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Metal Box India Ltd.

BSE: 504838 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Metal Box India Ltd
NSE 05:30 | 01 Jan Metal Box India Ltd

Metal Box India Ltd. (METALBOXINDIA) - Auditors Report

Company auditors report

TO THE MEMBERS OF METAL BOX INDIA LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Metal Box India Limitedwhich comprise the Balance Sheet as at 31 March 2015 the Statement of Profit and Loss andthe Cash Flow Statement for the period then ended and a summary of significant accountingpolicies and other explanatory 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 with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgements and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

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 andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors 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 on the financial statements.

Opinion

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 of the state of affairs of the Company as at 31stMarch 2015 and its loss and its cash flows for the period ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

i. Note 5(A) to the Financial Statements with regard to confirmation of balances ofsecured loans;

ii. Note 5(B)(iv) as to the aggregate book value of relevant assets against whichsecured loans have been obtained being lower than the amount outstanding.

iii. The Company has prepared the accounts as a "going concern". Its networth is negative but as stated in Note 2 of the Financial Statements the same isprojected to turn positive as a part of implementation of the updated sanctioned scheme.

Our opinion is not modified with respect to the above matters.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the CompaniesAct 2013. we give in the Annexure a statement on the matters specified in the paragraph 3and 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 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 Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement comply withthe Accounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. On the basis of the written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31s1 March 2015 from being appointed as a director in termsof Section 164 (2) of the Act.

f. The functioning of the Company depends upon the effective implementation of theupdated sanctioned scheme as stated in Note 2 to the financial statements and referred toin Clause (iii) of the Emphasis of Matters paragraph hereinabove.

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. Pending litigations are subject to the provisions of the updated sanctioned scheme.It is the assessment of the Company that there is no impact on the financial position ofthe Company from such litigation and any claims dehors of the scheme are not tenable;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. As the period of the sanctioned rehabilitation Scheme under the Sick IndustrialCompanies (Special Provisions) Act 1985 stands extended there were no amounts which wererequired to be transferred to the Investor Education and Protection Fund by the Company.

For S. Jaykishan
Chartered Accountants
FRN: 309005E
CA VIVEK NEWATIA
Place: Kolkata Partner
Dated: The 22nd day of August 2015 Membership No. 062636

ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

The Annexure referred to in our Independent Auditors’ Report to the members of theCompany on the financial statements for the period ended 31 March 2015 we report that:

i. (a) The Company is in the process of updating records showing full particularsincluding quantitative details and situation of fixed assets.

(b) We are informed that the fixed assets have been physically verified by themanagement at reasonable intervals during the year. However the Company is in the processof reconciling the books records with the physical inventory.

ii. (a) As explained to us inventories of stock-in-trade and of finished goods and rawmaterials lying at the Mangalore unit have been physically verified by the management atthe period end.

(b) The procedures of physical verification of the said inventories as followed by themanagement are generally considered reasonable and adequate in relation to the size of therelated unit and nature of the business.

(c) The discrepancies if any between the physical inventories and the bookinventories at the said unit which have been dealt with in the books of account were notmaterial. The Company at its said unit has maintained proper records of inventories.

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 said Act.

iv. The existing internal control system for the purchases of stores raw materialsincluding components and fixed assets and for sales of goods and land buildings anddevelopments rights are adequate and commensurate with the size and condition of theCompany and nature of its business. Further on the basis of our examination of the booksand records of the Company we have neither come across nor have been informed of anycontinuing failure to correct major weakness in the aforesaid internal control system.

v. In the case of public deposits received by the Company in earlier years the Companyhas offered option for graded upfront settlement and approximately half of the fixeddeposits holders have availed of the said offer. With respect of the balance thedirectives issued by the Reserve Bank of India and the provisions of Section 73 to 76 ofthe Companies Act 2013 and the Companies (Acceptance of Deposits) Rules 2014 have notbeen complied with. It is informed to us that no order has been passed by the Company LawBoard in respect of this.

vi. The Central Government has not prescribed maintenance of cost records by theCompany under section 148(1) of the Companies Act 2013 for any of its products.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company is generally regular indepositing provident fund employees’ state insurance income tax excise duty andother statutory dues with the appropriate authorities. However there have been delays indepositing sales tax municipal tax and profession tax. The arrears of such dues over sixmonths on balance sheet date aggregate to Rs. 978.40 lakhs.

(b) According to the information and explanations given to us the quantum and otherrelevant details of disputed dues in respect of custom duty income tax sales tax exciseduty municipal tax and profession tax which have not been deposited are notascertainable.

(c) According to the information and explanations given to us as the period of thesanctioned rehabilitation Scheme under the Sick Industrial Companies (Special Provisions)Act 1985 stands extended there were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.

viii. In our opinion the accumulated losses of the Company are more than fifty percentof its net worth. The Company has incurred cash losses during the financial period coveredby our audit and also in the immediately preceding financial year.

ix. The Company in terms of the sanctioned rehabilitation Scheme (refer Note 2 on theAccounts) is making repayment of dues in instalments to financial institutions debentureholders and banks as a part of implementation of the Scheme the secured creditors havingaccepted settlements which are different from the original terms of contract with suchparties.

x. The Company has not given any guarantee for loans taken by others from banks orfinancial institutions.

xi. According to the information and explanations given to us the Company has notobtained any term loan during the period.

xii. Based upon the audit procedures performed and information and explanations givenby the management we report that no fraud on the Company or by Company has been noticedor reported during the course of our audit.

For S. Jaykishan
Chartered Accountants
FRN: 309005E
CA VIVEK NEWATIA
Place: Kolkata Partner
Dated: The 22nd day of August 2015 Membership No. 062636