Mercury Trade Links Ltd.
|BSE: 512415||Sector: Financials|
|NSE: N.A.||ISIN Code: INE319T01016|
|BSE 00:00 | 25 Feb||Mercury Trade Links Ltd|
|NSE 05:30 | 01 Jan||Mercury Trade Links Ltd|
|BSE: 512415||Sector: Financials|
|NSE: N.A.||ISIN Code: INE319T01016|
|BSE 00:00 | 25 Feb||Mercury Trade Links Ltd|
|NSE 05:30 | 01 Jan||Mercury Trade Links Ltd|
To the Members
Mercury Trade Links Limited
We have audited the standalone financial statements of Mercury Trade Links Limited(hereinafter referred to as "the Company") prepared as per the IndianAccounting Standards (Ind-AS) which comprise the Balance Sheet as at 31stMarch 2020 the Statement of Profit & Loss including the Other Comprehensive Incomethe Statement of Changes in Equity and the Cash Flow Statement for the year then endedand the Notes to the Financial Statements including a summary of Significant AccountingPolicies and other explanatory information (collectively referred to as 'FinancialStatements').
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 theCompanies Act 2013 (hereinafter referred to as "the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the State of Affairs (financial position) of the Companyas at March 31 2020 its Loss (financial performance) and its cash flows for the yearended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.
The novel corona virus (COVID-19) pandemic continues to spread across the globeincluding India. In the month of March 2020 the COVID-19 outbreak was declared a globalpandemic by the World Health Organization. COVID-19 has taken its toll on not just humanlife but all businesses industries and services including health care. Variousgovernments have introduced a variety of measures to contain the spread of the virus. TheCentral and State Governments and local bodies had announced various lock down measureswhich have significant impact on all the activities across the nation.
The operations of the Company have been affected due to multiple factors such as (a)earmarking substantial facilities for COVID related services as per the Governmentdirections (b) reduction in services related to other regular health care activities -both prevention and post care and (c) suspension of activities in certaindepartments/areas due to general and specific directions from authorities/management.
The management of the Company has at the time of approving the financial statementsmade a detailed assessment of the possible impact of the pandemic relating to COVID-19 onthe carrying amounts of Inventories and all the other assets / liabilities particularlyinventory investments receivables advances etc. based on internal and external sourceof information. The management has also made a detailed assessment of its liquidityposition for the next 12 months from the Balance Sheet date and believes that there is nomaterial impact foreseen on revenue and operating cashflow of the Company. Also anevaluation of impact of COVID-19 on internal financial controls over financial reportingconcluded that there is no impact of COVID-19 thereon. On the basis of such assessmentthe management has concluded that the carrying values of these assets are recoverable andno uncertainty exists on meeting the financial liabilities in the foreseeable future.However the impact assessment of COVID 19 is a continuing process given the uncertaintiesassociated with its nature and duration. Management will continue to monitor any materialchanges to future economic conditions and the impact thereof on the Company if any. Theeventual outcome of the impact of the COVID 19 pandemic on the Company's business may bedifferent from that estimated as on the date of approval of these financial statements.
Emphasis of Matter
Attention is drawn to note no.xx of the financial statements regarding management'scurrent assessment of the Company's assets and liabilities in view of prevailing Covid-19pandemic and nationwide lockdown and conclusion based on such assessment that the carryingvalue of the assets are recoverable and no uncertainty exists on meeting the liabilitiesin the foreseeable future.
Our report is not modified in respect of this matter.
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 year. 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.
We have determined that there are no key audit matters to be communicated in ourreport.
The Company's Board of Directors are responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe 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 statement or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report the fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the FinancialStatements
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 specified under Section 133 of the Act. 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 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 statement that givea 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.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls;
> 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 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;
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 (Auditor7 s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Sub-section (11) ofSection 143 of the Act and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure-A a statement on the matters specified in paragraphs3 and 4 of the Order to the extent applicable to the Company during the year underreview.
2. Further to our comments in the Annexure referred to in Para 1 above as required bySection 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 the Statement of Profit and Loss the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with theCompany's 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 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 Section 164 (2) ofthe Act.
f) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Section 197(16) of the Act as amended the Companyhas not paid/provided any managerial remuneration in the current year and hence provisionsof Section 197 of the Act are not applicable to the Company;
g) 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.
h) With respect to the other matters to be included in the Auditor's Report inaccordance with the Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to uswe report that:
i) The Company does not have any pending litigations which would impact its financialposition;
ii) The Company does not have any long term contracts including derivative contractsfor which there were any material foreseeable losses; and
iii) There were no amounts which were required to be transferred to the InvestorsEducation and Protection Fund by the Company.
Annexure -A to the Independent Auditors' Report to the members of Mercury Trade Links
Limited for year ended on 31st March 2020
(Referred to in paragraph V(1) of our report of even date)
In terms of the information and explanations given to us and the books and recordsexamined by us and on the basis of such checks as we considered appropriate we furtherreport as under:
(i) Fixed Assets:
The Company has maintained proper records in respect of its Property Plant andEquipment during the year under review. The items forming part of the Property Plant andEquipment have been physically verified by the management at reasonable intervals duringthe year. No material discrepancies were found during the said verification. The Companydoes not hold any immovable property during the year.
We have been explained that during the year the Company has conducted physicalverification of its inventory of shares as well as mutual fund units at regular intervalswhich in our opinion is reasonable. We have been explained that no material discrepancieswere noticed in the said verification.
(iii) Loans to the Parties covered under Section 189 of the Act:
During the year the Company has not granted any loans secured or unsecured to theparties covered in the register maintained under Section 189 of the Act.
(iv) Loans to Directors and investment by Company:
The Company has not given any loans /guarantees to or made any investments or providedany security within the purview of the Sections 185 and 186 of the Act to the directorsduring the year.
(v) Acceptance of Deposits:
According to the information and explanations given to us the Company has not acceptedany deposits within the purview and the directives issued by Reserve Bank of India and theprovisions of Sections 73 to 76 or any other relevant provisions of the Act and the rulesframed there under.
(vi) Maintenance of Cost Records:
As explained to us maintenance of cost records has not been prescribed by the CentralGovernment for the Company under Section 148(1) of the Act.
(vii) Undisputed & Disputed Statutory Dues
(a) According to the information and explanations given to us and as per the recordsverified by us the Company has been regular in depositing undisputed statutory duesinvolving Income Tax Provident Fund Professional Tax and Goods & Service Tax withthe appropriate authorities and there were no arrears under the above heads which were duefor more than six months from the date they become payable as at the close of the year.Keeping in view the present operations of the Company statutes relating to Sales- taxCustoms Duty Excise Duty and Cess are not applicable to the Company during the year underreview.
(b) As per the records provided to us no disputed statutory dues have been lyingpending with the Company as at the close of the year under review.
(viii) Loans from Banks/Financial Institutions/ Government/Debentures:
No Loans from Banks/ Financial Institutions/Government were taken by the Company duringthe year. The Company has not issued any debentures since its inception.
(ix) Proceeds of Public issue (including debt instruments) /Term Loans:
The Company has not raised any money during the year through initial / further publicoffer (including debt instruments). Based on the records verified by us no term loan wasraised by the Company during the year.
(x) Frauds on or by the Company:
During the course of our examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India and accordingto the information and explanations given to us we have neither come across any instanceof fraud on or by the Company or its officers noticed or reported during the year norhave we been informed of such case by the management.
(xi) Managerial Remuneration:
The Managerial remuneration paid/provided for by the Company during the year underreview was well within the limits and purview of Section 197 of the Act read togetherwith Schedule V to the Act.
(xii) Nidhi Companies:
The Company is not a Nidhi company during the year under review and hence the criteriaas stipulated under the Nidhi Rules 2014 are not applicable to the Company.
(xiii) Related Party Transactions:
As per the information and explanations given during the course of our verification inour opinion all transactions with the related parties made by the Company were incompliance with Sections177 & 188 of the Act to the extent applicable to the Companyduring the year the relevant details in respect of which have been appropriatelydisclosed in the financial statements.
(xiv) Preferential Issue:
During the year the Company has not made any preferential allotment or privateplacement of equity shares or convertible debentures and hence the requirements of Section42 of the Act are not applicable.
(xv) Non-cash Transactions with Directors etc:
As per the information and explanations provided to us during the year the Companyhas not entered into any non-cash transactions with directors or persons connected withthe directors within the purview of Section 192 of the Act.
(xvi) Provisions of 45-IA of the Reserve Bank of India Act1934:
During the year under review the Company is not required to be registered as a NonBanking Finance Company within the purview of Section 45-IA of the Reserve Bank of IndiaAct 1934.
Annexure-B to Independent Auditor's Report
The Annexure referred to in paragraph 2(f) under the 'Report on Other Legal andRegulatory Requirements' our report to the members of Mercury Trade Links Limited ('theCompany') for the year ended on March 31 2020.
Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section143 of the Act
We have audited internal financial controls over financial reporting of the Company asof March 31 2020 in conjunction with our Audit of the Financial Statements of the Companyfor the year then ended on that date.
Management's Responsibility for the 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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India (ICAI). These responsibilities includesdesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of businessincluding adherence to Company's policies the safeguarding of the assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.
Our responsibility is to express an opinion on Company's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting ('theGuidance Note') and the Standards on Auditing deemed to be prescribed under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of internal financial controls and both issued by the ICAI.Those Standards and Guidance note require that we comply with ethical requirements andplan and perform 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 procedure 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 controls based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material 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 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 a reasonable assurance regarding the reliability of financial reporting andpreparation of financial statements for external purpose 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 the transactions are recorded as necessary topermit preparation of financial statements in accordance with the generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and
3. Provide reasonable assurance regarding prevention or timely detection ofunauthorised 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 misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial control 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 aspects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.