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Minal Industries Ltd.

BSE: 522235 Sector: Others
NSE: N.A. ISIN Code: INE097E01028
BSE 00:00 | 04 Mar Minal Industries Ltd
NSE 05:30 | 01 Jan Minal Industries Ltd
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OPEN 1.20
CLOSE 1.20
VOLUME 500
52-Week high 1.20
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 23
Buy Price 1.21
Buy Qty 25.00
Sell Price 0.00
Sell Qty 0.00

Minal Industries Ltd. (MINALINDUSTRIES) - Auditors Report

Company auditors report

To the Members of Minal Industries Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of MinalIndustries Limited ("the Company") which comprise the standalone balancesheet as at March 31 2020 and the standalone statement of Profit and Loss (includingother comprehensive income) standalone statement of cash flows and standalone statementof changes in equity for the year then ended and notes to the standalone financialstatements including a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "the standalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("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 of the Company as at March 31 2020its profit including total comprehensive income its cash flow and the changes in equityfor the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under sub-section (10) ofSection 143 of the Act. Our responsibilities under those Standards are further describedin the ‘Auditor's Responsibilities for the Audit of the Standalone FinancialStatements' section of our report. We are independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India togetherwith the ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on the standalone financial statements.

Emphasis of Matter a. We draw attention to Note 38 of thestandalone financial statement which explains that the

Company's management has applied principles of prudence to assessthe impact of COVID-19 pandemic on the financial statements. In view of the highlyuncertain future economic conditions associated with the pandemic the actual impact onthe financial statements in the subsequent periods is highly dependent upon thecircumstances as they evolve.

b. We draw attention to Note 41 of the standalone financial statementwhich explains that the Company has incurred net losses of Rs. 261.81 lakhs during theyear ended March 31 2020 and Rs. 7.31 lakhs during year ended March 31 2019. TheCompany's ability to meet its obligations is dependent on uncertain events including timebound monetisation of assets. These factors indicate the existence of a materialuncertainty which may cast significant doubt about the Company's ability to continue as agoing concern. In response to this matter management continues to strengthen its strategyto expand its market in order for the Company to increase its sales and eventuallygenerate profit. In spite of these events or conditions which may cast a doubt on theability of the company to continue as a going concern the management is of the opinionthat going concern basis of accounting is appropriate in view of the continued financialsupport from its Promoters. Accordingly the standalone financial statements of theCompany have been prepared on a going concern basis.

Our opinion is not modified in respect of the above matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thefinancial year ended March 31 2020. These matters were addressed in the context of ouraudit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. For each matter belowour description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the Key auditmatters to be communicated in our report.

We have fulfilled the responsibilities described in the Auditor'sresponsibilities for the audit of the standalone financial statements section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the standalone financial statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying standalone financial statements.

The Key Audit Matter Auditorfs Response
Valuation of Inventories (as described in note no. 1.2.X of the significant accounting policies and note no. 6 for details in standalone financial statements)
The Company held Rs. 91430810/- of inventories as on March 31 2020. Considering the primary nature of business reduction in volume of operations and the size of the inventory balance relative to the total assets of the Company and the estimates and judgements described below the valuation of inventory required significant audit attention. We have performed the following procedures over the valuation of inventory:
As disclosed in Note 6 inventories are held at the lower of cost and net realisable value. At year end the valuation of inventory is reviewed by management and the cost of inventory is reduced where inventory is forecast to be sold below cost. a. We tested that the ageing report used by management correctly aged inventory items;
The determination of whether inventory will be realised for a value less than cost requires management to exercise judgement and apply assumptions. Management undertake the following procedures for determining the level of write down required: b. On a sample basis we tested the net realisable value of inventory lines to recent selling prices;
a. Use inventory ageing reports together with historical trends to estimate the likely future saleability of slow moving and older inventory lines; From the procedures performed we have no matters to report.
b. Perform a line-by-line analysis of remaining inventory to ensure it is stated at the lower of cost and net realisable value and a specific write down is recognised if required. Refer to Note 6 of the standalone financial statements - Inventories.

Information Other than the Standalone Financial Statements andAuditorfs Report Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annual Reportbut does not include the standalone financial statements and our auditor's reportthereon. The Annual Report is expected to be made available to us after the date of thisauditor's report.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of the standalone financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard

Responsibilities of the Management for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in sub-section (5) of Section 134 of the Act with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance including comprehensive income cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards specified under Section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements the management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the management either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so. Those Board of Directorsare also responsible for overseeing the Company's financial reporting process.

Auditors Responsibilities for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under clause(i) of sub-section (3) of Section 143 of the Act we are also responsible for expressingour opinion on whether the company has adequate internal financial controls with referenceto standalone financial statements in place and the operating effectiveness of suchcontrols.

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

Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work; and (ii) to evaluate the effect of anyidentified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by sub-section (3) of Section 143 of the Act we reportthat:

a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c. The standalone balance sheet the standalone statement of profit andloss including other comprehensive income the standalone statement of cash flows andstandalone statement of changes in equity dealt with by this Report are in agreement withthe books of account.

d. In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended.

e. On the basis of the written representations received from thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2020 from being appointed as a director in termsof sub-section (2) of Section 164 of the Act. f. With respect to the adequacy of theinternal financial controls over financial reporting with reference to standalonefinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B" to this report.

g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of sub-section (16) of Section197 of the Act as amended:

The Company has not paid any remuneration to its directors during theyear in accordance with the provisions of section 197 of the Act.

h. With respect to the other matters to be included in theAuditor's Report in accordance with Rule

(11) of the Companies (Audit and Auditors) Rules 2015 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements Refer Note 31 of the standalonefinancial statements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and

iii. The Company has outstanding Unclaimed dividend payable for morethan seven years as on 31.03.2020 as disclosed in Note-20 to the financial statements. Thecompany has not transferred the outstanding Unclaimed dividend payable for more than sevenyears as on 31.03.2020 to Investor Education and Protection Fund by the company

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT (Referred to inparagraph 1 under 'Report on Other Legal and Regulatory Requirements section of ourreport to the Members of Minal Industries Limited of even date)

(i) (a) The Company has not maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) No physical verification of fixed assets has been conducted by themanagement during the year or in the recent past. In our opinion the frequency ofverification needs to be improved to be commensurate with the size of the Company and thenature of its business.

(c) According to the information and explanations given to us therecords examined by us and based on the examination of the conveyance deeds provided tous we report that the title deeds comprising all the immovable properties of land andbuildings which are freehold are held in the name of the Company as at the balance sheetdate.

(ii) The management has conducted physical verification of inventory atreasonable intervals during the year. In our opinion the frequency of such verificationis reasonable and no material discrepancies were noticed on such physical verification.

(iii) The Company has granted unsecured loans to one of its subsidiarycompany covered in the register maintained under section 189 of the Companies Act 2013(‘the Act').

(a) In our opinion the rate of interest and other terms and conditionson which the loans had been granted to subsidiary listed in the register maintained underSection 189 of the Act are not prima facie prejudicial to the interest of the Company.

(b) The register mentioned u/s 189 is not maintained by the Company.The Company has granted loans that are re-payable on demand to a Company covered underSection 189 of the Act. We have been informed that the Company has not demanded repaymentof any such loan during the year and thus there has been no default on the part of theparties to whom the money has been lent.

(c) There are no amounts of loans granted to companies firms or otherparties listed under section 189 of the Act which are overdue for more than ninety days.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has not granted any loans or provided any guarantee or securityto the parties covered under section 185. Based on our audit procedures performed for thepurpose of reporting the true and fair view of the financial statements and according tothe information and explanations given by the management the Company has complied withthe provisions of section 186 of the Act in respect of the loans and investments made andguarantees and securities provided by it. According to the information and explanationsgiven to us the Company has not accepted any deposit and

(v) hence reporting under paragraph 3 (v) of the Order is notapplicable to the Company.

(vi) To the best of our knowledge and as explained the CentralGovernment has not prescribed maintenance of cost records under sub-section 1 of section148 of the Act.

(vii) (a) According to the information and explanations given to usand the records of the Company examined by us the Company is regular in depositing withthe appropriate authorities undisputed statutory dues including provident fund incometax goods and service tax duty of customs cess and other material statutory duesapplicable to it. According to information and explanation given to us no undisputedamounts payable were outstanding at the year end for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanations given to us thereare no dues of sales tax wealth tax service tax goods and service tax income tax dutyof excise duty of excise value added tax and cess which have not been deposited onaccount of any dispute except as follows:

Name Statute of the Nature of the Dues Amount Period to which the amount relates Forum where dispute is pending
The Income Tax Act 1961 Income tax 499230 A.Y. 1998-99 Ahmedabad High Court
172530 A.Y. 2011-12 Commissioner of Income Tax Appeal - Mumbai
Maharashtra Stamp Act 1958 Penalty 3084480 2016-17 Collector of Stamp (Efr- 1) Mumbai

(viii) Based on our examination of documents and records theCompany has not taken any loan from a financial institution a bank the government orissued debentures and hence reporting under paragraph 3 (viii) of the Order is notapplicable to the Company.

(ix) Based on our audit procedures performed for the purpose ofreporting the true and fair view of the standalone financial statements and according tothe information and explanations given by the management the Company has not raised anymoney by way of initial public offer or further public offer (including debt instruments)and term loans hence reporting under paragraph 3 (ix) of the Order is not applicable tothe Company.

(x) Based on the audit procedures performed for the purpose ofreporting the true and fair view of the standalone financial statements and according tothe information and explanations given by the Management we report that no material fraudby the Company and on the Company by its officer or employees has been noticed or reportedduring the year.

(xi) According to the information and explanations given to us andbased on our examination of the records of the Company the Managing Director of theCompany is holding place of profit in the Subsidiary Company and remuneration is paid tohim by the Subsidiary Company. However the Company has not paid/provided for anymanagerial remuneration during the year in accordance with the provisions of section 197read with Schedule V of the Act. Accordingly the provision of clause 3(xi) of the Orderis not applicable to the Company.

(xii) In our opinion the Company is not a Nidhi Company. Thereforereporting under paragraph 3 (xii) of the Order is not applicable to the Company.

(xiii) In our opinion and according to the information andexplanations given to us transactions during the year with the related parties wereapproved by the Audit Committee and are in compliance with section 177 of the Act whereapplicable and since the said transactions were in the ordinary course of business of thecompany and were at arm's length basis the provisions of section 188 are not applicableand the details have been disclosed in the standalone financial statements as required bythe applicable accounting standards.

(xiv) According to the information and explanations given to us and onan overall examination of the Balance Sheet the Company has not made any preferentialallotment/private placement of shares or fully or partly convertible debentures during theyear.

(xv) Based on our audit procedures performed for the purpose ofreporting the true and fair view of the standalone financial statements in our opinionand according to the information and explanations given to us the Company has not enteredinto any non-cash transactions with directors or persons connected with him.

(xvi) The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934. Accordingly reporting under paragraph 3 (xvi) ofthe Order is not applicable to the Company.

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

Report on the internal financial controls with reference to theaforesaid standalone financial statements under Clause (i) of sub-section (3) of Section143 of the Act

(Referred to in paragraph 2(A)(f) under 'Report on Other Legal andRegulatory Requirements' section of our report of even date)

Disclaimer of Opinion

We have audited the internal financial controls over financialreporting of Minal Industries Limited ("the Company") as of March 312020 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

According to the information and explanation given to us the Companyhas not established its internal financial control over financial reporting on criteriabased on or considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India. Because of this reason we are unable toobtain sufficient appropriate audit evidence to provide a basis for our opinion whetherthe Company had adequate internal financial controls over financial reporting and whethersuch internal financial controls were operating effectively as at March 31 2020.

We have considered the disclaimer reported above in determining thenature timing and extent of audit tests applied in our audit of the standalone financialstatements of the Company and the disclaimer does not affect our opinion on thestandalone financial statements of the Company

Managements Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting with reference to these standalone financialstatements of the Company based on our audit. We conducted our audit in accordance withthe Guidance Note issued by the Institute of Chartered Accountants of India and theStandards on Auditing prescribed under sub-section (10) of Section 143 of the Act to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting with reference to thesestandalone financial statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting withreference to these standalone financial statements and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting with reference tothese standalone financial statements assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting with reference to these standalone financial statements.

Meaning of Internal Financial Controls Over Financial Reporting withreference to these Standalone Financial Statements

A Company's internal financial control over financial reporting withreference to these standalone financial statements is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A Company's internal financial control over financial reportingwith reference to these standalone financial statements includes those policies andprocedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the Company's assets thatcould have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting with reference to these Standalone Financial Statements

Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these standalone financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone financial statements to future periods are subject to the risk thatthe internal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under 'Report on Other Legal andRegulatory Requirement' section of our report to the Members of Minal Industries Limitedof even date)

(iv) (a) The Company has not maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) No physical verification of fixed assets has been conducted by themanagement during the year or in the recent past. In our opinion the frequency ofverification needs to be improved to be commensurate with the size of the Company and thenature of its business.

(c) According to the information and explanations given to us therecords examined by us and based on the examination of the conveyance deeds provided tous we report that the title deeds comprising all the immovable properties of land andbuildings which are freehold are held in the name of the Company as at the balance sheetdate.

(v) The management has conducted physical verification of inventory atreasonable intervals during the year. In our opinion the frequency of such verificationis reasonable and no material discrepancies were noticed on such physical verification.

(vi) The Company has granted unsecured loans to one of its subsidiarycompany covered in the register maintained under section 189 of the Companies Act 2013(‘the Act').

(d) In our opinion the rate of interest and other terms and conditionson which the loans had been granted to subsidiary listed in the register maintained underSection 189 of the Act are not prima facie prejudicial to the interest of the Company.

(e) The register mentioned u/s 189 is not maintained by the Company.The Company has granted loans that are re-payable on demand to a Company covered underSection 189 of the Act. We have been informed that the Company has not demanded repaymentof any such loan during the year and thus there has been no default on the part of theparties to whom the money has been lent.

(f) There are no amounts of loans granted to companies firms or otherparties listed under section 189 of the Act which are overdue for more than ninety days.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has not granted any loans or provided any guarantee or securityto the parties covered under section 185. Based on our audit procedures performed for thepurpose of reporting the true and fair view of the financial statements and according tothe information and explanations given by the management the Company has complied withthe provisions of section 186 of the Act in respect of the loans and investments made andguarantees and securities provided by it.

(v) According to the information and explanations given to us theCompany has not accepted any deposit and hence reporting under paragraph 3 (v) of theOrder is not applicable to the Company.

(xvii) To the best of our knowledge and as explained the CentralGovernment has not prescribed maintenance of cost records under sub-section 1 of section148 of the Act.

(xviii) (a) According to the information and explanations given to usand the records of the Company examined by us the Company is regular in depositing withthe appropriate authorities undisputed statutory dues including provident fund incometax goods and service tax duty of customs cess and other material statutory duesapplicable to it. According to information and explanation given to us no undisputedamounts payable were outstanding at the year end for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanations given to us thereare no dues of sales tax wealth tax service tax goods and service tax income tax dutyof excise duty of excise value added tax and cess which have not been deposited onaccount of any dispute except as follows:

Name of the Statute Nature of the Dues Amount Period to which the amount relates Forum where dispute is pending
The Income Tax Income tax 499230 A.Y. 1998-99 Ahmedabad High Court
Act 1961 172530 A.Y. 2011-12 Commissioner of Income Tax Appeal - Mumbai
Maharashtra Stamp Act 1958 Penalty 3084480 2016-17 Collector of Stamp (Efr- 1) Mumbai

(xix) Based on our examination of documents and records the Companyhas not taken any loan from a financial institution a bank the government or issueddebentures and hence reporting under paragraph 3 (viii) of the Order is not applicableto the Company.

(xx) Based on our audit procedures performed for the purpose ofreporting the true and fair view of the standalone financial statements and according tothe information and explanations given by the management the Company has not raised anymoney by way of initial public offer or further public offer (including debt instruments)and term loans hence reporting under paragraph 3 (ix) of the Order is not applicable tothe Company.

(xxi) Based on the audit procedures performed for the purpose ofreporting the true and fair view of the standalone financial statements and according tothe information and explanations given by the Management we report that no material fraudby the Company and on the Company by its officer or employees has been noticed or reportedduring the year.

(xxii) According to the information and explanations given to us andbased on our examination of the records of the Company the Managing Director of theCompany is holding place of profit in the Subsidiary Company and remuneration is paid tohim by the Subsidiary Company. However the Company has not paid/provided for anymanagerial remuneration during the year in accordance with the provisions of section 197read with Schedule V of the Act. Accordingly the provision of clause 3(xi) of the Orderis not applicable to the Company.

(xxiii) In our opinion the Company is not a Nidhi Company. Thereforereporting under paragraph 3 (xii) of the Order is not applicable to the Company.

(xxiv) In our opinion and according to the information and explanationsgiven to us transactions during the year with the related parties were approved by theAudit Committee and are in compliance with section 177 of the Act where applicable andsince the said transactions were in the ordinary course of business of the company andwere at arm's length basis the provisions of section 188 are not applicable and thedetails have been disclosed in the standalone financial statements as required by theapplicable accounting standards.

(xxv) According to the information and explanations given to us and onan overall examination of the Balance Sheet the Company has not made any preferentialallotment/private placement of shares or fully or partly convertible debentures during theyear.

(xxvi) Based on our audit procedures performed for the purpose ofreporting the true and fair view of the standalone financial statements in our opinionand according to the information and explanations given to us the Company has not enteredinto any non-cash transactions with directors or persons connected with him.

(xxvii) The Company is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934. Accordingly reporting under paragraph 3(xvi) of the Order is not applicable to the Company.

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

Report on the internal financial controls with reference to theaforesaid standalone financial statements under Clause (i) of sub-section (3) of Section143 of the Act

(Referred to in paragraph 2(A)(f) under 'Report on Other Legaland Regulatory Requirements' section of our report of even date)

Disclaimer of Opinion

We have audited the internal financial controls over financialreporting of Minal Industries Limited ("the Company") as of March 312020 in conjunction with our audit of the standalone financial statements of the

Company for the year ended on that date.

According to the information and explanation given to us the Companyhas not established its internal financial control over financial reporting on criteriabased on or considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India. Because of this reason we are unable toobtain sufficient appropriate audit evidence to provide a basis for our opinion whetherthe Company had adequate internal financial controls over financial reporting and whethersuch internal financial controls were operating effectively as at March 31 2020.

We have considered the disclaimer reported above in determining thenature timing and extent of audit tests applied in our audit of the standalone financialstatements of the Company and the disclaimer does not affect our opinion on thestandalone financial statements of the Company

Managements Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial

Reporting (the "Guidance Note") issued by the Institute ofChartered Accountants of India. These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting with reference to these standalone financialstatements of the Company based on our audit. We conducted our audit in accordance withthe Guidance Note issued by the Institute of Chartered Accountants of India and theStandards on Auditing prescribed under sub-section (10) of Section 143 of the Act to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting with reference to thesestandalone financial statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting withreference to these standalone financial statements and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting with reference tothese standalone financial statements assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting with reference to these standalone financial statements.

Meaning of Internal Financial Controls Over Financial Reporting withreference to these Standalone Financial Statements

A Company's internal financial control over financial reporting withreference to these standalone financial statements is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A Company's internal financial control over financial reportingwith reference to these standalone financial statements includes those policies andprocedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the Company's assets thatcould have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting with reference to these Standalone Financial Statements

Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these standalone financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone financial statements to future periods are subject to the risk thatthe internal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

For HPVS & Associates.
Chartered Accountants
Firm Registration No.: 137533W
Hitesh Khandhadia
Partner
M.No. 158148
UDIN: 20158148AAAABW3330
Place: Mumbai
Date: October 22 2020

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