Mar 31, 2015
We have audited the accompanying financial statements of M.K. EXIM
(INDIA) LIMITED (''the Company"), which comprise the Balance Sheet as
at 31st March, 2015, 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 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 ofthe Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with
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 judgements
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 ofthe financial statements that give a true and fair view
and are free from material misstatements, whether due to fraud and
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 ofthe 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.
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 of 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 judgement, including the assessment of
the risks of material misstatements of 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. 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 ofthe 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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; and its profit and cash flows for the year ended on
that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements:
AS-15, far Employees Benefits (Revised 2005), in respect of Provision
for Gratuity. The Provision for Gratuity provided by the company is
inadequate and its effect on liabilities and profit of the Company is
unascertainable. Further, requisite disclosures are not made in respect
of retirement benefits.
Our opinion is not modified in respect of this matter.
As required by Companies (Auditors' Report) Order, 2015 issued by the
Central Government of India in terms of Section 143 of the Act, we give
in the Annexure a statement on the matters specified in paragraphs 3 of
the said order.
Report on Other Legal and Regulatory Requirements
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. ln our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books.
c. The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account.
d. ln our opinion, the aforesaid Standalone Financial Statements comply
with the Accounting Standards referred to in Section 133 of the
Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules,
2014.
e. On the basis of written representations received from the Directors,
as on 31st March, 2015 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2015 from being appointed as a director in terms of Section 164(2) of
the Act.
f. With respect to the other matter 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 does not have any pending litigation which would impact
its financial position.
ii .The company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the company.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNTS OF M.K.
EXIM (INDIA) LIMITED FOR THE YEAR ENDED ON 31 ST MARCH, 2015
1. (a)The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b)AII the assets have been physically verified by the management at
the end of the year, which, in our opinion is reasonable having regard
to the size of the company and the nature of its assets. No material
discrepancies were noticed on such verification.
2. (a)The inventory has been physically verified during the year at
reasonable intervals by the management.
(b) The procedure of physical verification of inventories followed by
the management is adequate in relation to the size of the company and
the nature of its business.
(c) The company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification.
3. The company has not granted any loans to companies, firms or other
parties covered in the register maintained under section 189 of the
Companies Act, 2013.
4.In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard of purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weakness in internal control system.
5. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits.
6. We have been explained that the maintenance of cost records has not
been prescribed by the Central Government under sub section (1) of
Section 148 of the Companies Act.
7. (a) The company is generally regular in depositing undisputed
statutory dues including Provident Fund, Employees State Insurance,
Income tax, Sales tax .Wealth tax, Service tax, Duty of Customs, Duty
of Excise, Value Added tax, Cess and any other statutory dues with the
appropriate authorities and there were no arrears of outstanding
statutory dues as at the last day of the financial year for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, dues of
Income tax amounting to Rs 190380/- have not been deposited and the
matter is pending before CIT (Appeals)-I, Jaipur (c)According to the
information and explanations given to us and records of company, no
amount is required to be transferred to Investor Education and
Protection Fund.
8. The company does not have accumulated losses as at the end of the
year. The company has not incurred any cash losses during the current
financial year and during the immediately preceding financial year.
9. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks and debenture holders.
10.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 banks or financial institutions.
11. The company has applied the term loan ,the purpose for which the
loan was obtained.
12. According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the year.
For VIMAL AGRAWAL & ASSOCIATES
Chartered Accountants
(FRN: 004187C)
Sd /-
(V. K. Agrawal)
Partner
Place : Jaipur M. No. 071627
Date : 30.05.2015
Mar 31, 2014
We have audited the accompanying financial statements of M.K. EXIM
(INDIA) LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March 2014, 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 Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the accounting principles generally accepted in India including
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956 ("the Act"). This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
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 auditing 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 of
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 judgement, including the assessment of
the risks of material misstatements of financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the 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 31st March, 2014;
(b) in the case of Statement of Profit and Loss, of the Profit of the
Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said 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 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, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
Section 211 (3C) of the Companies Act, 1956 except:
I. AS-28, for "Impairment of Assets", in respect of impairment loss of
Garment manufacturing unit, impairment loss, remains unascertained.
II. AS-15, for Employees Benefits (Revised 2005), in respect of
Provision for Gratuity. The Provision for Gratuity provided by the
Company is inadequate and its effect on liabilities and profit of the
Company is unascertainable. Further, requisite disclosures are not made
in respect of retirement benefits.
(e) On the basis of written representations received from the
Directors, as on 31st March 2014 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2014 from being appointed as a director in terms of clause
(g) of subsection (1) of section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNT OF M.K.
EXIM (INDIA) LIMITED FOR THE YEAR ENDED ON 31st MARCH, 2014
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management at
the end of the year, which, in our opinion is reasonable having regard
to the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) In our opinion, Company has not disposed off substantial part of
Fixed Assets during the year and the going concern status of the
Company is not affected.
2. (a) The inventory has been physically verified during the year by
the management.
(b) The procedure of physical verification of inventories followed by
the management is adequate in relation to the size of the Company and
the nature of its business.
(c) The Company is maintaining proper records of inventory.
3. (a) The Company has granted interest free unsecured loan to three
parties listed in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 88,50,000/- and the year end balance of loan given to such parties
was 88,50,000/.
(b) No terms and conditions have been stipulated for loans granted to
the party listed in the register maintained under section 301 of the
Companies Act, 1956.
(c) According to the information and explanations given to us, no
stipulation has been made for the repayment of principal amount in
respect of loans given to the parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(d) The Company has taken interest free unsecured loans from five
parties covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 81692/- and the year-end balance of loans taken from such parties
was Rs. Nil.
(e) In our opinion, other terms and conditions on which loans have been
taken from the parties listed in the register maintained under section
301 of the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
(1) According to the information and explanations given to us, no
stipulation has been made for the repayment of principal amount in
respect of loans taken from the parties listed in the register
maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard of purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal control system of the Company.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements that need to be entered into the register maintained under
section 301 of the Companies Act 1956, have been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
and exceeding the value of Rs. Five lakhs in respect of each party
during the year have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
6. 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 meaning of the provisions of section 58A and 58AA and other
relevant provisions of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975.
7. In our opinion and according to the information and explanations
given to us the internal audit system needs augmentation.
8. We have been explained that the maintenance of cost records has not
been prescribed by the Central Government under Section 209(1) (d) of
the Companies Act, 1956 for the period under review for the products of
the Company.
9. (a) The Company is generally regular in depositing with the
appropriate authorities undisputed statutory dues.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Value Added Tax, Service Tax, Customs Duty and Excise Duty were in
arrears as at the end of the financial year for a period of more than
six months from the date they became payable.
(c) According to the information and explanations given to us and
records of Company, there are no disputed statutory dues.
10. The Company does not have accumulated losses as at the end of the
year. The Company has not incurred any cash losses during the current
financial year. The Company has not incurred cash losses during the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks and financial institutions.
12. According to the information and explanations given to us, the
Company has not granted loans & advances on the basis of security by
way of pledge of shares, debentures & other securities.
13. 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.
14. Clause (xiii) is not applicable as this clause is applicable to
nidhi/mutual benefit fund/ societies.
15. Clause (xiv) is not applicable as this clause is applicable to
Company dealing/trading in shares, securities and other investments.
16. The company has not raised any term loan during the year.
17. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the Company, we report
that the no funds raised on short term basis have been used for long
term investment.
18. According to the information and explanation given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956 during the year.
19. According to the information and explanation given to us, the
Company has not issued debentures; hence this clause is not applicable.
20. According to the information and explanation given to us, the
Company has not raised any money by public issue during the year; hence
this clause is not applicable.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For VIMAL AGRAWAL & ASSOCIATES
Chartered Accountants
(FRN: 004187C)
(V. K. Agrawal)
Partner
M. No. 71627
Place : Jaipur
Dated: 21st June, 2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of M.K. EXIM (INDIA)
LIMITED as at 31st March 2012, Statement of Profit and Loss and Cash
Flow Statement for the year ended on that date annexed thereto. 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 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 (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose 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 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 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 Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956 except, AS-28, for "Impairment of Assets", in respect of
impairment loss of Garment manufacturing unit, impairment loss, remains
unascertained.
II. AS-15, for Employees Benefits (Revised 2005), in respect of
Provision for Gratuity. The Provision for Gratuity provided by the
Company is inadequate and its effect on liabilities and profit of the
Company is unascertainable. Further, requisite disclosures are not made
in respect of retirement benefits.
(e) On the basis of written representations received from the
Directors, as on 31" March 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2012 from being appointed as a director in terms of clause
(g) of subsection (1) of section 274 of the Companies Act, 1956.
(i) Subject to above, 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 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 the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2012; and
(ii) in the case of Statement of Profit and Loss, of the Profit of the
Company for the year ended on that date.
(iii) in the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNT OF M.K.
EXIM (INDIA) LIMITED FOR THE YEAR ENDED ON 318T MARCH, 2012
1. (a) The Company has maintained proper records showing full
particulars including
quantitative details and situation of fixed assets.
(b) All the assets have been physically verified by the management at
the end of the year, which, in our opinion is reasonable having regard
to the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) In our opinion, Company has not disposed off substantial part of
Fixed Assets during the year and the going concern status of the
Company is not affected.
2. (a) The inventory has been physically verified during the year by
the management.
(b) The procedure of physical verification of inventories followed by
the management is adequate in relation to the size of the Company and
the nature of its business.
(c) The Company is maintaining proper records of inventory.
3. (a) The Company has granted interest free unsecured loan to two
parties listed in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 32,63,2607- and the
year end balance of loan given to such party was NIL.
(b) No terms and conditions have been stipulated for loans granted to
the party listed in the register maintained under section 301 of the
Companies Act, 1956.
(c) According to the information and explanations given to us, no
stipulation has been
made for the repayment of principal amount in respect of loans given to
the parties listed in the register maintained under section 301 of the
Companies Act, 1956.
(d) The Company has taken interest free unsecured loans from two
parties covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 27,40,000/- and the year-end balance of loans taken from such
parties was Rs. 81,692/-
(e) In our opinion, other terms and conditions on which loans have been
taken from the parties listed in the register maintained under section
301 of the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
(f) According to the information and explanations given to us, no
stipulation has been made for the repayment of principal amount in
respect of loans taken from the parties listed in the register
maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard of purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal control system of the Company.
5. (a) According to the information and explanations given to us, we
are of the opinion that
the particulars of all contracts or arrangements that need to be
entered into the register maintained under section 301 of the Companies
Act 1956, have been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
and exceeding the value of Rs. Five lakhs in respect of any party
during the year have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
6. 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 meaning of the provisions of section 58A and 58AA and other
relevant provisions of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975.
7. In our opinion and according to the information and explanations
given to us the internal audit system needs augmentation.
8. We have been explained that the maintenance of cost records has not
been prescribed by the Central Government under Section 209(1) (d) of
the Companies Act, 1956 for the period under review for the products of
the Company.
9. (a) The Company is irregular in depositing with the appropriate
authorities undisputed
statutory dues in respect of Income Tax Deducted at source and there
have been significant delays in a number of cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Value Added Tax, Service Tax, Customs Duty and Excise Duty were in
arrears as at the end of the financial year for a period of more than
six months from the date they became payable.
(c) According to the information and explanations given to us and
records of Company, following are disputed Income tax due which have
not been deposited with appropriate authorities.
S. Nature of
Dues Amount (Rs.) Period Forum where
No. dispute is
pending
1. Income Tax
Demand 299973/- AY 2005-06 CIT(Appeals)
2. Income Tax
Demand 720985/- AY 2006-07 CIT(Appeals)
10. The Company does not have accumulated losses as at the end of the
year. The Company has not incurred any cash losses during the current
financial year. The Company has not incurred cash losses during the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks and financial institutions.
12. According to the information and explanations given to us, the
Company has not granted loans & advances on the basis of security by
way of pledge of shares, debentures & other securities.
13. In our opinion and according to the information and explanations
given to us, the Company has given guarantee for loans taken by
Symphony Jewels (P) Ltd. from Bank of Baroda amounting to Rs. 516.66
Lacs.
14. Clause (xiii) is not applicable as this clause is applicable to
nidhi/mutual benefit fund/ societies.
15. Clause (xiv) is not applicable as this clause is applicable to
Company dealing/trading in shares, securities and other investments.
16. The company has not raised any term loan during the year.
17. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the Company, we report
that the no funds raised on short term basis have been used for long
term investment.
18. According to the information and explanation given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956 during the year.
19. According to the information and explanation given to us, the
Company has not issued debentures; hence this clause is not applicable.
20. According to the information and explanation given to us, the
Company has not raised any money by public issue during the year; hence
this clause is not applicable.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For VIMAL AGRAWAL & ASSOCIATES
Chartered Accountants (FRN:004187C)
Sd/- (V. K. Agrawal)
Partner M. No. 71627
Place : Jaipur
Dated: 16th July, 2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of M.K. Exim (INDIA)
LIMITED as at 31st March 2010 the Profit and Loss Account and Cash Flow
Statement for the year ended on that date annexed there to. 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 Section 227(4A) of the
Companies Act, 1956, we enclose 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 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 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(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 Section 211 (3C) of the Companies Act, 1956
except.
I AS-28, for "Impairment of Assets", in respect of impairment loss of
Garment manufacturing unit, impairment loss, remains unascertained.
II. AS-15, for Employees Benefits (Revised 2005), in respect of
Provision for Gratuity. The Provision for Gratuity provided by the
Company is inadequate and its effect on liabilities and profit of the
Company is unascertainable. Further, requisite disclosures are not
made in respect of retirement benefits.
(e) On the basis of 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 subsection (1) of section 274 of the Companies Act, 1956.
(i) Subject to above, 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 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 the accounting principles 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; and
(ii) in the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date.
(iii) In the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNT OF M.K.
EXIM (INDIA) LIMITED FOR THE YEAR ENDED ON 31st MARCH, 2010
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management at
the end of the year, which, in our opinion is reasonable having regard
to the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) During the year, the Company has not disposed off substantial part
of the plant and machinery. According to the information and
explanation given to us, we are of the opinion that the sale of said
part of plant and machinery has not affected the going concern status
of the Company.
2. (a) The inventory has been physically verified during the year by
the management.
(b) The procedure of physical verification of inventories followed by
the management is adequate in relation to the size of the Company and
the nature of its business.
(c) The Company is maintaining proper records of inventory.
3. (a) The Company has granted interest free unsecured loan to one
party listed in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 66,800/- and the year end balance of loan given to such party was
Rs. 66,800/-.
(b) No terms and conditions have been stipulated for loans granted to
the party listed in the register maintained under section 301 of the
Companies Act, 1956.
(c) According to the information and explanations given to us, no
stipulation has been made for the repayment of principal amount in
respect of loans given to the parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(d) The Company has taken interest free unsecured loans from three
parties covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 4, 63,10,410/- and the year-end balance of loans taken from such
parties was Rs. 2,77,54,332/-
(e) In our opinion, other terms and conditions on which loans have been
taken from the parties listed in the register maintained under section
301 of the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
(f) According to the information and explanations given to us, no
stipulation has been made for the repayment of principal amount in
respect of loans taken from the parties listed in the register
maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard of purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal control system of the Company.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements that need to be entered into the register maintained under
section 301 of the Companies Act 1956, have been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
and exceeding the value of Rs. Five lakhs in respect of any party
during the year have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
6. 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 meaning of the provisions of section 58A and 58AA and other
relevant provisions of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975.
7. In our opinion and according to the information and explanations
given to us the internal audit system needs augmentation.
8. We have been explained that the maintenance of cost records has not
been prescribed by the Central Government under Section 209(1) (d) of
the Companies Act, 1956 for the period under review for the products of
the Company.
9. (a) The Company is irregular in depositing with the appropriate
authorities undisputed statutory dues including Investor Education
Protection Fund, Provident Fund Dues, Employees State Insurance dues,
Income Tax Deducted at source, Income Tax Sales Tax, Value Added Tax,
Service Tax, Custom Duty, Excise Duty, cess and other material
statutory dues applicable to it and there have been significant delays
in a large number of cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Value Added Tax, Service Tax, Customs Duty and Excise Duty were in
arrears as at the end of the financial year for a period of more than
six months from the date they became payable.
(C) According to the information and explanations given to us and
records of Company, the following are the disputed statutory dues on
account of income tax, which have not been deposited with appropriate
authorities:
S.
No. Nature of Dues Amount(Rs.) Period Forum where dispute is
pending
1 Income Tax Demand 1,33,938/- A.Y.2002-03 Income tax Appellate
Tribunal
10. The,Company does not have accumulated losses as at the end of the
year. The Company has not-incurred any cash losses during the current
financial year. The Company has not incurred cash loses during the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks and financial institutions.
12. According to the information and explanations given to us, the
Company has not granted loans & advances on the basis of security by
way of pledge of shares, debentures & other securities.
13. 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 banks or financial institutions.
14. Clause (xiii) is not applicable as this clause is applicable to
nidhi/mutual benefit fund/societies.
15. Clause (xiv) is not applicable as this clause is applicable to
Company dealing/trading in shares, securities and other investments.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
17. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the Company, we report
that the no funds raised on short term basis have been used for long
term investment.
18. According to the information and explanation given to us, the
Company has not made any preferential allotment of share; hence this
clause is not applicable.
19. According to the information and explanation given to us, the
Company has not issued debentures; hence this clause is not applicable.
20. According to the information and explanation given to us, the
Company has not raised any money by public issue during the year; hence
this clause is not applicable
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For VIMAL AGRAWAL & ASSOCIATES
Chartered Accountants
(FRN: 004187C)
sd/-
(V. K. Agrawal)
Partner
M. No. 71627
Place : Jaipur
Date : 30th May, 2010
Mar 31, 2009
1. We have audited the attached Balance Sheet of M.K. Exim (INDIA)
LIMITED as at 31 st March 2009, the Profit and Loss Account and 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 Section 227(4A) of the
Companies Act, 1956, we enclose 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 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 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
(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 Section 211 (3C) of the Companies Act, 1956
except,
i. AS-28, for "Impairment of Assets", in respect of impairment loss of
Garment manufacturing unit, impairment loss, remains unascertained.
ii. AS-15, for Employees Benefits (Revised 2005), in respect of
Provision for Gratuity. The Provision for Gratuity provided by the
Company is inadequate and its effect on liabilities and profit of the
Company is unascertainable. Further, requisite disclosures are not made
in respect of retirement benefits.
iii. AS-2, for Valuation of Inventories, in respect of valuation of
Closing Stock of Unit I and Unit III of the Company. The Closing Stock
in Unit I and Unit III has not been valued at lower of cost or net
realizable value.
(e) On the basis of written representations received from the
Directors, as on 31s March 2009 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31" March 2009 from being appointed as a director in terms of clause
(g) of subsection (1) of section 274 of the Companies Act, 1956.
(f) We report that,
i. The Financial Statements of the Company are prepared on a going
concern basis.
There are indications to suggest that going Concern Assumption is
Appropriate. However, the impact on Financial Statements of this
inappropriate ssoumption is unascertainable.
ii. Trade Advances amounting to Rs.241.52 lacs are doubtful of recover
in which no provision is made.
iii. Trade Debtors amounting to Rs.201.50 lacs are doubtful of recover,
rr which no provision is made.
iv. Closing Stock in unit III amounting to Rs 69.70 Lacs in Unit III of
the Company is obsolete and damaged which is overvalued. The decline in
value of stock is unascertainable.
v. Company has not made any provision for Bonus as required by the
Payment of Bonus Act, 1965 which remains unascertained.
vi. The Company is not charging any interest on Trade Advances given
:Ã. it, which in our opinion is prejudicial to the interest of the
Company however impan of same on financial statements is unascertained.
(g) We further report that, without considering sub para no.(i), (iv),
(v), (vi) of r-aa (f) above where effect could not be ascertained, had
the observations made by us ir sab para no. (ii), (iii) of para (f)
above, been considered, losses before tax for the year wo_ d have been
Rs. 507.95 lacs (as against Rs. 64.92 Lacs reported by the Company).
Reserves & surplus would have been Rs. 405.89 Lacs (as against Rs.
848.91 Lacs reported by the Company), Advances would have been 409.39
Lacs (as against Rs.650.92 Lacs reported by the Company.), Debtors
would have been Rs. 466.59 Lacs (as against Rs. 668.10 Lacs reported by
the Company).
(h) Without qualifying our opinion, we draw attention to advances of rs
325 lacs given by the Company to various parties. The management has
not given any explantion regarding business expediency for the same.
(i) Subject to (f), (g) and 4(d) (i), (ii), (iii) above, 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 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 the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31" March, 2009; and
(ii) in the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date.
(iii) In the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNT OF M.K.
EXIM (INDIA) LIMITED FOR THE YEAR ENDED ON 31st MARCH, 2009
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management at
the end of the year, which, in our opinion is reasonable having regard
to the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) During the year, the Company has disposed off substantial part of
the plant and machinery. According to the information and explanation
given to us, we are of the opinion that the sale of said part of plant
and machinery has not affected the going concern status of the Company.
2. (a) The inventory I as been physically verified during the year by
the management.
(b) The procedure of physical verification of inventories followed by
the management is inadequate in relation to the size of the Company and
the nature of its business. Proper documentation need to be maintained
for the physical verification exercise by the management.
(c) The Company is maintaining proper records of inventory.
3. (a) The Company has granted interest free unsecured loan to one
party listed in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs.216,800/- and the year end balance of loan given to such party was
Rs.66,800/-.
(b) No terms and conditions have been stipulated for loans granted to
the party listed in the register maintained under section 301 of the
Companies Act, 1956. Therefore this causes prejudice to the interest of
the Company.
(c) According to the informa*on and explanations given to us, no
stipulation has been made for the repayment of principal amount in
respect of loans given to the parties listed in the register maintained
under section 301 of the Companies Act, 1956.
à (d) The Company has taken interest free unsecured loans from four
parties covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs.6,80,50,627/- and the year-end balance of loans taken from such
parties was Rs.4,18,59,152/-
(e) In our opinion, other terms and conditions on which loans have been
taken from the parties listed in the register maintained under section
301 of the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
(f) According to the information and explanations given to us, no
stipulation has been made for the repayment of principal amount in
respect of loans taken from the parties listed in the register
maintained under section 301 of the Companies Act, 195 5.
4. In our opinion and according to the information and explanations
given to ls, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard of purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal control system of the Company.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements that need to be entered into the register maintained under
section 301 of the Companies Act 1956, have been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
and exceeding the value of Rs. Five lakhs in respect of any party
during the year have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
6. 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 meaning of the provisions of section 58A and 58AAand other
relevant provisions of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975.
7. In our opinion and according to the information and explanations
given to us he internal audit system needs augmentation.
8. We have been explained that the maintenance of cost records has not
been prescribed by the Central Government under Section 209(1) (d) of
the Companies Act, 1956 for the period under review for the products of
the Company.
9. (a) The Company is irregular in depositing with the appropriate
authorities undisputed statutory dues including Investor Education
Protection Fund, Provident Fund Dues, Employees State Insurance dues,
Income Tax Deducted at source, Income Tax Sales Tax, Value Added Tax,
Service Tax, Custom Duty, Excise Duty, cess and other material
statutory dues applicable to it and there have been significant delays
in a large number of cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Value Added Tax, Service Tax, Customs Duty and Excise Duty were in
arrears as at the end of the financial year for a period of more than
six months from the date they became payable except the following:
Name of the Nature of the Amount(Rs.) Period to which
Statute Dues the amt. relates
Provident Fund Provident 4,39,219/- F.Y. 2007-08
& Misc. Fund
Provisions Act,
1952
1,36,990/- 1stApril,08to
30th Sept.,08
The Rajasthan Value 2,76,552/- 1 st April,08 to
VAT Act, 2003 Added Tax 30th Sept.,08
The Central Sales Tax 1,28,008/- 1 st April,08
Sales Tax 30th Sept.,08
Act, 1956
Name of the Statue Due Date Date of
Payment
Provident Fund
& Misc.
Provisions Act,
1952 14th of Not Paid
Next Month
14th of Not Paid
Next Month
The Rajasthan 15th of Not paid
VAT Act, 2003 Next Month
The Central
Sales Tax
Act, 1956 15th of
Next Month
(c) According to the information and explanations given to us and
records of Company, the following are the disputed statutory dues on
account of income tax, which have not been deposited with appropriate
authorities:
S.No. Nature of Dues Amount(Rs.) Period Forum where dispute is
pending
1. Income Tax Demand 1,33,938/- A.Y.2002-03 Commissioner of Income
Tax (Appeals)
10. The Company does not have accumulated losses as at the end of the
year. However, taking into consideration, the qualifications given in
the report the total resultant loss will be Rs. 507.95 lacs which will
not exceed the existing Reserves and Surplus. The Company has not
incurred any cash losses during the current financial year. However,
the Company had incurred cash losses of Rs.43.41 lacs during the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has generally defaulted in repayment of dues
to banks and financial institutions.
12. According to the information and explanations given to us, the
Company has not granted loans & advances on the basis of security by
way of pledge of shares, debentures & other securities.
13. 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 banks or financial institutions.
14. Clause (xiii) is not applicable as this clause is applicable to
nidhi/mutual benefit fund/societies.
15. Clause (xiv) is not applicable as this clause is applicable to
Company dealing/trading in shares, securities and other investments.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
17. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the Company, we report
that the no funds raised on short term basis have been used for long
term investment.
18. According to the information and explanation given to us, the
Company has not made any preferential allotment of share, hence this
clause is not applicable.
19. According to the information and explanation given to us, the
Company has not issued debentures; hence this clause is not applicable.
20. According to the information and explanation given to us, the
Company has not raised any money by public issue during the year, hence
this clause is not applicable.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
ForP.C.Modi&Co.
Chartered Accountants
Sd/-
(Bharat Sonkhiya)
Partner
Place : Jaipur Membership No. 403023
Dated : 30th June, 2009
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