M/s Mega Nirman & Industries Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Mega Nirman &Industries Limited (the "company") which comprise the Balance Sheet as at31st March 2017 the Statement of Profit and Loss and the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.
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 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 financial control thatwere operating 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.
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 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 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 management 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 financial statements give the information required by the Act in themanner 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 profit for the year ended onthat date; and
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2016 (the Order') issuedby the Central Government of India in terms of sub-section (11) of section 143 of the Actwe give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of theOrder 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 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 it appears from our examination of those books;
c) The Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account;
d) In our opinion the financial Statements comply with the Accounting Standardsspecified under section 133 of the Act read with rule 7 of the Companies (Accounts)Rules2014;
e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of section164(2) of the Companies Act 2013;
f) On our observation company has adequate internal financial controls system in placeand the operating effectiveness of such controls.
g) with respect to the other matter to be included in the auditor's report inaccordance with rule 11 of the companies (audit and auditors) rules2014 in our opinionand to the best of our information and according to the explanations given to us:
a. There were no pending litigations which would impact financial condition of theCompany.
b. the company has not made any long terms contract including derivative contractsduring the year.
c. the company did not have any dues requiring transfer to Investor Education andProtection Fund.
d. The Company has provided requisite disclosures in its financial statements as toholding as well as dealings in Specified Bank Notes during period from 8thNovember 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by the company (Refer Note: 17).
Annexure to the Independent Auditor's Report
Referred to in paragraph 1 under the heading Report on Other Legal &Regulatory Requirement' of our report of even date to the financial statements of theCompany for the year ended March 31 2017:
a) The Company is maintaining proper records showing full particulars includingquantitative details and situation if fixed assets.
b) As explained to us the company has a phased program of physical verification of itsfixed assets. In our opinion it is reasonable having regard to the size of the companyand the nature of its assets certain fixed assets have been physically verified by themanagement during the year and no discrepancy was noticed on such verification.
c) The title deeds of immovable properties are held in the name of the company
The physical verification of inventory including investments has been conducted atreasonable intervals by management; The discrepancies noticed on physical verification ofthe inventory as compared to books records which has been properly dealt with in the booksof account were not material.
Granting of Loans to Certain Parties
a) The Company has neither granted nor taken any loan secured or unsecured to/fromCompanies firms and other parties covered in the register maintained under Section 189 ofthe Companies Act 2013.
b) Since there are no such loans the comments regarding terms and conditions repaymentof the principal amount and interest thereon and overdue amount are not required.
Compliance to the provision of section 185 & 186 of the Act
In our opinion and according to the information and explanations given to us thecompany has complied to the with the provisions of section 185 and 186 of the companiesAct 2013 in respect of loans investments guarantees and security.
Acceptance of Deposits
The company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of the Section 73 to 76 or anyother relevant provisions of the Act and the Companies (Acceptance of Deposits)Rules 2015with regard to the deposits accepted from the public are not applicable.
Maintenance of Cost records
As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub section (1) of the section 148 of the Act in respect of theactivities carried on by the company.
Deposit of Statutory Dues
In respect of statutory dues:
a) According to the information and explanations given to us and the records of thecompany examined by us the company is regular in depositing the undisputed statutory dueswith the appropriate authority and no dues are outstanding for a period of more than sixmonths from the date they become payables as on 31.03.2017.
b) The Company doesn't have any disputed dues of Sales Tax/Income Tax/Customs/WealthTax/Excise Duty/Cess etc for a period of more than six months from the date they becamepayable as on 31.03.2017.
Default in repayment of Dues
In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The company has not taken anyloan either from financial institutions or from the Government and has not issued anydebentures.
Application of term loans
Based upon the audit procedures performed and the information and explanations given bythe management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments. Accordingly the provisions of clause 3(ix) of the Order are not applicable to the Company and hence not commented upon.
However the company is regular in payment of term loan and has used the amount of termloan for the purpose for which it was raised.
According to the information and explanation given to us no material fraud on or bythe company has been noticed or reported during the course of our audit.
Based upon the audit procedures performed and the information and explanations given bythe management the company 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;
Provisions for Nidhi Company
In our opinion the Company is not a Nidhi Company. Therefore the provisions of clause4 (xii) of the Order are not applicable to the Company;
Transaction with Related Parties
In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards;
Preferential allotment of Shares
Based upon the audit procedures performed and the information and explanations given bythe management the company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review.Accordingly the provisions of clause 3 (xiv) of the Order are not applicable to theCompany and hence not commented upon.
Non Cash transactions with directors
Based upon the audit procedures performed and the information and explanations given bythe management the company has not entered into any non-cash transactions with directorsor persons connected with him. Accordingly the provisions of clause 3 (xv) of the Orderare not applicable to the Company and hence not commented upon;
Registration under Reserve Bank of India Act 1934
In our opinion the company is not required to be registered under section 45 IA of theReserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) of theOrder are not applicable to the Company and hence not commented upon;
For and on Behalf of
PVR-N & Co.
Pradeep Kumar Jindal
F.R. No.: 004062N
Place: New Delhi