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Modi Rubber Ltd.

BSE: 500890 Sector: Auto
NSE: MODIRUBBER ISIN Code: INE832A01018
BSE 16:01 | 27 Mar 2018 Modi Rubber Ltd
NSE 05:30 | 01 Jan 1970 Modi Rubber Ltd
OPEN 84.20
PREVIOUS CLOSE 84.15
VOLUME 448
52-Week high 128.00
52-Week low 38.15
P/E 19.18
Mkt Cap.(Rs cr) 211
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 84.20
CLOSE 84.15
VOLUME 448
52-Week high 128.00
52-Week low 38.15
P/E 19.18
Mkt Cap.(Rs cr) 211
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Modi Rubber Ltd. (MODIRUBBER) - Auditors Report

Company auditors report

To the members of

Modi Rubber Limited Report on the Financial Statements

We have audited the accompanying standalone financial statements of Modi Rubber Limited("the Company") which comprises the Balance Sheet as at March 31 2015 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theAccounting Principles generally accepted in India including Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities selection andapplication of appropriate accounting policies making judgments and estimates that arereasonable and prudent and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theinstitute of Chartered Accountants of India.. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate Internal financialcontrol system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2015 and its profit and the 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 ("theOrder") issued by the Central Government of India in terms of sub- section (11) ofsection 143 of Act and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationgiven to us we give in the Annexure a statement of the matters specified in paragraphs 3and 4 of the Order.

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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account;

d. in our opinion the aforesaid financial statement comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e. on the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 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 inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand the best of information and according to the explanations given to us:

• the Company has disclosed the impact of pending litigations as at March 31 2015on its financial statements;

• the Company has made provision as required under applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts; and;

• there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312015.

ANNEXURE REFERRED IN OUR REPORT ON STANDALONE FINANCIAL STATEMENTS TO THE MEMBERS OFMODI RUBBER LIMITED FOR THE YEAR ENDED 31st MARCH 2015

1. a) The Company has maintained proper records to show full particulars includingquantitative details and situation of its fixed assets.

b) The fixed assets (except the assets which the company has no access) have beenphysically verified by the management during the year. Material discrepancy noticed duringsuch verification have been properly dealt with in the books of accounts.

2. a) Physical verification of the inventories of the company has been conducted atreasonable intervals. However in some cases physical verification has not been conducteddue to non-access of the inventory.

b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the Management are reasonableand 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 usmaterial discrepancies noticed on physical verification of inventories as compared to bookrecords have been properly dealt with in the books of accounts.

3. The Company has granted an unsecured loan to one of its wholly owned subsidiarycompany covered in the register maintained under section 189 of the Act. The aforesaidloan is interest free and whole of the principal amount has been received back during thecurrent year.

4. In our opinion and according to the information and explanations provided to usthere are adequate internal control procedures commensurate with the size of the Companyand the nature of its business with regard to purchase of inventory and fixed assets andfor sale of goods and services. We have not observed any continuing failure to correctmajor weaknesses in the aforesaid internal control system during the course of audit.

5. According to the information and explanation given to us the company has notaccepted any deposits within the meaning of sections 73 and 74 of the Act and the rulesframed thereunder to the extent notified. Therefore the provision of Clause (v) ofparagraph 3 of the Order is not applicable to the Company.

6. The Central Government has prescribed maintenance of Cost Records under clause (d)of sub-section (1) of Section 148 of the Act. However no Cost Records are maintained dueto the suspension of manufacturing operations.

7. a. The company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income Tax Sales Tax Service TaxWealth Tax Custom Duty Excise Duty Value Added Tax Cess and any other statutory dueswith the appropriate authorities except amounts of Rs. 139. 66 lacs due to various SalesTax Authorities and Rs. 247. 75 lacs payable to Gratuity Trust as at the last day of thefinancial year concerned for a period of more than six months from the date they becomepayable.

b. According to information and explanations given to us the dues of Income Tax SalesTax Wealth Tax Customs Duty Service Tax Excise Duty Value Added Tax and Cess whichhave not been deposited on account of any dispute and the forum where the dispute ispending are as under: -

Name of the Statute State Amount Rs. Lacs Forum Where Dispute is pending Period Which It Relates to
I EXCISE/DGFT LIABLITY
1 Central Excise Act 1944 Central Excise Act 1944 1604.72 High Court and Appelate Tribunals 1992-2002
2 Foreign Trade Development and Regulation Act 1992 Delhi 200.00 Additional DGFT Commissioner (A) 1995-1996
3 Custom Act 1962 379.89 Commissioner (A) 1996 20002001
II SALES TAX LIABILITY
1 U. P Trade/VAT Act Uttar Pradesh 323.82 Tribunal Add. Comm. (A) D. C. (A) 1977-2002
2 Bihar Finance Act Bihar 374.85 Jt. Comm. (A) 1990-2002
3 Delhi ST Act Delhi 337.08 D. C. (A) 1976-2002
4 Maharashtra ST Act Mumbai 790.52 D. C. (A) 1975-2002
5 Jharkand ST Act Jamshedpur 65.42 D. C. (A) 2000-2002
6 Jharkand ST Act Ranchi 27.96 D. C. (A) 2000-2002
7 A. P GST Act Andhra Pradesh 95.58 Comm. (A) 1999-2002
8 Haryana CST Act Haryana 63.05 Jt. Comm. (A) 1999-2003
9 J & K ST Act Jammu & Kashmir 42.33 D. C. (A) 2001-2002
10 M. P Comm. Tax Act Madhya Pradesh 134.40 D. C. (A) 1993-2002
11 Uttaranchal ST Act Uttranchal (Haldwani) 20.29 Jt. Comm. (A) 2000-2002
12 Pondicherry ST Act Puducherry 0.73 D. C. (A) 1999-2000

c. The amount required to be transferred to Investor Education and Protection Fund hasbeen transferred within the stipulated time in accordance with the provisions of theCompanies Act 1956 (1 of 1956) and the rules made thereunder.

8. There are no accumulated losses at the end of the financial year. The Company hasnot incurred any Cash Loss during the year and immediately preceding financial year.

9. In our opinion and according to information and explanations given to us theCompany has not defaulted in repayment of dues to any financial institutions banks ordebenture holders.

10. On the basis of information and explanations given to us the company has not givenany guarantee for loan taken by others from bank or financial institutions.

11. As per information and explanations given to us we report that the company hastaken a term loan during the year. This loan has been applied for the purpose for which itwas obtained.

12. Based on the audit procedures performed and information and explanations given tous by the management we report that no fraud on or by the company has been noticed orreported during the course of our audit.

Chartered Accountants
(Firm Registration No. 007966N)
For P D M AND COMPANY CA. Prabhat Jain
Place: New Delhi Partner
Date: 29. 05. 2015 (M. No. 086756)