TO THE MEMBERS OF MFL INDIA LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of MFL India Limited ("thecompany") which comprise the Balance Sheet as at 31 March 2017 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies 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 ("the Act") with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
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 proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation 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.
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 2017 its profit/loss and its cash flows 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 statement on the matters Specified in paragraphs 3 and4 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 the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the 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) In our opinion the company has in all material aspects an adequate financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2017.
f) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.
g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
i. the Company does not have any pending litigations which would impact its financialposition
ii. the Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses
iii. there were no amounts which required to be transferred by the Company to theInvestor Education and Protection Fund].
| ||For AM & ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Registration No. : 014444N |
|Place: Gurgaon ||Manish Nagpal |
|Date: 22/ 05/2017 ||Partner |
| ||Membership No.: 093811 |
"Annexure A" to the Auditors' Report
On the basis of such checks as we considered appropriate and according to theinformation and Explanations given to us during the course of our audit we report that:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.
(b) As explained to us fixed assets have been physically verified by the managementduring the year in accordance with the phased programme of verification adopted by themanagement which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. According to the information and explanations given to usno material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us the title deeds ofimmovable properties are held in the name of the company.
(ii) The Company is a service company primarily rendering goods transport services.
Along with it is carrying small scale business of Crusher and according to theinformation and explanations given to us there was closing stock as on 31stMarch 2017. Physical verification of inventory has been conducted at reasonable intervalsby the management and there were no any discrepancies noticed on such verification.
(iii) According to the information and explanations given to us the Company has notgranted any loans to companies firms or other parties covered in the Register maintainedunder Section 189 of the Companies Act 2013; and therefore paragraph 3(iii) of the Orderis not applicable.
(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto the loans and investments made.
(v) The company has not accepted any public deposits during the year.
(vi) As informed to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of Section 148 of the Act in respect of the activitiescarried on by the Company.
(vii) (a) According to the records of the company and information and explanationsgiven to us the Company has generally been regular in depositing undisputed statutorydues including Provident Fund employees state insurance (ESI) Income-tax Tax deductedat sources Tax collected at source Sales Tax value added tax (VAT) Service Tax andother material statutory dues applicable to it with the appropriate authorities.
(b) According to the information and explanations given to us there were no undisputedamounts payable in respect of Income-tax Wealth Tax Custom Duty Excise Duty sales taxVAT Cess and other material statutory dues in arrears /were outstanding as at 31 March2017 for a period of more than six months from the date they became payable.
(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to financial institutions andbanks.
(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer. The term loans raised by the company have been applied for the purpose forwhich they were raised.
(x) According to the information and explanations given to us no material fraud by thecompany or any fraud on the Company by its officers or employees has been noticed orreported during the year.
(xi) According to the information and explanations given to us managerial remunerationhas been paid or provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act.
(xii) In our opinion and according to the information and the explanation given to usthe company is not a nidhi company. Accordingly paragraph 3(xii) of the order is notapplicable.
(xiii) According to the information and explanations given to us transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.
(xiv) According to the information and explanations given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year.
(xv) According to the information and explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly paragraph 3(xv) of the order is not applicable.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
| ||For AM & ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Registration No. : 014444N |
| || |
| ||Manish Nagpal |
|Place: Gurgaon ||Partner |
|Date: 22/05/2017 ||Membership No.: 093811 |