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Modi Rubber Ltd.

BSE: 500890 Sector: Auto
NSE: MODIRUBBER ISIN Code: INE832A01018
BSE 00:00 | 16 Aug 54.85 0.85
(1.57%)
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54.85

HIGH

54.85

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54.85

NSE 00:00 | 16 Aug 51.70 -0.30
(-0.58%)
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51.15

HIGH

51.70

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OPEN 54.85
PREVIOUS CLOSE 54.00
VOLUME 100
52-Week high 128.00
52-Week low 52.35
P/E
Mkt Cap.(Rs cr) 137
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 54.85
CLOSE 54.00
VOLUME 100
52-Week high 128.00
52-Week low 52.35
P/E
Mkt Cap.(Rs cr) 137
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Modi Rubber Ltd. (MODIRUBBER) - Auditors Report

Company auditors report

To the Members of Modi Rubber Limited

Report on the Financial Statements

We have audited the accompanying standalone financial statements of Modi Rubber Limited("the Company") which comprises the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant 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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theAccounting Principles generally accepted in India including Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities selection andapplication of appropriate accounting policies making judgments and estimates that arereasonable and prudent and design implementation and maintenance of adequate internalfinancial controls 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.

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 there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company’s Directors as well as evaluating theoverall 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 standalone 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 March31 2017 and its profit and the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of 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 explanationgiven to us we give in the Annexure ‘A’ a statement of the matters specified inparagraphs 3 and 4 of the Order. 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 purpose 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 the Cash Flow Statementdealt with 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 and Companies (Accounting Standards) Amendment Rules 2016;

e. on the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 312017 from being appointed as a director in terms of section 164 (2) of theAct;

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 ‘B’; and;

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 information and according to the explanations given to us:

? the Company has disclosed the impact of pending litigations as at March 31 2017 onits financial position in its financial statements;

? the Company has made provision as required under applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;

? there has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended March 312017;and;

? the Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Point No. 12 of Note No. 24 to the financial statements.

For P D M and Company
(Firm Registration No. 007966N)
Chartered Accountants
Place : New Delhi CA. Prabhat Jain
Date : 29/05/2017 Partner
(M. No. 086756)

ANNEXURE ‘A’ REFERRED IN OUR REPORT ON STANDALONE FINANCIAL STATEMENTS TO THEMEMBERS OF MODI RUBBER LIMITED FOR THE YEAR ENDED 31s1 MARCH 2017

(i) a) The Company has maintained proper records to show full particulars includingquantitative details and situation of fixed assets and investment properties.

b) The fixed assets and investments properties (except the assets which the company hasno access) have been physically verified by the management during the year. Materialdiscrepancy noticed during such verification have been properly dealt with in the booksof accounts.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of all the immovable propertiesare held in the name of the Company except the following cases:-

Nature of Gross Block Net Block
Property (Rs. Lacs) (Rs. Lacs)
Building (Flat) 165.00 26.20
Building 98.73 18.04

(ii) Physical verification of the inventories of the company has been conducted atreasonable intervals. However in some cases physical verification has not been conducteddue to non-access of the inventory. As explained to us material discrepancies noticed onphysical verification of inventories as compared to book records have been properly dealtwith in the books of accounts.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLLP or other parties covered in the register maintained under Section 189 of the CompaniesAct 2013.

(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 in respect ofloans investments guarantees and securities.

(v) According to the information and explanation given to us the company has notaccepted any deposits within the meaning of sections 73 and 76 of the Act. Accordinglyparagraph 3(v) of the Order is not applicable.

(vi) The Central Government has prescribed maintenance of Cost Records under clause (d)of sub-section (1) of Section 148 of the Act. However no Cost Records are maintained dueto the suspension of manufacturing operations.

(vii) a) According to the information and explanation given to us the company isgenerally regular in depositing undisputed statutory dues including Provident FundEmployees' State Insurance Income Tax Sales Tax Service Tax Duty of Customs Duty ofExcise Value Added Tax Cess and any other statutory dues with the appropriateauthorities except amount of Rs. 92.95 lacs due to various Sales Tax Authorities as at thelast day of the financial year concerned for a period of more than six months from thedate they become payable. b) According to information and explanations given to us thedues of Income Tax Sales Tax Service Tax Duty of Customs Duty of Excise or Value AddedTax which have not been deposited on account of any dispute and the forum where thedispute is pending are as under :-

S. No. Name of the Statute State Amount Rs. Lacs Forum Where Dispute Is pending Period Which It Relates to
I. EXCISE/DGFT LIABLITY
1 Central Excise Act 1944 Central Excise Act 1944 340.52 High Court and Appelate Tribunals 1992-2002
2 Foreign Trade Development and Regulation Act 1992 Delhi 200.00 Additional DGFT Commissioner (A) 1995-1996
3 Custom Act 1962 551.42 Commissioner (A) 1996 2000 2001
II. SALES TAX LIABILITY
1 U.P Trade/VAT Act Uttar Pradesh 323.82 Tribunal Add. Comm.(A) D.C. (A) 1977-2002
2 Bihar Finance Act Bihar 374.85 Jt. Comm. (A) 1990-2002
3 Delhi ST Act Delhi 337.08 D.C. (A) 1976-2002
4 Maharashtra ST Act Mumbai 790.52 D.C. (A) 1975-2002
5 Jharkand ST Act Jamshedpur 65.42 D.C. (A) 2000-2002
6 Jharkand ST Act Ranchi 27.96 D.C. (A) 2000-2002
7 A.P GST Act Andhra Pradesh 95.58 Comm. (A) 1999-2002
8 Haryana CST Act Haryana 63.05 Jt. Comm. (A) 1999-2003
9 M.P Comm. Tax Act Madhya Pradesh 134.40 D.C. (A) 1993-2002
10 Uttaranchal ST Act Uttranchal 20.29 Jt. Comm. (A) 2000-2002
11 Pondicherry ST Act Puducherry 0.73 D.C. (A) 1999-2000
III. INCOME TAX LIABILITY
1 Income Tax Act New Delhi 1612.50 CIT (Appeals) A.Y2003-2004
2 Income Tax Act New Delhi 131.04 CIT (Appeals) A.Y.2012-2013

(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of loans and borrowing from any of thefinancial institution banks government or dues to debenture holders.

(ix) The Company did not raise any money by way of initial offer or further publicoffer (including debt instruments). The term loan raised by the company during the yearwas applied for the purpose for which it was raised.

(x) According to the information and explanation given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

(xi) According to the information and explanations given to us and on the basis of ourexamination of the records the Company has paid managerial remuneration in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Act.

(xii) In our opinion and according to information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and on the basis ofour examination of the records of the Company transactions with the related parties arein compliance with sections 177 and 188 of the Act where applicable and the details ofsuch transactions have been disclosed in the financial statements as required byapplicable accounting standards.

(xiv) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not entered into any non-cash transactionswith directors or persons connected with them. Accordingly paragraph 3(xv) of the Orderis not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For P D M and Company
(Firm Registration No. 007966N)
Chartered Accountants
Place : New Delhi CA. Prabhat Jain
Date : 29/05/2017 Partner
(M. No. 086756)

ANNEXURE ‘B’ REFERRED IN OUR REPORT ON STANDALONE FINANCIAL STATEMENTS TO THEMEMBERS OF MODI RUBBER LIMITED FOR THE YEAR ENDED 31st MARCH 2017 Report on the InternalFinancial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act2013 ("the Act")

We have audited the internal financial controls over financial reporting of Modi RubberLimited ("the Company") as at March 31 2017 in conjunction with our audit ofthe standalone financial statements of the Company for the year 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 controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ("ICAI").

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required 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 accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 was established andmaintained and if such controls operated effectively in all material 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 judgments 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that

a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and;

c) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea material 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 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 March 31 2017 based on theinternal control over financial reporting criteria established by the company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For P D M and Company
(Firm Registration No. 007966N)
Chartered Accountants
Place : New Delhi CA. Prabhat Jain
Date : 29/05/2017 Partner
(M. No. 086756)