Referred to in paragraph 1 under the heading Rs.Report on Other Legal & Regulatory
RequirementRs. of our report of even date to the standalone financial statements of the
Company for the year ended March 31st, 2023:
1. In respect of the CompanyRs.s Property Plant & Equipment:
(a) The Company has not provided proper records showing full particulars including
quantitative details and situation of its Property, Plant & Equipment and hence we are
unable to comment upon same.
(b) The Company does not any intangible assets and accordingly, the requirements under
paragraph 3(i)(a)(B) of the Companies (AuditorRs.s Report) Order, 2020 ("the
Order") are not applicable to the Company.
(c) As explained to us, Property Plant & Equipment have been physically verified by
the management at reasonable intervals; no material discrepancies were noticed on such
verification.
(d) The title deeds of immovable properties as disclosed in Note 9 on Fixed Assets to
the Financial Statements are held in the name of Company.
(e) The Company has not revalued its Property, Plant and Equipment (including Right of
Use assets) and/ or Intangible Assets during the year. Accordingly, reporting under clause
(i)(d) of paragraph 3 of the Order is not applicable.
(f) No proceedings have been initiated or are pending against the Company as at March
31, 2023 for holding any benami property under the Prohibition of Benami Property
Transactions Act, 1988 and rules made thereunder.
2. In respect of CompanyRs.s inventories:
(a) The inventory has not been physically verified by the management during the year
Accordingly, we cannot comment on material discrepancies existing, if any.
(b) The Company has been sanctioned working capital limits in excess of five crore
rupees during the year, in aggregate from banks and/or financial institutions, on the
basis of security of current assets. The quarterly returns/statements filed by
the Company with such banks and/or financial institutions are in agreement with the
books of account of the Company.
3. During the year, the Company has not made investments in, provided any guarantee or
security or granted any loans, secured or unsecured to Companies, Firms, Limited Liability
Partnerships or other parties covered in the Register maintained under Section 189 of the
Act. Accordingly, the provisions of Clause 3 (iii) (a) to (c) of the Order are not
applicable to the Company and hence not commented upon.
4. In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of Section 185 & 186 of the Companies Act,
2013 in respect of Loans, Investments, guarantees and security.
5. In our opinion and according to the information and explanations given to us, the
Company has not accepted deposits from the public during the year. Therefore, the
directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or
any other relevant provisions with regards to deposits are not applicable to the Company.
6. As informed to us, the maintenance of Cost Records has not been specified by the
Central Government under sub-section (1) of Section 148 of the Act, in respect of the
activities carried on by the Company.
Rs.. (a) According to the records of the Company,
undisputed statutory dues including Goods and Services tax (GST), provident fund,
employeesRs. state insurance, income-tax, duty of customs and Cess to the extent
applicable and any other statutory dues have been regularly deposited with the appropriate
authorities.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of Goods and Services tax (GST), provident fund, employeesRs. state
insurance, income-tax, duty of customs and Cess were in arrears as on 31st of March, 2023
for a period of more than six months from the date they became payable.
(c) There are no dues with respect to provident fund, employeesRs. state insurance,
income tax, GST, sales tax, service tax, value added tax, customs duty, excise duty and
cess, which have not been deposited on account of any dispute.
8. We have not come across any transaction(s) which were previously not recorded in the
books of account of the Company that have been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 1961.
9. (a) In our opinion and according to the information
and explanations given to us, the Company has not defaulted in repayment of dues to
Financial Institutions, Banks and Debentures Holders. Also the Company has not taken any
further loan from Financial Institutions or from the government and has not issued any
debentures.
(b) The Company has not been declared wilful defaulter by any bank or financial
institution government or any government authority.
(c) The Company has prima facie utilized the money obtained by way of term loans during
the year for the purposes for which they were obtained.
(d) On an overall examination of the financial statements of the Company, the Company
has used funds raised on short-term basis aggregating to Rs. 92.86 Lakhs for
long-term purposes
(e) On an overall examination of the financial statements of the Company, the Company
has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiaries, associates or joint ventures as defined under the Act.
(f) The Company has not raised loans during the year on the pledge of securities held
in its subsidiaries, joint ventures or associate companies, as defined under the Act.
10. Based upon the audit procedures performed and the information and explanations
given by the management, the Company has not raised monies by way of initial public offer
or further public offer (including debt instrument) during the year under review.
Therefore, reporting under clause (x)(a) of the paragraph 3 of the order is not
applicable.
11. Based upon the audit procedures performed and the information and explanations
given by the management, the Company has not made any preferential allotment or private
placement of share during the year under review. Therefore, reporting under clause (x)(b)
of paragraph 3 of the Order is not applicable.
12. (a) Based upon the audit procedures performed
and the information and explanations given by the management, we report that no fraud
by the Company or on the Company by its officers or employees has been noticed or reported
during the year.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed
in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government, during the year and upto the date of this report.
(c) There are no whistle blower complaints received by the Company during the year and
upto the date of this report.
13. The Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of
the Order are not applicable to the Company.
14. According to information and explanation given to us and based on our examination
of the records of the Company, all the transactions with the related parties are in
compliance with Section 177 and 188 of Companies Act, 2013 and the details have been
disclosed in the financial statements as required by the applicable accounting standards.
15. (a) In our opinion, the Company has an internal audit
system commensurate with the size and nature of its business.
(b) We have considered the Internal Audit Reports of the Company issued till date, for
the period under audit.
16. Based upon the audit procedures performed and the information and explanations
given by the management, the Company has not entered into any non-cash transactions with
directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of
the Order are not applicable to the Company and hence not commented upon.
17. The Company is not required to be registered under section 45IA of the Reserve Bank
of India Act, 1934 and accordingly, the Provisions of clause 3 (xvi) of the Order are not
applicable to the Company and hence not commented upon.
18. The Company has not incurred cash losses in the current and the immediately
preceding financial year.
19. There has been no resignation of the statutory auditors during the year and
accordingly, reporting under clause (xviii) of paragraph 3 of the Order is not applicable.
20. 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, the auditorRs.s knowledge of the Board of Directors and management
plans and based on our examination of the evidence supporting the assumptions, nothing has
come to our attention, which cause us to believe that any material uncertainty exists as
on the date of this audit report and that the Company is not 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. We, however, state that this is not an
assurance as to the future viability of the Company. We further state
that our reporting is based on the facts up to date of the audit report and we neither
give any guarantee nor any assurance that all liabilities falling due within a period of
one year from the balance sheet date, will get discharged by the Company as and when they
fall due.
21. The provisions of section 135 of the Act are not applicable to the Company. Hence,
reporting under clause (xx) of paragraph 3 of the Order is not applicable.
For, SINGHI & CO.
Chartered Accountants FRN NO: 302049E
SUNIL C BOHARA
Partner
Membership No. 103395 UDIN: 23103395BGXTNH6875
Ahmedabad, 15th May 2023
(Referred to in paragraph 2(f) under "Report on Other Legal and regulatory
requirementsRs. of our report of even date)
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 of MAHICKRA
CHEMICALS LIMITED ("the Company") as of 31st March 2023 in
conjunction with our audit of the Standalone Financial Statements of the Company for the
year ended on that date.
ManagementRs.s Responsibility for Internal Financial Controls
The CompanyRs.s 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 (Rs.ICAIRs.). 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 CompanyRs.s 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.
AuditorRs.s Responsibility
Our responsibility is to express an opinion on the CompanyRs.s 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, 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 auditorRs.s judgment, including the assessment of the risks of
material misstatement of the Standalone 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 CompanyRs.s internal financial controls
system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A CompanyRs.s 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 CompanyRs.s 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
CompanyRs.s 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 31st March 2023,
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, SINGHI & CO.
Chartered Accountants FRN NO: 302049E
SUNIL C BOHARA
Partner
Membership No. 103395 UDIN: 23103395BGXTNH6875
Ahmedabad, 15th May 2023
+91-9892691696
