Mar 31, 2022
Opinion
We have audited the accompanying standalone financial statements of M M Forgings Limited (hereinafter referred to as âthe Companyâ), which comprise the Balance Sheet as at March 31, 2022, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date and a summary of significant accounting policies and other explanatory information (hereinafter referred to as âthe standalone financial statementsâ).
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 Companies Act, 2013 (hereinafter referred to as âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022 and its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Our responsibilities under those Standards are further described in the âAuditorsâ Responsibilities for the Audit of the Standalone Financial Statementsâ section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (âICAIâ) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIâs Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
S. No. |
Key Audit Matter |
Auditorâs Response |
NIL |
Information other than the financial statements and Auditorsâ Report thereon
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Boardâs Report including Annexures to Boardâs Report, Business Responsibility Report, Corporate Governance and Shareholderâs Information, but does not include the consolidated financial statements, standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report the fact. We have nothing to report in this regard.
Managementâs Responsibilities for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS 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 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the standalone financial statements, the Board of Directors of the Company is responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to the going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors of the Company is also responsible for overseeing the financial reporting process of the Company.
Auditorsâ Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorsâ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
⢠Conclude on the appropriateness of the Board of Directorsâ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorsâ report to the related disclosures in the standalone financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorsâ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance of the Company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2020 (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 âAnnexure Aâ statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, based on our audit, we report that:
(i) 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;
(ii) 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;
(iii) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account;
(iv) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act;
(v) On the basis of the written representations received from the Directors as on March 31, 2022 taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2022 from being appointed as a Director in terms of Section 164(2) of the Act;
(vi) With respect to the adequacy of the internal financial controls system with reference to financial statements and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls with reference to financial statements.
(vii) With respect to the other matters to be included in the Auditorsâ Report in accordance with the requirements of Section 197(16) of the Act, as amended:
(viii) In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its Directors during the year is
in accordance with the provisions of Section 197 of the Act.
(ix) With respect to the other matters to be included in the Auditorsâ 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:
a. The Company does not have any pending litigation which would impact its financial position.
b. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
i. The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
ii. The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
d. As stated in the standalone financial statements
i. Interim Dividend was declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable
ii. The Board of Directors of the Company has declared interim dividend for the year. The amount of dividend proposed is in accordance with Section 123 of the Act, as applicable.
For G R N K & CO CHARTERED ACCOUNTANTS Firm Registration No. 016847S
G.R. NARESH KUMAR Partner
Place: Tiruchirapalli Membership no. 215577
Date: 25 May 2022 UDIN: 22215577AKHLMX1792
Mar 31, 2018
Report on the IND AS Standalone Financial Statements
We have audited the accompanying Standalone Ind AS Financial statements of M/S. M.M. Forgings Limited (âthe Companyâ), which comprises the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income) the statement of changes in equity and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs 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 standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income and cash flows and changes in equity of the Company in accordance with the Accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of The Act, read with relevant rules issued thereunder.
This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent, and design and 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone 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 Auditorâs report under the provisions of the Act and rules made there under and the Order issued under Section 143 (11) of The Act.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act and other applicable authoritative pronouncements 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 over all presentation of the financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
1) 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 financial position of the company as at 31st March 2018 and its PROFIT and cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government 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 said 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 standalone financial statements comply with the Indian Accounting Standards specified under section 133 of the Act read with relevant rule issued thereunder.
e) On the basis of written representations received from the Directors as on March 31 2018, and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2018, 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 Annexure B. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs Internal Financial Controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs 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 does not have any long term contract including derivative contract for which there were any material foreseeable losses.
iii) There has been no delay in transferring the amounts, required to be transferred, to the investor education and protection fund.
iv) The reporting on disclosure relating to Specified Bank Notes is not applicable to the Company for the year Ended 31.03.2018.
ANNEXURE A TO THE AUDITORâS REPORT
The Annexure referred to in Independent Auditorâs Report to the members of the Company on the Financial Statements for the Year Ended 31.03.2018:
We report that
I a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
b) As explained to us, all the assets have not been physically verified by the management during the year but there is a regular program of verification to cover all the items of Fixed Assets in a phased manner, which, in our opinion, is reasonable, considering the size and the verification having regard to the size of the company and the nature of its assets. Pursuant to the program, certain Fixed Assets were physically verified by the Management during the year. No material discrepancies have been noticed on such physical verification.
c) According to the information and explanations furnished to us, the records examined by us and based on the examination of the conveyance deeds provided to us, we report that the Title Deeds, comprising of all the immoveable properties of the Land Buildings which are Freehold, are held in the name of the company as at the Balance Sheet date. Based on the above, we also report that all the assets of the Company are Freehold and the Company has not acquired any Asset on Lease. Also, all the assets are held for the use of the Company only and none of the assets are held for use by others.
II a) The inventories have been physically verified by the management during the year at reasonable intervals, except materials lying with third parties, where confirmations are obtained. In our opinion, the frequency of verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material.
III According to the information and explanations furnished to us, the Company has neither granted nor taken any loans to and from companies, firms or other parties covered in the Register, maintained under Section 189 of the Companies Act, 2013, except the Loan of Rs.4628.36 Lakhs to M/S. DVS Industries Private Limited, subsidiary of the Company in respect of which,
a) The Terms and conditions of the grant of such loan is, in our opinion, not prejudicial to the interest of the Company;
b) The repayment of the said loan is yet to commence as per the schedule stipulated for the repayment;
c) There is no overdue amount remaining outstanding as on the date of the Balance Sheet.
IV In our opinion and according to the information and explanations furnished to us, the Company has complied with the Provisions of Sections 185 and 186 of The Act in respect of Grant of Loans and making investments. The Company has not given any Guarantees and securities falling under section 185 / 186 of The Companies Act 2013.
V During the year, the Company has not accepted any Deposits from the Public or from the members. The Company does not have any Deposits on the date of the Balance Sheet. The Company does not have any Unclaimed Deposits on the date of the Balance Sheet. Therefore, the provisions of Clause 3 (v) of the Order are not applicable to the Company.
VI The maintenance of Cost Records under section 148 (1) of The Act has not been specified by The Central Government for the Business activities carried on by the Company. Thus, reporting under Clause 3 (vI0 of the Order is not applicable to the Company.
VII a) According to the records of the Company, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, GST, Sales Tax, Value Added Tax, Wealth Tax, Customs Duty, Excise Duty, Service Tax, Cess and other material statutory dues applicable to it.
b) There were no undisputed amounts payable in respect of any of the above statutory dues.
c) The following taxes under Tamil Nadu VAT Act are under dispute and appeals are pending before various forums. The company has already paid a sum of Rs.116.38 Lakhs against the disputed TN VAT.
Nature Of the Statute |
Nature of Dues |
Amount in |
Period to which |
Forum where |
Rs. in Lakhs |
it relates |
Appeal is Pending |
||
TN VAT Act |
Vat |
196.64 |
Various Years |
DC- Appeals |
VIII Based on our audit procedure and on the information and explanation given by the management, we are of the opinion that the company has not defaulted in repayment of its dues to Financial Institutions, Banks and debenture holders.
X The Company has not raised any money by way of initial public offer or other public offer. The Company has availed the following term loans / Working Capital facilities from Banks:
Net Long Term Borrowings Rs.7979.04 Lakhs
Net Short Term Borrowings Rs.9814.15 Lakhs
Based on our audit, we report that the proceeds of the Term Loan / Working Capital have been utilized for the purpose for which they were borrowed - namely creation of Fixed Assets of the Company. The total investment in Fixed Assets / Current Assets for the year is at Rs.10812.98 Lakhs as against Term Loan availed of Rs. 7979.04 Lakhs.
Further, as against Working Capital Borrowings of Rs.9814.15 Lakhs during the Year, the application for Short Term uses is at Rs.12556.42 Lakhs.
X To the best of our knowledge and based on the audit procedures performed and information and explanations given by the management, we report that no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
XI Based on the audit procedures performed and information and explanations given by the management, we report that 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 The Company is Not a Nidhi Company. Accordingly, para 3 (xii) of The Order is not applicable to the Company.
XIII Based on the audit procedures performed and information and explanations given by the management, all the transactions with the related parties are in compliance with Sections 177 / 188 of the Companies Act 2013 were applicable and details of such transactions are duly reported in the standalone Financial Statements as required by the applicable Accounting Standards.
XIV During the Year, The Company has not made any preferential allotment or Private placement of shares or fully / partly convertible debentures during the year. Hence, reporting under Clause 3 (xiv) of the Order is not applicable to the Company.
XV Based on the audit procedures performed and information and explanations given by the management The Company has not entered in to any Non Cash Transactions with Directors or persons connected with him and hence, the provisions of section 192 of The Companies Act 2013 are not applicable to the Company.
XVI. No registration is required under Section 45 IA of The Reserve Bank of India Act.
Annexure B to the Auditorsâ Report
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 M.M Forgings Ltd (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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 (âICAIâ). 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 the Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs 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 (âthe Guidance 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 auditorâs judgement, including the assessment of the risks of material misstatement of the standalone Ind AS 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 Companyâs internal financial control systems over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs 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 companyâs 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 the management and Directors of the company; and (3) provide reasonable assurance regarding prevention or timely direction of unauthorized acquisition, use, or disposition of the companyâs 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 control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 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 G R N K & Co
Chartered Accountants
FRN: 016847S
G R Naresh Kumar
Place : Tiruchirapalli Proprietor
Date : 28 May 2018 Membership No. 215577
Mar 31, 2017
Report on the IND AS Financial Statements
We have audited the accompanying Standalone Ind AS Financial statements of M/S. M M Forgings Limited (âthe Companyâ), which comprises the Balance Sheet as at March 31, 2017, 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.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs 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 standalone 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 Indian Accounting Standards prescribed under section 133 of The Act, read with relevant rules issued thereunder. This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safe guarding 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 and 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone 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 Auditorâs report under the provisions of the Act and 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 we 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 the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 over all 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 standalone financial statements.
Opinion
1) 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 financial position of the company as at 31st March 2017 and its PROFIT and cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government 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 said 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 these 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 standalone financial statements comply with the Accounting Standards specified under section 133 of the Act read with relevant rule issued thereunder.
e) On the basis of written representations received from the Directors as on March 31 2017, and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2017, 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 Annexure B and
g) With respect to the other matters to be included in the Auditorâs 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 contract including derivative contract for which there were any material foreseeable losses.
iii) There has been no delay in transferring the amounts, required to be transferred, to the investor education and protection fund.
iv) The company has provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and the said disclosures are in accordance with the books of accounts maintained by the company. Refer to Note No 32 to the Financial Statements.
ANNEXURE A TO THE AUDITORâS REPORT
The Annexure referred to in Independent Auditorâs Report to the members of the Company on the Financial Statements for the Year Ended 31.03.2017:
We report that
I a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
b) As explained to us, all the assets have not been physically verified by the management during the year but there is a regular program of verification which, in our opinion, is reasonable, considering the size and the verification having regard to the size of the company and the nature of its assets. No material discrepancies have been noticed on such physical verification.
c) The Title Deeds of Immovable Property are held in the name of the company.
II a) The inventories have been physically verified by the management during the year at reasonable intervals, except materials lying with third parties, where confirmations are obtained. In our opinion, the frequency of verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material.
III The Company has neither granted nor taken any loans to and from companies, firms or other parties covered in the Register, maintained under Section 189 of the Companies Act, 2013.
IV The Company has not given any Loans, Investments, Guarantees and securities falling under section 185 / 186 of The Companies Act 2013.
V The Company has not accepted any Deposits from the Public or from the members.
VI The Central Government has not prescribed the maintenance of Cost Records under section 148 (1) of The Act.
VII a) According to the records of the Company, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Value Added Tax, Wealth Tax, Customs Duty, Excise Duty, Service Tax, Cess and other material statutory dues applicable to it.
b) The following taxes under Tamil Nadu VAT/Indian Income Tax Act are under dispute and appeals are pending before various forums. The company has already paid a sum of Rs 116.38 Lakhs against the disputed TN VAT.
Nature Of the Statute |
Nature of Dues |
Amount in Rs. in Lakhs |
Period to which it relates |
Forum where Appeal is Pending |
TN VAT Act |
Vat |
196.64 |
Various Years |
DC- Appeals |
Income Tax Act |
Income Tax |
223.29 |
AY 2013-14 |
CIT Appeals |
Income Tax |
406.54 |
AY 2014-15 |
CIT Appeals |
VIII Based on our audit procedure and on the information and explanation given by the management, we are of the opinion that the company has not defaulted in repayment of its dues to Financial Institutions, Banks and debenture holders.
IX The Company has not raised any money by way of initial public offer or other public offer. The Company has availed the following term loans from banks: From State Bank of Travancore Rs.53,50,67,451 Based on our audit, we report that the proceeds of the Term Loan have been utilized for the purpose for which they were borrowed - namely creation of Fixed Assets of the Company. The total investment in Fixed Assets for the year is at Rs.9953.13 Lakhs as against Term Loan availed of Rs.5350.67 Lakhs.
X Based on the audit procedures performed and information and explanations given by the management, we report that no fraud, on or by the Company, has been noticed or reported during the year.
XI Based on the audit procedures performed and information and explanations given by the management, we report that 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 The Company is Not a Nidhi Company. Accordingly, para 3 (xii) of The Order is not applicable to the Company.
XIII Based on the audit procedures performed and information and explanations given by the management All the transactions with the related parties are in compliance with Sections 177/188 of the Companies Act 2013 were applicable and details of such transactions are duly reported in the Financial Statements as required by the applicable Accounting Standards.
XIV The Company has not made any preferential allotment or Private placement of shares or fully / partly convertible debentures during the year.
XV Based on the audit procedures performed and information and explanations given by the management The Company has not entered in to any Non Cash Transactions with Directors or persons connected with him as stipulated under section 192 of The Companies Act 2013.
XVI. No registration is required under Section 45 IA of The Reserve Bank of India Act.
For G. Ramesh Kumar & Co
Chartered Accountants
FRN: 003010S
G. Ramesh Kumar
Place: Tiruchirapalli Partner
Date : 19.05.2017 Membership No. 200/18663
Mar 31, 2016
INDEPENDENT AUDITOR''S REPORT
To the Members of M.M. FORGINGS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of MM FORGINGS LIMITED (âthe Companyâ), which comprises the Balance Sheet as at March 31, 2016, 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.
Managementâs Responsibility for the Financial Statements
The Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act, 2013 (The Act) with respect to the preparation of these stand alone 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 standard specified in 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 safe guarding 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 and 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these stand alone 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 Auditorâs report under the provisions of the Act and 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 the Report complies with ethical requirements and we 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 the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 stand alone financial statements.
Opinion
1) 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 2016 and its profit and cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditorâs Report) Order, 2015 (âthe Orderâ) issued by the Central Government in terms of sub sub-section 11 of section 143 of the Act , we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the said 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 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 it appears from our examination of these 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 stand alone 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 other matters to be included in the Auditorâs 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 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 contract including derivative contract for which there were any material foreseeable losses.
iii) There has been no delay in transferring the amounts, required to be transferred to the investor education and protection fund.
Regarding MM FORGINGS LIMITED
Referred to in paragraph 1 of our report of even day
I a) The Company has maintained proper records showing full particulars including quantitative details and situate of fixed assets;
b) As explained to us, the assets have not been physically verified by the management during the year but there is a regular program of verification which, in our opinion, is reasonable considering the size and the verification having regard to the size of the company and the nature of its assets. No material discrepancies have been noticed on such physical verification.
c) The Title Deeds of Immovable Property are held in the name of the company.
II a) The inventories have been physically verified by the management during the year at reasonable intervals, except materials lying with third parties, where confirmations are obtained. In our opinion the frequency of verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material.
III The Company has neither granted nor taken any loans to and from companies, firms or other parties covered in the Register, maintained under Section 189 of the Companies Act, 2013.
IV The Company has not given any Loans, Investments, Guarantees and securities falling under section 185/ 186 of The Companies Act 2013.
V In our opinion and according to the information and explanation given to us, The company has complied with the provisions of section 73 and 76 of the Companies Act 2013 and the Companyâs (Acceptance of Deposits) Rules 2014 with regard to the deposits, if any, accepted from the public and from the members.
VI No order has been passed by the Central Government for maintenance of cost records.
VII a) According to the records of the Company, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Value Added Tax. Wealth Tax, Customs Duty, Excise Duty, Service Tax, Cess and other statutory dues applicable to it.
b) The following taxes under Tamil Nadu VAT/Indian Income Tax Act are under dispute and appeals are pending before various forums. The company has already paid a sum of Rs 116.38 Lakhs against the disputed TN VAT.
VAT for Various Years Rs 196.64 Lakhs
Indian Income Tax Act YE 31.03.2012 Rs. 370.44 Lakhs YE 31.03.2013 Rs. 223.29 Lakhs
VIII Based on our audit procedure and on the information and explanation given by the management, we are of the opinion that the company has not defaulted in repayment of its dues to Financial Institutions, Banks and debenture holders.
X The Company has not raised any money by way of initial public offer or other public offer and term loan.
X Based on the audit procedures performed and information and explanations given by the management, we report that no fraud, on or by the Company, has been noticed or reported during the year.
XI The Managerial Remuneration have been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act 2013.
XII The Company is Not a Nidhi Company.
XIII All the transactions with the related parties under section 177/188 of the Companies Act 2013 are duly reported by the Directors in their Report for the year.
XIV The Company has not made any preferential allotment or Private placement of shares or fully / partly paid convertible debentures during the year.
XV The Company has not entered in to any Non Cash Transactions with Directors or person connected with him as stipulated under section 192 of The Companies Act 2013.
XVI No registration is required under section 45IA of the Reserve Bank of India Act.
For G. Ramesh Kumar & Co
Chartered Accountants
FRN: 003010S
G. Ramesh Kumar
Place : Tiruchirapalli Partner
Date : 09 May 2016 Membership No. 200/18663
Mar 31, 2015
We have audited the accompanying financial statements of M M Forgings
Limited ("the Company"), which comprises the Balance Sheet as at March
31, 2015, 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
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"). 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.
Auditor's 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 auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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, 2015;
b) in the case of the Profit and Loss Statement, of the Profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
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 comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
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 director is disqualified as on March 31, 2015, 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 OUR REPORT
(Referred to in Paragraph 1 of our Report of Even date)
As required by the Companies' (Auditor's Report) Order, 2003 and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks as were considered
appropriate, we report that:
1. 1.1 The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets;
1.2 As explained to us, the assets have been physically verified by the
management in accordance with a phased programme of verification, which
in our opinion, is reasonable, considering the size and the
verification is reasonable and no material discrepancies have been
noticed on such physical verification.
2. 2.1 The inventories have been physically verified by the management
during the year at reasonable intervals, except materials lying with
third parties, where confirmations are obtained;
2.2 The procedures of physical verification of the inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business;
2.3. The Company has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to book records were not material.
3. 3.1 The Company has neither granted nor taken any loans to and from
companies, firms or other parties covered in the Register, maintained
under Section 301 of the Companies Act, 1956.
3.2 The rate of interest and other terms and conditions in respect of
unsecured loans given by the Company to its employees and others, are
in our opinion, prima facie not prejudicial to the interest of the
Company;
3.3 In respect of such loans given by the Company, where stipulations
have been made, they have generally repaid the principal amounts as
stipulated and have been regular in payment of interest, where
applicable;
3.4 In respect of such loans given by the Company, there are no overdue
amounts more than Rs. 1,00,000.
4 There are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to
purchase of inventories, fixed assets and for the sale of goods.
5. 5.1 The transactions made in pursuance of contracts or arrangements
that need to be entered into the register maintained under Section 301
of the Companies Act, 1956 have been recorded in the register;
5.2 There are no transactions of purchase and sale of goods, materials
and services made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act 1956
aggregating during the year to Rs. 5,00,000 or more in respect of each
party.
6. The Company has not accepted any deposits from the public.
7. No order under Section 209(1)(d) of the Companies Act, 1956 has
been passed by the Central Government for maintenance of cost records.
8. 8.1 According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including 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 with appropriate authorities. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of such statutory dues which have remained
outstanding as at 31st March, 2014 for a period more than six months
from the date they became payable.
8.2 There are no disputed Sales-tax, Customs Duty and Excise Duty,
except what is stated in the notes forming part of the accounts.
9. The Company has no losses either in the current financial year or
in the immediately preceding financial year.
10. The Company has not defaulted in repayment of its dues to banks.
11. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
12. The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund / are not applicable to the Company.
13. The company is not dealing or trading in shares, securities,
debentures or other investments and hence, the requirements of para 4
(xiv) are not applicable to the Company.
14. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
15. The Company has utilised the term loan availed during the year,
for the purpose for which the same are sanctioned.
16. On the basis of our examination of the Cash Flow Statement, the
funds raised on short-term basis have not been used on long term
investments, as they have been financed out of internal accruals.
17. 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.
18. No debentures have been issued by the company.
19. The Company has not raised any money by way of Public issues
during the year.
20. On the basis of our examinations and according the information and
explanations given to us, no fraud, on or by the Company, has been
noticed or reported during the year.
For M/S G RAMESHKUMAR & Co
Chartered Accountants
FRN 003010S
Place : Tiruchirapalli G.Ramesh Kumar
Date : 18 May 2015 Membership No. 200 / 18663
Mar 31, 2014
We have audited the accompanying financial statements of M M Forgings
Limited ("the Company"), which comprises the Balance Sheet as at March
31, 2014, 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
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"). 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.
Auditor''s 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 auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 Profit and Loss Statement, of the Profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
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 comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
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 director 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 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.
As required by the Companies'' (Auditor''s Report) Order, 2003 and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks as were considered
appropriate, we report that:
1. 1.1 The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed assets;
1.2 As explained to us, the assets have been physically verified by the
management in accordance with a phased programme of verification, which
in our opinion, is reasonable, considering the size and the
verification is reasonable and no material discrepancies have been
noticed on such physical verification.
2. 2.1 The inventories have been physically verified by the management
during the year at reasonable intervals, except materials lying with
third parties, where confirmations are obtained;
2.2 The procedures of physical verification of the inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business;
2.3. The Company has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to book records were not material.
3. 3.1 The Company has neither granted nor taken any loans to and from
companies, firms or other parties covered in the Register, maintained
under Section 301 of the Companies Act, 1956.
3.2 The rate of interest and other terms and conditions in respect of
unsecured loans given by the Company to its employees and others, are
in our opinion, prima facie not prejudicial to the interest of the
Company;
3.3 In respect of such loans given by the Company, where stipulations
have been made, they have generally repaid the principal amounts as
stipulated and have been regular in payment of interest, where
applicable;
3.4 In respect of such loans given by the Company, there are no overdue
amounts more than Rs. 1,00,000.
4 There are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to
purchase of inventories, fixed assets and for the sale of goods.
5. 5.1 The transactions made in pursuance of contracts or arrangements
that need to be entered into the register maintained under Section 301
of the Companies Act, 1956 have been recorded in the register;
5.2 There are no transactions of purchase and sale of goods, materials
and services made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act 1956
aggregating during the year to Rs. 5,00,000 or more in respect of each
party.
6. The Company has not accepted any deposits from the public.
7. No order under Section 209(1)(d) of the Companies Act, 1956 has
been passed by the Central Government for maintenance of cost records.
8. 8.1 According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including 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 with appropriate authorities. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of such statutory dues which have remained
outstanding as at 31st March, 2014 for a period more than six months
from the date they became payable.
8.2 There are no disputed Sales-tax, Customs Duty and Excise Duty,
except what is stated in the notes forming part of the accounts.
9. The Company has no losses either in the current financial year or
in the immediately preceding financial year.
10. The Company has not defaulted in repayment of its dues to banks.
11. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
12. The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund / are not applicable to the Company.
13. The company is not dealing or trading in shares, securities,
debentures or other investments and hence, the requirements of para 4
(xiv) are not applicable to the Company.
14. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
15. The Company has utilised the term loan availed during the year,
for the purpose for which the same are sanctioned.
16. On the basis of our examination of the Cash Flow Statement, the
funds raised on short-term basis have not been used on long term
investments, as they have been financed out of internal accruals.
17. 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.
18. No debentures have been issued by the company.
19. The Company has not raised any money by way of Public issues
during the year.
20. On the basis of our examinations and according the information and
explanations given to us, no fraud, on or by the Company, has been
noticed or reported during the year.
For M/S G. RAMESHKUMAR & Co
Chartered Accountants
FRN 003010S
Place : Tiruchirapalli G.Ramesh Kumar
Date :14 May 2014 Membership No. 200 / 18663
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M M Forgings
Limited ("the Company"), which comprises 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
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"). 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.
Auditor''s 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 auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 Profit and Loss Statement, of the Profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
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 comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
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 OUR REPORT
(Referred to in Paragraph 1 of our Report of Even date)
As required by the Companies'' (Auditor''s Report) Order, 2003 and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks as were considered
appropriate, we report that:
1. 1.1 The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets;
1.2 As explained to us, the assets have been physically verified by the
management in accordance with a phased programme of verification, which
in our opinion, is reasonable, considering the size and the
verification is reasonable and no material discrepancies have been
noticed on such physical verification.
2. 2.1 The inventories have been physically verified by the management
during the year at reasonable intervals, except materials lying with
third parties, where confirmations are obtained;
2.2 The procedures of physical verification of the inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business;
2.3. The Company has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to book records were not material.
3. 3.1 The Company has neither granted nor taken any loans to and from
companies, firms or other parties covered in the Register, maintained
under Section 301 of the Companies Act, 1956.
3.2 The rate of interest and other terms and conditions in respect of
unsecured loans given by the Company to its employees and others, are
in our opinion, prima facie not prejudicial to the interest of the
Company;
3.3 In respect of such loans given by the Company, where stipulations
have been made, they have generally repaid the principal amounts as
stipulated and have been regular in payment of interest, where
applicable;
3.4 In respect of such loans given by the Company, there are no overdue
amounts more than Rs. 1,00,000.
4 There are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to
purchase of inventories, fixed assets and for the sale of goods.
5. 5.1 The transactions made in pursuance of contracts or arrangements
that need to be entered into the register maintained under Section 301
of the Companies Act, 1956 have been recorded in the register;
5.2 There are no transactions of purchase and sale of goods, materials
and services made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act 1956
aggregating during the year to Rs. 5,00,000 or more in respect of each
party.
6. The Company has not accepted any deposits from the public.
7. No order under Section 209(1)(d) of the Companies Act, 1956 has
been passed by the Central Government for maintenance of cost records.
8. 8.1 According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including 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 with appropriate authorities. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of such statutory dues which have remained
outstanding as at 31st March, 2013 for a period more than six months
from the date they became payable.
8.2 There are no disputed Sales-tax, Customs Duty and Excise Duty,
except what is stated in the notes forming part of the accounts.
9. The Company has no losses either in the current financial year or
in the immediately preceding financial year.
10. The Company has not defaulted in repayment of its dues to banks.
11. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
12. The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund / are not applicable to the Company.
13. The company is not dealing or trading in shares, securities,
debentures or other investments and hence, the requirements of para 4
(xiv) are not applicable to the Company.
14. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
15. The Company has utilised the term loan availed during the year,
for the purpose for which the same are sanctioned.
16. On the basis of our examination of the Cash Flow Statement, the
funds raised on short-term basis have not been used on long term
investments, as they have been financed out of internal accruals.
17. 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.
18. No debentures have been issued by the company.
19. The Company has not raised any money by way of Public issues
during the year.
20. On the basis of our examinations and according the information and
explanations given to us, no fraud, on or by the Company, has been
noticed or reported during the year.
For M/S G. RAMESHKUMAR & Co
Chartered Accountants
FRN 003010S
Place : Tiruchirapalli G.Ramesh Kumar
Date :21 May 2013 Membership No. 200 / 18663
Mar 31, 2012
1. We have Audited the attached Balance Sheet of M M FORGINGS LIMITED,
CHENNAI - 600032 as at 31 March 2012 and also the operating, Profit and
Loss Account 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 Company Law Board in terms of Sec. 227(4A) of the
Companies Act 1956, we enclose in the Annexure a statement on the
matter specified in the said order.
4. Further to our comments in the Annexure referred to in Paragraph 1
above.
4.1 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;
4.2. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
4.3 The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of accounts.
4.4 In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
Sub-section (3c) of Section 211 of The Companies Act 1956.
4.5 On the basis of written representations received from the Directors
as at 31st March 2012 and taken on record by the 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 sub section (1)
of section 274 of The Companies Act 1956.
4.6 In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by The Companies Act 1956 and give a true and fair view in
conformity with the accounting principles generally accepted in India.
4.6.1 in the case of Balance Sheet of the State of affairs of the
Company as at 31 March 2012 and
4.6.2 in the case of operating Profit and Loss Account, of the Profit
of the Company for the year ended on 31 March 2012.
4.6.3 in the case of Cash Flow Statement, of the Company for the year
ended on that date.
ANNEXURE TO OUR REPORT
(Referred to in Paragraph 1 of our Report of Even date)
As required by the Companies' (Auditor's Report) Order, 2003 and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks as were considered
appropriate, we report that:
1. 1.1 The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets;
1.2 As explained to us, the assets have been physically verified by the
management in accordance with a phased programme of verification, which
in our opinion, is reasonable, considering the size and the
verification is reasonable and no material discrepancies have been
noticed on such physical verification.
2. 2.1 The inventories have been physically verified by the management
during the year at reasonable intervals, except materials lying with
third parties, where confirmations are obtained;
2.2 The procedures of physical verification of the inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business;
2.3. The Company has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to book records were not material.
3. 3.1 The Company has neither granted nor taken any loans to and from
companies, firms or other parties covered in the Register, maintained
under Section 301 of the Companies Act, 1956.
3.2 The rate of interest and other terms and conditions in respect of
unsecured loans given by the Company to its employees and others, are
in our opinion, prima facie not prejudicial to the interest of the
Company;
3.3 In respect of such loans given by the Company, where stipulations
have been made, they have generally repaid the principal amounts as
stipulated and have been regular in payment of interest, where
applicable;
3.4 In respect of such loans given by the Company, there are no overdue
amounts more than Rs 1,00,000.
4 There are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to
purchase of inventories, fixed assets and for the sale of goods.
5. 5.1 The transactions made in pursuance of contracts or arrangements
that need to be entered into the register maintained under Section 301
of the Companies Act, 1956 have been recorded in the register;
5.2 There are no transactions of purchase and sale of goods, materials
and services made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act 1956
aggregating during the year to 7 5,00,000 or more in respect of each
party.
6. The Company has not accepted any deposits from the public.
7. No order under Section 209(1)(d) of the Companies Act, 1956 has
been passed by the Central Government for maintenance of cost records.
8. 8.1 According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including 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 with appropriate authorities. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of such statutory dues which have remained
outstanding as at 31st March, 2012 for a period more than six months
from the date they became payable.
8.2 There are no disputed Sales-tax, Customs Duty and Excise Duty,
except what is stated in the notes forming part of the accounts.
9. The Company has no losses either in the current financial year or
in the immediately preceding financial year.
10. The Company has not defaulted in repayment of its dues to banks.
11. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
12. The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund / are not applicable to the Company.
13. The company is not dealing or trading in shares, securities,
debentures or other investments and hence, the requirements of para 4
(xiv) are not applicable to the Company.
14. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
15. The Company has utilised the term loan availed during the year,
for the purpose for which the same are sanctioned.
16. On the basis of our examination of the Cash Flow Statement, the
funds raised on short-term basis have not been used on long term
investments, as they have been financed out of internal accruals.
17. 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.
18. No debentures have been issued by the company.
19. The Company has not raised any money by way of Public issues
during the year.
20. On the basis of our examinations and according the information and
explanations given to us, no fraud, on or by the Company, has been
noticed or reported during the year.
For M/S G. RAMESHKUMAR & Co
Chartered Accountants
FRN 003010S
Place : Trichy G.Ramesh Kumar
Date : 19 May 2012 Membership No. 200 / 18663
Mar 31, 2011
1. We have Audited the attached Balance Sheet of M.M. FORGINGS
LIMITED, CHENNAI Ã 600 032 as at 31 March 2011 and also the operating,
Profit and Loss Account 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 Company Law Board in terms of Sec. 227(4A) of the Companies Act
1956. We enclose in the Annexure a Statement on the matter specified in
the said order.
4. Further to our comments in the Annexure referred to in Paragraph 1
above.
4.1 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;
4.2. In our opinion, Proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
4.3 The Balance Sheet and Manufacturing, Trading, Profit and Loss
Account dealt with by this report are in agreement with the books of
accounts.
4.4 In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
Sub-section (3c) of Section 211 of The Companies Act 1956.
4.5 On the basis of written representations received from the directors
as at 31st March 2011 and taken on record by the Directors, we report
that none of the directors is disqualified as on 31st March 2011 from
being appointed as a Director in terms of Clause (g) of sub section (1)
of section 274 of The Companies Act 1956.
4.6 In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by The Companies Act 1956 and give a true and fair view in
conformity with the accounting principles generally accepted in India.
4.6.1 in the case of Balance Sheet of the State of affairs of the
Company as at 31 March 2011 and
4.6.2 in the case of operating Profit and Loss Account, of the PROFIT
of the Company for the Year Ended on that date.
4.6.3 in the case of Cash Flow Statement, of the Company for the year
ended on that date.
Annexure to our Report
(Referred to in Paragraph 1 of our Report of Even date)
As required by the Companies' (Auditor's Report) Order, 2003 and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks as were considered
appropriate, we report that:
1. 1.1 The Company has maintained proper records showing full
particulars including quantitative details and
situation of fixed assets;
1.2 As explained to us, the assets have been physically verified by the
management in accordance with a phased programme of verification, which
in our opinion, is reasonable, considering the size and the
verification is reasonable and no material discrepancies have been
noticed on such physical verification.
2. 2.1 The inventories have been physically verified by the management
during the year at reasonable intervals,
except materials lying with third parties, where confirmations are
obtained;
2.2 The procedures of physical verification of the inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business;
2.3. The Company has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to book records were not material.
3. 3.1 The Company has neither granted nor taken any loans to and from
companies, firms or other parties covered
in the Register, maintained under Section 301 of the Companies Act,
1956.
3.2 The rate of interest and other terms and conditions in respect of
unsecured loans given by the Company to its employees and others, are
in our opinion, prima facie not prejudicial to the interest of the
Company;
3.3 In respect of such loans given by the Company, where stipulations
have been made, they have generally repaid the principal amounts as
stipulated and have been regular in payment of interest, where
applicable;
3.4 In respect of such loans given by the Company, there are no overdue
amounts more than Rs. 1,00,000.
4 There are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to
purchase of inventories, fixed assets and for the sale of goods.
5. 5.1 The transactions made in pursuance of contracts or arrangements
that need to be entered into the register
maintained under Section 301 of the Companies Act, 1956 have been
recorded in the register;
5.2 There are no transactions of purchase and sale of goods, materials
and services made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act 1956
aggregating the during the year to Rs. 5,00,000 or more in respect of
each party.
6. The provision of sections 58A and 58AA of the Companies Act, 1956
are not applicable, as the Company has not accepted any deposit.
7. No order under Section 209(1)(d) of the Companies Act, 1956 has
been passed by the Central Government for maintenance of cost records,
8. 8.1 According to the records of the Company, the Company is regular
in depositing undisputed statutory dues
including 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 with appropriate
authorities. According to the information and explanations given to
us, there are no undisputed amounts payable in respect of such
statutory dues which have remained outstanding as at 30th March 2011
for a period more than six months from the date they became payable.
8.2 There are No Disputed Sales-tax, Customs Duty and Excise Duty.
9. The Company has no accumulated losses, in the current financial
year and in the immediately preceding financial year.
10. The Company has not defaulted in repayment of its dues to banks
and debenture holders.
11. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
12. The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund / Societies are not applicable to the
Company.
13. The company is not dealing or trading in shares, securities,
debentures or other investments and hence, the requirements of para 4
(xiv) are not applicable to the Company.
14. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
15. The Company has utilized the term loan availed during the year,
for the purpose for which the same are sanctioned.
16. On the basis of our examination of the Cash Flow Statement, the
funds raised on short-term basis have not been used on long term
investments, as they have been financed out of internal accruals.
17. 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.
18. No debentures have been issued by the company.
19. The Company has not raised any money by way of Public issues
during the year.
20. On the basis of our examinations and according the information and
explanations given to us, no fraud, on or by the Company, has been
noticed or reported during the year.
For M/s. G. RAMESH KUMAR & CO.
Chartered Accountants
G.Ramesh Kumar
Partner
Membership No. 200 / 18663
Place : Trichy
Date : 22 April 2011
Mar 31, 2010
1. We have Audited the attached Balance Sheet of M.M. FORGINGS
LIMITED, CHENNAI - 600 032 as at 31 March 2010 and also the operating,
Profit and Loss Account for the Year Ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys Manage- ment. 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 Company Law Board in terms of Sec. 227(4A) of the Companies Act
1956. We enclose in the Annexure a Statement on the matter specified in
the said order.
4. Further to our comments in the Annexure referred to in Paragraph 1
above.
4.1 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;
4.2. In our opinion. Proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
4.3 The Balance Sheet and Manufacturing, Trading, Profit and Loss
Account dealt with by this report are in agreement with the books of
accounts.
4.4 In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
Sub-section (3c) of Section 211 of The Companies Act 1956.
4.5 On the basis of written representations received from the directors
as at 31st March 2010 and taken on record by the Directors, we report
that none of the directors is disqualified as on 31st March 2007 from
being appointed as a Director in terms of Clause (g) of sub section (1)
of section 274 of The Companies Act 1956.
4.6 In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by The Companies Act 1956 and give a true and fair view in
conformity with the accounting principles generally accepted in India.
4.6.1 in the case of Balance Sheet of the State of affairs of the
Company as at 31 March 2010 and
4.6.2 in the case of operating Profit and Loss Account, of the PROFIT
of the Company for the Year Ended on that date.
4.6.3 in the case of Cash Flow Statement, of the Company for the year
ended on that date.
ANNEXURE TO OUR REPORT (Referred to in Paragraph 1 of our Report of
Even date) As required by the Companies (Auditors Report) Order, 2003
and according to the information and explanations given to us during the
course of the audit and on the basis of such checks as were consid-
ered appropriate, we report that:
1. 1.1 The Company has maintained proper records showing full particul
-ars including quantitative details and situation of fixed assets;
1.2 As explained to us, the assets have been physically verified by the
management in accor- dance with a phased programme of verification,
which in our opinion, is reasonable, consid- ering the size and the
verification is reasonable and no material discrepancies have been
noticed on such physical verification.
2. 2.1 The inventories have been physically verified by the management
during the year at reason- able intervals, except materials lying with
third parties, where confirmations are obtained;
2.2 The procedures of physical verification of the inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business;
2.3. The Company has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to book records were not material.
3.1 The Company has neither granted nor taken any loans to and from
companies, firms or other parties covered in the Register, maintained
under Section 301 of the Companies Act, 1956.
3.2 The rate of interest and other terms and conditions in respect of
unsecured loans given by the Company to its employees and others, are
in our opinion, prima facie not prejudicial to the interest of the
Company;
3.3 In respect of such loans given by the Company, where stipulations
have been made, they have generally repaid the principal amounts as
stipulated and have been regular in payment of interest, where
applicable;
3.4 In respect of such loans given by the Company, there are no overdue
amounts more than Rs. 1,00,000.
4 There are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to
purchase of inventories, fixed assets and for the sale of goods.
5. 5.1 The transactions made in pursuance of contracts or arrangements
that need to be entered into the register maintained under Section 301
of the Companies Act, 1956 have been recorded in the register;
5.2 There are no transactions of purchase and sale of goods, materials
and services made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act 1956
aggregating the during the year to Rs. 5,00,000 or more in respect of
each party.
6. The Company has complied with the provisions of Sections 58A and
58AA of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
7. No order under Section 209(1 )(d) of the Companies Act, 1956 has
been passed by the Central Government for maintenance of cost records,
8. 8.1 According to the records of the Company, the Company is regular
in depositing undisputedstatutory dues including 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 with appropriate authorities. According to the
information and explana- tions given to us, there are no undisputed
amounts payable in respect of such statutory dues which have remained
outstanding as at 30th March , 2007 for a period more than six months
from the date they became payable.
8.2 There are No Disputed Sales-tax, Customs Duty and Excise Duty.
9. The Company has no accumulated losses, in the current financial
year and in the immediately pre- ceding financial year.
10. The Company has not defaulted in repayment of its dues to banks
and debenture holders.
11. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
12. The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund / Societies are not applicable to the
Company.
13. The company is not dealing or trading in shares, securities,
debentures or other investments and hence, the requirements of para 4
(xiv) are not applicable to the Company.
14. According to the information and explanations given to us, the
Company has not given any guaran- tee for loans taken by others from
banks and financial institutions.
15. The Company has utilized the term loan availed during the year,
for the purpose for which the same are sanctioned.
16. On the basis of our examination of the Cash Flow Statement, the
funds raised on short-term basis have not been used on long term
investments, as they have been financed out of internal accruals.
17. 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.
18. No debentures have been issued by the company.
19. The Company has not raised any money by way of Public issues
during the year.
20. On the basis of our examinations and according the information and
explanations given to us, no fraud, on or by the Company, has been
noticed or reported during the year.
PLACE: TIRUCHIRAPALLI For M/S G. RAMESHKUMAR & Co
DATE: 23.05.2010 CHARTERED ACCOUNTANTS
GRAMESHKUMAR
PARTNER