INDEPENDENT AUDITOR
To,
The Members of,
MPL ENTERPRISES LIMITED,
MANIPAL
We have audited the accompanying financial statements of MPL Enterprises Limited ("the
Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement
of Profit and Loss for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Managements 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 and financial performance of the Company in
accordance with the Accounting Standards referred to in subsection (3C) of Section 211 of
the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated
13" 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 auditors
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Companys preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Companies Internal Control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the 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 and
b) in the case of the Statement of Profit and Loss, of the profit for the year ended on
that date.
Emphasis of the Matter
We relied on the management perception and the valuation reports as detailed in Note
No. 18.01 to the accounts, regarding the value of stock in trade in the nature of
immovable properties. Accordingly the such stock in trade considered to be of the value,
at least equal to its cost of acquisition. Our opinion is not qualified on this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003 ("the Order")
issued by the Central Government of India in terms of sub-section (4A) of Section 227 of
the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and
5 of the Order.
2. The Company is carrying on the activity of Money Changing Business (under Full
Pledged Money Changers Licence), with due authorization from Reserve Bank of India. As per
the directives issued by Reserve Bank of India, the Statutory Auditors of the Company
(holding aforesaid licence) are required to Certify the net own funds of the Company as on
the date of the Balance Sheet every year. Accordingly it is certified that the net own
funds of the Company as on 31st March 2014, as evident from the Audited
Financial Statements and as calculated in accordance with the method prescribed by the
Reserve Bank of India (i.e. after reducing from the Paid-up Equity Capital and Free
Reserves, the amount invested in Subsidiary Company in excess of 10% of "Paid-up
Equity Capital and Free Reserves") is Rs.5,98,31,174/- (P.Y. Rs. 3,85,75,997)
3. 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 and Statement of Profit & Loss, dealt with by this Report are
in agreement with the books of account;
d. in our opinion, the Balance Sheet and Statement of Profit & Loss comply with the
Accounting Standards referred to in sub-section (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.
For PAI NAYAK & ASSOCIATES
Chartered Accountants
Firms Registration Number; 009090S
Sd/-
ANANTHANARAYANA PAI K.
Partner
Membership Number: 024541
Place : Manipal
Date : 25th July, 2014
ANNEXURE TO INDEPENDENT AUDITORS REPORT (issued to the Members of MPL ENTERPRISES
LIMITED) REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS" OF EVEN DATE
As required by the Companies (Auditors Report) Order, 2003 (hereinafter referred to as
"the order"), issued by the Central Government under Section 227 (4A) of the
Companies Act, 1956, and on the basis of such checks as we considered appropriate, and
according to the information and explanations given to us, we further report that:
i) In respect of its fixed assets
a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
b) The fixed assets were physically verified during the year by the management in
accordance with a program of verification, which in our opinion provides for physical
verification of all the fixed assets at reasonable intervals. According to the information
and explanations given to us, no material discrepancies were noticed on such verification.
c) As evident from the books of accounts maintained by the Company and as per the
information given to us, the Company has disposed off some of the fixed assets during the
year under audit. However this does not effect the assumption of going concern.
ii) a) The physical stock of the Company consists of the immovable property, foreign
currencies and travellers cheques. As explained to us the same have been physically
verified during the year by the management. In our opinion the frequency of verification
is reasonable.
b) In our opinion, the procedures of physical verification of inventory followed by
management are reasonable and adequate in relation to the size of the Company and nature
of its business.
c) On the basis of our examination of the inventory records, in our opinion the company
is maintaining proper records of inventory. As evident from the records, there are no
material discrepancies noticed on physical verification of inventories.
iii) a) The Company has not granted loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of Companies Act, 1956.
Therefore further commenting on Clause iii((b)(c)(d) of the order does not arise.
b) The Company has taken loans, secured or unsecured, from companies, firms or other
parties listed in the register maintained under Section 301 of Companies Act, 1956, by way
of Non-Convertible Secured Debentures and Unsecured Deposits. The Company has accepted
such amounts from 3 number of persons (2 number of Individuals and 1 number of Company)
and the maximum amount due on such accounts is Rs. 4,50,00,000/- and the year end balance
in such accounts is Rs.4,50,00,000/-
c) In our opinion, the rate of interest and other terms and conditions on which
debentures/deposits as aforesaid, have been taken from companies, firms or other parties
listed in the register maintained under Section 301 of the Companies Act, 1956 are not,
prima facie prejudicial to the interest of Company.
d) The Company is regular in payment of principal amount and the interest on the loans.
iv) In our opinion and according to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of the Company and the
nature of its business for the purchase of inventory and fixed assets and sale of
goods/services rendered. There are no continuing failures to correct major weakness in
internal control system. In our opinion and according to the information and explanations
given to us, the internal control systems of Foreign Exchange Business is working
satisfactorily.
v) According to the information and explanations given to us, the Company has not
entered into any contracts or arrangements during the year, referred to in Section 301 of
the Companies Act, 1956. Therefore the provisions of Clause 4(v) of the order are not
applicable to the Company.
vi) The Company has not accepted any amount as deposits from the public. Therefore
Clause 4(vi) of the order not applicable.
vii) The Company had an Internal Audit System during the year under audit, which in our
opinion, was commensurate with the size and nature of its business. The Company had also a
Concurrent Audit System, for the purpose of audit of its Foreign Exchange Business
Division, which in our opinion, was commensurate with the size and nature of its business.
As per the Certificate issued by the aforesaid Concurrent Auditors, the Company is
complying with the KYC/AML/CFT guidelines as prescribed by the Reserve Bank of India, in
relation to Foreign Exchange Business.
viii) The Central Government has not prescribed any cost records to be maintained u/s
209(1)(d) of Companies Act, 1956. Therefore the question of making any comments therein
does not arise.
ix) According to the information and explanations given to us, the company is generally
regular in depositing with appropriate authorities undisputed statutory dues including
provident fund, employees state insurance, income tax, sales tax, wealth tax, service
tax, customs duty, excise duty, cess, Investors Education & Protection Fund and other
statutory dues applicable to it for a period of more than six months from the date they
became payable. According to information and explanations given to us, there are no
disputed liabilities remaining unpaid, on account of Income Tax/Sales Tax/Wealth
Tax/Service Tax/Custom Duty/Excise Duty/Cess and therefore giving information as required
under Clause 4(ix)(b) of the order does not arise.
x) As evident from the Balance Sheet of the Company, there are no accumulated losses at
the end of the financial year. The Company has not incurred cash losses during the
financial year under audit and in the immediately preceding financial year.
xi) Based on our audit procedures and on the basis of information and explanations
given by the management, the company has not defaulted in repayment of dues to the Bank,
financial institution and debenture holders.
xii) According to the information and explanations given to us, the Company has not
granted loans or advances on the basis of security by way of pledge of shares, debentures
and other securities and therefore provisions of Clause 4(xii) of the order is not
applicable.
xiii) In our opinion, the Company is not a chit fund or nidhi/mutual benefit
fund/society. Therefore the provisions of Clause 4(xiii) of the order are not applicable
to the Company.
xiv) The Company has maintained proper records in respect of shares held as investment.
The shares have been held by the Company in its own name except to the extent of the
exemption if any, granted under Section 49 of the Companies Act, 1956.
xv) According to the information and explanations given to us, the Company has not
given any guarantee for loans taken by others from banks or financial institutions.
xvi) As In our opinion and according to the information and explanations given to us,
the Company has utilized the amount received as unsecured deposits, for the purpose for
which the deposit was accepted. The Company has not accepted any other amount as term loan
during the year.
xviii) According to the information and explanation given to us and on the basis of
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,
xviii) The Company has not made preferential allotment of shares to parties and
companies covered in the Register maintained under Section 301 of the Companies Act, 1956
during the year.
xix) As per our verification and according to the information and explanations given to
us the company has created securities or charge in respect of debentures issued.
xx) The Company has not raised monies by public issues and hence the question of
disclosure and verification of end use of such monies does not arise.
xxi) To the best of our knowledge and belief and according to the information and
explanations given to us, no fraud on or by the Company was noticed or reported during the
year.
For PAI NAYAK & ASSOCIATES
Chartered Accountants
Firms Registration Number; 009090S
Sd/-
ANANTHANARAYANA PAI K.
Partner
Membership Number: 024541
Place : Manipal
Date : 25th July, 2014.
+91-9892691696
