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AUDITOR'S REPORT

Mallcom (India) Ltd.

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Market Cap. (₹) 143.61 Cr. P/BV 1.82 Book Value (₹) 126.62
52 Week High/Low (₹) 305/193 FV/ML 10/1 P/E(X) 17.01
Bookclosure 27/08/2018 EPS (₹) 13.53 Div Yield (%) 0.87
Year End :2016-03 

to the Shareholders of MALLCOM (INDIA) LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of MALLCOM (India) LIMITED ['(the Company'). which comprise the Balance Sheet as at 31st March 2Ol 6, and the Statement of Profit anti Loss and Cash Flow Statement tor the year then ended, and a summary of significant accounting policies and other explanatory information,

Management s Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the mailers stated in Section 134(5i of the Companies Act. 2013 ("the Act) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial portion, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, inducing 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 effusively (or ensuring The accuracy and completeness of The accounting records, relevant to the preparation and presentation of the standalone 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 Standalone financial statements based on our audit. We had 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 undergo provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Median 143(101 of 1he Act Those Standards require that we comply with ethical requirements anti plan and perform the audit to obtain reasonable assurance about whether The standalone financial statements are free from material misstatement.

An audit involves performing procedures to attain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the standalone Financial statements, whether due to fraud nr error In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the standalone 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 the accounting policies used and the reasonableness of the accounting estimates made by the Company's

Directors, as well as evaluating the overall presentation of the standalone

Financial Statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provides a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and lo 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 (he 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 31st March 2016.

(b) In the case of the statement of Profit and Loss account, of the Profit for the year ended on that date, and

(c) in the case of the Cash now Statement, of the cash flows for the year ended on that date.

Other Matter

Attention is drawn to note No. 43 of the standalone financial statements regarding compliance pending of the provision of section 135 of the Companies Act 2013 relating to Corporate & Social Responsibility.

Report on Other Legal and Regulatory Requirements

1. As required by The Companies [Auditor's Report! Order, 2016 (“the Order’s issued by the Central Government of India in terms of sub-Section (111 of section 1-43 of the Act, we given the Annex we A. a statement on 1hE mailers specified in the paragraph 3 and 4 of the order, to the extent applicable.

2. As required by section 14313) of the Act, we report that;

(a) We have sought & obtained all The information & explanation which to best of our knowledge and belief were necessary for 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.

© 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) 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 Companies <Accounts> Rules. 2014.

(e) On the basis of written representations received from the directors as on 31st March 2016. taken on record by the Board of Directors none of the directors is disqualified as on 31st March 2016. from being appointed as a director in terms of Section 164(2) of the Act

(f) With respected to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls Transfer lo our separate report in 'Annexure B'. and

(g) With respect to the other matters to be included in the Auditor's Report m accordance with Rule 11 of 1he 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 note 29 to the standalone financial statements.

(ii) The company did not have any long term contracts including derivative controls for which there were any material foreseeable losses.

(iii) There are no amounts which are required to be transferred to The Investor Education and Protection- Fund

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

As required by section 143(31 of the Act. we report 1 hat

1. a) The company has maintained proper records showing full particulars, including quantitative details and Situation of its fixed assets.

b) The fixed assets have been physically verified by the management during the year. In our opinion. The frequency of verification of the fined assets by the management is reasonable having regard to the size of the company and the nature of its assets. Mo discrepancies were noticed an verification

c) Based on the audit procedure performed and according to (-he records of the company, the title deeds of all The immovable properties are held in the name of The company.

2. a] The inventories have been physically verified by the management In our opinion, the frequency of verification is reasonable

b) The d sere parities noticed on verification between the physical stocks and the book records were no1 material and have been properly dealt with in the books of accounts.

3. Since the company has not granted any loans, secured or unsecured, clause (a). (b) & (c) of section (iii) of Para 3 of the Order is no- applicable.

4. Since the company has not have any loan, as such provisions of section 185 and 186 of the Act are not applicable.

5. Since the company has not accepted any deposits, section (v) of Para 3 of The Order is not applicable.

6. We have broadly reviewed the accounts and records maintained by the company pursuant to the Companies (Cost Records and Audit) Rules. 2014 read with Companies (Cost Records anti Audit) Amendment Rules. 2014 specified by the Central Government under section 148 of the Act. and are of the opinion that prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.

7. a) According to the information and explanations given to us, the company has generally been regular in deposing undisputed statutory dues with appropriate authorities including Provident Fund. Employees State Insurance, Income tax, Sales Tax. Value Added Tax. Service Tax. Custom Duly. Excise Duty. Cess and other material Statutory dues applicable to it.

b) According to the information and explanations given to us. there are no undisputed amounts payable in respect of the aforesaid dues as at 31st March, 2D16 for a period of more than six months from the dale they became payable, except the following

Name of the Statute

Nature of the dues

Amount Rs.

Period to which amount relates

Forum where the dispute is pending

Income Tax Act

Income Ta- demand

1,507.930 6,008,330 2,531.300

A.Y. 2013-14 A.Y, 2012-13 A.Y. 2010-11

CIT(Appeal)

Income Tax Act

Income Td- demand

9,418.210

A.Y. 2011-12

Income Tax Tribunal

8. In our opinion and according to the information and explanations given to us. The company has not defaulted in The repayment of loans or borrowings from Banks. The company did not have outstanding loans from Financial Institutions. Debenture Holders of Government.

9. Since The Company did not raise any money by way of initial public officer or further public officer (including debt instruments) and term loans during the year, section (ix) of Para 3 of the Order is not applicable.

10. According to The information and explanations give to us. no fraud by 1he Company or on The Company by its officers or employees has been noticed or reported during the course of our audit.

11 In our opinion and according to the information and explanations given 10 us. the company has paid / provided managerial remuneration in accordance with the requisite approvals mandated provisions of section 197 read with Schedule V to the Companies Act, 2013.

12. In our opinion and according to the information and explanations given to us. the Company is not a nidhi company, as such section (xii) or Para 3 of the Order is not applicable.

13 In our opinion and according to the information and explanations give to us. all transactions with The related parties are in compliance with Sections 177 and 1S9 of the Companies Ad 2013 where applicable and details of such transactions have been disclosed in The standalone financial statements as required by The applicable accounting standards.

14 According to (he information and explanatory give Lo us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

15 According to The information and explanations give to us and based on our examination of the records of the Company. The Company has not entered into non-cash transactions with directors or persons connected with them, as such section (xv) of Para 3 of the Order is not applicable.

16 The Company is not required lo be registered under Section 45-lA of the Reserve Bank of India Act 1934.

ANNEXURE B TO THE AUDITORS' REPORT

Report on the- Internal Financial Controls under Clause (i) of sub-seclion3 of Section 143 of the Companies Act. 2013 (the Act')

We have 3Lidi1ad the internal financial controls over financial reporting of MALLCOM [INDIA) Limited (this Company) as of 31 at March 2016 in conjunction with our audit of the standalone Financial statements of the Company for the year ended on that date.

Management's Responsibility to Internal Financial Controls

Tilt Company's 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 slated m the Guidance Mute of Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India 1 (‘ CAI’). 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 the Company's policies, (he 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 in Formation. as required under the Companies Act. 2013.

Auditors' Responsibility

Our responsibility it to express an opinion on the Company 5 internal financial controls over financial reporting based on our audit We conducted our audit in accordance with the Guidance Note of Audit of Internal Financial Controls over Financial Reporting (the 'Guidance Note I and the Standards on Auditing, issued by ICAI and deemed to fee prescribed under Section 143(11]) of (tie Companies Act. 2013. la the extent applicable to an audit internal controls both applicable loan 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 lo obtain reasonable assurance about whether adequate internal financial controls over financial reporting were 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 statement s. 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 Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's 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 to external purpose In accordance with generally accepted accounting principles. A Company's 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 transaction and d disposition of The assets of the Company,.(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles, and (hat receipts are expenditures to the Company are being made only in accordance with authorizations of the Management and directors of the Company: and 0) provide reasonable assurance regarding prevention or timely defection of unauthorized acquisition, use or disposition of the Company s assets ’bat could have a material effect on the financial statements.

Inherent Limitation 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 he detected Also, projections of any evaluation of the internal financial controls over financial reporting lo future period are subject to the risk that the internal Financial control over financial reporting may become inadequate because of changes in condition, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, and adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were Operating effectively as at 31st March 2016. based on the internal control over financial reporting criteria established by the company considering the essential components of internal control staled in the Guidance Note on Audit of internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

For S. K. Singhania & Co.

Chartered Accountants

Firm Registration No. 302206E

Rajesh Kr. Singhania

Place Kolkata Partner

Dated 30th May, 2016 Membership No 52722

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