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Munjal Auto Industries Ltd.

BSE: 520059 Sector: Auto
NSE: MUNJALAU ISIN Code: INE672B01032
BSE 15:26 | 18 Feb 50.75 -1.10
(-2.12%)
OPEN

51.15

HIGH

52.20

LOW

50.60

NSE 15:19 | 18 Feb 50.50 -1.40
(-2.70%)
OPEN

51.80

HIGH

52.00

LOW

50.50

OPEN 51.15
PREVIOUS CLOSE 51.85
VOLUME 5434
52-Week high 82.00
52-Week low 49.30
P/E 15.01
Mkt Cap.(Rs cr) 508
Buy Price 50.75
Buy Qty 94.00
Sell Price 51.45
Sell Qty 185.00
OPEN 51.15
CLOSE 51.85
VOLUME 5434
52-Week high 82.00
52-Week low 49.30
P/E 15.01
Mkt Cap.(Rs cr) 508
Buy Price 50.75
Buy Qty 94.00
Sell Price 51.45
Sell Qty 185.00

Munjal Auto Industries Ltd. (MUNJALAU) - Auditors Report

Company auditors report

To

THE MEMBERS OF

MUNJAL AUTO INDUSTRIES LIMITED

Report on the Indian Accounting Standards (Ind AS) Financial Statements

We have audited the accompanying Ind AS financial statements of Munjal Auto IndustriesLimited (‘the Company') which comprise the Balance Sheet as at 31st March 2018 theStatement of Profit and Loss including Other Comprehensive Income the Statement of CashFlows and the Statement of Changes in Equity for the year then ended and a summary of thesignificant accounting policies and other explanatory information ("Ind AS financialstatements").

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 Ind AS financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

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 of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs (financial position) of the Company as at 31st March 2018 and its profit(financial performance including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.

Other Matters

The comparative financial information of the Company for the year ended 31st March2017 and the transition date opening balance sheet as at 1st April 2016 included in theseInd AS financial statements are based on the previously issued statutory financialstatements prepared in accordance with the Companies (Accounting Standards) Rules 2006audited by the predecessor auditor whose report for the year ended 31st March 2017 and31st March 2016 dated 22 nd May 2017 and 30 th May 2016 respectively expressed anunmodified opinion on those financial statements as adjusted for the differences in theaccounting principles adopted by the Company on transition to the Ind AS which have beenaudited by us.

Our opinion is not modified in respect of the above matter.

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 subsection (11) of section 143 ofthe Act we give in Annexure 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 including Other ComprehensiveIncome the Statement of Cash Flows and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account;

d. in our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards prescribed under Section 133 of the Act;

e. on the basis of the written representations received from the directors as on 31stMarch 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms ofSection 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; and

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 has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements – Refer Note 38 to the Ind ASfinancial statements;

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 delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For K. C. Mehta & Co.
Chartered Accountants
Firm's Registration No. 106237W
Vishal P. Doshi
Place : Waghodia Vadodara Partner
Date : 28 th May 2018 Membership No.101533

ANNEXURE A TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date to the Members of Munjal AutoIndustries Limited)

i. (a) In our opinion the Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of two years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature 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 of theCompany are held in the name of the Company.

ii. As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals and no material discrepancies were noticed during thephysical verification.

iii. In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to Companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013 and therefore reporting under clause (iii) of the Order isnot applicable to the Company.

iv. The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Section 185 and 186 of the CompaniesAct 2013 and therefore reporting under clause (iv) of the Order is not applicable to theCompany.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits during the year from the public within the meaningof provisions of section 73 to 76 of the Companies Act 2013 and the rules framedthereunder and therefore reporting under clause (v) of the Order is not applicable to theCompany.

vi. In our opinion and according to the information and explanations given to us theCentral Government has not prescribed maintenance of cost records under sub-section (1) ofsection 148 of the Companies Act 2013 and rules 3 of the Companies (Cost Records andAudit) Amendment Rules 2014 for any of the products of the Company and thereforereporting under clause (vi) of the Order is not applicable to the Company.

vii. (a) In our opinion and according to the information and explanations given to usthe Company has been regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Employee's State Insurance Income Tax Goodsand Service Tax Sales Tax Service Tax Duty of Customs Duty of excise Value Added TaxCess and other statutory dues applicable to it. Further no undisputed amounts payable inrespect of aforesaid dues were in arrears as at 31 st March 2018 for a period of morethan six months from the date they become payable.

(b) According to the information and explanations given to us there are no disputeddues in respect of Income Tax Goods and Service Tax Service tax and Duty of Customs.According to the information and explanations given to us the followings are theparticulars of Sales Tax and Duty of Excise as at 31st March 2018 which have not beendeposited on account of dispute:

Name of the statute Nature of disputed dues Amount in Period to which the amount relates Forum where pending
The Gujarat Sales Act 1969 Sales Tax 2549704 Financial Year 2002-2003 Commissioner of Commercial Tax Tax (Appeals)
The Central Excise Act 1944 Duty of Excise 5876332 June 2008- March 2009 Commissioner of Customs Excise and Service Tax (Appeals)

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to any bank. The Company does not have anyloans or borrowings from any financial institution government or by way of debentures.

ix. In our opinion and according to the information and explanations given to us theCompany has neither raised any term loans or by way of initial public offer or furtherpublic offer (including debt instrument) during the year nor was any unutilized amountleft on this account as at the beginning of the year and therefore reporting underclause (ix) of the Order is not applicable to the Company.

x. In our opinion and according to information and explanations given to us no fraudby the Company or on the Company by its officers or employees has been noticed or reportedduring 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 requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii. In our opinion and according to information and explanations given to us theCompany is not a Nidhi company and therefore reporting under clause (xii) of the Order isnot applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with sections 177 and 188 of the Act where applicable for alltransactions with related parties and the details have been disclosed in the IndASfinancial statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year and therefore reporting under clause (xiv) of theOrder is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions specified under section 192 of theAct with directors or persons connected with directors and therefore reporting underclause (xv) of the Order is not applicable to the Company.

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

For K. C. Mehta & Co.
Chartered Accountants
Firm's Registration No. 106237W
Vishal P. Doshi
Place : Waghodia Vadodara Partner
Date : 28 th May 2018 Membership No.101533

ANNEXURE B TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date to the Members of

Munjal Auto Industries Limited)

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 MunjalAuto Industries Limited ("the Company") as of 31st March 2018 inconjunction with our audit of the IndAS 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 onAudit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe xinternal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reportingi ncludedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating thedesignand 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 IndAS 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 Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles.A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASfinancial statements in accordance with generally acceptedaccounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the IndASfinancial 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.Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree 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 2018 based ontheinternal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofCharteredAccountants of India.

For K. C. Mehta & Co.
Chartered Accountants
Firm's Registration No. 106237W
Vishal P. Doshi
Place : Waghodia Vadodara Partner
Date : 28 th May 2018 Membership No.101533