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MRC Exim Ltd.

BSE: 540809 Sector: Others
NSE: N.A. ISIN Code: INE333Y01017
BSE 10:30 | 09 Jul 6.00 0.20
(3.45%)
OPEN

5.85

HIGH

6.05

LOW

5.65

NSE 05:30 | 01 Jan MRC Exim Ltd
OPEN 5.85
PREVIOUS CLOSE 5.80
VOLUME 40000
52-Week high 9.18
52-Week low 1.46
P/E 85.71
Mkt Cap.(Rs cr) 6
Buy Price 5.65
Buy Qty 8000.00
Sell Price 5.98
Sell Qty 8000.00
OPEN 5.85
CLOSE 5.80
VOLUME 40000
52-Week high 9.18
52-Week low 1.46
P/E 85.71
Mkt Cap.(Rs cr) 6
Buy Price 5.65
Buy Qty 8000.00
Sell Price 5.98
Sell Qty 8000.00

MRC Exim Ltd. (MRCEXIM) - Auditors Report

Company auditors report

Independent Auditors' Report

TO

THE MEMBERS OF

MRC Exim Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying financial statements of MRC EXIM LIMITED (the company) which comprise the Balance Sheet as at March 31 2019 the Statement of Pro t and Loss the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section 134 (5) of the Companies Act 2013 (the Act) with respect to the preparation of these financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

3. This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

4. Our responsibility is to express an opinion on these financial statements based on our audit.

5. We have taken into account the provisions of the Act and the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

6. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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

8. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

9. In our opinion and to the best of our information and according to the explanations given to us the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the company as at 31 March 2019 and its loss and its cash flows and changes in equity for the year ended on that date.

Report on other Legal and Regulatory Requirements

10. As required by `the Companies (Auditor's Report) Order 2016 (the order) issued by the Central Government of India in term of sub- section (11) of the section 143 of the Act we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

11. 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 best of 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 the Company so far as appears from our examination of those books.

c) The Balance Sheet the Statement of Pro t and Loss and Cash Flow Statement dealt with by this Reports are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31 March 2019 taken on record by the Board of Directors none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in Annexure B.

g) With respect to the other matters to be included in the Auditor's Report in accordance with rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has no pending litigation as at March 31 2019.

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

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

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to paragraph (9) under `Report on other legal and regulatory requirements' of our report of even date to the member of MRC Exim Limited on the Standalone financial statements for the year ended March 31 2019)

i. In respect of Fixed Assets:

a. The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

b. The fixed assets of the Company have been physically verified by the Management during the year except the Office Premises at Ahmedabad and no material discrepancies have been noticed on such verification. In our opinion the frequency of verification is reasonable.

ii. In respect of Inventories:

The Company is in the business of trading of commodities and does not hold any inventory. Therefore the provisions of Clause 3(ii) of the said Order are not applicable to the Company.

iii. The company has not granted any loans secured or unsecured to companies firms or other parties covered in the register maintained under Section 189 of the Companies Act 2013. Accordingly clause (iii) (a) to paragraph 3 of the order are not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us the Company has complied with the provisions of Section 185 and 186 of the Companies Act 2013 with respect to loans investments guarantees and security made.

v. According to the information and explanations given to us and in our opinion the company has not accepted any deposits from the public and hence the directives issued by the Reserve bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Act and Companies (Acceptance of deposit) Rule 2014 with regard to the deposits accepted from the public are not applicable.

vi. The company has not accepted any deposits from the public within the meaning of section 73 74 75 and 76 of the acts and the rules framed there under to the extent notified.

vii. The Central Government of India has not specified the maintenance of cost records under sub- section (1) of Section 148 of the Act for any of the products of the Company.

viii. In respect of statutory dues:

a) According to the information and Explanation given to us and records of the Company as produced and examined by us in our opinion the company is regular in depositing the undisputed statutory dues in respect of Income-tax Sales-tax Service-tax Goods & Services Tax Act cess and any other material statutory dues as applicable with the appropriate authorities.

b) As explained to us the Company did not have any statutory disputed amounts payable in respect of Income-tax Sales-tax Service tax Goods & Services Tax Act and other material statutory dues were in arrears as at 31st March 2019 for a period of more than six months from the date they became payable.

ix. According to the records of the Company examined by us and the information and Explanation given to us the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders as at the balance sheet date.

x. During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees noticed or reported during the year nor have we been informed of any such case by the Management.

xi. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable to it the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. The Company has entered into transactions with related parties in compliance with the provisions of Section 177 and 188 of the Act. The details of such related party transactions have been disclosed to the financial statements as required under Accounting Standard (AS 18) Related Party disclosures specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly the provisions of Clause 3(xiv) of the order are not applicable to the Company.

xv. The Company has not entered into non cash transactions with its director(s) [and/or] persons connected with him Accordingly the provisions of Clause 3 (xv) of the Order are not applicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are not applicable to the Company.

For A. Puri & Co.

Chartered Accountants Firm

Reg. No. 108231W

ASHOK PURI

(Proprietor)

Membership No. 13203

Place: Mumbai.

Date: 30th May2019

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

(Referred to paragraph (10) (f) under `Report on other legal and regulatory requirements' of our report of even date to the member of MRC Exim limited on the Standalone financial statements for the year ended March 31 2019)

Report on the Internal Financial Controls under Clause (i) of Sub section 3 of Section 143 of the Act

1. We have audited the internal financial controls over financial reporting of MRC Exim Limited (`the Company') as of March 31 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountant of India (ICAI). These responsibilities include the design Implementation and maintenance of adequate Internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company's policies the safeguarding of its assets the prevention and detection of fraud and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

3. Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exits and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment including the assessment of the risk of material misstatement of the Standalone financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls systems over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone financial statement for external purpose in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that

i. Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;

ii. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

iii. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the company's assets that could have a material effect on the Standalone financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all materials respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31 2019 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For A. Puri & Co.

Chartered Accountants Firm

Reg. No. 108231W

ASHOK PURI

(Proprietor)

Membership No. 13203

Place: Mumbai.

Date: 30th May 2019