INDEPENDENT AUDITOR
To,
The Members of,
MYNK1906 INDUSTRIES INDIA LIMITED
(Formerly Meuse Kara & Sungrace Mafatlal Limited)
Report on the Financial Statements:
We have audited the accompanying financial statements of MYNK1906 INDUSTRIES INDIA
LIMITED "the Company", which comprise the Balance Sheet as at March 31, 2014,
the Statement of Profit and Loss and Cash flow statement for the year 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 sub-section (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. 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 Profit and Loss, of the Profit for the year ended on
that date; and
(c) In the case of the Cash Flow statement, of the cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditors Report) order 2003 and as amended by the
Companies (Auditors Report)(Amendment) Order 2004, issued by the Central Government of
India in terms of the 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. 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 and 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 and 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 13 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 B R R & Associates |
|
Chartered Accountants |
|
FRN:013012S |
|
B. Ravinder Rao |
| Place: Hyderabad |
Partner |
| Date: 30.05.2014 |
MNo 221298 |
Annexure to the Auditors Report of even date to the members of MYNK1906 INDUSTRIES
INDIA LIMITED, on the financial statements for the year ended March 31, 2014
Based on the audit procedures performed for the purpose of reporting a true and fair
view on the financial statements of the Company and taking into consideration the
information and explanations given to us and the books of account and other records
examined by us in the normal course of audit, we report that:
I. (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of Fixed Assets.
(b) As explained to us, the fixed assets have been physically verified by the
management at reasonable intervals and no material discrepancies between the book records
and the physical inventory have been noticed on such verification.
(c) The Company has not disposed off substantial part of the Fixed Assets.
II. (a) The Inventory has been physically verified during the year and in our
opinion, the frequency of verifications is reasonable
(b) In our opinion, the procedures of the physical verification of inventory followed
by the Management are reasonable and adequate in relation of the size of the Company and
the nature of its business. However company need to take some more procedures to improve
inventory controls.
(d) The Company is maintaining proper records of inventory and as explained to us,
there was no material discrepancies noticed on such verification of stocks as compared to
book records.
III. (a) According to the information and explanations given to us and on the basis
of Our examination of the books of account, the company has granted interest free loan to
one parties covered in the Register maintained under section 301 of the Companies, Act
1956.
(b) In our opinion and according to the information and explanations given to us, the
rate of interest and other terms and conditions of the loans given by Company, are not
prima facie prejudicial to the interest of the Company except to extent interest free
advance given to the directors of Company.
(c) As explained to us, principal amount and interests are also regular.
(d) In respect of the said loans and interest there on, there are no overdue amounts.
(e) According to the information and explanations given to us, the Company has received
loan (interest free) from three parties covered in the register maintained under section
301 of the Companies Act, 1956.
(f) In our opinion, the rate of interest and other terms and conditions of the loans
taken by the Company, are prima facie not prejudicial to the interest of the Company.
(g) The payment of principal amounts and interest in respect of such loans during the
year has been regular.
IV. In our opinion and according to the information and explanations given to us,
there are no sufficient adequate internal control systems commensurate with the size of
the company and the nature of its business with regard to purchase of inventory and fixed
assets and for sale of goods and services. There is no continuing failure by the company
to correct any major weaknesses in internal control.
V. (a) On the basis of the audit procedures performed by us, and according to the
information, explanations and representations made to us, we are of the opinion that,
there are sales/purchases transactions in which directors were interested as contemplated
under section 297 and section 299 of the Companies Act, 1956 and which were required to be
entered in the register maintained under section 301 of the said Act, have been so
entered.
(b) In our opinion and according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956 exceeding the value of rupees five
lakhs in respect of any party during the year, have been made at prices which are
reasonable having regard to market prices prevailing at the time.
VI. The Company has not accepted any deposits from the public and hence the
applicability of the clause of directives issued by the Reserve Bank of India and
provisions of section 58A, 58AA or any other relevant provisions of the Act and the rules
framed there under does not arise.
VII. The Company has no a formal system of Internal Audit, but there are adequate
checks & controls at All levels established by the Management.
VIII. In respect of the Company, the Central Government has not prescribed
maintenance of cost records under clause (d) of sub-section (1) of section 209 of the
Companies Act, 1956.
IX. (a) According to the information and explanation given to us the Company is
generally regular in depositing with appropriate authorities undisputed statutory dues
including income tax, sales tax, wealth tax, service tax, customs duty, cess and other
material statutory dues applicable. However the Company is not paying/filings Tax
detections at source and Professional Tax on the due dates.
(b) On the basis of our examination of documents and records of the Company, and
explanation provided to us, there were no disputed dues in respect of Income tax, Sales
tax, Wealth tax, Service tax, Customs Duty, Excise Duty, or Cess, were in arrears, as at
31st March 2014 for the period more than six month from the date they become
payable as except below
| Income Tax & its Interest Due as on 31.05.2014 |
A Y |
Rs in Lakhs |
|
2012-13 |
41.21 |
(c) According to information and explanation given to us, there is no dues of income
tax, sales tax, custom duty, wealth tax, service tax, excise duty, and cess which has been
deposited on account of any dispute. However for A Y 2011-12 Income tax assessments was
pending with IT Dept.
X. The Company has been registered for a period of not less than 5 years, and the
Company has no accumulated losses at the end of the financial year and the company has not
incurred cash losses in this financial year and the immediately preceding financial year.
XI. On the basis of the information and explanation given to us, Company has not
defaulted in repayment of dues to financial institutions or banks interest and
installments except few delays.
XII. According to the information and explanations given to us, the Company has not
granted any loans or advances on the basis of security by way of pledge of shares,
debentures and other securities and hence the applicability of the clause regarding
maintenance of adequate documents in respect of loans does not arise.
XIII. This clause is not applicable to this Company as the Company is not covered
by the provisions of special statute applicable to Chit Fund in respect of Nidhi/Mutual
Benefit Fund/Societies.
XIV. According to the information and explanations given to us, the company is not
dealing or trading in shares, securities, Debentures and other investments and hence the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order 2003, are not
applicable to the Company.
XV. According to the information and explanations and management letter given to
us, the Company has not given any guarantee for loans taken by others from Banks or
Financial Institutions, and hence the applicability of this clause regarding terms and
conditions which are prejudicial to the interest of the company does not arise.
XVI. As per the management representation received by us, the term loans obtained
by the Company were applied for purpose for which such loans were obtained by the Company.
XVII. As per the management representation received by us, funds are raised by the
Company on short-term basis. Hence, the short term funds being used for short term purpose
only not for long term purpose.
XVIII. According to the information and explanations given to us, the Company has
made a preferential allotment of Shares to parties during the year, under Zero percent
convertible preference shares into equity shares.
XIX. According to the information and explanations given to us, during the year the
company does not have any debentures and hence the applicability of the clause regarding
the creation of security or charge in respect of debentures issued does not arise.
XX. According to information and explanations given to us, the company has not
raised money by way of public issues during the year; hence the clause regarding the
disclosure by the management on the end use of money raised by Public Issue is not
applicable.
XXI. According to the information and explanations given to us, no fraud on or by
the Company has been noticed or reported during the year under audit.
|
For B R R & ASSOCIATES |
|
CHARTERED ACCOUNTANTS |
|
FRN: 013012S |
|
Sd/- |
| Place: Hyderabad |
B. Ravinder Rao |
| Date: 30-05-2014 |
Partner |
|
M NO 221298 |
+91-9892691696
