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Report on the Financial Statements
We have audited the accompanying financial statements of Mahickra Chemicals Limited, (“the Company”) which comprise the Balance Sheet as at 31/03/2018, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management Responsibility for the 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 of these Financial statements that give a true and fair view of the financial position financial performance of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 internal financial controls with reference to financial statements 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.
Our responsibility is to express an opinion on these financial statements based on our audit
We have taken into account the provisions of the Act 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 there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) or the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit o obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures In the financial statements. The procedures selected depend on the auditor’s Judgment inch ding the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. In making lose risk assessments; the auditor considers Internal financial control relevant to the Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the Company has in place as internal financial controls with reference to financial statements and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors as well as evaluating the overall presentation of the financial statements.
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.
In our opinion and to the best of our information and according to the explanations given to us the aforesaid financial statements gives 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 31st March 2018 and its profit and its cash flows for the year ended on that date.
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 sub-section (11) of section 143 of the Companies Act 2013. we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
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 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 it appears from our examination of those books.
c) The Balance Sheet and the Statement of Profit and Loss and Cash Flow Statement for the Year ended dealt with by this Report 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 the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors is disqualified as on 31st March. 2018 from being appointed as a director in terms of Section164 (2) of the Act.
f) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 1 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 does not have any pending litigations which would impact its Financial Position
ii) The Company did not have any long term contracts including derivative Contracts for which there were any material foreseeable losses on
iii) The Company is not required to transfer any amounts to the Investors Education and Protection Fund.
“ANNEXURE’ TO THE INDEPENDENT AUDITORS REPORT
Referred to in paragraph 1 under the heading ‘Report on Other Legal & Regulatory Requirement’ of our report of even date to the financial statements of the company for the year ended March 31 2018:
1. In respect of the Company’s Fixed Assets:
(a) The company has maintained proper records showing full particular including quantitative details and situation of its fixed assets.
(b) As explained to us fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties as disclosed in Note 8 on Fixed Assets to the Financial Statements are held in the name of partnership firm Mahak Dye Chem from which Mahickra Chemicals Limited a unlisted public limited company is converted. Hence title deeds of the fixed assets are in process of conversion of name from Mahak Dye Chem Industries to Mahickra Chemicals Limited.
2. In respect of Company’s inventories:
(a) The management during the year has conducted physical verification of the inventor & in our opinion the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations given to us the company has maintained proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of accounts.
3. The company has not granted any loans secured or unsecured to companies firms. Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (c) of the order are not applicable to the Company and hence not commented upon.
4 In our opinion and according to the information and explanations given to us, the company has complied with the provisions of Section 185 & 186 of the Companies Act2013 in respect of loans investments guarantees and security.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public during the year. Therefore the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions with regards to deposits are not applicable to the company.
6. As informed to us the maintenance of Cost Records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act in respect of the activities carried on by the company.
7. (a) According to the records of the company undisputed statutory dues including Provident Fund Investor Education and Protection Fund Employees’ State Insurance, Income-tax Goods & Services Tax Sales Tax Wealth Tax Service Tax Custom Duty Excise Duty Cess & Goods & Service Tax to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities.
(b) According to the information and explanations given to us no undisputed amounts payable in respect of Income tax Goods & Services Tax Wealth Tax, Sales Tax, Custom Duty, Excise Duty and Cess & Goods & Service Tax were in arrears as on 31st of March 2018 for a period of more than six months from the date they became payable.
(c) According to the information and explanation gives to us there are no material dues of wealth tax and cess which have not been deposited with the appropriate authorities on account of any dispute.
8. In our opinion and according to the information and explanations given to us the company has not defaulted in repayment of dues to financial institutions banks and debentures holders. Also the company has not taken any further loan from financial institutions from the government and has not issued any debentures.
9 Based upon the audit procedures performed and the information and explanations given by the management the company has not raised moneys by way of initial public offer or Further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
10. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11. According to information and explanation given to us and based on our examination of the records of the company 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.
12. The Company is not a Nidhi Company. Therefore the provisions of clause 3 (xii) of the Order are not applicable to the Company.
13. According to information and explanation given to us and based on our examination of the records of the company ail the transactions with the related parties are incompliance with Section 177 and 188 of Companies Act 2013 and the details have been disclosed in the financial statements as required by the applicable accounting standards.
14. Based upon the audit procedures performed and the information and explanations given by the management the company has made private placement of shares during the year under review. Accordingly the provisions of clause 3 (xiv) of the Order are applicable to the Company and the requirement of Section 42 of Companies Act. 2013 have been complied with and the amount raised has been used for the purpose for which the funds were raised.
15. Based upon the audit procedures performed and the information and explanations given by the management the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16. The company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
For Singh & Co.
FRN NO B02049E
Sunil C. Bohara
Membership No. 103395
PAN NO. ABHPB3496K
Ahmedabad 31st August 2018