To the Members of
MACK TRADING COMPANY LIMITED
Report on Financial Statements
We have audited the accompanying financialstatements of MACK TRADING COMPANY LIMITED
("the Company"), which comprise the Balance Sheet as at March 31, 2017, and the
Statement of Profit and Loss and Cash Flow Statement for theyear then ended, and a summary
of significant accounting policies and other explanatory information.
Managements Responsibility for Financial Statements
Management is responsible for the matters stated in section 134(5) of Companies Act,
2013 ("the Act") with respect to the preparation of these financial
statementsthat give a true and fair view of the financial position, financial performance
andcash flows of the Company in accordance with the Accounting principles generally
accepted in India, including the accounting standards specified under section 133 of the
act, read with rule 7 of the companies (Accounts) Rules, 2014.This responsibility also
includes the maintenance of adequate accounting records in accordance with provision of
the act for safeguarding the assets of the company and for preventing and detecting the
frauds and other irregularities; selection and application of appropriate accounting
policies; making judgement and estimates that are reasonable and prudent; and design,
implementation and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the accounting records relevant
to the preparation and presentation of the financialstatements that give a true and fair
view and are free from materialmisstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements basedon our
audit. We have taken into account the provision of the act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provision of the act and the rules made there under.
We conducted our audit in accordance with the Standards onAuditing specified under
section 143(10) of the Act. ThoseStandards require that we comply with ethical
requirements and plan andperform the audit to obtain reasonable assurance about whether
the financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about theamounts and
disclosures in the financial statements. The procedures selecteddepend on the auditors
judgment, including the assessment of the risks ofmaterial misstatement of the financial
statements, whether due to fraud or error.In making those risk assessments, the auditor
considers internal control relevantto the Companys preparation and fair presentation of
the financial statements inorder to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Companys internal control. Anaudit also includes evaluating the appropriateness of
accounting policies usedand the reasonableness of the accounting estimates made by
management, aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient andappropriate to
provide a basis for our audit opinion the financial statements.
Basis for Qualified Opinion
Company being listed company is required to appoint Internal Auditorunder section 138
of Companys Act 2013but company has not complied with such provision of the Companys Act
2013.
Qualified Opinion
In our opinion and to the best of our information and according to theexplanations
given to us, except for the possible effect of matter described in the basis for Qualified
Opinion paragraph, the financial statements give the information requiredby the Act in the
manner so required and give a true and fair view in conformitywith the accounting
principles generally accepted in India: a) In the case of the Balance Sheet, of the state
of affairs of the Company asat March 31, 2017; b) In the case of Statement of the Profit
and Loss Account, of the "Profit" for the yearended on that date; and c)
In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 issued by the Central
Governmentof India in terms of sub-section (11) of section 143 of the Act (hereinafter
referred to as the "Order") and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to the information and
explanation s given to us, we give in the "Annexure A" a statement on the
matters specified in paragraph 3 and 4 of Order.
2. As required by section 143(3) of the Act, we report that: a) we have obtained all
the information and explanations which to the best ofour 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 keptby the Company so far as appears from our examination of
those book c) the Balance Sheet, Statement of Profit and Loss, and Cash FlowStatement
dealt with by this Report are in agreement with the books of account. d) in our opinion,
the Balance Sheet, the Statement of Profit and Loss, and CashFlow Statement comply with
Accounting Standardsreferred to in section 133 of the companies act, 2013, read with rule
7 of the Companies (Accounts) Rules, 2014 e) on the basis of written representations
received from the directors as onMarch 31, 2017, and taken on record by the Board of
Directors, none ofthe directors is disqualified as on March 31, 2017, from being appointed
as a director in terms of clause (g) of sub-section (2) of section 164 of theCompanies
Act, 2013. 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". g) With respect to the other matters required
to be included in the Auditors Report in accordance with Rule 11 of Companies (Audit and
Auditors)Rules,2014,in our opinion and to the best of our information and according to the
explanation given to us :
i) The Company does not have any pending litigation which would impact its financial
position;
ii) The Company did not have any long term contracts including derivative contracts for
which there were any material foreseeable losses;
iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
For A K NEVATIA AND ASSOCIATES
(Chartered Accountants)
FRN: 107045W
CA ANIL KUMAR NEVATIA
(PROPRIETOR)
Membership No. : 040403
Place: MUMBAI
Date: 30/05/2017
"ANNEXURE A" TO INDEPENDENT AUDITORS REPORT
Referred to in paragraph 1 of the Our Report of even date to the members of MACK
TRADING COMPANY LIMITED on the accounts of the company for the year ended 31st
March, 2017.
i) (a) The Company is maintaining proper records showing full particulars, including
quantitative details and situation of fixed assets;
(b) The fixed assets have been physically verified by the management at reasonable
intervals and no material discrepancies have been noticed on such verification.
The title deeds of Immovable properties are held in the name of the Company. ii)
Company does not have any Inventory.
iii) The company hasgranted unsecured loan to Onesubsidiary company covered in
the register maintained under section 189 of the Companies Act.The Company has not granted
any secured/ unsecured loans to firms or other parties covered in the register maintain
under section 189 of the Act.
(a) Terms and conditions of grant of loan are not prejudicial to the interest of the
company
(b) In respect of the aforesaid loan, the party is repaying the principal amountas
stipulated and company is not charging interest on such loan.
(c)In respect of the aforesaid loan, there is no overdue for more than 90 days.
iv) The company has not granted loan, Investments, guarantees and securities to parties
cover under section 185 also provision of section 186 of Companies Act 2013 are complied
with.
v) Company has not accepted deposits from public within the meaning of section 73 and
74 of the Act and rule framed there under to the extent notified.
vi) There is no requirement of maintenance of cost records has been specified by the
Central Government under sub-section (1) of section 148 of the Companies Act.
vii) (a) According to information and explanation given to us and the records of the
company examined by us, in our opinion, the company is regular in depositing the
undisputed statutory dues, including provident fund, employees state insurance,
income-tax, sales-Lax, wealth tax, service tax, duty of customs, duty of excise, value
added tax, cess and any other statutory dues with the appropriate authorities and
(b) According to the information and explanation given to us , there is no amount
payable in respect of income tax or sales tax or wealth tax or service tax or duty of
customs or duty of excise or value added tax or cess have not been deposited on account of
any dispute,
viii) The company has not defaulted in repayment of dues to a financial institution or
bank or debenture holders.
ix) The company has not raised money by way of initial public offer or further public
offer (including debt instruments) and term loan during the year.
x) During the course of our examination of the books and records of the company,
carried out in accordance with the generally accepted auditing practices inIndiaand
according to the information and explanation given to us, we have not come across any
instance of material fraud on or by the company, noticed or reported during the year.
xi) Company has not paid or provided managerial remuneration in respect of which
approvals under provision of section 197 read with schedule v to the Companies Act
required. xii) This clause of the CARO 2016 is not applicable to the Company as the
company is not a Nidhi Company.
xiii) Company has not entered in to transaction with related parties under section 188
of Companies Act 2013. Hence compliance of provision of section 177 of the Act for those
transactions is not required.
xiv) The company has not made preferential allotment or private placement of shares or
fully or partly convertible debenture during the year under audit.
xv) Company has not entered in to any non cash transaction with director or person
connected with him & the provisions of section 192 of companies Act,2013 have been
complied with; xvi) This clause of the CARO 2016 is not applicable to the Company as the
company is not a required to be registered under section 45-IA of the Reserve Bank of
India Act, 1934.
For A K NEVATIA AND ASSOCIATES
(Chartered Accountants)
FRN: 107045W
CA ANIL KUMAR NEVATIA
(PROPRIETOR)
Membership No. : 040403
Place: MUMBAI
Date: 30/05/2017
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting ofMACK TRADING
COMPANY LIMITED ("the Company") as of March 31, 2017 in conjunction with our
audit of the standalone financial statements of the Company for the year ended on that
date.
Managements Responsibility for Internal Financial Controls
The Companys 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. 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 companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys 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 companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2017, 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 A K NEVATIA AND ASSOCIATES
(Chartered Accountants)
FRN: 107045W
CA ANIL KUMAR NEVATIA
(PROPRIETOR)
Membership No: 040403
Place: MUMBAI
Date: 30/05/2017
+91-9892691696
