| We have audited the accompanying standalone financial statements of
Mahaan Foods Limited ('the Company'), which comprise the balance sheet
as at 31 March 2015, the statement of profit and loss and the cash flow
statement for 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 matters stated
in Section 134(5) 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 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 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 standalone
financial statements based on our audit. We have 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 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. 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 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 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 31 March 2015 and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. 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 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. 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) 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 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) 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 the Companies (Accounts) Rules, 2014;
(e) Attention is invited to Note 25 stating that some of balance of
debtors, creditors and loans and advances are subject to confirmation
from respective parties. We have relied on the representations of the
management that no significant impact is expected on the working
results of the Company on this account.
(f) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
(g) with respect to the other matters 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 has disclosed the impact of pending litigations on its
financial position in its financial statements refer Note 24 to the
financial statements.
ii. The company did not have any long term contract including
derivative contract for which there were any material foreseeable
losses;
iii. There has been no amount required to be transferred, to the
Investor Education and Protection Fund by the Company during the year.
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
(i) (a) The Company has maintained list of fixed assets acquired by it.
However those are required to be updated substantially with regard to
quantitative details/ location, identification etc.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme,certain
fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
(c) Based on our scrutiny of records of the company and the information
and explanations received by us, we report that company has not sold
any substantial part of fixed asset during the financial year ended
31st March 2015, that has affected the going concern of the company .
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) 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 is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The Company has granted loan to one company of Rs.5,71,67,868
covered in the register maintained under section 189 of the Companies
Act, 2013 ('the Act').
(a) Receipts of Principal amount and interest in respect of above
mentioned loan are regular.
(b) There is no overdue amount in respect of above mentioned loan.
(c) For this purpose, we have relied on the representations of the
management that Rs. 30,43,413 due from one company and two parties
covered in the register maintained under section 189 of the Companies
Act, are advances and not in the nature of loans.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of goods and services. Further, on
the basis of our examination of the books and records of the company
and according to information & explanations given to us, no major
weakness has been noticed or reported.
(v) The Company has not accepted any deposits from the public covered
under Section 73 to 76 of the Companies Act, 2013 during the year.
(vi) We have broadly reviewed the Cost Records maintained by the
company as prescribed by the Central Government under sub section (1)
of the Companies Act 2013 and are of the opinion that prima facie, the
prescribed accounts and records have been maintained. The company did
not undertake manufacturing activity during the year..We have, however
not made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company,
amounts deducted/ accrued in the books of account in respect of
undisputed statutory dues including provident fund, income tax, sales
tax, wealth tax, service tax, duty of customs, value added tax, cess
and other material statutory dues have been regularly deposited during
the year by the Company with the appropriate authorities in India .The
Arrear as on 31stmarch 2015 on the aforesaid dues were as below.
1 Sales Tax Rs.48,81,855.00
2 Service tax Rs.9173.00
3 TDS Rs.3627.00
(b) (i) According to the information and explanations given to us,
there are no material dues of wealth tax, duty of customs and cess
which have not been deposited with the appropriate authorities on
account of any dispute. However, according to information and
explanations given to us, the following dues of income tax, sales tax,
service tax and value added tax have not been deposited by the Company.
Name of Statute Nature of Amount Period to which
the Dues (Rs. In the amount
Lacs) relates
Himachal Pradesh Value Value 48.22 01.01.2007 to
Added Tax Act 2005 Added Tax 30.11.2008
Income tax Act 1961 Fringe 3.88 01.04.2008 to
Benefit Tax 31.03.2009
Income tax Act 1961 Fringe 1.04 01.04.2006 to
Benefit Tax 31.03.2007
(b)(ii) According to the information and explanations given to us, the
statutory dues that have not been deposited by the Company on
account of matters pending before appropriate authorities are as under:
Name of Nature of the Amount Period to which
Statute Dues (Rs. In the amount
Lacs) relates
Delhi Sales Tax Sales Tax 40.40 2003-04
Act 1975 demand
Punjab Value Penalty 2.91 2005-06
Added Tax Act
2005
Rajasthan Value Penalty 8.49 2008-09
Added Tax Act
2003
Orissa value Value added tax 0.46 01-04-2005 to
Added Tax Act, Penalty 0.91 30-11-2008
2004
Orissa entry Tax Entry tax 1.77 01-04-2005 to
Act, 1999 Penalty 3.54 30-11-2008
Name of Statute Forum where
dispute is pending
Delhi Sales Tax Dy. Commissioner (Appeals),
Act 1975 New Delhi (Demand order has
been stayed by Hon'ble Dy.
Commissioner)
Punjab Value Asstt. Excise & Taxation
Added Tax Act Commissioner cum Deputy
2005 Director (Inv.), Patiala for
review.
Rajasthan Value Rajasthan Tax Board,
Added Tax Act Ajmer
2003
Orissa value Joint Commissioner of Sales
Added Tax Act, tax, Bhubaneswar
2004
Orissa entry Tax Joint Commissioner of Sales
Act, 1999 tax, Bhubaneswar
(c) There has been no amount required to be transferred, to the
Investor Education and Protection Fund by the Company during the year
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and but has incurred a cash loss of Rs.1,28,91,559.00 in the
immediately preceding financial year.
(ix) The Company has not taken loans from financial institutions, banks
or debenture holders during the year.
(x) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xi) In our opinion and according to the information and explanation
given to us , the company has not raised any term loan during the year
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For D.D Nagpal & Co
Chartered Accountants
Firm's registration number: 006413N
Sd/-
Dev Dhar Nagpal
Place : New Delhi Partner
Date : 30th May 2015 Membership number: 085366
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