To the Members of
MATRA KAUSHAL ENTERPRISE LIMITED,
Report on the Financial Statements
We have audited the accompanying Ind AS financial statements of MATRA KAUSHAL
ENTERPRISE LIMITED ("the Company") which comprise the Balance Sheet as at
March 31, 2020, the Statement of Profit and Loss, Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other explanatory information
(herein after referred to as "Ind AS Financial Statements")
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
these 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 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.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit.
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that us 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
the 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 financial control relevant to the Companys preparation of the
financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on whether the Company has in place an adequate internal financial controls system
over financial reporting and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Companys Directors, 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 on the financial statements.
Basis for Qualification
During the Financial year the Company has not received the interest on Loans &
Advances of Rs.13.79 crores outstanding in the books of accounts as on 31.03.2020. if the
company has provided the interest @9% on loans & advances of Rs.13.79 Crores the
Profit is increased by an amount of Rs.1,24,06,857/- i.e. from Profit of Rs.2,25,373/- to
Profit of Rs.1,26,32,230/-. The Management explained such that the parties to whom the
Inter Corporate Deposit is extended has written to company stating its inability to pay
Interest on ICD outstanding for F.Y 2019-20. However the said parties has assured to
return the outstanding ICD of Rs.13.79crore during the current F.Y 2020-21. Hence the
company thought it appropriate not to provide interest on the said ICD.
As Auditors of the Company we suggested the management to take stringent recovery steps
as the Parties to whom Advances have been extended had given similar assurance in the
earlier financial year also.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, subject to the matter mentioned in Basis for Qualification the aforesaid
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, of the state of affairs of the Company as at March 31, 2020, and its
Profit and its Cash Flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
as amended, issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the "Annexure A" a statement on the
matters specified in paragraphs 3 and 4 of the Order.
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. T he Balance Sheet, the Statement of Profit and Loss 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 Accounting
Standards specified under section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e. On the basis of written representations received from the directors as on March 31,
2020 taken on record by the Board of Directors, none of the directors is disqualified as
on March 31, 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
report in "Annexure B".
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 does not have any pending litigations 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 and on behalf of
JEEDIGUNTA & CO.
Chartered Accountants,
FRN:001322S
J.Prabhakar,
Chartered Accountant,
M.No.026006.
Date:30.06.2020
Place: Hyderabad.
"Annexure A" to the Independent Auditors Report
(Referred to in paragraph 1 under ‘Report on Other Legal & Regulatory
Requirements of our report of even date)
i) The Company does not have any Fixed Assets except Intangible Assets hence clause
3(i)(a)(b)(c) are not applicable to the Company for the year under review.
ii) According to the information and explanations given to us, the inventories have
been physically verified during the year by the management. In our opinion, the frequency
of such verification is reasonable. The discrepancies noticed on physical verification of
inventories as compare to the book records, which in our opinion were not material, have
been properly dealt with.
iii) The Company has granted unsecured loans, to various parties , no interest is
provided by the company on the advance amount of Rs 13.71 crores for the current financial
year and hence considered to be the prejudicial to the interest of the company for the
year under review.
iv) According to the information and explanations furnished to us there being no such
loans and investments, guarantees and security by the company and hence the clause 3(iv)
is not applicable to the company for the year under review.
v) According to the information and explanations given to us, the Company has not
accepted any deposits from public within the meaning of Sections 73 to 76 of the Act and
the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly the
provisions of clause (v) of paragraph 3 of the Order are not applicable to the Company for
the year under review
vi) As informed to m e , 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 and hence clause 3(vi) is not applicable to the
company for the year under review.
vii) In respect of statutory dues:
a. According to information and explanations given to m e and on the basis of m y
examination of the books of accounts and records, the Company has t been generally regular
in depositing undisputed statutory dues including Provident Fund, Employees State
Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value
added Tax, Cess and any other statutory dues with the appropriate authorities. According
to the information and explanations given to me, following are undisputed amounts payable
in respect of the above were in arrears as at March 31, 2020 for a period of more than six
months from the date on when they become payable.
| Sl.no. |
Name of the Statute |
Name of the tax due |
Amount (Rs.) |
Period to which the amount relates |
| 1 |
Income Tax Act-1961 |
Income Tax |
7,06,494 |
2011-12 |
| 2 |
Central sales tax act, 1956 and sales tax acts of various states |
Sales Tax/VAT |
2,69,000 |
2015-16 |
b. According to the information and explanation given to me, there are no dues of
income tax, sales tax, service tax, duty of customs, duty of excise, value added tax and
Cess which have not been deposited as on 31st March, 2019 on account of any
dispute.
viii) According to the information and explanations given to us, the Company has not
obtained any loans or borrowings from any financial institution or banks or by way of
debentures during the year hence clause 3(viii) is not applicable to the company for the
year under review
ix) Based upon the audit procedures performed and the information and explanations
given by the management, the company has not raised moneys by way of initial public offer
or further public offer including debt instruments and term Loans. Accordingly, the
provisions of clause 3 (ix) of the Order are not applicable to the Company for the year
under review.
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 in India, and
according to explanations given to us, we have neither come across any instance of
material fraud by the company or on the company by its officers or employees, noticed or
reported during the year, nor we have been informed of any such case by the management.
xi) Based upon the audit procedures performed and the information and explanations
given by the management, the 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) As the company is not a Nidhi Company and Nidhi Rules, 2014 are not applicable to
it, the provisions of Clause 3 (xii) of the Order are not applicable to the Company.
xiii) In my opinion, all transactions with the related parties are in compliance with
section 177 and 188 of Companies Act, 2013 and the details of such related party
transactions have been disclosed in the Financial Statements as required under Accounting
Standard - 18, Related Party Disclosures specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
xiv) 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 shares or fully or partly convertible debentures during the year under
review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to
the Company and hence not commented upon.
xv) 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 them and accordingly, the provisions of clause 3 (xv)
of the Order are not applicable to the Company and hence not commented upon.
xvi) In my opinion, the company is not required to be registered under section 45 IA 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.
For and on behalf of
JEEDIGUNTA & CO.
Chartered Accountants,
FRN:001322S
-SD-
J.Prabhakar,
Chartered Accountant,
M.No.026006.
Date:30.06.2020
Place: Hyderabad.
"Annexure B" to the Independent Auditors Report of even date on the
Financial Statements of MATRA KAUSHAL ENTERPRISE 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 MATRA
KAUSHAL ENTERPRISE LIMITED ("the Company") as of March 31, 2020.
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 u s 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) 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, 2020, 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 and on behalf of
Jeedigunta & Co
Chartered Accountants
FRN: 001322S
-SD-
J. Prabhakar
Partner
M.No.:026006
Date:30.06.2020
Place: Hyderabad.
+91-9892691696
