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Meglon Infra-Real (India) Ltd.

BSE: 511367 Sector: IT
NSE: N.A. ISIN Code: INE218B01018
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NSE 05:30 | 01 Jan Meglon Infra-Real (India) Ltd
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OPEN 3.42
CLOSE 3.42
VOLUME 100
52-Week high 3.96
52-Week low 3.42
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Meglon Infra-Real (India) Ltd. (MEGLONINFRA) - Auditors Report

Company auditors report

TO THE MEMBERS OF MEGLON INFRA - REAL (INDIA) LIMITED Report on the Audit of theFinancial Statements/O pinion

We have audited the accompanying financial statements of MEGLON INFRA - REAL (INDIA)LIMITED ("the Company") which comprise the Balance Sheet as at March 31 2020the Statement of Profit and Loss and the Statement of Cash Flows for the year ended onthat date and notes to the financial statements including a summary of the significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for disclaimeropinion Section of our report the aforesaid financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2020 the profit and itscash flows for the year ended on that date.

Basis for Disclaimer Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made there underand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics . We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our Disclaimer audit opinionon the financial statements for the reason of

a. Investments :

The total investments of the company consists of equity shares of different companies.Following the principles of Ind AS 27 Separate Financial Statements the Company electedto account for its investment in equity shares in accordance with Ind AS 109 Financialinstruments.

Ind As 109 requires an entity to measure the investment in equity shares at fair valueand recognise the changes in fair value through profit and loss account. However themanagement of the company is unable to establish fair value of its investments as on thedate of the financial statements. In the absence of which the company has considered costof the investment as fair value in its books of accounts.

In the absence of such fair valuation of equity shares we can't determine the impactof such fair valuation on the total comprehensive income of the company in the financialstatements and also the recoverability of investments disclosed in the balance sheet ofthe company.

b. Provisions Contingent Liabilities and Contingent Assets :

Following are the principles of Ind AS 37 Provisions Contingent Liabilities andContingent Assets an entity should recognised a provision when

(a) An entity has a present obligation (legal or constructive) as a result of a pastevent

(b) It is probable that an outflow of resources embodying economic benefits will berequired to settle the obligation and

(c) a reliable estimate can be made of the amount of the obligation.

Company has given advance for purchase of asset of Rs.14929500/- and It is probablethat it may not recover that amount. According to Ind As 37 Provisions ContingentLiabilities and Contingent Liabilities It is Supposed to make a provision to that extent.But it was not created.

In the absence of the provision We are not in a position to determine the impact ofsuch provision on the total income of the company in the financial Statements and also therecoverability of advance disclosed in the balance sheet of the company.

Basis on the aforesaid two points and owing to their materiality we are unable todetermine any adjustment that may be required in the financial results of the company.Accordingly we don't express an opinion on the financial results and other financialinformation of the company.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined that there are no key audit matters to be communicated in our report.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Our Opinion is not Qualified in this regard.

Management's Responsibility for the Financial 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 financial statements that givea true and fair view of the financial position financial performance and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards referred to in Section 133 of Companies Act 2013.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.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Financial Statements

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 control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the Accounting estimates made by management aswell as evaluating 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 except for the effects of the matter described inthe basis for Disclaimer opinion section of our report .

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the 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 financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in

evaluating the results of our work; and (ii) to evaluate the effect of any identifiedmisstatements in the financial statements.

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.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issued by thedepartment of company affairs in terms of section 143 (11) of the companies Act 2013and on the basis of our examination of the books and records as we considered appropriateand according to the information and explanation given to us we give in the"Annexure B" a statement on the matters specified in paragraph 3 and 4 of theOrder to the extent applicable.

2. As required by section 143(3) of the Companies Act 2013 we report that:

a) We have sought and except for the effects of the matter described in the Basis fordisclaimer opinion Section of our report obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit.

b) Except for the effects of the matter described in the Basis for disclaimer opinionSection of our report above in our opinion proper books of account as required by lawhave been kept by the Company so far as appears from our examination of those books.

c) Except for the effects of the matter described in the Basis for disclaimer opinionSection of our report in our Opinion the Balance Sheet and Statement of Profit and Lossand Cash flow Statement dealt with by this Report are in agreement with the books ofaccount.

d) The matter described in the Basis for Disclaimer Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company.

e) On the basis of written representations received from the directors as on March 312020 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of sub section (2) ofsection 164 of the Companies Act 2013.

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 ourseparate report in "Annexure B"; and

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) There are no pending litigations for or against the Company which would impact itsfinancial position.

ii) The Company does not have any derivatives contracts. Further there are no long termcontracts for which provisions for any material foreseeable losses is required to be made.

iii) There are no amounts pending that are required to be transferred to InvestorEducation and Protection Fund.

For NSVR &ASSOCIATES LLP.
Chartered Accountants
(FRNo.008801S/S200060)
Sd/-
VenkataRatnam P
Date: 30/06/2020 Partner
Place: Hyderabad M.no:230675
UDIN:20230675AAAADF3348

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our

report to the Members of MEGLON INFRA - REAL (INDIA) LIMITED of even date)

i. The Company doesn't have Fixed Assets. Accordingly the provisions of clause 3(i)(a) to (c) of the order are not Applicable to the company and hence not commented upon.

ii. The Company doesn't hold any physical inventory. Thus paragraph 3(ii) of the orderis not applicable to the company.

iii. The Company has not granted any loans secured or unsecured to companies firms orother Parties covered in the register maintained under section 189 of the Companies Act.Thus Clause 3(iii) of the Order are not applicable to the company and hence not commentedupon.

iv. In our opinion and according to the information and explanations given to us theCompany has not granted any loans or provided any guarantees or given any security or madeany investments to which the provisions of Sections 185 and 186 of the Act. Accordinglyparagraph 3(iv) of the order is not applicable.

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

vi. As informed to us 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.

vii. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been irregular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Goods and Service TaxCustoms Duty Cess and other material statutory dues applicable to it with the appropriateauthorities. Except the following are the undisputed amounts payable in respect of theabove were in arrears as at March 2020 for a period of more than six months from the dateon which they become payable.

S.N o Name of The Statue Period the amount which relates Amount Unpaid
1 Professional Tax 2018-19 4525
2 The Income Tax Act1961 2011-12 52290

(b) According to the information and explanation given to us there are no dues ofincome tax sales tax service tax customs duty duty of excise value added tax Goodsand Service tax Outstanding on account of Dispute.

viii. Based on our Audit procedures and on the information and explanations given bythe management we are of the opinion that the company has not defaulted in repayment ofdues to a financial institutions banks or debenture holders.

ix. The Company has not raised moneys by way of initial public offer or further publicoffer including Debt instruments and term loans.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company or no material fraud on the Company by its officers oremployees has been noticed or reported during the year.

xi. Based upon the Audit Procedures performed and the information and explanationsgiven by the management the provisions of sec 197 read with Schedule V to the companiesAct are complied.

xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.

xii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the company the company has not made private placement orpreferential allotment during the year and in respect of which the Company complied withsection 39(4) and 42(9) of the Act and amount raised have been applied for the purposesfor which the funds raised.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and hence provisions of section 192 of theCompanies Act 2013 are not applicable to the Company.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For NSVR &ASSOCIATES LLP.

Chartered Accountants (FRNo.008801S/S200060)

Sd/-
VenkataRatnam P
Date: 30/06/2020 Partner
Place: Hyderabad M.no:230675
UDIN:20230675AAAADF3348

ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT

Report on the Internal Financial Controls Over Financial Reporting under Clause

(i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of MEGLONINFRAREAL (INDIA) LIMITED ("the Company") as of March 31 2020 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

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 of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. 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 respective company's policies thesafeguarding 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 Act2013.

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 Chartered Accountantsof India and the Standards on Auditing prescribed under Section143(10) of theCompaniesAct2013tothe extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial 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 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 statement for external purpose in accordance with generallyaccepted accounting principles. A company's internal financial controls 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 authorization 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.

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 except for the effects of the matter described in the basis forDisclaimer Opinion section in our report above were operating effectively as at 31 March2020 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For NSVR &ASSOCIATES LLP.

Chartered Accountants (FRNo.008801S/S200060)

Sd/-
VenkataRatnam P
Date: 30/06/2020 Partner
Place: Hyderabad M.no:230675
UDIN:20230675AAAADF3348

.