You are here » Home » Companies » Company Overview » Monnet Industries Ltd

Monnet Industries Ltd.

BSE: 532078 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE407E01029
BSE 00:00 | 16 Jul 10.00 0
(0.00%)
OPEN

10.00

HIGH

10.00

LOW

10.00

NSE 05:30 | 01 Jan Monnet Industries Ltd
OPEN 10.00
PREVIOUS CLOSE 10.00
VOLUME 2
52-Week high 11.55
52-Week low 9.22
P/E
Mkt Cap.(Rs cr) 4
Buy Price 10.00
Buy Qty 2.00
Sell Price 10.00
Sell Qty 51.00
OPEN 10.00
CLOSE 10.00
VOLUME 2
52-Week high 11.55
52-Week low 9.22
P/E
Mkt Cap.(Rs cr) 4
Buy Price 10.00
Buy Qty 2.00
Sell Price 10.00
Sell Qty 51.00

Monnet Industries Ltd. (MONNETINDUSTRIE) - Auditors Report

Company auditors report

TO THE MEMBERS OF MONNET INDUSTRIES

LIMITED

Report on the Standalone Ind AS Financial Statements Qualified Opinion

We have audited the accompanying standalone financial statements of MONNETINDUSTRIES LIMITED("the Company") which comprise the Balance Sheet as atMarch 31 2019 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year ended onthat date and a summary of the 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 the explanationsgiven to us except for the impact of the matter described in "Basis for qualifiedopinion" para hereunder 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 Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2019the loss and total comprehensive income changes in equity and its cash flows for the yearended on that date.

Basis for Qualified Opinion

During the year the company has obtained short-term inter corporate deposits. As thereare no major operations during the year and considering liquidity constraints the companyis under negotiation with lender companies and is expecting waiver of interest. In view ofuncertainty as aforesaid no provision has been made by the company towards interest onthese loans. Had the interest been provided loss for the year would have been higher byRs. 525.21 Lacs (based on prevailing terms & conditions of lending) with acorresponding increase in borrowings. (Refer Note -31b).

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Emphasis of Matter

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

1. Note no. 31a in the financial statements which indicates that the Company hasaccumulated losses resulting in erosion of net worth and has incurred net cash losses inthe 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.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as whole and informing our opinion there on and we do not provide as separate opinion on these matters.

Information Other than the Standalone Ind AS Financial Statements and Auditors' ReportThereon

The Company's Board of Directors is responsible for the preparation of otherinformation. The other information comprises the Director's report Corporate Governancereport Business responsible report and Management Discussion and Analysis of Annualreport but does not include the Standalone Ind AS Financial Statements and our reportthereon. The Directors report Corporate Governance report Business responsible reportand Management Discussion and Analysis of Annual report is expected to be made availableto us after the date of this Auditor's Report.

Our opinion on the Standalone Ind AS Financial Statements does not cover the otherinformation and we will not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Ind AS Financial Statements ourresponsibility is to read the other information identified above when it becomes availableto us and in doing so consider whether the other information is materially inconsistentwith the Standalone Ind AS Financial Statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

When we read such other information as and when made available to us and if we concludethat there is a material misstatement therein we are required to communicate the matterto those charged with governance.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe IND AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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 management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an Audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error audit procedures design and perform responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

2. Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(I) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls

3. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

5. Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and event s in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (I) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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 in terms of Section 143(11) of the Act we give in"Annexure-I" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. 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 Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended.;

e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 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 II". 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 the requirements of section 197(16) of the Act as amended:

No managerial remuneration has been paid/provided during the year by the company.

h) The subject matter of qualification as referred in para of "Basis for QualifiedOpinion" and matter referred in Note 1 in "Emphasis of Matter" above whichin our opinion may have an adverse effect on the functioning of the company.

I) 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.

DATED: 30-05-2019 For APAS & CO.
PLACE: NEW DELHI CHARTERED ACCOUNTANTS
Firm Regn. No. 000340C
RAJEEV RANJAN
PARTNER
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 section 189 ofthe Companies Act2013.

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 subsection (l) 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. Thereare no undisputed statutory dues as at the last day of the financial year under audit fora period of more than six months from the date they became payable except Provident Fundof Rupees. 23642.

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. As explained to us term loans obtained during the year were applied for the purposefor which the company obtained the loans. The company has not raised any money during theyear by way initial or further public offer

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 31.03.2019.

11. No managerial remuneration has been paid/provided during the year by the company.

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 non-cash transaction with the Director or any person connected with him duringthe year.

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.

DATED: 30-05-2019 For APAS & CO.
PLACE: NEW DELHI CHARTERED ACCOUNTANT
Firm Regn. No. 000340C
RAJEEV RANJAN
PARTNER
M. No. 535395

ANNEXURE- II TO THE INDEPENDENT AUDITOR'S REPORT (Referred to in paragraph 2(f) under'Report on Other Legal and Regulatory Requirements' 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 2019 inconjunction with our audit of the standalone 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. 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 the Institute ofChartered Accountants of India and deemed to be prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating 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 I/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 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 31st March 2019based on the internal control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the Guidance Note on"Audit of Internal Financial Controls Over Financial Reporting" issued by theInstitute of Chartered Accountants of India.

DATED: 30-05-2019 For APAS & CO.
PLACE: NEW DELHI CHARTERED ACCOUNTANT
Firm Regn. No. 000340C
RAJEEV RANJAN
PARTNER
M. No. 535395