Mar 31, 2018
Independent Aud itors Report
To,
The Members of
Madhav Marbles and Granites Limited
Report on the Audit of the Ind AS Financial Statements
We have audited the accompanying financial statements of Madhav Marbles and Granites Limited ("the Company"), which comprise the Balance Sheet as at M arch 31, 2018, the Statement of Profit and Loss,( including Other Comprehensive Income) , the Statement of Changes in Equity and 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 Financial Statements
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 including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes 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 controls, 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
Our responsibility is to express an opinion on these financial statements based on our audit.
In conducting 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 thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements to plan and perform the audit to 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 disclosures in the financial statements. The procedures selected depend on the auditors 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 Companyâs preparation of the financial statements that give a 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 the Companyâs 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.
Opinion
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 st March, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditors Report ) Order, 2016 (" the Order") issued by the Central Government of India in terms of sub-section (11) of 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.
(2) A s 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, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
e. On the basis of written representations received from the directors as on M arch 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on M arch 31, 2018 , from being appointed as a director in terms of Section 164(2) of the Act.
f. W ith 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 ) and
g. With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 as amended, in our opinion and 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 financial position in its financial statements â Refer Note 33 on Contingent Liabilities)
(ii) The Company did not have any long-term contracts including derivative contracts hence) the question of any material foreseeable losses does not arise)
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in Independent Auditors Report of even date to the members of the Company on the financial statements for the year ended 31 M arch 2018 , we report that.
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets, by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) As explained to us, the inventory has been physically verified at reasonable intervals during the year by the management. In our opinion, the frequency of verification is reasonable. The discrepancies between the physical stocks and the book stocks were not material in relation to the operation of the Company and the same have been properly dealt with in the books of account.
(iii) The Company has not granted loans, secured or unsecured, to Companies, firms, LLP or other parties listed in the register maintained under section 189 of the Companies Act, 2013 ('' the Act ) .
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provision of section 185 and 186 of The Act.
(v) The Company has not accepted any deposits from the public.
(vi) we have broadly reviewed the books of account maintained by the Company in respect of products where the maintenance of cost records has been specified by the Central Government under sub-section (1) of Section 148 of the Act and the rules framed there under and we are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
(vii) a) According to the information and explanations given to us and on the basis of our examination of the
records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Income-Tax, Sales Tax, Value Added Tax, Custom Duty, Service Tax, Goods and Service Tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
b) According to the information and explanations given to us, no undisputed amounts payable in respect of
Provident Fund, Income Tax, Sales Tax, Value Added Tax, Custom Duty, Service Tax, Goods and Service Tax, cess and other material statutory dues were in arrears as at 31 M arch 2018 for a period of more than six months from the date they became payable.
c) According to the information and explanations given to us, there are no dues of duty of customs which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of Income Tax, Sales Tax, Excise Duty, Service Tax, Goods and Service Tax and Value Added Tax have not been deposited by the Company on account of disputes.
Name of Nature of the Amount Period to Forum where the statute disputed dues Rs. (Lacs) which the disputes are amount pending relates |
||||
Income Tax Act, 1961 |
Disallowance of claim of deduction u/s 80IA |
25.49 |
A.Y. 2015-16 |
CIT (A) |
Income Tax Act, 1961 |
Penalty under section 271(1)(c) |
0.32 |
A.Y. 2011-12 |
CIT (A) |
Centra l Excise Duty |
Disallowing Exemption/concession towards DTA sale under Notification No.23/2003 dated 31.3.2003 |
89.81 |
1st April 2008-30th November 2015 |
Central Excise & Service Tax Appellate Tribunal , Commissioner (Appeals) |
Departmental Appeal |
||||
Income Tax Act, 1961 |
Disallowance of claim of deduction u/s 80IA and personal expenses. |
28.37 |
A.Y. 2013-14 |
ITAT |
Income Tax Act, 1961 |
Relief granted by Commissioner of Income Tax (Appeals) for deduction u/s 80IA, 36(1)(iii) and contribution towards PF/ESI |
35.67 |
A.Y. 2012-13 |
ITAT |
Income Tax Act, 1961 |
Relief granted by Commissioner of Income Tax (Appeals) for deduction u/s 80IA, 36(1)(iii) and contribution towards PF/ESI |
52.12 |
A.Y. 2011-12 |
ITAT |
Income Tax Act, 1961 |
Relief granted by Commissioner of Income Tax (Appeals) for deduction u/s 80IA ,10B and allowvance of expenses |
36.14 |
A.Y. 2010-11 |
ITAT |
Income Tax Act, 1961 |
Relief granted by ITAT for deduction u/s 36(1)(vii). |
57.75 |
A.Y. 2004-05 |
Rajasth a n High Court |
Income Tax Act, 1961 |
Relief granted by ITAT for deduction u/s 36(1)(vii), 10B and 40(a)(ia). |
27.32 |
A.Y. 2005-06 |
Rajasth a n High Court |
Income Tax Act, 1961 |
Relief granted by ITAT for deduction u/s 32 and 40(a)(ia). |
07.44 |
A.Y. 2006-07 |
Rajasth a n High Court |
Income Tax Act, 1961 |
Relief granted by ITAT for deduction u/s 40(a)(ia) and allowance of expenses. |
03.17 |
A.Y. 2007-08 |
Rajasth a n High Court |
Income Tax Act, 1961 |
Relief granted by ITAT for deduction u/s 40(a)(ia). |
92.81 |
A.Y. 2008-09 |
Rajasth a n High Court |
Income Tax Act, 1961 |
Relief granted by ITAT for deduction u/s 40(a)(ia). |
03.69 |
A.Y. 2009-10 |
Rajasth a n High Court |
(viii) 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 as at Balance Sheet date. The company has not issued any debentures.
(ix) In our opinion and according to in promotion and explanation provided by the management, the company has utilized the money raised by way of term loan.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give 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.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, provisions of section 192 of the Companies Act, 2013 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.
Referred to in paragraph 2(f) of the Independent Auditors Report of even date to the members of Company on the financial statements for the year ended 31 M arch 2018 , we report that:
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (" the Act )
We have audited the internal financial controls over financial reporting of Madhav Marbles and Granites Limited ( the Company ") as of 31 M arch 2018 i n conjunction with our audit of the 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 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 Accountants 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 frauds 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.
Auditors Responsibility
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, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013 , 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 Institute of Chartered Accountants of India. 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.
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 exists, 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 risks of material misstatement of the financial statements, whether due to fraud or error.
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 system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company Internal Financial Control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company s internal financial control over financial reporting includes those policies and procedures that
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company)
(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of 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
(3) 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 financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
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
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at M arch 31, 2018, 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 L. S. KOTHARI & CO
Chartered Accountants
ICAI F irm Registration No.001450C
Lalit Kothari Partner
Camp: Udaipur, May 30, 2018 Membership No.: 081407
Mar 31, 2016
Independent Auditorsâ Report
To
The Members of
Madhav Marbles and Granites Limited Report on the Financial Statements
We have audited the accompanying financial statements of Madhav Marbles and Granites Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) 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. This responsibility also includes 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 controls and ensuring their operating effectiveness and 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.
Auditorsâ Responsibility
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) of the Act. 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.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'' 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 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 an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of 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.
Opinion
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 31st March, 2016, its profit/loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditors'' Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of 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.
(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, Statement of Profit and Loss and Cash Flow Statement 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 written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, 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 âAnnexure Bâ; and
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 disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 28 on Contingent Liabilities;
(ii) The Company did not have any long-term contracts including derivative contracts hence; the question of any material foreseeable losses does not arise;
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Referred to in paragraph 9 of the Independent Auditors'' Report of even date to the members of the Company on the financial statements for the year ended 31 March 2016, we report that:
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) As explained to us, the inventory has been physically verified at reasonable intervals during the year by the management. In our opinion, the frequency of verification is reasonable. The discrepancies between the physical stocks and the book stocks were not material in relation to the operation of the Company and the same have been properly dealt with in the books of account.
(iii) The Company has not granted loans, secured or unsecured ,to Companies firms, LLP or other parties listed in the register maintained under section 189 of the Companies Act, 2013 (''the Act'') .
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provision of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company in respect of products where the maintenance of cost records has been specified by the Central Government under sub-section (1) of Section 148 of the Act and the rules framed there under and we are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the
records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income-tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31 March 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material dues of duty of customs which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of income tax, sales tax, duty of excise, service tax and value added tax have not been deposited by the Company on account of disputes:
Name of the statute |
Nature of the disputed dues |
Amount Rs. (Lacs) |
Period to which the amount relates |
Forum where disputes are pending |
Income Tax Act, 1961 |
Disallowance of claim of deduction u/s 80IA and personal expenses. |
32.34 |
2013-14 |
CIT(A) |
Central Excise Duty |
Disallowing Exemption/concession towards DTA sale under Notification No.23/2003 dated 31.3.2003 |
89.81 |
1st April 200830th November 2015 |
Central Excise & Service Tax Appellate Tribunal Commissioner (Appeals) |
Departmental Appeal |
||||
Income Tax Act, 1961 |
Relief granted by Commissioner of Income Tax (Appeals) for deduction u/s 80IA, 36 (1) (iii) and contribution towards PF/ESIC. |
35.67 |
2012-13 |
ITAT |
Income Tax Act, 1961 |
Relief granted by Commissioner of Income Tax (Appeals) for deduction u/s 80IA, 36(1)(iii) and contribution towards PF/ESI. |
52.12 |
2011-12 |
ITAT |
Income Tax Act, 1961 |
Relief granted by Commissioner of Income Tax (Appeals) for deduction u/s 80IA, 10B and allowance of expenses |
36.14 |
2010-11 |
ITAT |
Income Tax Act, 1961 |
Relief granted by ITAT for deduction u/s 80IA, 40(a)(ia), and allowance of expenses. |
37.47 |
2007-08 |
High Court |
Income Tax Act, 1961 |
Relief granted by ITAT for deduction u/s 80IA and 40(a)(ia). |
92.81 |
2008-09 |
High Court |
(viii) 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 as at balance sheet date.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give 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.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Referred to in paragraph 2(f) of the Independent Auditor''s Report of even date to the members of Company on the financial statements for the year ended 31 March 2016, we report that:
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Madhav Marbles and Granites Limited (âthe Companyâ) as of 31 March 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
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 Accountants 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 frauds 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.
Auditorsâ Responsibility
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 âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, 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 Institute of Chartered Accountants of India. 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.
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 exists, 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 risks of material misstatement of the financial statements, whether due to fraud or error.
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 system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
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 financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of 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
(3) 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 financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
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
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, 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 NYATI & ASSOCIATES
Chartered Accountants
Firm Registration. No. 002327C
Suresh Nyati Partner
Udaipur, May 28, 2016 Membership No. 070742
Mar 31, 2015
We have audited the accompanying financial statements of Madhav Marbles
and Granites Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss and 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 Financial Statements
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. This responsibility also includes
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 controls
and ensuring their operating effectiveness and 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.
Auditors' Responsibility
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) of the Act. 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.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors' 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 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 an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of 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.
opinion
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 31st March, 2015, its profit/loss and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditors' Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable. The Order is yet to be notified in the
Gazette of India.
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 appears from our examination of those
books.
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement 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 written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f. 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 disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note on
Contingent Liabilities and Note on Contingent Assets to the financial
statements;
(ii) The Company did not have any long-term contracts including
derivative contracts hence; the question of any material foreseeable
losses does not arise;
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
(I) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) During the year, fixed assets have not been physically verified by
the management. However, there is a regular programme of verification
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets.
(II) (a) The inventory (excluding stocks lying with third parties) has
been physically verified by the management during the year. In respect
of inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion the Company has maintained proper records of
inventory. The discrepancies between the physical stocks and the book
stocks were not material in relation to the operation of the Company
and the same have been properly dealt with in the books of account.
(III) As informed the Company has not granted any loans, secured or
unsecured, to Companies, firms or other parties listed in the register
maintained under section 189 of the Companies Act, accordingly clause
3(iii) (a), (b) of the said order are not applicable to the Company.
(IV) In our opinion and according to the information and explanations
given to us, the internal control system needs to be strengthened for
the purchase of inventory and fixed assets and for the sale of goods
and services. During the course of our audit, we have not observed
continuing failure to correct major weaknesses in internal control
system of the Company.
(V) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the provisions of Sections 73 to 76 of the Act and the rules
framed there under.
(VI) We have broadly reviewed the books of account maintained by the
Company in respect of products where the maintenance of cost records
has been specified by the Central Government under sub-section (1) of
Section 148 of the Act and the rules framed there under and we are of
the opinion that prima facie, the prescribed accounts and records have
been made and maintained.
(VII) (a) According to the records, information and explanation
provided to us, the Company is generally regular in depositing the
undisputed statutory dues including Provident Fund, Employees' State
Insurance, Income- tax, Sales-tax, Wealth-tax, Service Tax, Value added
Tax, Customs duty, Excise duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) According to the information and explanations given to us and
records of the Company examined by us, there are no dues of Wealth Tax,
Sales Tax, Service Tax, Value added Tax and Customs duty which have not
been deposited on account of any dispute, and the particulars of dues
of Income tax, and excise duty as at March 31, 2015 which have not been
deposited on account of a dispute, are as follows:
Name of the statute Nature of the disputed dues Amount
Rs. Lacs
Income Tax Act 1961 Disallowance of claim of deduction
u/s 80IA and interest attributable to 56.40
interest free advance.
Disallowance of claim of deduction
Income Tax Act 1961 u/s 80IA and interest attributable to 72.71
interest free advance.
Name of the Statute Period to which Forum where
the amount disputes are
relates pending
Income Tax Act, 1961 2012-13 CIT(A)
Income Tax Act, 1961 2011-12 CIT(A)
Name of the statute Nature of the disputed dues Amount
Rs. Lacs
Disallowing Exemption/concession
towards DTA sale under
Central Excise Duty Notification No.23/2003 dated 235.06
31.3.2003
Departmental Appeal
Relief granted by Commissioner of
Income Tax (Appeals) for deduction
Income Tax Act 1961 u/s 80IA ,10B and allowance of 61.48
expenses
Relief granted by Commissioner of
Income Tax (Appeals) for deduction
Income Tax Act 1961 u/s 80IA ,10B and allowance of 62.77
expenses
Name of the Statute Period to which Forum where
the amount disputes are
relates pending
Central Excise Duty Central Excise & Service
1st April 2008- Tax Appellate
31st December Tribunal ,
2013 Commissioner (Appeals)
Departmental Appeal
Income Tax Act, 1961 AY 2009-2010 ITAT
to 2010-11
Income Tax Act, 1961 2008-2009 High Court
(c) According to the information and explanations given to us, there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
(VIII) The Company does not have accumulated losses at the end of the
financial year nor has incurred cash losses in the current and
immediately preceding financial year.
(IX) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial
institution(s), bank(s) or debenture holder(s).
(X) In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
(XI) According to the information and explanations given to us, the
term loans have been applied for the purpose for which the loans were
obtained.
(XII) 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
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such case by the Management.
For NYATI & ASSOCIATES
Chartered Accountants
Firm Registration No. 002327C
Suresh Nyati
Partner
Udaipur, May 23, 2015 Membership No. 70742
Mar 31, 2014
We have audited the accompanying financial statements of Madhav Marbles
and Granites Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, the Statement of Profit and Loss and 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 Financial Statements
The Company''s 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 Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956, which as per General
Circular 15/2013 dated September 13, 2013 issued by Ministry of
Corporate Affairs continues to apply under Section 133 of the Companies
Act, 2013 ("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
true 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 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.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' judgement, 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, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. 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.
Opinion
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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(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 (Auditors'' Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, 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 the Act, we report that:
(a) we have obtained all the information and explanations which to the
best of our knowledge and 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 and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
(c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from branches not visited by us;
(d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956, which as
per General Circular 15/2013 dated September 13, 2013 issued by
Ministry of Corporate Affairs continues to apply under Section 133 of
the Act;
(e) on the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
Annexure to Auditors'' Report
(I) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) During the year, the Company has carried out physical verification
of the fixed assets and no material discrepancies were noticed in such
verification.
(c) In our opinion and according to the information and explanation
given to us,a substantial part of the fixed assets has not been
disposed off by the Company during the year.
(II) (a) As explained to us, inventories have been physically verified
by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion the Company has maintained proper records of
inventory. The discrepancies between the physical stocks and the book
stocks were not material in relation to the operation of the Company
and the same have been properly dealt with in the books of account.
(III) The Company has not granted/taken any loans, secured or
unsecured, to/from Companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956,
accordingly clause 4 (iii)(b), (c), (d), (f), (g) of the said order are
not applicable to the Company.
(IV) In our opinion and according to the information and explanations
provided to us there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of goods and services. During the course of our audit, no major
weakness has been noticed or reported.
(V) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the transactions that need to be entered into the
register maintained under Section 301 of the Act have been properly
entered in the said register.
(b) As per records of the Company there were no transactions exceeding
during the year by Rs. Five lakh in respect of each party made in
pursuance of contracts, or arrangements required to be entered in the
registers maintained under Section 301 of the Act.
(VI) The Company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 58A and 58AA of
the Companies Act, 1956 and rules made there under. Hence, the Clause
(vi) of the Order is not applicable.
(VII) The Company has a system of internal audit, which, in our
opinion, is commensurate with its size, and nature of its business.
(VIII) We have broadly reviewed the books of accounts and records
maintained by the Company pursuant to the rules prescribed by the
central government for the maintenance of cost records under section
209(1) (d) of the Companies Act, 1956 in respect of generation of
electricity through wind power and are of the opinion that prima-facie
the prescribed accounts and records have been made and maintained. The
contents of these accounts and records have not been examined by us.
(IX) (a) According to the records, information and explanation provided
to us, the Company is generally regular in depositing the undisputed
statutory dues including Provident Fund, Investor Education Protection
Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth-tax,
Service Tax, Customs duty, Excise duty, Cess and other material
statutory dues applicable to it with the appropriate authorities.
(b) According to the information and explanations given to us and
records of the Company examined by us, there are no dues of Wealth Tax,
Sales Tax, Service Tax and Customs duty which have not been deposited
on account of any dispute, and the particulars of dues of Income tax,
and excise duty as at March 31,2014 which have not been deposited on
account of a dispute, are as follows:
Nature of the Amount Period to which
Name of disputes Rs. Lacs the amount
the statute dues relates
Disallowance of
Income Tax claim of deduction
Act, 1961 u/s 80IA and interest 72.71 2010-11
attributable to
interest free advance
Disallowance of
Income Tax claim of deduction
Act, 1961 u/s 80IA and interest
attributable to
interest free advance 61.48 2009-10
Forum where
Name of disputed are
the statute pending
Income Tax
Act, 1961 CIT (A)
Income Tax
Act, 1961
CIT (A)
(X) The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the financial year
ended on that date or in the immediately preceding financial year.
(XI) According to the records examined by us and the information and
explanations given by the management, the Company has not defaulted in
repayment of dues to any financial institution or bank.
(XII) 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 statute applicable to
chit/nidhi/mutual benefit fund/society are not applicable to the
Company.
(XIV) In our Opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments.
(XV) In our opinion, and according to the 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 did not have any term loan outstanding during the
year.
(XVII) On the basis of our examination of the books of accounts and the
information and explanation given to us, and in our opinion, the funds
raised on short-term basis have not been used for long-term investment
and vice-versa.
(XVIII) The Company has not made any preferential allotment of shares
to parties and Companies covered in the Register maintained under
Section 301 of the Act during the year.
(XIX) The Company has not raised any debentures during the year and
does not have any outstanding debentures as at the year end.
(XX) The Company has not raised any money by public issues during the
year.
(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 come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such case by the Management.
For NYATI & ASSoCIATES
Chartered Accountants
Firm Registration. No. 002327C
Suresh Nyati
Partner
Udaipur, May 24, 2014 Membership No. 70742
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Madhav Marbles
and Granites Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2013, 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''s Responsibility for the Financial Statements
The Company''s 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 Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act") and in
accordance with the accounting principles generally accepted in India.
This responsibility includes the design, implementation and maintenance
of internal control 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.
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 of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to 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 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, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. 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.
Opinion
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:
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/ loss
of the Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company 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
sub-section (4A) of section 227 of the Act, 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 the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement dealt with by this report, comply with the
Accounting Standards referred to in subsection (3C) of section 211 of
the Companies Act, 1956, together with the early adoption by the
Company of Accounting Standard (AS) 30 Financial Instruments,
Recognition and Measurement effective April 1, 2007, and the
consequential limited revisions as have been announced by the Institute
of Chartered Accountants of India to certain Accounting Standards, as
stated in Note 2(a) and 38.
e) On the basis of 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 clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure to the Auditors'' Report
(I) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) During the year, the Company has carried out physical verification
of the fixed assets and no material discrepancies were noticed in such
verification.
(c) In our opinion and according to the information and explanation
given to us,a substantial part of the fixed assets has not been
disposed off by the Company during the year.
(II) (a) As explained to us, inventories have been physically verified
by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion the Company has maintained proper records of
inventory. The discrepancies between the physical stocks and the book
stocks were not material in relation to the operation of the Company
and the same have been properly dealt with in the books of account.
(III) The Company has not granted/taken any loans, secured or
unsecured, to/from Companies, firms or other parties listed in register
maintained under Section 301 of the Companies Act, 1956, accordingly
clause 4 (iii)(b), (c), (d), (f), (g) of the said order are not
applicable to the Company.
(IV) In our opinion and according to the information and explanations
provided to us there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of goods and services. During the course of our audit, no major
weakness has been noticed or reported.
(V) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the transactions that need to be entered into the
register maintained under Section 301 of the Act have been properly
entered in the said register.
(b) As per records of the Company there were no transactions exceeding
during the year by Rs. Five lakh in respect of each party made in
pursuance of contracts, or arrangements required to be entered in the
registers maintained under Section 301 of the Act.
(VI) The Company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 58A and 58AA of
the Companies Act, 1956 and rules made there under. Hence, the Clause
(vi) of the Order is not applicable.
(VII) The Company has a system of internal audit, which, in our
opinion, is commensurate with its size, and nature of its business.
(VIII) We have broadly reviewed the books of accounts and records
maintained by the Company pursuant to the rules prescribed by the
central government for the maintenance of cost records under section
209(1) (d) of the Companies Act, 1956 in respect of generation of
electricity through wind power and are of the opinion that prima-facie
the prescribed accounts and records have been made and maintained. The
contents of these accounts and records have not been examined by us.
(IX) (a) According to the records, information and explanation provided
to us, the Company is generally regular in depositing the undisputed
statutory dues including Provident Fund, Investor Education Protection
Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth-tax,
Service Tax, Customs duty, Excise duty, Cess and other material
statutory dues applicable to it with the appropriate authorities.
(X) The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the financial year
ended on that date or in the immediately preceding financial year.
(XI) According to the records examined by us and the information and
explanations given by the management, the Company has not defaulted in
repayment of dues to any financial institution or bank.
(XII) 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 statue applicable to
chit/nidhi/mutual benefit fund/society are not applicable to the
Company.
(XIV) In our Opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments.
(XV) In our opinion, and according to the 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 did not have any term loan outstanding during the
year.
(XVII) On the basis of our examination of the books of accounts and the
information and explanation given to us, and in our opinion, the funds
raised on short-term basis have not been used for long-term investment
and vice-versa.
(XVIII) The Company has not made any preferential allotment of shares
to parties and Companies covered in the Register maintained under
Section 301 of the Act during the year.
(XIX) The Company has not raised any debentures during the year and
does not have any outstanding debentures as at the year end.
(XX) The Company has not raised any money by public issues during the
year.
(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 come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such case by the Management.
For NYATI & ASSOCIATES
Chartered Accountants
Firm Registration. No. 002327C
Suresh Nyati
Partner
Udaipur, May 30, 2013 Membership No. 70742
Mar 31, 2012
1. We have audited the attached Balance Sheet of MADHAV MARBLES AND
GRANITES LIMITED as at March 31, 2012 and the related Statement of
Profit & Loss and the Cash Flow Statement for the year ended on that
date annexed thereto which we have signed under reference to this
report. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the generally accepted
auditing standard in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended by be Companies (Auditor's Report) (Amendment) Order 2004,
together the Order issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Companies Act 1956, 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 explanation
given to us, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account of the Company;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement dealt with by this report, comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Act;
e) On the basis of the written representations received from the
directors as on March 31, 2012, and taken on record by the Board of
directors, we report that none of the directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of Clause
(g) of sub-section (1) of section 274 of the Act;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statement together
with the notes thereon and attached thereto give in the prescribed
information required by the Act and give a true and fair view in
conformity with accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2012;
ii) in the case of the Statement of Profit and Loss of the profit of
the company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Annexure to the Auditorsà Report
(I) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) During the year, the Company has carried out physical verification
of the fixed assets and no material discrepancies were noticed in such
verification.
(c) In our opinion and according to the information and explanations
given to us the fixed assets disposed off during the year do not
constitute substantial part of the fixed assets of the Company and such
disposal has, in our opinion, not affected the going concern status of
the Company.
(II) (a) As explained to us, inventories have been physically verified
by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion the Company has maintained proper records of
inventory. The discrepancies between the physical stocks and the book
stocks were not material in relation to the operation of the Company
and the same have been properly dealt with in the books of account.
(III) (a) The Company has not granted any loans to the Companies, firms
and other parties listed in the register maintained under Section 301
of the Companies Act, 1956, accordingly clause (iii)b, (iii)c (iii)c
and (iii)d of the order is not applicable.
(b) The Company has taken unsecured loans from two Companies and one
other party covered in the register maintained under Section 301 of the
Act, aggregating to Rs. 95 lacs at beginning of the year. Fresh loans
taken and repaid during the year Rs. NIL, and the balance at the end of
the year aggregating to Rs.95 lacs..
(c) In our opinion and according to the information and explanations
provided to us the rate of interest and other terms and conditions of
the said loans are not, prima facie, prejudicial to the interest of the
Company.
(d) In respect of the aforesaid loans, the company is regular in paying
interest. The loans taken are repayable on demand. As informed, the
lenders have not demanded repayment of any such loan during the year,
thus there is no default on the part of the Company.
(IV) In our opinion and according to the information and explanations
provided to us there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of goods and services. During the course of our audit, no major
weakness has been noticed or reported.
(V) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the transactions that need to be entered into the
register maintained under Section 301 of the Act have been properly
entered in the said register.
(b) As per records of the Company there were no transactions exceeding
during the year by Rs. Five lakh in respect of each party made in
pursuance of contracts, or arrangements required to be entered in the
registers maintained under Section 301 of the Act.
(VI) The Company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 58A and 58AA of
the Companies Act, 1956 and rules made there under. Hence, the Clause
(vi) of the Order is not applicable.
(VII) The Company has a system of internal audit, which, in our
opinion, is commensurate with its size, and nature of its business.
(VIII) We have broadly reviewed the books of account and records
maintained by the Company pursuant to the rules prescribed by the
central government for the maintenance of cost records under section
209(1)(d) of the Companies Act, 1956 in respect of generation of
electricity through wind power and are of the opinion that prima-facie
the prescribed accounts and records have been made and maintained. The
contents of these accounts and records have not been examined by us.
(IX) (a) According to the records, information and explanations
provided to us, the Company is generally regular in depositing with
appropriate authorities undisputed amount of Provident Fund, Investor
Education Protection Fund, Employees' State Insurance, Income-tax,
Sales-tax, Wealth-tax, Service tax, Customs duty, Excise duty, Cess and
other material statutory dues applicable to it.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of Wealth-tax,
Sales tax, Service tax & Customs duty which have not been deposited on
account of any dispute, and the particulars of dues of Income tax, and
excise duty as at March 31, 2012 which have not been deposited on
account of a dispute, are as follows:
Name of Nature of the Amount Period to Forum where
the statute disputed Rs. Lacs which the are pending
dues amount disputes
relates
Income Tax Disallowance 69.11 2005-06 Commissioner of
Act, 1961 of Reversal of Income Tax
Impairment of
Assets
Central Central Excise 0.50 2003-04 Custom Excise
Execise Duty Payable Service Tax
Tax, 1944 Appellate
Tribunal
(X) The Company has no accumulated losses at the end of the financial
year.
(XI) According to the records examined by us and the information and
explanations given by the management, the Company has not defaulted in
repayment of dues to any financial institution or bank.
(XII) 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 statute applicable to
chit/nidhi/mutual benefit fund/societies are not applicable to the
Company.
(XIV) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments.
(XV) In our opinion, and according to the 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 did not have any term loans outstanding during the
year.
(XVII) On the basis of our examination of the books of accounts and the
information and explanation given to us, and in our opinion, the funds
raised on short-term basis have not been used for long-term investment
and vice-versa.
(XVIII) The Company has not made any preferential allotment of shares
to parties and Companies covered in the Register maintained under
Section 301 of the Act during the year.
(XIX) The Company has not raised any debentures during the year and
does not have any outstanding debentures as at the year end.
(XX) The Company has not raised any money by public issues during the
year.
(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 come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such case by the Management.
For NYATI & ASSOCIATES
Chartered Accountants
Firm Registration. No. 002327C
SURESH NYATI
Partner
Udaipur, August 11, 2012 Membership No. 70742
Mar 31, 2010
1 We have audited the attached Balance Sheet of MADHAV MARBLES AND
GRANITES LIMITED as at 31st March, 2010 and also the Profit & Loss
Account for the year ended on that date and the Cash Flow Statement for
the year ended on that date annexed thereto. These financial statements
are the responsibility of the Companys Management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2 We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Companies (Auditors Report) Order, 2003, issued
by the Central government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we annex hereto a statement on
the matters specified in paragraphs 4 and 5 of the said order.
4 Further to our comments in the Annexure referred to in paragraph (3)
above:
(a) we have obtained all the information and explanations, which to the
best of our knowledge and 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, Profit and Loss Account and Cash Flow Statements
dealt with by this report are in agreement with the books of account of
the Company.
(d) in our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report, comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
(e) on the basis of the written representations received from the
directors as on 31st March 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
(f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
other notes thereon give the information required by the Companies Act,
1956, in the manner so required, and give a true and fair view in
conformity with Accounting Principle generally accepted in India;
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010.
(ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to Audit Report
(
full particulars including quantitative details and situation of fixed
assets.
(b) During the year, the Company has carried out physical verification
of the fixed assets. and no material discrepancies were noticed in
such verification.
(c) The Company has not disposed off a substantial part of the fixed
assets during the year.
(II) (a) A s explained to us, inventories have been physically verified
by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion the Company has maintained proper records of
inventory. The discrepancies between the physical stocks and the book
stocks were not material in relation to the operation of the Company
and the same have been properly dealt with in the books of account.
(III) (a) The Company has taken interest free unsecured loans from
Companies covered in the register maintained under Section 301 of
Companies Act, 1956. The number of Companies and amount involved in the
transactions is as follows:
No.of Parties Amount of loans taken
(Balance as on 31.03.2010)
One Rs. 50 Lacs
The Company has not taken unsecured loans from firms or other parties
covered in the register maintained under Section 301 of the Companies
Act 1956. (b) In our opinion, the rate of interest and other terms and
conditions of the said loans are not, prima facie, prejudicial to the
interest of the Company. (c) The Company has not granted any loan to
the Companies, firms and other parties listed in the register
maintained under Section 301 of the Companies Act 1956.
(IV) In our opinion and according to the information and explanations
provided to us there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of goods & services. During the course of our audit, no major
weakness has been noticed in the internal control.
(V) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the transactions that need to be entered into the
register maintained under Section 301 have been properly entered in the
said register. (b) As per records of the Company there were no
transactions exceeding during the year by Rs. Five lakh in respect of
each party made in pursuance of contracts, or arrangements required to
be entered in the register maintained under Section 301 of the Act.
(VI) The Company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 58A and 58AA of
the Companies Act, 1956 and rules made thereunder. Hence, the clause
(vi) of the Order is not applicable.
(VII) The Company has a system of internal audit, which, in our
opinion, is commensurate with its size and nature of its business.
(VIII) We have broadly reviewed the books of account and records
manitained by the company pursuant to the rules prescribed by the
Central Government for the maintenance of cost records under section
209(1)(d) of the Companies Act, 1956 in respect of generation of
electricity through wind power and are of the opinion that prima facie
the prescribed accounts and records have been made and maintained.The
contents of these accounts and records have not been examined by us.
(IX) (a) According to the records, information and explanation provided
to us, the Company is generally regular in depositing with appropriate
authorities undisputed amount of Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-tax, Sales-tax,
Wealth-tax, Customs duty, Excise duty, Cess and other statutory dues
applicable to it and no undisputed amounts payable were outstanding as
at 31st March, 2010 for a period of more than six months from the date
they became payable. b) The following are the details of disputed
Income-tax,Excise duty,Customs duty ,Sales tax and cess that have not
been paid to the concerned authorities.
Name Name Amount Period to Forum
of the of the Rs. Lacs which where
statute disputed the disputes
dues amount are
relates pending
Income Disallowance 61.82 2005-06 I.T.A.T.
Tax Act of exemption u/s
1961 10B under MAT
Income Disallowance of 140.71 2006-07 I.T.A.T
Tax Act - Deduction u/s
1961 80IA in respect of
income of windmill
- Conversion charges
& other expenses
related to land
- expenses u/s 40(a)(ia)
(X) The Company neither has accumulated losses at the end of the
financial year nor has incurred cash losses during the year and in the
immediately preceding year.
(XI) Based on our audit procedures and on the information and
explanations given by the management, the Company has not defaulted in
repayment of dues to any financial institution or bank.
(XII) Based on our examination and according to the 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 Company is not a chit / nidhi / mutual fund / society and
clause (xiii) of the Order is not applicable.
(XIV) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(XV) O n the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(XVI) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(XVII) On the basis of our examination of the books of accounts and the
information and explanation given to us, and in our opinion, the funds
raised on short-term basis have not been used for long-term investment
and vice-versa.
(XVIII) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Act.
(XIX) The Company did not have any outstanding debentures during the
year.
(XX) The Company has not raised any money by public issues during the
year.
(XXI) Based on the audit procedures performed and information and
explanations given to us by the management , we report that no fraud on
or by the company has been noticed or reported during the course of our
audit.
For NYATI & ASSOCIATES
Chartered Accountants
ICAI Reg. No. 002327C
SURESH NYATI
Place: Udaipur Partner
Date: August 07, 2010 Membership No. 70742
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