| We have audited the accompanying financial statements of MADHUSUDAN
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the 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 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 of 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.
Auditor's 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 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 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 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 ofthe 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 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, 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 ofthe Company as at
3151 March, 2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 ofthe Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraph 3 and 4
of the Order, to the extent applicable.
As required by Section 143 (3) ofthe 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) 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
ofthose 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) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 ofthe Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis ofthe written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none ofthe directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) ofthe
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 ofthe 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 its financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
The Annexure referred to in "Report on Legal and Other Regulatory
Requirements" paragraph 1 of the Our Report of even date to the members
of MADHUSUDAN INDUSTRIES LIMITED on the accounts of the company for the
year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. In respect of its fixed assets :
(a) The company has maintained proper records, showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information, other than furniture and fixtures.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals in a phased periodical manner,
which in our opinion is reasonable, having regard to the size of the
Company and the nature of its assets. No material discrepancies between
the book records and the physical inventory have been noticed in
respect of the assets physically verified.
2. In respect of its inventories :
(a) As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to book records.
3. In respect of loans, secured or unsecured, granted by the Company
to companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013 :
(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
not received or granted, secured or unsecured, to or from companies,
firms or other parties listed in the register maintained under Section
1 89 of the Companies Act, 201 3. Consequently, the provisions of
clauses iii (b) of paragraph 3 of the Companies (Auditor's Report)
Order, 2015 are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with its size of the company and the nature of business for the
purchase of inventories, fixed assets and also for sale of goods and
services. Further, on the basis of our examination, and according to
the information and explanations given to us, we have neither come
across nor have we have been informed of any instance of major weakness
in the aforesaid internal control systems.
5. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section 73
to 76 or any other relevant provisions of the Companies Act, 2013 and
Companies (Acceptance of Deposits) Rules, 2014 with regard to the
deposits accepted from the public. According to the information and
explanations given to us, in this regard, no order under the aforesaid
sections has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal on the company.
6. We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under sub-section (1) of section 148 of the
Companies Act, related to the maintenance of manufacture of certain
products, and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained.
7. In respect of statutory dues :
(a) According to the records of the company, undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, value
added tax cess and other statutory dues have been generally regularly
deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st of March,
2015 for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us, following
disputed statutory dues have not been deposited on account of disputed
matters pending before appropriate authorities are as under:
Sr. Name of Nature of Forum where Amount
No. the Statute the Dues dispute is (Rs.) In
pending Lacs
1 Gujarat Sales S ales-tax Gujarat Sales 139.34
Tax Act Tax Tribunal
2 Central Excise C entral
Act Excise Duty CESTAT 97.76
(c) According to the information and explanations given to us, there is
no amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder.
8. The Company does not have accumulated losses at the end of the
financial year and has not incurred any cash losses during the
financial year covered by our audit or in the immediately preceding
financial year.
9. As per the Books and records maintained by the company and
according to the information and explanations given to us, we are of
the opinion that, the Company has not defaulted in repayment of dues to
bank.
10. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from bank
or financial institutions.
11. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
12. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
H. V. Vasa & Co.
Chartered Accountants
Firm Registration No. 131054W
Tushar H. Vasa
Place : Ahmedabad Proprietor
Date : 27th May, 2015 Membership No. 16831
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