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Mirza International Ltd.

BSE: 526642 Sector: Others
NSE: MIRZAINT ISIN Code: INE771A01026
BSE LIVE 12:02 | 12 Dec 157.30 0
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OPEN

156.30

HIGH

158.00

LOW

155.00

NSE 11:50 | 12 Dec 157.20 -0.10
(-0.06%)
OPEN

157.55

HIGH

158.00

LOW

156.00

OPEN 156.30
PREVIOUS CLOSE 157.30
VOLUME 11524
52-Week high 183.00
52-Week low 77.90
P/E 25.37
Mkt Cap.(Rs cr) 1,892
Buy Price 157.30
Buy Qty 100.00
Sell Price 157.60
Sell Qty 100.00
OPEN 156.30
CLOSE 157.30
VOLUME 11524
52-Week high 183.00
52-Week low 77.90
P/E 25.37
Mkt Cap.(Rs cr) 1,892
Buy Price 157.30
Buy Qty 100.00
Sell Price 157.60
Sell Qty 100.00

Mirza International Ltd. (MIRZAINT) - Auditors Report

Company auditors report

TO THE MEMBERS OF

MIRZA INTERNATIONAL LIMITED

Report on the Financial Statement

We have audited the accompanying standalone financial statements of MirzaInternational Limited ("the Company") which comprise the Balance Sheet asat March 312016 the Statement of Profit and Loss and the Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.

Management 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 the 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 thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures 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. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2016 and its profit and its cash flows for the year ended on that date.

Other Matter

We did not audit the financial statements of Unit 8 and Unit 9 situated at Plot No 18& 19 Nandnagar Industrial Estate Kashipur included in the standalone financialstatements of the Company whose financial statements reflect total assets of Rs. 4019.67Lakh as at 31st March 2016 and total revenues of Rs. 9362.38 Lakh for the yearended on that date as considered in the standalone financial statements. The branchauditor whose reports have been furnished to us have audited the financial statements ofthese units and our opinion in so far as it relates to the amounts and disclosuresincluded in respect of these branches is based solely on the report of such branchauditors. Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure-A" a statement on the mattersspecified in the paragraph 3 and 4 of the Order.

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 bestof 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 theCompany so far as it appears from our examination of those books.

c) The Reports on the accounts of the Unit 8 & 9 of the Company audited undersection 143 (8) of the Act by Branch Auditor has been sent to us and have been properlydealt with by us in preparing this Report.

d) 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.

e) In our opinion the aforesaid standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

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

g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B".

h) 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 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 financialposition in its financial statements as referred to in Note 28 to the financialstatements.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Khamesra Bhatia & Mehrotra
Chartered Accountants
FRN: 001410C
CA Anand Saxena
(Partner) Place: Kanpur
M No. : 075801 Date: 30/05/2016

Annexure ‘A’ to Independent Auditors’ Report

The "Annexure A" referred to in paragraph ‘Report on Other Legal andRegulatory Requirements’ of our report on the Standalone Financial Statements for theyear ending 31st March 2016.

According to the information & explanation given to us and based on our examinationof records we report that:

1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets;

b) These Fixed Assets of the Company have been physically verified by the managementusing a regular program of verification by rotation at reasonable intervals. No materialdiscrepancies were noticed on such physical verification

c) The title deeds of immovable properties are held in the name of the Company exceptin the following cases

In case of land:-

Total number of cases 7 where leasehold are 2 and freehold are 5

Gross block 1073.23 Lakh and net block 1031.51 Lakh (as at Balance Sheet date)

Remarks: In all the above cases the Mutation is pending to be done in the name ofthe company. Titles are lying either in the name of erstwhile firm converted in toGenesisfootwear Enterprises Private Limited & then amalgamated in the company in thisyear or in the old names of the company.

2. The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

3. The Company had not granted any loans secured or unsecured to any companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Act. Accordingly the provisions of clause 3(iii)(a) (b) and (c)of the Order are not applicable to the Company.

4. The company has complied with the provisions of Section 185 and 186 of the Act asapplicable in respect of loans investments guarantees and security.

5. The Company has not accepted any deposits from the public.

6. Cost records prescribed by the Central Government in terms of provisions of clause(1) of Section 148 of the Act are being maintained by the company. We have however notmade a detailed examination of the records with a view to determine whether they areaccurate or complete.

7. a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees’ state insurance income tax sales-tax service tax dutyof customs duty of excise value added tax cess and any other statutory dues to theappropriate authorities & there is no arrears of outstanding statutory dues as on thelast day of the financial year concerned for a period more than six months from the datethey became payable.

b) The dues outstanding of Income Tax Sales Tax Wealth Tax Service Tax CustomDuty Excise Duty Value Added Tax CESS on account of any dispute are as follows:

Name of the Statute Nature of Dues Amount (Rs. in Lakh) Financial Year to which the amount relates Forum where dispute is pending
Value Added Tax Entry Tax 4.06 1999-2000 Hon’ble High Court Allahabad
Value Added Tax Entry Tax 9.85 2000-2001 Hon’ble Supreme Court
2003-2004
2004-2005
Income Tax Act Tax Deducted at Source 31.81 2012-13 CIT (Appeals) Kanpur
Value Added Tax(UPVAT) Value Added Tax 74.34 2008-2009 2009-2010 2010-2011 Joint Commissioner (Corporate Cell 2) Kanpur
43.15
61.33
Value Added Tax(GVAT) Value Added Tax 30.68 2010-2011 Deputy Commissioner (Appeal) Ahmedabad
Value Added Tax(WBVAT) Value Added Tax 2.48 2011-2012 West Bengal Commercial Appellant Revision Board Kolkata
Value Added Tax(KVAT) Value Added Tax 3.44 2012-2013 Deputy Commissioner (Appeals-II) Ernakulam Kerala
Service Tax Service Tax 2.77 2004-2005 Commissioner (Appeals) Central Excise & Service Tax Kanpur
2005-2006
Service Tax Service Tax 17.05 2009-2010 Additional Commissioner of Service Tax Kanpur

8. We are of the opinion that the Company has not defaulted in repayment of dues to anybank. Further the Company does not have any debentures and loan from financialinstitution or government

9. The Company has not raised any money by way of initial public offer/further publicoffer (including debt instruments). However the term loans raised by the company duringthe year has been applied for the purpose for which they were raised.

10. No fraud on or by the Company has taken place or reported during the year.

11. The Managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.

12. The company is not a nidhi company. Therefore the provisions of clause 3 (xii) ofthe order are not applicable to the company.

13. All transactions with related parties are in compliance with sections 177 and 188of Act where applicable and the details have been disclosed in the financial statementsetc. as required by the applicable accounting standards.

14. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

15. The company has not entered into any non-cash transactions with directors orpersons connected with him.

16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Khamesra Bhatia & Mehrotra
Chartered Accountants
FRN: 001410C
CA Anand Saxena
(Partner) Place: Kanpur
M No. : 075801 Date: 30/05/2016

Annexure ‘B’ to the Independent Auditor’s Report

OF EVEN DATE ON THE FINANCIAL STATEMENTS OF MIRZA INTERNATIONAL LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

To the Members of Mirza International Limited

We have audited the internal financial controls over financial reporting of MirzaInternational Limited ("the Company") as of March 31 2016 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing as specified under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Explanatory paragraph

We also have audited in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of theAct the financial statements of Company which comprise the Balance Sheet as at March 312016 and the related Statement of Profit and Loss and Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation and our report dated May 30 2016 expressed an unqualified opinion thereon.

For Khamesra Bhatia & Mehrotra
Chartered Accountants
FRN: 001410C
CA Anand Saxena
(Partner) Place: Kanpur
M No. : 075801 Date: 30/05/2016