We have audited the accompanying financial statements of M.K. EXIM
(INDIA) LIMITED (''the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's responsibility for Financial Statements
The Company's 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 ofthe Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with
provisions of the Act for safeguarding of the assets of the company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgements
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 ofthe financial statements that give a true and fair view
and are free from material misstatements, whether due to fraud and
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 ofthe 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
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 of 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 auditor's judgement, including the assessment of
the risks of material misstatements of financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the company's
preparation of the financial statements that give a true and fair view
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 the company's directors, as well as evaluating the
overall presentation ofthe 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 31st March,2015; and its profit and cash flows for the year ended on
that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements:
AS-15, far Employees Benefits (Revised 2005), in respect of Provision
for Gratuity. The Provision for Gratuity provided by the company is
inadequate and its effect on liabilities and profit of the Company is
unascertainable. Further, requisite disclosures are not made in respect
of retirement benefits.
Our opinion is not modified in respect of this matter.
As required by Companies (Auditors' Report) Order, 2015 issued by the
Central Government of India in terms of Section 143 of the Act, we give
in the Annexure a statement on the matters specified in paragraphs 3 of
the said order.
Report on Other Legal and Regulatory Requirements
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
purposes of our audit.
b. ln 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, 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. ln our opinion, the aforesaid Standalone Financial Statements comply
with the Accounting Standards referred to in Section 133 of the
Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules,
2014.
e. On the basis of written representations received from the Directors,
as on 31st March, 2015 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2015 from being appointed as a director in terms of Section 164(2) of
the Act.
f. With respect to the other matter to be included in the Auditor's
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 litigation 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.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNTS OF M.K.
EXIM (INDIA) LIMITED FOR THE YEAR ENDED ON 31 ST MARCH, 2015
1. (a)The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b)AII the assets have been physically verified by the management at
the end of the year, 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.
2. (a)The inventory has been physically verified during the year at
reasonable intervals by the management.
(b) The procedure of physical verification of inventories followed by
the management is adequate in relation to the size of the company and
the nature of its business.
(c) The company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification.
3. The company has not granted any loans to companies, firms or other
parties covered in the register maintained under section 189 of the
Companies Act, 2013.
4.In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard of purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weakness in internal control system.
5. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits.
6. We have been explained that the maintenance of cost records has not
been prescribed by the Central Government under sub section (1) of
Section 148 of the Companies Act.
7. (a) The company is generally regular in depositing undisputed
statutory dues including Provident Fund, Employees State Insurance,
Income tax, Sales tax .Wealth tax, Service tax, Duty of Customs, Duty
of Excise, Value Added tax, Cess and any other statutory dues with the
appropriate authorities and there were no arrears of outstanding
statutory dues as at the last day of the financial year for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, dues of
Income tax amounting to Rs 190380/- have not been deposited and the
matter is pending before CIT (Appeals)-I, Jaipur (c)According to the
information and explanations given to us and records of company, no
amount is required to be transferred to Investor Education and
Protection Fund.
8. The company does not have accumulated losses as at the end of the
year. The company has not incurred any cash losses during the current
financial year and during the immediately preceding financial year.
9. 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 debenture holders.
10.In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions.
11. The company has applied the term loan ,the purpose for which the
loan was obtained.
12. According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the year.
For VIMAL AGRAWAL & ASSOCIATES
Chartered Accountants
(FRN: 004187C)
Sd /-
(V. K. Agrawal)
Partner
Place : Jaipur M. No. 071627
Date : 30.05.2015 |