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Monnet Industries Ltd.

BSE: 532078 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE407E01029
BSE 00:00 | 11 Dec Monnet Industries Ltd
NSE 05:30 | 01 Jan Monnet Industries Ltd
OPEN 9.50
PREVIOUS CLOSE 9.50
VOLUME 10
52-Week high 10.70
52-Week low 9.10
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.50
CLOSE 9.50
VOLUME 10
52-Week high 10.70
52-Week low 9.10
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Monnet Industries Ltd. (MONNETINDS) - Auditors Report

Company auditors report

TO THE MEMBERS OF MONNET INDUSTRIES LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of MONNETINDUSTRIES LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 and the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 standalone Ind AS financial statements that give a true and fair view of the stateof affairs (financial position) Loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended.

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 maintenanceofadequate internal financial controlsthat were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalone 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 standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified underSection 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

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

Basis for Qualified Opinion

a. The lender bank has assigned the borrowing to a third party vide deed of assignmentdt. 28 Sept. 2017. Actual liability towards interest and principal is under negotiation.In view of uncertainty the company has not provided interest on such borrowing after dateof aforesaid assignment. Had the interest been provided loss for the year and previousyear would have been higher by Rs. 437.53 Lacs and Rs. NIL respectively (based onprevailing terms & conditions of lending) with a corresponding increase inliability/borrowings. (Refer Note-31).

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the impact of the matter described in "Basis for qualifiedopinion" para hereinabove the aforesaid standalone Ind AS financial statementsgivethe information required by

the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including thelnd AS of the state ofaffairs (financial position) of the Company as at 31st March 2018 and its Loss(financial performance including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.

Emphasis of Matter

We draw attention to the following matters in the Notes to thefinancial statements:

1. Note no. 31 inthe financial statements which indicates that the Company hasaccumulated losses resulting in erosion of net worth and has incurred net cash lossesinthe current and immediately preceding financial year. The current liabilities of theCompany exceeded its current assets as at the balance sheet date. These conditions maycast doubt about the Company's ability to continue as a going concern. However thefinancial statements of the Company have been prepared on a going concern basis for thereasons stated in the said Note.

2. Note no. 31 in the financial statements w.r.t. accounting treatment of invocation ofsecurity of preference shares (held as Investments by the company) by the lender in theirfavour in pursuance of pledge agreement.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the 'Companies (Auditor's Report) Order 2016' issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act (hereinafterreferred to as the "Order") we give in the Annexure '1' a statement on thematters specified in paragraphs 3 and 4 of the 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 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 standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015asamended.

(e) The subject matter of qualification as referred in para of "Basis forQualified Opinion" and matter referred in Note 1 in "Emphasis of Matter"above which in our opinion may have an adverse effect on the functioning of the company.

(f) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164(2) of the Act.

(g) We are enclosing herewith a report in Annexure II for our opinion on adequacy ofinternal financial controls system in place and the operating effectiveness of suchcontrols.

(h) 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 does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no amounts required to be transferred to the Investor Educationand Protection Fund by the Company.

For APAS & CO.
CHARTERED ACCOUNTANTS
Firm Regn. No. 000340C
(RAJEEV RANJAN)
PLACE : NEW DELHI PARTNER
DATED:28/05/2018 M. No. 535395

ANNEXURE- I TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

1. In respect of its fixed assets:

a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical verification.

c) Title deeds In respect of all immovable properties are held in the name of thecompany.

2. (a) As explained to us physical verification has been conducted by the management atreasonable intervals in respect of raw materials.

(b) In our opinion the procedures of physical verification of inventory followed bythe management are reasonable and adequate in relation to the size of the company and thenature of its business.

(c) In our opinion the Company is maintaining proper records of inventories. Thediscrepancies noticed on such verification between the physical stocks and book recordswere not significant and the same have been properly dealt with in the books of account.

3. As informed to us the company has not granted loans secured or unsecured tocompanies firms or other parties covered in the register maintained under sectionl89 ofthe Companies Act.

4. According to the information and explanations given to us the company has compliedwith the provisions of Section 186 wherever applicable in respect of investments made bythe company. We are informed that the company has not provided any security/given any loanor guarantee during the year. Being a limited company provisions of section 185 of theAct are not applicable.

5. According to the information and explanations given to us the company has notaccepted any deposits in terms of the directives issued by the Reserve Bank of India andthe provisions of sections 73 to 76 or any other relevant provisions of the Companies Act2013 and the rules framed there under.

6. In respect of business activities of the company Companies (cost records and audit)Rules 2014 as specified by the Central Government under sub-section (I) of section 148 ofthe Companies Act and rules thereunder are not applicable.

7. a. As per information and explanations given to us the company is regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax wealth tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues with the appropriate authorities. There areno undisputed statutory dues as at the last day of the financial year under audit for aperiod of more than six months from the date they became payable.

b. There are no statutory dues which are pending to be deposited on account of anydispute at any forum.

8. Based on our audit procedures and on the basis of information and explanations givento us by the management we are of the opinion that there is no default in repayment ofdues to Bank. The company has not obtained any loan from financial institutions orgovernment and has not issued any debentures.

9. The company has not raised any money during the year by way initial or furtherpublic offer. The company has not obtained any term loan during the year.

10. Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud on or by the Company has been noticed or reportedduring the course of our audit for the year ended 31.03.2018.

11. According to information and explanations given to us the managerial remunerationpaid and provided by the company during the year is in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V of the CompaniesAct 2013.

12. The provisions of clause (xii) of the Order are not applicable as the company isnot a Nidhi Company as specified in the clause.

13. According to information and explanations given to us we are of the opinion thatall related party transactions are in compliance with the Section 177 and 188 of CompaniesAct 2013. Necessary disclosures have been made in the financial statements as required bythe applicable accounting Standards.

14. According to information and explanations given to us the company has not made anypreferential allotment or private placement of shares or debentures during the year.

15. According to information and explanations given to us the Company has not enteredinto any noncash transaction with the director or any person connected with him during theyear.

16. In our opinion in view of its business activities the company is not required tobe registered under section 45IA of Reserve Bank of India Act 1934.

CHARTERED ACCOUNTANTS
Firm Regn. No. 000340C
(RAJEEV RANJAN)
PLACE : NEW DELHI PARTNER
DATED:28/05/2018 M. No. 535395

ANNEXURE- II TO THE INDEPENDENT AUDITOR'S REPORT

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

We have audited the internal financial controls over financial reporting of MONNETINDUSTRIES LIMITED ("the Company") as of 31st March 2018 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence l/we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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) 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 authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 orthatthedegree 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 31st 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 ofChartered Accountants of India.

For APAS & CO.
CHARTERED ACCOUNTANTS
Firm Regn. No. 000340C
(RAJEEV RAN JAN)
PLACE : NEW DELHI PARTNER
DATED:28/05/2018 M. No. 535395