Report on the Standalone Financial Statements :
We have audited the accompanying standalone financial statements of MITCON Consultancy& Engineering Services Ltd. ("the Company") which comprise the BalanceSheet as at 31st March 2017 the Statement of Profit and Loss the Cash FlowStatement for the year then ended and a summary of the significant accounting policiesand other explanatory information.
Management's Responsibility for the Standalone 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand 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 statementsbased on our audit.
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 and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 of thefinancial statements whether due to fraud or error. In making those
risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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.
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 31st March 2017 and its profit and its cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements :
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Sub-section (11) of Section 143 ofthe Act (hereinafter referred to as the 'Order') and on the basis of such checks of thebooks and records of the company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure A a statement on thematters specified in paragraphs 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 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 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.
f) 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.
g) 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 - Refer Note 28 to the financial statements;
ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv) The Company has provided requisite disclosures in the financial statements as toholdings as
well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the Company and as produced to us by the Management - Refer Note 42- Information relating to Specified Bank Notes transacted.
| ||FOR JOSHI & SAHNEY |
| ||CHARTERED ACCOUNTANTS |
| ||Firm Registration No.: 104359W |
| ||Sd/- |
| ||H.M.JOSHI |
|Place: Pune ||PARTNER |
|Date: 30th May 2017 ||Membership No. 031689 |
ANNEXURE B TO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 2(f) of the Independent Auditors' Report of even date to themembers of MITCONConsultancy & Engineering Services Ltd. on the standalone financialstatements for the year ended31st March 2017.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the CompaniesAct 2013 ('The Act').
1) We have audited the internal financial controls over financial reporting of MITCONConsultancy & Engineering Services Ltd. ("the Company") as of March 31 2017in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.
Management's Responsibility for Internal Financial Controls
2) 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(ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to 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 Act.
3) 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 Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of internal financial controls and both issued by thelnstitute of Chartered Accountants of India. Those standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.
4) Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6) 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 authorisations 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
7) 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.
8) 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 312017 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.
ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 of the Independent Auditors' Report of even date to themembers of the company on the standalone financial statements as of and for the year ended31st March 2017)
1) In respect of its fixed assets:
a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
b) As explained to us the fixed assets have been physically verified by the managementduring the year. The discrepancies noticed on such verification were not material and havebeen properly dealt with in the books of account.
c) The title deeds of immovable properties as disclosed in Note 10 on fixed assets tothe financial statements are held in the name of the company.
2) As the company does not have any inventory at the end of the year the provisions ofclause 3(ii) of the Order are not applicable to the company.
3) The Company has not granted any loans secured or unsecured to Companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Act. Accordingly the provisions of clause 3(iii) of the Order are notapplicable to the Company.
4) Based on the audit procedures conducted by us and according to the information andexplanations given to us in our opinion the company has not given any loans guaranteesor securities to any of its Directors or to any other persons in whom the Director isinterested under provisions of Section 185 of the Act. In our opinion and according to theinformation and explanations given to us the company has complied with the provisions ofsec.186 of the Act in respect of investments made by it.
5) The company has not accepted any deposits from the public within the meaning ofsections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified.
6) The Central Government has specified maintenance of cost records under Sec.148 (1)of the Act applicable in respect of wind power generation activity of the company and weare of the opinion that prima facie such accounts and records are made and maintained. Wehave not however made a detailed examination of the records with a view to determinewhether they were accurate or complete.
7) a) According to the information and explanations given to us and on the basis of ourexamination of
records of the Company undisputed statutory dues including Provident Fund Employees'State Insurance Income-Tax Value added Tax Service Tax Cess and other materialstatutory dues have been regularly deposited with the appropriate authorities. Asexplained to us the company did not have any dues on account of Sales Tax duty ofCustoms and duty of Excise.
According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income-Tax Value addedTax Sales Tax Service Tax Cess and other material statutory dues were in arrears as at31st March 2017 for a period of more than six months from the date they becamepayable.
b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of Sales Tax Service Tax duty of Custom dutyof Excise Value added Tax and Cess as at 31st March 2017 which have not beendeposited on account of any dispute. The particulars of dues of income tax outstanding asat 31st March 2017 which have not been deposited on account of dispute are asfollows :
|Name of the Statute ||Nature of dues ||Period for which amount relates ||Amount in INR ||Forum where the dispute is pending |
|Income Tax Act 1961 ||Income Tax and interest (Disallowance of certain expenses* and short credit for prepaid taxes) ||FY 2009-10 ||1722200* ||Jurisdictional Assessing Officer |
|Income Tax Act 1961 ||Tax on Fringe Benefit ||FY 2008-09 ||179478 ||Commissioner of Income Tax (Appeals) - 7 Pune |
*Out of the demand of Rs. 1722200/- Income Tax Appellate Tribunal has allowedCompany's appeal in respect of disallowance of expenses. However appeal effect relating toreduction of tax demand has not yet been received from the Jurisdictional AssessingOfficer.
8) The company has not availed of any loans or borrowings from financial institutionsbank or government. There are no debenture holders. Accordingly the provisions of Clause3(viii) of the Order are not applicable to the company.
9) The company has not raised any moneys by way of initial public offer further publicoffer (including debt instruments) and term loans. Accordingly the provisions of clause3(ix) of the Order are not applicable to the company.
10) Based upon the audit procedures performed and information and explanations given tous by the Management we have neither come across any instance of fraud on or by theCompany or on the Company by its officers or employees noticed or reported during theyear nor have we been informed of such case by the management.
11) According to the information and explanations given to us and based on ourexamination of the records of the company the company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with schedule V to the Act.
12) As the Company is not a nidhi company and the nidhi rules 2014 are not applicableto it the provisions of clause 3 (xii) of the Order are not applicable to the Company.
13) According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting 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. Accordingly theprovisions of clause 3(xiv) of the Order are not applicable to the company.
15) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into any non-cashtransactions with its directors or persons connected with him. Accordingly the provisionsof clause 3(xv) of the order are not applicable to the company.
16) The company is not required to be registered under section 45-IA of the ReserveBank of India act 1934. Accordingly the provisions of clause 3(xvi) of the Order are notapplicable to the company.
| ||FOR JOSHI & SAHNEY |
| ||CHARTERED ACCOUNTANTS |
| ||Firm Registration No.: 104359W |
| ||Sd/- |
| ||H.M.JOSHI |
|Place : Pune ||PARTNER |
|Date : 30th May 2017 ||Membership No. 031689 |