procedures of physicalveri cation of inventory followed by the management are reasonable and adequate inrelation to the size of the Company and the nature of its business. c. The Company ismaintaining proper records of inventory and no material discrepancies were noticed onphysical veri cation.

III. According to the information and explanations given to us the Company has notgranted loans secured or unsecured to companies rms or other parties covered in theregister maintained under section 189 of the Companies Act 2013. Accordingly provisionsof clauses 3(iii) (a) (b) & (c) of the Order are not applicable to the Company andhence not commented upon. IV. In our opinion and according to the information andexplanations given to us the company does not have any transactions to which theprovisions of Section 185 apply. The company has complied with the provisions of Section186 of the Act with respect to the loans investments guarantees and security.

V. The Company has not accepted any deposits from the public. Hence the provisions ofSections 73 to 76 or any other relevant provisions of The Companies Act and rules framedthere under are not applicable. The provisions of clause 3(v) of the Order are notapplicable to the Company and hence not commented upon.

VI. The provisions of The Companies (Cost Records and Audit) Rules 2014 as amended bythe Companies (cost records and audit) Amendment Rules 2016 read with provisions of Sec.148(1) of The Companies Act 2013 for the maintenance of cost records are not applicableto the company. Hence the Company is not required to maintain Cost Records and hence notrequired to get the cost audit done as per the provisions of The Companies (Cost Recordsand Audit) Rules 2014 VII. a. The Company is generally regular in depositing withappropriate authorities undisputed statutory dues including provident fund employees'state insurance income-tax sales-tax service tax customs duty excise duty valueadded tax GST cess and other material statutory dues applicable to it though there hasbeen a slight delay in few cases. b. According to the information and explanations givento us the following dues of Gujarat Value Added Tax have not been deposited by thecompany on account of disputes :

Nature of statute Nature of Dues Amount unpaid Period to which the amount relates (Assess- ment Year) F orum where Dispute is pending
Gujarat Value Added Tax Act 2003 Demand raised under the assessment regarding Guj. Value Added Tax and Input tax credit along with Interest and Penalty. 1302464/- 2006-2007 Hon. Tribunal Commercial Tax Gujarat State Ahmedabad

VIII. Based on our audit procedures and as per the information and explanations givenby the management we are of the opinion that the Company has not defaulted in repaymentof dues to banks and Financial Institution. The Company had no Debentures issued oroutstanding during the year. IX. The company has raised money by way of initial publicoffer and term loan for car during the year. In our opinion and according to theinformation and explanations given to us the amount raised through IPO and term loantaken by the Company have been applied for the purposes for which they were raised.However out of the total amount raised through IPO approximately Rs. 7500000/-have notbeen fully utilized during F.Y. 2017-2018 which was required to be utilized during F.Y.2017-2018 for the purpose of purchase of additional plant & machineries at theexisting manufacturing facilities at Surat and for setting up new manufacturing facilitiesto manufacture yarn at Surat as per “Objects of the Issue” as explained inProspectus (page no. 46 to 51 of Prospectus). Thus there is a delay in utilizing thefunds raised through IPO. On being inquired with the company and management regardingdelay in utilizing the funds it has been explained to us that the machine type requiredfor the purpose was changed and new type of machine was not readily available with thevendors. Hence the delay was occurred.

X. According to the information and explanations given to us no fraud by the companyor on the company by its of cers or employees has been noticed or reported during thecourse of our audit.

XI. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

XII.In our opinion and according to the information and explanations given to us thecompany is not a Nidhi company. Accordingly the provisions of clause 3(xii) of the Orderare not applicable to the Company and hence not commented upon.

XIII.According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the notes to the standalone nancial statements asrequired by the applicable accounting standards.

XIV.According to the information and explanations given to us and based on ourexaminations of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

XV. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly the provisions ofclause 3(xv) of the Order are not applicable and hence not commented upon. XVI.Accordingto the information and explanations given to us the company is not required to beregistered under section 45 IA of the Reserve Bank of India Act 1934 and hence notcommented upon.

for K A SANGHAVI AND CO LLP
Chartered Accountants
FRN: 120846W / W100289
AMISH ASHVINBHAI SANGHAVI
M. NO. 101413
1001 1002 1003 RAJHANS BONISTA
Place: SURAT RAM CHOWK GHOD DOD ROAD
Date: 29/05/2018 SURAT-395007 GUJARAT

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 nancial controls over nancial reporting of MEERAINDUSTRIES LIMITED (“The Company”) as of 31 March 2018 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 Company's management is responsible for establishing and maintaining internalnancial controls based on the internal control over nancial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India (‘ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal nancial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable nancial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal nancial controlsover nancial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the“Guidance Note”) and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal nancial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalnancial controls over nancial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal nancial controls system over nancial reporting and their operatingeffectiveness. Our audit of internal nancial controls over nancial reporting includedobtaining an understanding of internal nancial controls over nancial reporting assessingthe risk that a material weakness exists and testing and evaluating the design andoperating 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 Standalone Financial Statements whether due to fraud orerror. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Company's internal nancial controls systemover nancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal nancial control over nancial reporting is a process designed toprovide reasonable assurance regarding the reliability of nancial reporting and thepreparation of Financial Statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal nancial control over nancialreporting 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 nancial controls over nancialreporting 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 nancial controls over nancialreporting to future periods are subject to the risk that the internal nancial control overnancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internal nancialcontrols system over nancial reporting and such internal nancial controls over nancialreporting were operating effectively as at 31 March 2018 based on the internal controlover nancial 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. However we are of the opinion that the company can make the Internal Controls onFinancial Reporting more adequate and more effective considering the inherent risk andnature and size of the business activities carried out by the company.

for K A SANGHAVI AND CO LLP
Chartered Accountants
FRN: 120846W / W100289
AMISH ASHVINBHAI SANGHAVI
M. NO. 101413
1001 1002 1003 RAJHANS BONISTA
Place: SURAT RAM CHOWK GHOD DOD ROAD
Date: 29/05/2018 SURAT-395007 GUJARAT
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