TO THE MEMBERS OF MUKAT PIPES LIMITED Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Mukat Pipes Limited,
("The Company") which comprise the Balance Sheet as at March 31, 2023, the
statement of Profit and Loss, the statement of changes in Equity and the Cash Flow
Statement for the year then ended, and a summary of the significant accounting policies
and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 ("the Act") 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
("Ind As") and other accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2023, and its loss, the changes in equity
and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statement in accordance with the Standards on
Auditing (SAs) specified under Section 143(10) of the Companies Act, 2013 ("the
Act"). Our responsibilities under those standards are further described in the
Auditors Responsibilities for the Audit of the financial Statements 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 (ICAI) together with the ethical
requirements that are relevant to our audit of the financial statements under the
provisions of the Act, and the Rules made thereunder and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAIs Code of
Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to
provide a basis for our audit opinion on the financial statement.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the 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.
1. Description of Key Audit Matter
The company has not provided for Income Tax, Central Excise & Service Tax
liabilities aggregating to Rs. 1239.49 Lacs. This is a Key audit matter since it will
adversely effect the current ratio.
How our audit addressed the key audit matter
a) Discussed the matter with the management and obtained an understanding of the
matter. b) The company has preferred appeals against the outstanding demand and they have
been advised by their counsel that the demands will be dropped.
As a result of the above audit procedure the Managements assessment of not providing
was considered to be reasonable.
2. Description of Key Audit Matter
The company has yet to transfer Rs. 11.41 Lac on account of unpaid dividend to Investor
Education and Protection Fund.
How our audit addressed the key audit matter
a) Discussed the matter with the management and obtained an understanding of the
matter. b) The company does not have record of share holders to whom the unpaid dividend
amount belongs to. The company has several times approached Investor Education Protection
Fund (IEPF) through emails to know the procedure to transfer the above said unpaid
dividend amount to IEPF in the absence of names of share holders and other concerned
records needed in the matter. We have not received any response from the IEPF. The company
will pursue the matter with the IEPF to expedite the matter.
As a result of the above audit procedure the Managements plea of not remitting the
amount be considered appropriate.
Information other than the Financial Statements and Auditors Report thereon
The Companys Board of Directors is responsible for the preparation of other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including annexures to Boards Report, Report on
Corporate Governance and business responsibility report, but does not include the
financial statements and our auditors report thereon.
Our opinion on the 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 financial statements, our responsibility is to read
the other information and in doing so, consider whether the other information is
materially inconsistent with the 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 that fact. We have
nothing to report in this regard.
Managements Responsibility for the Financial Statements
The Companys 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
the financial statements that give a true and fair view of the financial position,
financial performance changes in equity & cash flows of the Company in accordance with
the accounting principles generally accepted in India including The Indian Accounting
Standard, specified under section 133 of the Act.
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 financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so. The Board of Directors are also responsible for overseeing the
Companys financial reporting process.
Auditors Responsibility for the Audit of the Financial Statements.
Our objectives are to obtain reasonable assurance about whether the financial statement
as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditors 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 decision of users taken on the basis of
these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
a) Identify and assess the risks of material misstatement of the financial statements,
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. b) Obtain
an understanding of internal financial controls 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 system in place and the operating effectiveness of
such controls. c) Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by the management. d)
Conclude on the appropriateness of managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements 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 auditors
report. However, future events or conditions may cause the Company to cease to continue as
going concern. e) Evaluate the overall presentation, structure and content of the
financial statement including the disclosures and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate make it probable that the economic decisions of a reasonably
knowledgeable user of the 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 financial statements.
We communicate with those charged with governance 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 financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors 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 (Auditors Report) Order, 2020 ("the order) issued
by the Central Government of India in terms of Section 143(11) of the Act, we give in the
"Annexure "A" a 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, 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 those books.
(c) The Balance Sheet, the statement of Profit and loss, statement of changes in equity
and the cash flow statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the aforesaid financial statements comply with the Indian
Accounting Standards "Ind AS" prescribed under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014 (as amended).
(e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the director is disqualified
as on March 31, 2023 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 companys internal financial
controls over financial reportings.
(g) With respect to the other matters to be included in the Auditors 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.
i) the Company has disclosed the impact of pending litigations on its financial
position in its financial statements Refer Note 25 to the financial statements.
ii) the Company does not have any material foreseeable losses on long-term contracts
including derivative contracts, therefore no provision is required.
iii) there has been delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company Refer Note 36 of the financial
statements.
| FOR GURPREET KAUR & ASSOCIATES |
| CHARTERED ACCOUNTANTS |
| Firm Registration No. 015358N |
| -Sd- |
| GURPREET KAUR |
| (PARTNER) |
| M.No. 095722 |
| Place : RAJPURA |
| Dated : 18/05/2023 |
| UDIN No. 23095722BGWEBE7100 |
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to in paragraph 1 under Report on other Legal and Regulatory
Requirements section of our Report to the members of Mukat Pipes Limited on the financial
st
statements for the year ended 31 March 2023, we report that:
(i) In respect of the Companys Fixed Assets.
a) The company has maintained proper records showing full particulars, including
quantitative details and situation of property, plant & equipment.
b) The Company has a program of verification of property, plant & equipment to
cover all the items in a phased manner which, in our opinion, is reasonable having regard
to the size of the company and the nature of its assets. Pursuant to the program, certain
property, plant & equipment were physically verified by the management during the
year. According to the information and explanations given to us, no material discrepancies
were noticed on such verification.
c) The land in possession of the company is free hold and the title deeds are held in
the name of the company.
d) The company has not revalued any of its property, plant & equipment. The
company, during the year under consideration, did not own any intangible assets.
e) No proceedings have been initiated or are pending against the company for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.
(ii) a) As explained to us, the inventories were physically verified during the year by
the management at reasonable intervals and no material discrepancies were noticed on
physical verification. In our opinion the coverage and procedure of such physical
verification of inventory is reasonable.
b) During any point of time of the year, the company has not been sanctioned any
working capital limit, hence this clause is not applicable.
(iii) During the year the company has not made any investments in, or provided any
guarantee or security or granted any loans or advances in the nature of loans, secured or
unsecured, to companies, firms, Limited Liability Partnerships or any other parties or to
promoters or related parties.
(iv) The company has not granted any loans, or made any investments, guarantees, and
security, to which the provisions of sections 185 and 186 of the Companies Act 2013 apply.
(v) The company has not accepted any deposits of any amounts that are deemed to be
deposits, under the directives issued by the Reserve Bank of India to which the provisions
of sections 73 to 76 of the Companies Act, 2013 apply.
(vi) The maintenance of cost records has been specified by the Central Government under
section 148 (1) of the Companies Act, 2013 but since the Turnover of the company is below
the specified limit, cost records has not been maintained in the prescribed format.
(vii) According to the information and explanations given to us, in respect of
statutory dues:
a) The Company has generally been regular in depositing undisputed statutory dues,
including Provident Fund, Employees State Insurance, Income-tax, Sales Tax, Service Tax,
Customs Duty,
Excise Duty, Value Added Tax, Cess, Goods and Service Tax and other statutory dues
applicable to it to with the appropriate authorities.
b) There were no undisputed amounts payable in respect of Provident Fund, Employees
State Insurance, Income- tax, Excise Duty, Value Added Tax, Goods and Service Tax, cess,
and other material statutory dues in arrears as at March 31, 2023 for a period of more
than six months from the date they became payable.
According to the record of the company and the information and explanation given to us
the details disputed dues of Income-tax, Service Tax and Excise Duty which have not been
deposited as on March 31, 2023 are as follows:-
Name of the Statute |
Nature of the dues |
Forum where pending |
Total Amount involved |
Amount paid under protest |
Period to which the amount |
|
|
|
(Rs. Lacs) |
(Rs. Lacs) |
relates |
| Central |
Excise duty, |
CESTAT |
77.64 |
18.67 |
Earlier Years |
| Excise |
|
|
|
|
|
| Income Tax |
Income Tax, |
Income Tax |
1160.17 |
- |
Earlier Years |
|
|
Authorities |
|
- |
|
| Income Tax |
Income Tax, |
Income Tax |
1.68 |
- |
Earlier Years |
|
& TDS |
Authorities |
|
- |
|
(viii) There are no amounts that are in the nature of undisclosed transactions or
amounts surrendered as income in assessments under the Income Tax Act, 1961 (43 of 1961).
(ix) a) The company has not defaulted in repayment of loans or other borrowings and in
payment of interest thereon to other lender as per the renegotiated terms of repayment.
There are no loans from banks or financial institutions.
b) The company is not declared willful defaulter by any bank or financial institution
or other lender. c) During the year the company has not availed of or has been disbursed
any term loans. d) No funds raised on short term basis have been utilized for long term.
e) The company does not have any subsidiaries, associates or joint venture.
f) The company has not raised any loans during the year on the pledge of securities
held in its subsidiaries, joint ventures or associate companies.
(x) The company has not raised during the year any amounts by way of initial public
offer or further public offer (including debt instruments).
a) The company has not made any preferential allotment or private placement of shares
or convertible debentures (fully, partially or optionally convertible) during the year.
(xi) (a) During the course of our audit, we have not come across any instances of fraud
by the company or any fraud on the company.
b) There is no instance, during the year under consideration that necessitates
reporting in Form ADT-4.
c) There are no instances of whistle-blower complaints received during the year by the
company. xii) The company is not a Nidhi Company.
xiii) All transactions with the related parties are in compliance with sections 177 and
188 of companies Act where applicable and the details have been disclosed in the financial
statements etc. as required by the applicable accounting standards.
xiv) a) The company has an internal audit system commensurate with the size &
nature of its business. The internal audit report has been submitted to the Board of
Directors & Audit Committee.
b) The reports of the Internal Auditor for the period under audit have been considered
by us.
xv) The company has not entered into any non cash transactions with Directors or
persons connected with them.
xvi) a) The company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934 (2 of 1934).
b) The company has not conducted any Non-Banking Financial or Housing Finance
activities without a valid Certificate of Registration (Cor) from the Reserve Bank of
India as per the Reserve Bank of India Act, 1934.
c) The company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India.
d) The company is not part of any "group" as defined under the applicable
regulations/guidelines.
xvii) The company has not incurred cash losses in the financial year and in the
immediately preceding financial year.
(xviii) There has no instance of any resignation of the Statutory Auditors occurred
during the year.
(xix) On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, and our knowledge of the Board of Directors and management plans, we
are of the opinion that no material uncertainty exists as on the date of our audit report
that company is capable of meeting its liabilities existing at the date of balance sheet
as and when they fall due within a period of one year from the balance sheet date.
(xx) As the Company had incurred losses during the relevant period, the provisions of
Section 135 pertaining to Corporate Social Responsibility are not applicable to the
Company.
(xxi) The company is not having any subsidiary company/companies. Hence this clause is
not applicable.
| FOR GURPREET KAUR & ASSOCIATES |
| CHARTERED ACCOUNTANTS |
| Firm Registration No. 015358N |
| -Sd- |
| GURPREET KAUR |
| (PARTNER) |
| M.No. 095722 |
| Place : RAJPURA |
| Dated : 18/05/2023 |
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2 (f) under Report on Other Legal and Regulatory
Requirements section of our report of even date).
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act").
We have audited the internal financial controls over financial reporting of MUKAT PIPES
LIMITED ("the Company") as of March 31, 2023 in conjunction with our audit of
the 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 respective 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 of the company 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) issued by the Institute of Chartered Accountants
of India and the Standards on Auditing prescribed under Section 143 (10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. 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 with reference to these financial statements.
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 authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised 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, to the best of our information and according to the explanations given
to us, 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, 2023 with reference to Financial
Statement based on the criteria for internal financial control over financial reporting
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 GURPREET KAUR & ASSOCIATES |
| CHARTERED ACCOUNTANTS |
| Firm Registration No. 015358N |
| -Sd- |
| GURPREET KAUR |
| (PARTNER) |
| M.No. 095722 |
| Place : RAJPURA |
| Dated : 18/05/2023 |
| UDIN No. 23095722BGWEBE7100 |
+91-9892691696
