Mar 31, 2014
We have audited the accompanying financial statements of Minal
Industries Limited. ("the Company") which comprise the Balance Sheet as
at March 31, 2014, 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") read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the 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 qualified audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the aforesaid
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the Loss 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 Emphasis of Matter
We invite the attention of the members to the following material
matters:
a) With regard to Note No. 22, relating to Provision for diminution in
value of investment no provision is made for diminution in value of non
trade investments amounting to Rs. 3,53,000/- which is not as per
AS-13- Accounting for Investments. The amount of such deviation is not
ascetainable.
b) With regard to Note No. 23, Gratuity and leave encashment is
accounted on cash basis, which is not as per AS-15 Employee Benefits.
The amount is not ascertained in absence of actuarial valuation.
c) With regard to Note no.25 relating to Trade Receivables, it has been
observed that an amount of Rs.395,61,66,909/- is outstanding for more
than three years. The management of the Company is confident of
recovery of the full amount and therefore no provision has been made.
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 read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
and
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Independent Auditor's Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date.
1. (a) The Company has maintained memorandum of records showing
details of fixed assets (except furniture and fittings and electrical
installation). However, comprehensive fixed assets register is being
complied.
(b) The fixed assets of the Company have been physically verified by
the management during the year; no material discrepancies between the
book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, no Fixed Assets has been disposed of by Company during the
year.
2. (a) According to the information and explanations given to us,
inventories have been physically verified by the management at
reasonable intervals during the year.
(b) According to the information and explanations given to us, the
procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) According to the information and explanations given to us, the
Company is maintaining proper records of its inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly dealt with in the
books of account.
3. (a) According to the information and explanations given to us, the
Company has granted unsecured loan to two Companies covered in the
register maintained under Section 301 of the Companies Act, 1956. The
details of loan are as under:
Name of the Company Relationship Maximum Year end
Balance
Amount
involved
Minal International
FZE Subsidiary Company 2,07,18,932/- 2,07,18,932/-
C Mahendra
Infojewels Associate Company 18,42,61,568/- 18,14,36,122/-
Limited
(b) The Company has granted interest bearing loan of Rs.2,07,18,932/-
(net of exchange difference) to its subsidiary company which the
company has made provision of interest income and the loan given to
associate company is interest free. In our opinion and according to the
information and explanations given to us, the rate of interest and
other terms and conditions on which loans have been granted to the
above Companies listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie prejudicial to the
interest of the Company.
(c) We are informed that the loans granted to the Companies, do not
have any stipulation for the payment of principal and interest.
(d) In view of sub clause (c) above, there are no overdue amount and
hence the provision of sub-clause (d) of clause 4(iii) of the Order are
not applicable to the Company.
(e) The Company has taken loan from Director covered in the register
maintained under Section 301 of the Act. The details of loan are as
under:
No of
Directors Maximum Amount
outstanding Amount outstanding
during the year at the year end
1 Rs.35,00,000/- Rs.35,00,000/-
(f) No interest is paid and other terms and conditions on which loan
has been taken from Directors listed in register maintained under
section 301 are prima facie not prejudicial for the interest of the
Company.
(g) The loan taken does not have any stipulation for the payment of
principal.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, carried out accordance with the auditing
standards generally accepted in India and according to the information
and explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control systems.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that need to be entered in the register maintained under section 301
have been properly entered.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs. 5
lakhs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. The Company has not accepted any deposit from public within the
meaning of section 58A and 58AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under.
7. As per the information and explanation given to us by the
management, the Company's internal control procedures together with the
internal checks conducted by the management staff during the year can
be considered as an internal audit system commensurate with the size
and nature of its business.
8. According to the information and explanations given to us, The
Central Government has not prescribed maintenance of cost records under
Section 209(1)(d) of the Act, in respect of activities carried on by
the company. Hence the provisions of clause 4(viii) of the Order is not
applicable to the Company.
9. (a) According to the information and explanations given to us, the
Company is generally regular in depositing undisputed statutory dues
including provident fund, investor education and protection fund,
employee's state insurance, income tax, sales tax, service tax, wealth
tax, custom duty, excise duty, cess, and other statutory dues
applicable with the appropriate authorities except for Profession Tax
amounting to Rs. 18,775/-, which remain in arrears as at March 31,
2014 for a period exceeding six months from the date they became
payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income tax,
sales tax, service tax, wealth tax, custom duty, excise duty, cess,
which have not been deposited on account of dispute.
10. The Company has no accumulated losses as at March 31, 2014 after
considering the balance in Reserve and Surplus account as at that date.
Further the company has incurred cash losses of Rs. 16,69,655/- in the
financial year ended on that date and has not incurred any cash losses
in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution, banks. There are no debenture holders.
12. According to the information and explanations give to us, the
Company has not granted any loans and advances on the basis of
securities by way of pledge of shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/mutual benefit
fund/societies.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. It has invested in shares of wholly
owned foreign subsidiary and few other companies for which proper
records have been maintained and timely entries have been made therein.
Said investment are held in Company's own name.
15. According to the records of the company and the information and
explanations provided by the management, the company has given
guarantee for loans taken by its associated company from banks, the
terms and conditions whereof in our opinion are not prima facie
prejudicial to the interest to the Company.
16. According to the records of the company, the company has not
obtained any term loans during the year.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment by the company.
18. According to the records of the company and the information and
explanations provided by the management, 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.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through a public issue during
the year.
21. During the course of our explanations of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
FOR R. H. MODI & CO.,
CHARTERED ACCOUNTANTS
(Registration No : 106486W)
R. H. MODI
PLACE : MUMBAI PROPRIETOR
DATE : 30/05/2014 Membership No. 37643
Mar 31, 2013
We have audited the accompanying financial statements of Minal
Industries Limited, ("the Company") which comprise the Balance Sheet as
at March 31, 2013, 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 principles accepted in India including 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit, We conducted our audit in accordance
with the Standards on Auditing issued by the institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the 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 qualified audit opinion.
Basis for Qualified Opinion:
(a) Gratuity and leave encashment is accounted on cash basis, which is
not as per AS-J5 Employee Benefits. The amount is not ascertained in
absence of actuarial valuation.
The impact on profit for the year, reserves and surplus as at 31 March
2013, if any, due to the above deviations is not ascertainable.
(b) No Provision for diminution in value of investment made in non
trade investments as required as per AS-13- Accounting for Investments,
amount Rs.3,53,000/- resulting into overstatement of the profit of Rs.
3,53,000/- for the current year and reserves and surplus by Rs.
3.53,000/-.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the aforesaid
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
b) in the case of the Statement of Profit and Loss Account, 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 dealt herewith 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.
Annexure to Independent Auditor''s Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date.
1. (a) The Company has maintained memorandum of records showing
details of fixed assets (except furniture and fittings and electrical
installation). However. comprehensive fixed assets register is being
complied.
(b) The fixed assets of the Company have been physically verified by
the management during the year; no material discrepancies between the
book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, no Fixed Assets has been disposed of by Company during the
year.
2. (a) According to the information and explanations given to us,
inventories have been physically verified by the management at
reasonable intervals during the year.
(b) According to the information and explanations given to us, the
procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) According to the information and explanations given to us. the
Company is maintaining proper records of its inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly dealt with in the
books of account.
3. (a) According to the information and explanations given to us, the
Company has granted unsecured loan to two Companies covered in the
register maintained under Section 301 of the Companies Act, 1956. The
details of loan are as under: ,
Name of the Relationship Maximum Yearend Balance
Company Amount involved
Minal Subsidiary 1,89,10.467/- 1,89,10,467/-
International Company
FZE
CMahendra Associate 18,61,41,166/- 18,42,61,568/-
Infojewels Company
Limited
(b) The Company has granted interest bearing loan of Rs.20.31,72.034/-
(net of exchange difference) to its subsidiary- company which the
company has made provision of interest income and the loan given to
associate company is interest free. In our opinion and according to the
information and explanations given to us. the rate of interest and
other terms and conditions on which loans have been granted to the
above Companies listed in the register maintained under section 301 of
the Companies Act 1956 are not prima facie prejudicial to the interest
of the Company.
(c) The receipt of the principal amount is regular.
(d) There are no overdue amount and hence the provision of sub-clause
(d) of clause 4{iii) of the Order are not applicable to the Company.
(e) The Company has taken loan from Director covered in the register
maintained under Section 301 of the Act. The details of loan are as
under:
No of
Directors Maximum Amount
outstanding Amount outstanding
during the year at the year end
1 Rs.35,00,000/- Rs.35,00,OO0/-
(f) No interest is paid and other terms and conditions on which loan
has been taken from Directors listed in register maintained under
section 301 are prima facie not prejudicial for the interest of the
Company.
(g) The Company is regular in repaying the principal amount where
stipulated.
4. In our opinion and according to the information and explanations
given to us. there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the, basis of our examination of the books and
records of the Company, carried out accordance with the auditing
standards generally accepted in India and according to the information
and explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control systems.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that need to be entered in the register maintained under section 301
have been properly entered.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs. 5
lakhs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. The Company has not accepted any deposit from public within the
meaning of section 58A and 58AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under.
7. As per the information and explanation given to us by the
management, the Company''s internal control procedures together with the
internal checks conducted by the management staff during the year can
be considered as an internal audit system commensurate with the size
and nature of its business.
8. According to the information and explanations given to us. The
Central Government has not prescribed maintenance of cost records under
Section 209(1 )(d) of the Act, in respect of activities carried on by
the company. Hence the provisions of clause 4(viii) of the Order is not
applicable to the Company.
9. (a) According to the information and explanations given to us, the
Company is generally regular in depositing undisputed statutory dues
including provident fund, investor education and protection fund,
employee''s state insurance, income tax, sales tax. service tax. wealth
tax. custom duty, excise duty, cess, and other statutory dues
applicable with the appropriate authorities during the year, and there
were no such outstanding dues as at March 31, 2013 for a period
exceeding six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income tax,
sales tax, service tax, wealth tax. custom duty, excise duty, cess,
which have not been deposited on account of dispute.
10. The Company has no accumulated losses as at March 31. 2013 after
considering the balance in Reserve and Surplus account as at that date
and has also not incurred any cash losses in the financial year ended
on that date or in the immediately preceding financial year. ,
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution, banks. There are no debenture holders.
12. According to the information and explanations give to us. the
Company has not granted any loans and advances on die basis of
securities by way of pledge of shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of die Company does not attract
any special statute applicable to chit fund and nidhi/mutual benefit
fund/societies.
14. In our opinion, use Company has maintained proper records of
transactions and contracts relating to dealing or trading in securities
during the year and timely entries have been made therein. Further,
such securities have been held by the Company in its own name.
15. According to the records of the company and the information and
explanations provided by the management, the company has given
guarantee for loans taken by its associated company from banks, the
terms and conditions whereof in our opinion are not prima facie
prejudicial to the interest to the Company.
16. According to the records of the company, the company has not
obtained any term loans during the year.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment by the company.
18. According to the records of the company and the information and
explanations provided by the management, 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.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through a public issue during
the year.
21. During the course of our explanations of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
FOR R. H. MODI & CO.,
CHARTERED ACCOUNTANTS
(Registration No : 106486W)
R.H.MODI
PROPRIETOR
Membership No. 37643
Place: MUMBAI
Dated : 28/05/2013
Mar 31, 2011
1. We have audited the attached Balance Sheet of MINAL INDUSTRIES
LIMITED, as at March 31. 2011 and the Profit and Loss Account and Cash
flow Statement of the Company 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 have conducted our audit in accordance with 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 the management. as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion,
1. As required by the Companies (Auditor's Report) Older, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 237 of the Companies Act, 1556 of India and on the basis of
such checks of the books and records of the Company as we considered
appropriate and according Id the information and explanations given to
us, we give In the Annexure a statement on the matters specified in
paragraphs & and 5 of the said Order.
4, We report that;
a. We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purposes of
our audit
b. In our opinion, proper books of account as required by law have
been kept by the Company, so Far as appears from our examination of
those books;
c. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
d. 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 except the
following
(i) Hon Provision for diminution in value of investment as required by
Accounting Standard (A5)-13 ' Accounting for investments' issued by the
Institute of Charted Accountants of India for reasons mentioned in
note 3 of Schedule '17
(ii) Accounting Standard (AS)-I5 Revised "Accounting for Retirement
benefits in the Financial Statements of the Employers" issued by the
Institute of Chartered Accountants of India for reasons mentioned in
note 4 of Schedule '17 '
e. On the basis of written representations received from the
directors, as on March 31. 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31. 2011 from being appointed as a director in terms of clause
(9) of sub-section (1) of section 274 of the Companies Act. 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to:
i) In respect of non provision of diminution in value of investment of
Rs. 3.53 Lacs (See note 3)
ii) In respect of non determination and non provision of gratuity
liability and of liability towards leave encashment upon retirement.
(See note 4)
and read with the other notes appearing thereon, give the information
required by the Companies Act 1956 in the manner so required and give a
true and fair view.
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 11, 2011. and
(b) in the case of the Profit and Loss Account, of the PROFIT for the
year ended on that date.
(c) in the case of the Cash Row Statement, of the cash flow for the
year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
(Referred to in paragraph 3 of the Auditor's Report to the members of
MINAL INDUSTRIES LIMITED for the year ended 31st March, 2011)
1. (a) The Company has maintained memorandum of records showing
details of fixed assets (except furniture and fittings and electrical
installation). However, comprehensive fixed assets register is being
complied.
(b) The fixed assets of the Company have been physically verified by
the management during the year; no material discrepancies between the
book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of Fixed Assets has not been disposed
of by Company during the year.
2. (a) According to the information and explanations given to us,
inventories have been physically verified by the management at
reasonable intervals during the year.
(b) According to the information and explanations given to us, the
procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its Business.
(c) According to the information and explanations given to us, the
Company is maintaining proper records of its inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly dealt with in the
books of account.
3. (a) According to the information and explanations given to us. the
Company has granted unsecured loan to two Companies covered
in the register maintained under Section 301 of the Companies Act, 1956.
The details of loan are as under:
Name of the Company Relationship Maximum Amount Year end
involved Balance
Minal International FZE Subsidiary 1,43,28,930 1,43,28,930
Company
(Mahendra Infojewels
Limited Associate 6,28,21.563 6,26,96,563
Company
(b) The Company has granted interest bearing loan of Rs. 1,38,55,117/-
(net of exchange difference) to its subsidiary company which the
company has made provision of interest income and the loan given to
associate company is Interest free In our opinion and according to the
information and explanations given to us, the rate of interest and
other terms and conditions on which loans have been granted to the
above Companies listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie prejudicial to the interest
of the Company.
(c) The receipt of the principal amount is regular
(d) There are no overdue amount and hence the provision of sub-clause
(d) of clause 4(iii) of the Order are not applicable to the Company.
(e) The Company has taken loan from Director covered in the register
maintained under Section 301 of the Act. The details of loan are as
under:
No of Directors Maximum Amount outstanding Amount outstanding at
during the year the year end
1 Rs.6,36,15,000/- Rs,42,40,000/-
(f) No interest is paid and other terms and conditions on which loan
has been taken from Directors listed in register maintained under
section 301 are Prima facie not prejudicial for the interest of the
Company.
(g) The Company is regular in repaying the principal amount as
stipulated.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, carried out accordance with the auditing
standards generally accepted in India and according to the information
and explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control systems.
5. (a) In our opinion and according to the information and
explanations given to us. the particulars of contracts or arrangements
that need to be entered in the register maintained under section 301
have been properly entered.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs. 5
lakhs with any party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6. The Company has not accepted any deposit from public within the
meaning of section 58A and 58AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under.
7. The company has no internal audit system
8. The matter specified in clause (viii) of paragraph 4 of the Order
regarding maintenance of cost records under clause (d) of sub- section
(1) of section 209 of the Act is not applicable to the Company.
9. (a) According to the information and explanations given to us, the
Company is generally regular in depositing undisputed statutory dues
including provident fund, investor education and protection fund,
employee's state insurance, income tax, sales tax, service tax. wealth
tax, custom duty, excise duty, cess, and other statutory dues applicable
with the appropriate authorities during the year, and there were no
such outstanding dues as at March 31, 2011 for a period exceeding six
months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income tax,
sales tax, service tax, wealth tax, custom duty, excise duty, cess,
which have not been deposited on account of dispute.
10. The Company has no accumulated losses as at March 31,2011 after
considering the balance in Reserve and Surplus account as at that date
and has also not incurred any cash losses in the financial year ended
on that date or in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution, banks. There are no debenture holders.
12. According to the information and explanations give to us, the
Company has not granted any loans and advances on the basis of
securities by way of pledge of shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/mutual benefit
fund/societies.
14. In our opinion, the Company is not a dealer or trader in shares,
securities debentures and other investment and hence, requirement of
paragraph 4(xiv) are not applicable to the Company.
15. According to the records of the company and the information and
explanations provided by the management, the company has not given any
guarantee For loans taken by others from banks or Financial
institutions.
16. According to the records of the company, the company has not
obtained any term loans during the year.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment by the company.
18. According to the records of the company and the information and
explanations provided by the management, 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,
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through a public issue during
the year.
21. Curing the course of our explanations of the books and records of
the Company, earned out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
FOR R. H. MODI & CO.
CHARTERED ACCOUNTANTS
(Registration no. 106486W)
R. H. MODI
PROPRIETOR
Membership No. 37643
Place : Mumbai
Date : 31/05/2010
Mar 31, 2010
1. We have audited the attached Balance Sheet of MINAL INDUSTRIES
LIMITED, as at March 31, 2010 and the Profit and Loss Account and Cash
Flow Statement of the Company for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We have conducted our audit in accordance with 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956 of India and on the basis of
such checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. We report that:
a. We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
æ 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 and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
d. 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 except the
following
(i) Non Provision for diminution in value of investment as required by
Accounting Standard (AS)-13 Accounting for investments issued by the
Institute of Chartered Accountants of India for reasons mentioned in
note 3 of Schedule 16
(ii) Accounting Standard (AS)-15 Revised "Accounting for Retirement
benefits in the Financial Statements of the Employers" issued by the
Institute of Chartered Accountants of India for reasons mentioned in
note 4 of Schedule 16
e. On the basis of written representations received from the
directors, as on March 31, 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to:
i) In respect of non provision of diminution in value of investment of
Rs. 3.53 Lacs (See note 3)
ii) In respect of non determination and non provision of gratuity
liability and of liability towards leave encashment upon retirement.
(See note 4)
iii) In respect of Trading Division (Jewellery & Consumer Division),
the Company has not maintained quantitative records of all the items in
which the Company is dealing and in absence of stock statement showing
item wise Quantities and value, for the purpose of annual accounts, the
inventory of opening stock and closing stock as taken, valued and
certified by the directors is relied upon.
and read with the other notes appearing thereon, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view.
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010, and
(b) in the case of the Profit and Loss Account, of the PROFIT for the
year ended on that date.
(c) in the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT (Referred to in paragraph 3 of the
Auditors Report to the members of MINAL INDUSTRIES LIMITED for the
year ended 31st March, 2010)
1. (a) The Company has maintained memorandum of records showing
details of fixed assets (except furniture and fittings and electrical
installation). However, comprehensive fixed assets register is being
complied.
(b) The fixed assets of the Company have been physically verified by
the management during the year; no material discrepancies between the
book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of Fixed Assets has not been disposed
of by Company during the year.
2. (a) According to the information and explanations given to us,
inventories have been physically verified by the management at
reasonable intervals during the year.
(b) According to the information and explanations given to us, the
procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) According to the information and explanations given to us, the
Company is maintaining proper records of its inventory (except Trading
Division (Jewellery and Consumer Division)). The discrepancies noticed
on verification between the physical stocks and book records were not
material and have been properly dealt with in the books of account.
3. (a) According to the information and explanations given to us, the
Company has granted unsecured loan to two Companies covered in the
register maintained under Section 301 of the Companies Act, 1956. The
details of loan are as under:
Name of the
Company Relationship Maximum Amount involved Year end
Balance
Minal Inter
national FZE Subsidiary Company 71,88,500 71,88,500
Minal Exim
Pvt Ltd Associate Company 1,00,000 1,00,000
(b) In our opinion and according to the information and explanations
given to us, the terms and conditions on which loans have been granted
to the above Companies listed in the register maintained under section
301 of the Companies Act, 1956 are not, prima facie prejudicial to the
interest of the Company except that no interest has been charged for
the year on these loan.
(c) The receipt of the principal amount is regular
(d) There are no overdue amount and hence the provision of sub-clause
(d) of clause 4(iii) of the Order are not applicable to the Company.
(e) The Company has taken loan from Director covered in the register
maintained under Section 301 of the Act. The details of loan are as
under:
No of
Directors Maximum Amount outstanding
during the year Amount outstanding
at the year end
1 Rs.1,75,000/- Rs.1,75,000/-
(f) No interest is paid and other terms and conditions on which loan
has been taken from Directors listed in register maintained under
section 301 are Prima facie not prejudicial for the interest of the
Company.
(g) The Company is regular in repaying the principal amount as
stipulated.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, carried out accordance with the auditing
standards generally accepted in India and according to the information
and explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control systems.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that need to be entered in the register maintained under section 301
have been properly entered.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs. 5
lakhs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. The Company has not accepted any deposit from public within the
meaning of section 58A and 58AA or any other relevant provi of the
Companies Act, 1956 and the rules framed there under.
7. The company does not have an internal audit system.
8. The matter specified in clause (viii) of paragraph 4 of the Order
regarding maintenance of cost records under clause (d) of section (1)
of section 209 of the Act is not applicable to the Company.
9. (a) According to the information and explanations given to us, the
Company is generally regular in depositing undisputed stati dues
including provident fund, investor education and protection fund,
employees state insurance, income tax, sales service tax, wealth tax,
custom duty, excise duty, cess, and other statutory dues applicable
with the appropriate author during the year, and there were no such
outstanding dues as at March 31, 2010 for a period exceeding six months
from the they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no i of income tax,
sales tax, service tax, wealth tax, custom duty, excise duty, cess,
which have not been deposited on accour dispute.
10. The Company has no accumulated losses as at March 31, 2010 after
considering the balance in Reserve and Surplus account as at æ date and
has also not incurred any cash losses in the financial year ended on
that date or in the immediately preceding finar year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that
company has not defaulted in repayment of dues to a financial
institution, banks. There are no debenture holders.
12. According to the information and explanations give to us, the
Company has not granted any loans and advances on the basi; securities
by way of pledge of shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does attract any
special statute applicable to chit fund and nidhi/mutual benefit
fund/societies.
14. In our opinion, the Company is not a dealer or trader in shares,
securities debentures and other investment and hence, requiremi of
paragraph 4(xiv) are not applicable to the Company.
15. According to the records of the company and the information and
explanations provided by the management, the company has i given any
guarantee for loans taken by others from banks or financial
institutions.
16. According to the records of the company, the company has not
obtained any term loans during the year.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, report
that no funds raised on short-term basis have been used for long-term
investment by the company.
18. According to the records of the company and the information and
explanations provided by the management, the company has n made any
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of ti Companies Act 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through a public issue during
the year.
21. As per the information and explanation given to us by the
management, no material fraud on or by the Company has been notice or
reported during the year.
FOR R. H. MODI & CO
CHARTERED ACC0UNTANT
(Registration no. 106486W
R. H. MODI
Place : Mumbai PROPRIETOR
Date : 31/05/2010 Membership No. 3764