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Modern Insulators Ltd.

BSE: 515008 | NSE: MODINSULAT | Series: NA | ISIN: | SECTOR: Electric Equipment

BSE Live

Oct 26, 09:32
66.45 1.80 (2.78%)
Volume
AVERAGE VOLUME
5-Day
16,511
10-Day
17,216
30-Day
36,988
399
  • Prev. Close

    64.65

  • Open Price

    65.80

  • Bid Price (Qty.)

    63.65 (10)

  • Offer Price (Qty.)

    66.40 (10)

NSE Live

Dec 27, 11:22
4.15 -0.35 (-7.78%)
Volume
No Data Available
19,578
  • Prev. Close

    4.50

  • Open Price

    -

  • Bid Price (Qty.)

    - (0)

  • Offer Price (Qty.)

    - (0)

Modern Insulators is not listed on NSE

Annual Report

For Year :
2014 2013 2012 2011 2009 2008 2007 2006

Auditor's Report

Report on the Financial Statements We, have audited the accompanying financial statements of Modern Insulators Ltd. (the Company), which comprise the Balance Sheet as at March 31, 2013, the Statement of Profit and LossandCashFlow Statement for the year then ended and a summary of significant accounting policies and~other explanatory information. Management''s Responsibility for the Financial Statements Management is responsible for 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 Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 (the Act). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that''give a bjue''.and fair view and are free from material misstatement, whether due to fraud or error. Auditors'' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants pf 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 misstatements. 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 control relevant to the Company''s preparation and fair presentation of the financial statements 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 management, 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. Basis for Qualified Opinion , (a) Provision for taxation (including interest) estimated at ^624.69 lacs for current year (upto the year Rs.5939.72 lacs) has not been made in accounts, in view of proposed amalgamation proceedings awaiting approvals. Meanwhile Income Tax department has completed assessment for Assessment Years 2008-09 & 2009-10 wherein substantive orders have been passed allowing losses pertaining to proposed amalgamation and at the same time protective assessment orders have been made (presuming that no amalgamation had taken place) with demand of Rs. 1611.16 lacs which shall be effective if the amalgamation scheme is not sanctioned. The Department has further completed assessmentfor the Assessment Year 2010-11 and has raised demand of Rs.961.47 lacs in respect of disallowance of losses pertaining to proposed amalgamation pending approval from concerned authorities. The company has filed appeal against the said order before CIT (Appeals). (b) Balances of Trade Payables & Trade Receivables are subject to reconciliations/confirmations. (c) The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act have not been given. Opinion In our opinion and to the best of our information and according to the explanations given to us, except for the effect of the matters described in Basis for Qualified opinion paragraph, 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: (a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013; (b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and (c) In the case of the Cash Flow Statement, of the 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, 2003 (the Order) issued by the Central Government of India in terms of Section 227(4A) of the Act, and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. 2. As required by Section 227(3) of therAct, we report that: (a) We have obtained all the information and explanations which to the best of our knowledge arid belief were necessary for the purpose 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 Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account; (d) Except for the effect of the matters described in the Basis for Qualified Opinion paragraph, in our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement, dealt with by this report, comply with the Accounting Standards referred to in section 211(3C) of the Act; (e) On the basis of the written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of Section 274(1 )(g) of the Act. ANNEXURE FORMING PART OFTHE AUDITORS''REPORT Referred to in the report of even date of the Auditors to members of MODERN INSULATORS LIMITED. (i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets except furniture & fixtures for which detailed records are not maintained. (b) As per information and explanations given to us, most of the fixed assets have been physically verified during the year by management in accordance with a phased programme of verification at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification. (c) During the year, the company has not disposed off substantial part of the fixed assets. (ii) (a) As explained to us, the inventories have been physically verified during the year by the management In our opinion, the frequency of verification is reasonable. (b) According to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. (c) On the basis of our examination of the records of inventory, we are of the opinion that the company is maintaining proper records of inventories. As explained to us, the discrepancies noticed on physical verification between the physical stocks and the book records were not material. (iii) (a) The company had given loans to two subsidiaries. In respect of the said loans, the maximum amount outstanding at any time during the year was Rs. 4200 lacs and the year end balance isRs. 3620 lacs (Previous yearRs. 4500 lacs & Rs. 4200 lacs respectively). The said loans are without interest and principal amounts are repayable on demand. (b) The company has given interest-free loan/advance of Rs. 2245.15 lacs to a company covered under section 301 of companies Act, 1956 in view of proposed amalgamation awaiting approvals. Maximum amount outstanding during the year was Rs. 2789.85 lacs and the year end balance was 1 2245.15 lacs (previous year Rs. 2245.15 lacs & Rs. 2245.15 lacs respectively). (c) The Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under Section 301 of the Act. Accordingly, the provisions of clauses 4(iii)(f) and 4(iii)(g) of the Order are not applicable. (iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for purchases of inventory, fixed assets and for the sale of goods. On the basis of our examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across, nor have been informed of any continuing failure to correct major weakness in the aforesaid internal control system. (v) (a) Based on audit procedures applied by us and according to the information . and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section. (b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of such contracts or arrangements, referred to in section 301 of Companies Act 1956, exceeding Rupees Five lacs in respect of each party during the year. (vi) The Company has not accepted any deposits from the public during the year. (vii) In our opinion, the internal audit carried out during the year commensurates with the size of the company and the nature of its business. (viii) We have broadly reviewed the cost records maintained by the ompany pursuant the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209( 1 Xd) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete. (ix) According to the records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees''state insurance, service tax, sales-tax, wealth tax, custom duty, excise duty and other statutory dues applicable to it and no undisputed statutory dues as noted above is outstanding for a period of more than six months from the date it became payable. The company has not paid/provided income tax (refer comments under the Head Basis for Qualified Opinion in Auditors'' Report and Note No. 30 of Financial Statement). -Refer Note No. 30 of Financial Statement (x) The Company does not have accumulated losses as at the end of the financial year and it has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year. (xi) Based on our audit and as per information and explanations given by the management, there has been no default in repayment of dues to any financial institution or bank or debenture holders during the year. (xii) Based on our examination of books of account and information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) The provisions of any special statutes applicable to chit fund, nidhi or mutual benefit fund/society are not applicable to the company. (xiv) The Company is not dealing or trading in shares, securities, debentures and other investments and hence requirement of para 4(xiv) is not applicable. (xv) As per information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions. (xvi) The company has not taken any fresh term loan during the year under review. (xvii) . According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment (xviii) No allotment of shares has been made by the company during the year. (xix) The company has not issued any debenture during the year covered by audit (xx) During the year the company has not raised any money by way of public issue. (xxi) 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 conx;acrossanyimtarofrraterial&audonorr)ytheCorr(3arry,rticedorreported during the year, nor have we been informed of any such case by the Management For S.S. KOTHARI & CO. Chartered Accountants (Firm Registration No. 001064C) (B.L.VERMA) Place : Jaipur PARTNER Date : 29th June, 2013 (Membership No. 10900)