TO THE MEMBERS OF MBI INTERCORP LIMITED(FORMERLY KNOWN AS MOONBEAM INDUSTRIESLIMITED)
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statement of MBI Intercorp Limited (FORMERLYKNOWN AS MOONBEAM INDUSTRIES LIMITED) ("the Company") which comprise theBalance Sheet as at March 31 2015the Statement of Profit & Loss the Cash Flowstatement for the year then ended and a summary of significant accounting policies andother explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companys 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 and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including The Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also include maintenance adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the Company and for preventing anddetecting frauds and others irregularities; selection and application of appropriateaccounting policies; making judgment 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 thereunder.
We conducted our audit in accordance with the standards on Auditing specified underSection 143(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 misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risksassessments the auditor considers internal financial control relevant to theCompanys preparation of the financial statement that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances but not forthe purpose of expressing an opinion on whether the Company has in place an adequateinternal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompanys directors as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
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 2015 and its loss and cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
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 theCompanies(Accounts) Rules 2014;
e) On the basis of the written representations received from the directors as on March31 2015 taken on record by the Board of Directors none of the directors is disqualifiedas on March 2015 from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition on its financial statements as referred to in Note 2.20 of the financialstatements.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long-term contractsincluding derivative contracts.
iii. There has been no delay during the year in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company however Thereis delay in transferring amounts required to be transferred to the Investor Educationand Protection Fund by the Company relating to previous years amounting to Rs 36602.50
|For Sanjay Rawal & Co. || |
|Chartered Accountants || |
|(Firm Reg. No. 012820N) || |
|Sd/- || |
|(SANJAY RAWAL) ||Place: New Delhi |
|Partner ||Date: 30/05/2015 |
|Membership No.: 088156 || |
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to in our Independent Auditors Report to the members of theCompany on the financial statements for the year ended 31st March 2015 wereport that;
(i) (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.
(b) Assets have been physically verified by the Management during the year. Nomaterial discrepancies were noticed on such verification. .
ii) a) The Inventory has been physically verified during the year by the Management. Inour opinion the frequency of verification is reasonable.
(b) The procedures of physically verification of inventories followed by the Managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(c) On the basis of our examination of the records of inventory we are of the opinionthat the company is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and the book records were not material.
(iii) According to the information and explanations given to us the company hasneither granted nor taken any loans secured or unsecured to or from companies firms andother parties covered in the register maintained under section 189of The Companies Act2013. Accordingly other clauses of paragraph (iii) of the order are not applicable to thecompany.
(iv) In our opinion and according to the information and explanations given to usthere are adequate internal Control procedures commensurate with the size of the companyand the nature of its business with regard to purchase of inventory and fixed assets andfor sale of goods and services. During the course of our audit we have not observed anymajor weaknesses in internal control system during the course of audit.
(v) The company has not accepted any deposits from the public.
(vi) According to information and explanation given to us provision of section 148(1)of the Companies Act 2013 with regard to maintenance of cost records do not apply to thecompany.
(vii) (a) According to the information and explanations given to us and on the basis ofthe records of the company amounts deducted/ accrued in the books of account in respectof undisputed statutory dues including Provident Fund Employees State InsuranceIncome Tax Sales Tax Wealth Tax Service Tax duty of Customs Excise duty Cess andother statutory dues have been regularly deposited.
However According to the information and explanations given to us undisputed amountspayable in respect of Sales Tax/ Value added Tax amounting Rs. 620431.75 were in arrearsas at 31 March 2015 for a period of more than six months from the date they becomepayable.
(b) According to the information and explanations given to us there are no materialdues of Employees State Insurance Income Tax Wealth Tax Service Tax duty ofCustoms Excise duty and Cess which have not been deposited on account of any dispute.However according to the information and explanations given to us the followingStatutory dues of Provident Fund was not deposited by the Company on account of disputeand was outstanding as at 31/03/2015
|Nature of dues ||Amount ||Period to which it relates ||Forum where dispute pending |
|Provident fund (Interest) ||593748.00 ||April 1997 to June 2005 ||Allahabad High Court |
c) According to the information and explanations given to us the amounts which wererequired to be transferred to Investor Education and Protection fund in accordance withthe relevant provisions of Companies Act1956 and rules made thereunder has beentransferred to such fund within time. However there is delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Companyrelating to previous years amounting to Rs. 36602.50
(viii) The accumulated losses of the company exceed fifty percent of its net worth atthe end of the financial year. The company has suffered cash losses during the financialyear and has also suffered cash losses in immediately preceding financial year.
(ix) The Company did not have any outstanding dues to the financial institutions orbanks.
(x) According to the information and explanation given to us and records made availableto us the company has not given guarantee for the loans taken by others from banks orfinancial institutions.
(xi) The Company did not have any term loan outstanding during the year.
(xii) According to the information and explanation given to us no fraud on or by theCompany has been noticed or reported during the course of our audit.
|For Sanjay Rawal & Co. || |
|Chartered Accountants || |
|(Firm Reg. No. 012820N) || |
|Sd/- || |
|(SANJAY RAWAL) || |
|Partner ||Place: New Delhi |
|Membership No.: 088156 ||Date: 30/05/2015 |