On The Financial Statement of Mahip Industries Limited To
THE MEMBERS OF
Mahip Industries Limited
(Formerly Known As Care Corupack Ltd)
Report on the Financial Statements
We have audited the accompanying standalone financial statements of MAHIP INDUSTRIES
LIMITED (Formerly Known As Care Corupack Ltd) ("the Company"), which comprise
the Balance Sheet as at March 31, 2020, the Statement of Profit and loss and the Cash Flow
Statement for the Period then ended, and a summary of significant accounting policies and
other explanatory information.
Qualified 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 section of our report, 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 Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and other
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, 2020;
b) in the case of the Profit and Loss Account, of the profit/Loss for the period ended
on that date.
c) In case of Cash Flow Statement, of the Cash Flow for the period ended on that date.
Basis for Qualified Opinion
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing specified under section 143(10) of the Act (SAs). Our
responsibilities under those Standards are further described in the Auditors
Responsibility for the Audit of the Standalone 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 standalone 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 standalone financial statements.
1. We draw attention to the non-provision of interest on NPA accounts of banks. The
exact amounts of the said non provisions are not determined and accounted for by the
Company. Had the provision been made in the financial statements; Finance cost, Bankers
loan liability and loss for the year would have been higher by the amount of such
provision and the Shareholders funds, as per the Balance sheet would have been lower by
the same amount.
2. In the absence of the actuarial valuation report, the impact on loss for the year on
account of such valuation is not ascertainable and relevant disclosures not been given.
The Company has not made provision for gratuity and leave encashment for the year. This is
not in compliance with AS-15 Employee Benefits. Had the provision been made in the
financial statements, Employee Benefits and loss for the year, as per the Statement of
Profit & Loss would have been higher by the amount of such provision and the long-term
investments, long-term and short-term loans and advances and the Shareholders funds, as
per the Balance Sheet would have been lower by the same amount.
3. Certain Debit and Credit transactions appearing in the Financial Statements are
subject to confirmation and reconciliation.
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 that there are no key audit matters to communicate in our report.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Act with respect to the preparation of these standalone 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 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 maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding 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 standalone 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. Those Board of Directors are also responsible for
overseeing the Companys financial reporting process.
Auditors Responsibility
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements 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 decisions of users
taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone
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.
• Obtain an understanding of internal financial control 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.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the management.
• 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 standalone 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 a going concern.
• Evaluate the overall presentation, structure and content of the standalone
financial statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
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.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2017 ("the Order"),
issued by the Central Government of India in terms of subsection (11) of Section 143 of
the Act, we give in the "Annexure A" statement on the matters specified in
paragraph 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 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 aforesaid standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014;
e) On the basis of the written representations received from the directors as on 31st
March, 2020 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2020 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 reporting.
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, 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.
ii) The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts.
iii) There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
FOR, A N A M & ASSOCIATES.
CHARTERED ACCOUNTANTS
Firm Regn. No. : 005496S
CA NAZIM F. RAJAIWALA PARTNER
UDIN : 20131829AAAAKO9051
Membership No. : 131829
Date: 14.09.2020
Place: Ahmedabad
"Annexure - A"
To the Independent Auditors Report on Financial Statement of Mahip Industries Limited.
Referred to in the Paragraph 8 under the heading ‘Report on the Other Legal and
Regulatory Requirements of our report of even date on the financial statements of the
Company for the period ended on March 31, 2020
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 on the basis of available information.
b. All the assets have not been physically verified by the management during the year
but there is a regular program of verification which in our opinion is reasonable having
regard to the size of the company and the nature of its assets. No material discrepancies
were noticed on such verification.
c. As per the information and explanations provided to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties are
generally held in the name of the Company except the land situated in the Dholka which has
been taken on lease.
d. In our opinion and according to the information and explanations given to us, no
major part of fixed asset has been disposed during the year and therefore does not affect
the going concern assumption.
II. In respect of its Inventories:
a. As explained to us, the inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is reasonable.
b. In our opinion and according to the information and explanations given to us, the
procedures of physical verification of inventory followed by the management are reasonable
and adequate in relation to the size of the Company and the nature of its business.
c. As explained to us no material discrepancy were noticed on physical verification
III. In respect of loans granted and taken to / from parties covered in the register
maintained u/s 189 of the Companies Act, 2013
According to the information and explanations given to us during the year covered
audit, the Company has granted interest free loans to the companies covered in the
Register required to be maintained under Section 189 of the Companies Act, 2013. In
respect of such loans
(i) the terms and conditions of the grant of such loans are not prejudicial to the
companys interest.
(ii) the schedule of repayment of principal and payment of interest has been stipulated
and whether the repayments or receipts are regular.
(iii) There are no overdue amount as at the period-end in respect of both principal and
interest.
IV. In respect of loans, investments and guarantees u/s. Section 185 and 186 of the
Companies Act, 2013.
In our opinion and according to the information and explanations given to us, In
respect of loans, investments and guarantees, whether provisions of Section 185 and 186 of
the Companies Act, 2013 have been complied with.
V. In respect of deposits from public:
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
provisions of clause 4(vi) of CARO are not applicable to the Company.
VI. In respect of maintenance of cost records:
Pursuant to rules made by the Central Government for the maintenance of cost records
under sub-section (1) of section 148 of the Companies Act 2013 in respect of certain
manufacturing activities, as informed to us, the Company has maintained cost records.
VII. In respect of statutory dues:
(a) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, amounts deducted / accrued in the books of
account in respect of undisputed statutory dues including Provident fund, Income tax,
Wealth tax, and any other material statutory dues have generally been not regularly
deposited during the year by the Company with the appropriate authorities except the
following. According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the Company has outstanding dues of Rs.
82,047/- payable towards the Employees Provident fund and Rs.19,90,653/- payable towards
Income Tax (Tax deducted at source) related to F.Y. 2018-19 not deposited to the accounts
of government. And Rs.10,71,703/- payable towards Income Tax (Tax deducted at source)
related to F.Y. 2019-20 not deposited to the accounts of government and the liability
towards the Employees Provident fund have not been determined for the F.Y. 2019-20.
Except above, the company did not have any dues on account of Employees State
Insurance, Custom Duty and Excise duty. According to the information and explanations
given to us, there are no undisputed statutory dues payable in respect of Employees State
Insurance, Sales-tax, Wealth Tax, Custom Duty, Excise Duty, Cess which are outstanding as
at 31.3.2020 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there is no amount which
have not been deposited on account of any disputed amount payable in respect of Income
tax, Sales tax, Service tax, Customs, Excise or Value added tax and Cess.
VIII. In respect of dues to financial institution / banks / debentures:
Based on our audit procedures and on the basis of information and explanation given by
the management, we are of the opinion that the company has defaulted in the repayment of
instalments of the loans obtained from Banks, NBFC and financial institution and in
payment of interest on such loans. In the absence of information and material records we
are unable to comment on amount of default in loan liability including interest and other
charges payable thereon.
IX. In respect of application of money raised by Initial public offer, further public
offer (including debt instruments) and term loans.
According to the information and explanations given to us, company has not issued any
shares and has not raised money from initial public offer, and not raised money from
further public offer (including debt instruments).
According to the information and explanations given to us and based on the documents
and records examined by us, on an overall basis, the term loan has been applied for the
purpose for which the loans were obtained.
X. In respect of fraud:
To the best of our knowledge and belief and according to the information and
explanations given to us, no fraud by the Company or on the Company by its officers or
employees has been noticed or reported during the course of our audit.
XI. In respect of Managerial Remuneration.
In our opinion and according to the information and explanations given to us and on the
basis of our examination of the records, managerial remuneration has been paid or provided
in accordance with the requisite approvals mandated by the provisions of section 197 read
with Schedule V to the Companies Act.
XII. In respect of Nidhi Company
In our opinion and according to the information and explanations given to us, Company
is not Nidhi Company. Hence Compliance related to Net owned fund is not applicable to
company.
XIII. In Respect of Related parties Transactions
In our opinion and according to the information and explanations given to us, all
transactions with the related parties are in compliance with Section 188 and 177 of
Companies Act, 2013, where applicable and the details have been disclosed in the Financial
Statements etc as required by the accounting standards and Companies Act, 2013.
XIV. In Respect of Preferential Allotment/Private Placement of shares.
According to the information and explanations given to us, the company has not made any
preferential allotment or private placement of shares or fully
or partly convertible debentures during the year under review and if so, compliance
under section 42 of the Companies Act, 2013 need not complied with.
XV. In Respect of Bonus Shares issued.
According to the information and explanations given to us the company has not issued
any Bonus shares during the year to the equity shareholders including directors of the
company from the balance available to the extent of security premium and remaining from
reserve & surplus account.
XVI. In Respect of Non-Cash transactions with Directors
According to the information and explanations given to us the company has not entered
into any non-cash transactions with directors or persons connected with him and so
compliance under section 42 of the Companies Act, 2013 need not complied with.
XVII. In Respect of Registration of Nidhi Company.
The company is not required to be registered under section 45-IA of the Reserve Bank of
India Act, 1934.
FOR, A N A M & ASSOCIATES.
CHARTERED ACCOUNTANTS
Firm Regn. No. : 005496S
CA NAZIM F. RAJAIWALA PARTNER
UDIN : 20131829AAAAKO9051
Membership No. : 131829
Date: 14.09.2020
Place: Ahmedabad
"ANNEXURE B"
TO THE INDEPENDENT AUDITORS REPORT ON FINANCIAL STATEMENTS OF MAHIP INDUSTRIES
LIMITED.
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 Mahip
Industries Limited ("the Company") as of 31st March, 2020 in conjunction with
our audit of the standalone financial statements of the Company for the period 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 (‘ICAI).
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 judgment, 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) 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.
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 override of controls
by the Management, 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
Basis for Disclaimer of Opinion
The system of internal financial controls over financial reporting with regard to the
Company were not made available to us to enable us to determine if the Company has
established adequate internal financial control over financial reporting and whether such
internal financial controls were operating effectively as at March 31, 2020.
Disclaimer of Opinion
According to the information and explanation given to us and as stated in "basis
of disclaimer of opinion " paragraph above, the Company does not have adequate
internal financial control over financial reporting on criteria based on or 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. Because of this reason, we are unable to obtain sufficient
appropriate audit evidence to provide a basis for our opinion whether the Company has
adequate internal financial controls over financial reporting and whether such controls
were operating effectively as at March 31, 2020.
We have considered the disclaimer reported above in determining the nature, timing, and
extent of audit tests applied in our audit of the financial statements of the Company, and
the disclaimer has affected our opinion on the financial statements of the Company and we
have issued qualified opinion on the financial statements.
FOR, A N A M & ASSOCIATES.
CHARTERED ACCOUNTANTS
Firm Regn. No. : 005496S
CA NAZIM F. RAJAIWALA PARTNER
Membership No. : 131829
UDIN : 20131829AAAAKO9051
Date: 14.09.2020
Place: Ahmedabad
+91-9892691696
