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Mipco Seamless Rings (Gujarat) Ltd.

BSE: 505797 Sector: Auto
NSE: N.A. ISIN Code: INE860N01012
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NSE 05:30 | 01 Jan Mipco Seamless Rings (Gujarat) Ltd
OPEN 8.13
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VOLUME 2
52-Week high 9.55
52-Week low 8.13
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 8.13
Sell Qty 2283.00
OPEN 8.13
CLOSE 8.13
VOLUME 2
52-Week high 9.55
52-Week low 8.13
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 8.13
Sell Qty 2283.00

Mipco Seamless Rings (Gujarat) Ltd. (MIPCOSEAMLRING) - Auditors Report

Company auditors report

To

The Members of M/s. MIPCO SEAMLESS RINGS (GUJARAT) LIMITED

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of M/s. MIPCO SEAMLESSRINGS (GUJARAT) LIMITED ("the Company") which comprise the Balance Sheet asat March 31 2019 the Statement of Profit and Loss (including other ComprehensiveIncome) the Cash Flow Statement and the statement of changes in equity for the year thenended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS 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 preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

We conducted our audit of Ind As Financial statements in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plans and perform audit to obtain reasonableassurance about whether the Ind AS Financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with the IndAS and other accounting principles generally accepted in India of the state of affairs ofthe Company as at 31st March 2019 and its profit total comprehensive income its cashflows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit 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 including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors of theCompany as on 31st March 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2019 from being appointed as a director interms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting

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 as amended inour opinion and to the best of our information and according to the explanations given tous:

I. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements - Refer Note IV (C) to Ind AS financialstatements;

II. The Company did not have any long-term contracts for which there were any materialforeseeable losses. The Company did not have any derivative contracts;

III. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For M/s. Ganesh Venkat & Co.
Chartered Accountants
Firm Regd.No.005293S
G. Rajavenkat
Partner
Membership No.025014
Place: Hyderabad.
Date: 29th May 2019

Annexure "A" to the Independent Auditor's Report

With reference to the Annexure A referred to in our Report of even date to theMembers of Mipco Seamless Rings (Gujarat) Limited ('the Company') on the Ind AS financialstatements for the year ended 31st March 2019 we report that:-

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. The Company does not have any fixed assets; hence maintenance of proper records andphysical verification is not required and requirement of clause (i) of paragraph 3 of thesaid Order is not applicable to the Company.

ii. The Company presently does not have any manufacturing operations; therefore it doesnot have any inventory. Hence the requirement of clause (ii) of paragraph 3 of the saidOrder is not applicable to the Company.

iii. The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act.hence reporting under (a) (b) & (c) is not required.

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. Further on the basis ofour examination of the books and records of the Company and according to the informationand explanations given to us no major weakness has been noticed or reported.

v. The Company has not accepted any deposits from the public covered under Section 73to 76 of the Companies Act 2013.

vi. As informed to us the Central Government has not prescribed maintenance of costrecords under Section 148(1) of the Act.

vii. (a) According to the information and explanations given to us and on the basis ofexamination of the records of the Company there are delays in deposit/ remittances ofamounts deducted/accrued in the books of account in respect of undisputed statutory duesincluding provident fund income tax sales-tax wealth-tax custom duty excise dutyservice-tax cess and other material statutory dues during the year by the Company withthe appropriate authorities; with respect to tax deducted at source amounts deducted fromSeptember 2016 were not remitted to the Central Government until end of the year 31stMarch 2019.

(b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of Income Tax Wealth Tax Service TaxSales Tax Customs Duty and Excise Duty which have not been deposited on account of anydisputes except for the following:

Name of the statute Nature of Dues Amount Rs. Period to which the amount relates Forum where dispute is pending
Income Tax Demand u/s 143(3) of the Income Tax Act 1961. 3994436 Financial Year 2005-06 with ITAT u/s 271(1)(c) & High Court u/s 54
Sales Tax Demand 790000 Financial Year 2005-06 Commissioner Appeals Sales Tax Bharuch

(c) There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question ofreporting delay in transferring such sums does not arise.

viii. According to the records of the company examined by us and as per the informationand explanations given to us the company has not availed of any loans from any financialinstitution or banks and has not issued debentures.

ix. In our opinion and according to the information and explanations given to us thecompany did not raise any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year.

x. During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe course of our audit nor have we been informed of any such instance by the Management.

xi. According to the information and explanation given to us and based on ourexamination of the records of the company the company has not paid/provided for anymanagerial remuneration hence the requisite approvals mandated by the provision ofSection 197 read with Schedule V of the Act is not applicable.

xii. In our opinion and according to the information and explanations given to us thecompany is not a nidhi company.

xiii. According to the information and explanation given to us and based on the recordsof the company transactions with the related parties are in compliance with Section 177and 188 of the Act where applicable and details of such transactions have been disclosedin the financial statements as required by the applicable accounting standards.

xiv. According to the information and explanation given to us and based on the recordsof the company the company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year.

xv. According to the information and explanation given to us and based on the recordsof the company the company has not entered into non-cash transactions with directors orpersons connected with him.

xvi. In our opinion and according the explanations given to us the company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For M/s. Ganesh Venkat & Co.
Chartered Accountants
Firm Regd.No.005293S
G. Rajavenkat
Partner
Membership No.025014
Place: Hyderabad.
Date: 29th May 2019.

Annexure B - Referred to in paragraph 6 of Our Report of even date to the members ofM/s. MIPCO SEAMLESS RINGS (GUJARAT) LIMITED on the Internal Financial Controls underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct").

We have audited the internal financial controls over financial reporting of M/s.MIPCO SEAMLESS RINGS (GUJARAT) LIMITED ("the Company") as of 31st March2019 in conjunction with our audit of the financial statements of the company for theyear ended on that date.

Management's Responsibility for 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 the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the company's internal financialcontrols over financial reporting based on our audit.

We conducted our audit in accordance with the Guidance N ote on Audit of InternalFinancial Controls over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the 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 reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes 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) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

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 controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2019 based on theinternal control over financial reporting criteria established by the company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For M/s. Ganesh Venkat & Co.
Chartered Accountants
Firm Regd.No.005293S
G. Rajavenkat
Partner
Membership No.025014
Place: Hyderabad
Date: 29th May 2019