| 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.
Management's 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. Auditor's 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 auditor's 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 Company's 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 (Auditor's 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.
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 AY Rs in Lakhs
Interest Due as on 2012-13 41.21
31.05.2014
(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 (Auditor's 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
F R N: 013012S
B. Ravinder Rao
Place: Hyderabad Partner
Date: 30.05.2014 M No 221298 | 