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Mohota Industries Ltd.

BSE: 530047 Sector: Industrials
NSE: MOHOTAIND ISIN Code: INE313D01013
BSE 00:00 | 15 Feb 40.50 -2.10
(-4.93%)
OPEN

44.00

HIGH

44.00

LOW

40.50

NSE 00:00 | 15 Feb 40.75 -2.10
(-4.90%)
OPEN

40.75

HIGH

42.40

LOW

40.75

OPEN 44.00
PREVIOUS CLOSE 42.60
VOLUME 3035
52-Week high 345.00
52-Week low 34.75
P/E 13.32
Mkt Cap.(Rs cr) 60
Buy Price 40.50
Buy Qty 50.00
Sell Price 40.50
Sell Qty 113.00
OPEN 44.00
CLOSE 42.60
VOLUME 3035
52-Week high 345.00
52-Week low 34.75
P/E 13.32
Mkt Cap.(Rs cr) 60
Buy Price 40.50
Buy Qty 50.00
Sell Price 40.50
Sell Qty 113.00

Mohota Industries Ltd. (MOHOTAIND) - Auditors Report

Company auditors report

To the Members of Mohota Industries Limited (formerly known as The Rai SahebRekhchand Mohota Spg. & Wvg. Mills Limited)

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Mohota IndustriesLimited (formerly known as The RSR Mohota Spg. &Wvg. Mills Limited) (‘theCompany') which comprise the balance sheet as at 31 March 2018 the statement of profitand loss (including other comprehensive income) the statement of cash flows and thestatement of changes in equity for the year then ended and a summary of the significantaccounting 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 financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (IndAS) prescribed under Section 133 ofthe Act read with relevant rules issued there under.

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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

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

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be include 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 underSection143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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.

Basis for Qualified Opinion

1. The company has invested ` 11 Crore in partnership firm. The financialstatement of the said partnership firm for the year ended 31 March 2018 were notavailable hence the impact on the profit and corresponding impact on the carrying amountof investment is not ascertainable.

2. PCFC USD account showing credit balance of ` 3625076 is subject toreconciliation.

Opinion

Except for the effects of the matter described in Basis for Qualified Opinion paragraphabove 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 inconformity with the accountingprinciples generally accepted in India including the Ind AS of the state of affairs ofthe Company as at 31 March 2018 and its profit including other comprehensive income itscash flows and the changes in equity 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 section 43(11) of the Act we givein the Annexure A a statement on the matters specified in the paragraph 3 and 4 ofthe order.

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 including other comprehensiveincome the statement of cash flows and the statement of changes in equity dealt with bythis Report are in agreement with the books of account;

(d) in our opinion the aforesaid financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with relevant rule issuedthere under;

(e) on the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (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 B".

(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 opinion and to the best of our information and accordingto the explanations given to us: i. the Company has disclosed the impact of pendinglitigations on its financial position in its financial statements; (refer note

35) ii. the Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses; iii. there were no amount which wererequired to be transferred to be transferred to the Investor Education and Protection

Fund by the Company.

FOR M. M. PARIKH & CO
Chartered Accountants
Firm Registration Number 107557W
Sd/-
Kishor Parikh
Place : Hinganghat Partner
Dated: 30/05/2018 Membership No. 031110

Annexure - A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year ended 31

March 2018 we report that:

(i) (a) According to the information and explanations given to us the Company hasmaintained proper records showing full particulars

including quantitative details and situation of fixed assets.

(b) According to the information and explanations given to us the Company has aregular programme of physical verification of its fixed assets by which all fixed assetsare verified in a phased manner over a period of three years. In our opinion theperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the programme certain fixed assets werephysically verified during the year and no material discrepancies were observed on suchverification.

(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 immovable properties are held in the name of the Company.

(ii) The Management has conducted physical verification of the inventories of storesand spares once at the year end which in our

opinion is reasonable. No material discrepancies were noted on such physicalverification.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to Companies Firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act. Accordingly paragraph 3(iii) (a) (b) and (c) of the Order are notapplicable to the Company.

(iv) According to the information and explanations given to us the Company has notgiven any loans or made any investments or provided any guarantee or security asspecified under Section 185 and 186 of the Companies Act 2013. Accordingly paragraph3(iv) of the Order is not applicable.

(v) According to information and explanations given to us the Company has not acceptedany deposits from the public in accordance with the provisions of section 73 to 76 or anyrelevant provisions of the Act and rules framed thereunder.

(vi) According to the information and explanations given to us we have broadlyreviewed the books of account maintained by the company pursuant to the Rules made by theCentral Government for the maintenance of cost records under section 148 of the Actrelated to the manufacture of yarn and fabric and are of the opinion that prima-faciethe specified accounts and records have been made and maintained. We have not howevermade a detailed examination of the same.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income-taxemployees' state insurance duty of excise sales tax value added tax duty of customsservice tax Goods and service tax cess and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax duty ofcustoms service tax Goods and service tax cess and other material statutory dues werein arrears as at 31 March 2018 for a period of more than six months from the date theybecame payable.

(b) According to the information and explanations given to us outstanding dues ofoctroi and property tax that have not been

deposited by the Company on account of disputes are given below:

Name of the Statute Nature of dues Period to which it relates Amount ( in lakhs) Forum where the Dispute is pending
Maharashtra Municipalities Act 1965 Octroi on Grey Fabrics Dec' 94 to May' 95 14.12 Honorable High Court Nagpur Bench.
Maharashtra Municipalities Act 1965 Octroi on Grey Fabrics May'95 to Nov'97 151.61 Honorable High Court Nagpur Bench.
Maharashtra Municipalities Act 1965 Octroi on Grey Fabrics Nov' 97 to April'99 20.58 Honorable High Court Nagpur Bench.
Maharashtra Municipalities Act 1965 Property Tax 2012-13 to 2014-15 61.42 Supreme Court Delhi

(viii) Based on our audit procedures and as per information and explanation given tous the Company has not defaulted in repayment of dues to any bank. The Company did nothave any outstanding dues in respect of loans or borrowings from any financialinstitution government or debenture holders during the year.

(ix) According to the information and explanations given to us the Company did notraise any money by way of initial public offer or further public offer (including debtinstruments) and term loans during the year. Accordingly paragraph 3 (ix) of the Order isnot applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations given to us the Company has paid /provided for managerial remuneration in accordance with requisite approvals mandated bythe provisions of Section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the 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 based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give to us and based on 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 based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe 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 M. M. PARIKH & CO
Chartered Accountants
Firm Registration Number 107557W
Sd/-
Kishor Parikh
Place : Hinganghat Partner
Dated: 30/05/2018 Membership No. 031110

Annexure B to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (‘the Act")

We have audited the internal financial controls over financial reporting of MohotaIndustries Limited (formerly known as The Rai Saheb Rekhchand Mohota Spg. & Wvg. MillsLimited) ("the Company") as of 31 March 2018 in conjunction with our audit ofthe 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 control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 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 withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised 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 2018 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. M. PARIKH & CO
Chartered Accountants
Firm Registration Number 107557W
Sd/-
Kishor Parikh
Place : Hinganghat Partner
Dated: 30/05/2018 Membership No. 031110