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Mount Shivalik Industries Ltd.

BSE: 507522 Sector: Consumer
NSE: N.A. ISIN Code: INE410C01019
BSE 00:00 | 27 May 3.74 0.17
(4.76%)
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3.74

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3.74

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3.74

NSE 05:30 | 01 Jan Mount Shivalik Industries Ltd
OPEN 3.74
PREVIOUS CLOSE 3.57
VOLUME 275
52-Week high 4.25
52-Week low 2.81
P/E
Mkt Cap.(Rs cr) 2
Buy Price 3.57
Buy Qty 40.00
Sell Price 3.09
Sell Qty 25.00
OPEN 3.74
CLOSE 3.57
VOLUME 275
52-Week high 4.25
52-Week low 2.81
P/E
Mkt Cap.(Rs cr) 2
Buy Price 3.57
Buy Qty 40.00
Sell Price 3.09
Sell Qty 25.00

Mount Shivalik Industries Ltd. (MOUNTSHIVALIK) - Auditors Report

Company auditors report

To the Members of Mount Shivalik Industries Limited

Report on the Standalone Ind AS Financial Statement

We have audited the accompanying financial statements of Mount Shivalik IndustriesLimited ("the Company") which comprise the balance sheet as at March 312019 and the Statement of Profit and Loss (including other comprehensive income if any)the statement of cash flows and the statement of changes in equity for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information (herein after referred to as("standalone Ind AS financial Statement").

Information other than the financial statements and auditors' report thereon

The Company's board of directors are responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report Business Responsibility Report but does notinclude the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's responsibility for the financial statements

The Company's board of directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone Ind AS financialstatements that give a true and fair view of the financial position financial performanceIncluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theaccounting standards specified under section 133 of the Act read with relevant rulesissued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of 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 statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's responsibilities for the audit of the financial statements

Our objectives is to express an opinion on these standalone Ind AS financial statementsbased on our audit.

We have taken into account the provision of the Act the accounting auditing standardsand matters which are required to be included in the audit report under the provision ofthe Act and the rules made thereunder.

We conducted our audit in accordance with the Standard on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirement and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statement. The procedure selecteddepend on the auditors judgment including the assessment of the risk of materialmisstatements of the standalone Ind AS financial statements whether due to fraud orerror. 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 we have obtained is sufficient and appropriate to provide abasis for our audit opinion on the standalone Ind AS financial statements.

Basis for opinion

In our opinion and to the best of our information and according to the explanationgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the company as at 31st March 2019 and its financialperformance including other comprehensive income its cash flows and the changes in theequity for the year ended on that date.

Emphasis of matter

We draw attention to the fact that the company's banker oriental bank of commerce andother two creditors have submitted petition in NCLT. The Hon'ble NCLT New Delhi benchvide its order dated 12thJune 2018 and vide case no C.P. IB-86/ND/2017 hasinitiated the CIRP process against the company and has appointed Mrs Pratibha Khandelwalas a Resolution Professional.The resolution plan approved by COC has been filed with NCLTJaipur Bench on 5th July 2019 for its approval.

We further draw attention to the fact that no physical verification of assets inrespect of computers office equipment and furniture have been done by the management. Wehave relied upon the information/ reports as provided by the management to us.

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 143(11) of the CompaniesAct we give in the Annexure A a statement on the matters specified in the paragraph 3and 4 of the order.

2. As required by section 143(11) 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 and the cash flow statementdealt with by this report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe accounting standards specified under section 133 of the Act read with relevant ruleissued thereunder;

(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 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 opinionand to the best of our information and according to the explanations given to us;

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; and

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company;

iv. the disclosure requirement holdings as well as dealings in specified bank notesduring the period from 8th November 2016 to 30th December 2016 isnot applicable for the financial year ended on 31st March 2019

For R.K.RELAN & CO
Chartered Accountants
Firm Registration No: 002267N
Hemant Relan
Place: New Delhi Partner
Date: 5th September 2019 Membership No. 085317

ANNEXURE – A TO THE AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone Ind AS financial statements for the year ended 31 March 2019 we reportthat:

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

(b) The Company's management has done physical verification of its fixed asses and areverified in a phased manner. In accordance with the management certain fixed assetsexcept computer office equipment and furniture & fixtures were verified during theyear and no material discrepancies were noticed on such verification. In our opinion thisphysical verification except those assets which could not be verified by them isreasonable having regard to the size of the Company and the nature of its assets.

(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 areheld in the name of the Company. However factory area comprising 630 sq. meter wascompulsory acquired by the NHAI and compensation of Rs.654105/ - has been awardedagainst which company has filed an appeal and matter is pending for argument. Neither anybook entry nor any effect has been taken in the financial statements.

(ii) The Inventories have been physically verified during the year by the management.In our opinion frequency of verification of inventory is reasonable. There are nomaterial discrepancies noticed by the management.

(iii) The Company has not granted any secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 (‘the Act')

(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 with respectto the loans and investments made.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act which are applicable on the Company hence reporting under thisclause in not applicable.

(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-taxsales tax value added tax duty of customs service tax cess and other materialstatutory dues have not been regularly deposited during the year by the Company with theappropriate authorities According to the information and explanations given to usundisputed amounts payable in respect of provident fund income tax sales tax valueadded tax duty of customs service tax cess and other material statutory dues were inarrears as at 31 March 2019 for a period of more than six months from the date they becamepayable are:

Name of the Statute Nature of Dues Amount (in Rs) Period to which the amount relates Due Date Date of payment
VAT Rajasthan VAT 24974257.09 Dec 2014 to 30th Sep 2018 14th of next respective following month Unpaid till the date of our audit report
Hazaribagh VAT 1000000 October-13 15.11.2013 Unpaid till the date of our audit report
Ranch VAT 1616230 September -14 15.10.2014 Unpaid till the date of our audit report
TDS TDS on Salary 769500 01.04.18 to 30.09.2018 7th of the next respective following month
TDS on salary (CIRP) 220000 12.06.2018 TO 30.09.18 7th of the next respective following month
TDS on Advertisement 17959 2016-17 01.04.2018 to 30.09.2018 7th of the next respective following month
TDS on Contractor 115010 2016-17 01.04.2018 to 30.09.2018 7th of the next respective following month
TDS on Contractor (CIRP) 2687 30.06.2018 TO 30.09.2018 7th of the next respective following month
TDS on Interest 5277301 2015-16 01.04.2018 to 30.09.2018 7th of the next respective following month Unpaid till the date of our audit report
TDS on Professional 478659 2016-17 01.04.2018 to 30.09.2018 7th of the next respective following month
TDS on Professional (CIRP) 32450 02.08.2018 TO 30.09.2018 7th of the next respective following month
TDS on Rent 347223 2016-17 01.04.2018 to 30.09.2018 7th of the next respective following month
SERVICE TAX Service Tax 10433371 Pertains to F.Y. 2015-16 TO F.Y.2018-19 6th of the following related next month in case of Apr to Feb months and 31st March in case of March month Unpaid till the date of our audit report
EMPLOYEES STATE INSURANCE ESI 1064456 FY 2014-15 to 2016-17 21st of the following related next month Unpaid till the date of our audit report
STATE Bottling fees 24183 FY 2014-2015 to FY 2015-2016 AT the time of filling the bottles Unpaid till the date of our audit report
CENTRE Central Sales Tax 46718 FY 2016-17 to FY 2018-19 15th of the next respective following month Unpaid till the date of our audit report
GST GST 849228 01.04.2018 to 30.09.2018 20th of the following related next month Unpaid till the date of our audit report

(b) According to the information and explanations given to us there are no dues ofduty of customs which have not been deposited with the appropriate authorities on accountof any dispute. However according to information and explanations given to us thefollowing dues of sales tax and value added tax has not been deposited by the Company onaccount of disputes:

Name of the Statute Nature of dues Amount (in Rs.) Related Period Forum
Central Sales Tax CST 846678493/- 2009-10 to 2013-14 CST Appellate
Hazaribagh Vat VAT 2296909/- 2013-14 Appeal to be filed

(viii) The company has not defaulted in the repayment of loans or borrowings to banksexcept cash credit account and NBFC.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not 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 and based on ourexamination of the records of the Company the Company has paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 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 not applicable.

(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 standalone Ind AS financial statements as requiredby the applicable accounting standards.

(xiv) According to the information and explanations given 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) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-1A of the ReserveBank of India Act 1934.

For R.K. Relan & Co.
Chartered Accountants
(Firm Registration No.002267N)
Hemant Relan
Place: New Delhi Partner
Dated: 05.09.2019 (Membership No.085317)

ANNEXURE –B TO THE 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 MountShivalik Industries Limited ("the Company") as of 31 March 2019 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended 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 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 judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor 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 fc external purposes in accordance with generallyaccepted accounting principles. A company's intern: financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions andispositions o the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany s assets that could have a 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 31 March 2019 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 R.K.RELAN & CO
Chartered Accountants
Firm Registration No: 002267N
Hemant Relan
Place: New Delhi Partner
Date: 5th September 2019 Membership No. 085317