You are here » Home » Companies » Company Overview » Mukat Pipes Ltd

Mukat Pipes Ltd.

BSE: 523832 Sector: Metals & Mining
NSE: MUKATPIPE ISIN Code: INE862C01029
BSE 00:00 | 26 May 1.07 -0.05
(-4.46%)
OPEN

1.07

HIGH

1.07

LOW

1.07

NSE 05:30 | 01 Jan Mukat Pipes Ltd
OPEN 1.07
PREVIOUS CLOSE 1.12
VOLUME 900
52-Week high 4.75
52-Week low 1.07
P/E
Mkt Cap.(Rs cr) 1
Buy Price 1.07
Buy Qty 298.00
Sell Price 1.07
Sell Qty 202.00
OPEN 1.07
CLOSE 1.12
VOLUME 900
52-Week high 4.75
52-Week low 1.07
P/E
Mkt Cap.(Rs cr) 1
Buy Price 1.07
Buy Qty 298.00
Sell Price 1.07
Sell Qty 202.00

Mukat Pipes Ltd. (MUKATPIPE) - Auditors Report

Company auditors report

TO THE MEMBERS OF MUKAT PIPES LIMITED

Report on the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Mukat PipesLimited ("The Company") which comprise the Balance Sheet as at March 31 2019the statement of Profit and Loss the statement of changes in Equity and the Cash FlowStatement for the year then ended and a summary of the significant accounting policiesand other explanatory information.

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 2019 its loss the change in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Companies Act 2013 ("the Act"). Ourresponsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Ind AS financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the financial statements under the provisions of the Act andthe Rules thereunder and we have ful lled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsigni cance in our audit of the consolidated financial statements of the current period.These matters were addressed in the context of our audit of the consolidated financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

1. Description of Key Audit Matter

The company has not provided for Income Tax Central Excise & Service Taxliabilities aggregating to Rs. 278.26 Lacs. This is a Key audit matter since it willadversely effect the current ratio.

How our audit addressed the key audit matter

a) Discussed the matter with the management and obtained an understanding of thematter.

b) The company has preferred appeals against the outstanding demand and they have beenadvised by their counsel that the demands will be dropped.

As a result of the above audit procedure the Managements assessment of not providingwas considered to be reasonable.

2. Description of Key Audit Matter

The company has yet to transfer Rs. 11.41 Lac on account of unpaid dividend to InvestorEducation and Protection Fund.

How our audit addressed the key audit matter

a) Discussed the matter with the management and obtained an understanding of thematter.

b) The company does not have record of share holders to whom the unpaid dividend amountbelongs to. The company has several times approached Investor Education Protection Fund(IEPF) through emails to know the procedure to transfer the above said unpaid dividendamount to IEPF in the absence of names of share holders and other concerned records neededin the matter. We have not received any response from the IEPF. The company will pursuethe matter with the IEPF to expedite the matter.

As a result of the above audit procedure the Managements plea of not remitting theamount be considered appropriate.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report namely Director'sReport including annexure to Director's Report etc. but does not include the financialstatements and our auditor's report thereon. The other information is expected to be madeavailable to us after the date of this auditor's report.

Our opinion of the financial statement does not cover the other information and we willnot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the other information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance and review the steps taken by the Management to communicate with those inreceipt of the other information if previously issued to inform them of the revision.

Management's Responsibility for the 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 thefinancial position financial performance (changes in equity) & cash flows of theCompany in accordance with the Indian Accounting Standards (Ind. AS) prescribed underSection 133 of the Act read with the companies (Indian Accounting Standards) Rules 2015and other accounting principles generally accepted in India.

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 statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibility for the Audit of the Ind As Financial Statements.

Our objectives are to obtain reasonable assurance about whether the Ind As financialstatement as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decision of users taken on thebasis of these Ind As financial statements.

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

a) Identify and assess the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error design and perform audit procedures 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 of the override of internal control.

b) Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3) (i) ofthe Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

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

d) 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 financial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asgoing concern.

e) Evaluate the overall presentation structure and content of the financial statementincluding the disclosures and whether the Ind AS financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate make it probable that the economic decisions of the users ofthe financial statements may be in uenced. We consider quantitative materiality andqualitative factors in (i) planning the scope of our audit work and in evaluating theresults of our work and (ii) to evaluate the effect of any identified misstatements in thefinancial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant de ciencies in internal control thatwe 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 signi cance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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) issuedby the Central Government of India in terms of Section 143(11) of the Act we give in the"Annexure "A" a statement on the matters specified in paragraphs 3 and 4 ofthe 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 statement of changes in equityand the cash flow statement dealt with by this Report are in agreement with the books ofaccount.

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act.

(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 director is disquali ed ason March31 2019 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 financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in "Annexure "B". Our report expresses an unmodi ed opinionon the adequacy and operating effectiveness of the company's internal financial controlsover financial reportings.

(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 as amended inour opinion and to the best of our information and according to the explanations given tous.

i) the Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 24 to the financial statements.

ii) the Company does not have any material foreseeable losses on long-term contractsincluding derivative contracts therefore no provision is required.

iii) there has been delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company Refer Note 32 of the financialstatements.

FOR GURPREET KAUR & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No. 015358N
Sd/-
GURPREET KAUR
(PARTNER)
M.No. 095722
Place : RAJPURA
Dated : 23/05/2019

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in paragraph 1 under Report on other Legal and RegulatoryRequirements section of our Report to the members of Mukat Pipes Limited on the financialstatements for the year ended 31 March 2019 we report that:

(i) (a) In respect of the Company's Fixed Assets.

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

(b) The Company has a program of verification of fixed assets to cover all the items ina phased manner which in our opinion is reasonable having regard to the size of thecompany and the nature of its assets. Pursuant to the program certain fixed assets werephysically veri ed by the management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the copies of registered sale deeds provided to uswe report that the title deeds comprising the immovable properties of land (freehold)and buildings are held in the name of the Company.

(ii) As explained to us the inventories were physically veri ed during the .year bythe management at reasonable intervals and no material discrepancies were noticed onphysical verification.

(iii) According to the information and explanations given to us the Company has notgranted any unsecured loan during the year.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans and investments made.

(v) As informed the company has not accepted deposits during the year. .

(vi) The maintenance of cost records has been specified by the Central Government undersection 148 (1) of the Companies Act 2013 but since the Turnover of the company is belowthe specified limit and being a BIFR company cost records has not been maintained in theprescribed format.

(vii) According to the information and explanations given to us in respect ofstatutory dues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-tax Sales Tax Service TaxCustoms Duty Excise Duty Value Added Tax Cess Goods and Service Tax and other materialstatutory dues applicable to it to with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income- tax Excise Duty Value Added Tax cess and other materialstatutory dues in arrears as at March 31 2019 for a period of more than six months fromthe date they became payable.

(c) Details of dues of Income-tax Service Tax and Excise Duty which have not beendeposited as on March 31 2019 on account of disputes are given below:

Name of the Statute Nature of the dues Forum where pending Total Amount involved Amount paid under protest Period to which the amount relates
(Rs. Lacs) (Rs. Lacs)
Central Excise Excise duty Penalty and Interest CESTAT 77.64 18.67 Earlier Years
Service Tax Service Tax Penalty and Interest Appeal before Appeal Commissioner 79.85 3.62 Earlier Years
Income Tax Income Tax Penalty Interest & TDS Income Tax Authorities 119.24 - - Earlier Years
Income Tax Income Tax Penalty Interest & TDS Income Tax Authorities 1.53 - - Earlier Years

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to financial institutions banksand government and dues to debenture holder.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer during the year.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company by its of cersor employees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the terms ofappointment approved by the Board of Directors and in A.G.M.

(xii) The Company is not a Nidhi Company and hence reporting under clause 3(xii) of theCARO 2016 Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards. According to the information and explanations given tous. The company in order to implement the BIFR sanctioned scheme has leased out the excessland and building to Mukat Educational Trust related party. As informed the terms of leaseare not prejudicial to the interest of the company.

(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) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non- cash transactions with itsdirectors or persons connected with them and hence provisions of section 192 of theCompanies Act 2013 are not applicable.

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

FOR GURPREET KAUR & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No. 015358N
Sd/-
GURPREET KAUR
(PARTNER)
M.No. 095722
Place : RAJPURA
Dated : 23/05/2019

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 (f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the members of Mukat Pipes Limited of even date).

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act").

We have audited the internal financial controls over financial reporting of MUKAT PIPESLIMITED ("the Company") as of March 31 2019 in conjunction with our audit ofthe standalone financial statements of the Company for the year 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 FinancialReporting" issued by the Institute of Chartered Accountants of India. 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 of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal financial Controls overfinancial reporting (the Guidance Note) issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143 (10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or 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 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

FOR GURPREET KAUR & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No. 015358N
Sd/-
GURPREET KAUR
(PARTNER)
M.No. 095722
Place : RAJPURA
Dated : 23/05/2019