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Mohit Industries Ltd.

BSE: 531453 Sector: Industrials
NSE: MOHITIND ISIN Code: INE954E01012
BSE LIVE 15:40 | 13 Dec 42.55 -1.55
(-3.51%)
OPEN

44.05

HIGH

44.05

LOW

42.25

NSE 15:43 | 13 Dec 42.40 -1.80
(-4.07%)
OPEN

44.20

HIGH

44.20

LOW

42.15

OPEN 44.05
PREVIOUS CLOSE 44.10
VOLUME 32810
52-Week high 66.25
52-Week low 27.10
P/E 66.48
Mkt Cap.(Rs cr) 60
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 44.05
CLOSE 44.10
VOLUME 32810
52-Week high 66.25
52-Week low 27.10
P/E 66.48
Mkt Cap.(Rs cr) 60
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mohit Industries Ltd. (MOHITIND) - Auditors Report

Company auditors report

To

The Members of

MOHIT INDUSTRIES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Mohit IndustriesLimited (‘the Company') which comprise the balance sheet as at 31 March 2017 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 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. 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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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.

Basis of Qualified Opinion

The company has not provided for Long Term Employee Benefits such as Gratuity and LeaveEncashment on accrual basis but provides the same as and when they become due for payment.This method of accounting of Long Term Employee Benefits is in deviation with AccountingStandard-15 on Employee Benefits in respect of provision for Long Term Employee Benefit& Defined Benefit plans. As there is no actuarial report or basis of calculationavailable with the management of such long term employee benefits the quantum ofdeviation cannot be determined. If the company had followed the method of accounting asper AS – 15 then employee benefit expense would have increased and correspondinglylong term provision would have also increased for such employee benefits.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of matter described in the ‘Basis of QualifiedOpinion' Paragraph above the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2017 and its profit and its cash flows for theyear ended on that date.

Emphasis of Matter

1) We draw attention to Note No. 27(i) on "Contingent Liabilities"forming part of financial statements which describes various tax demands liabilitiesagainst the Company under litigation.

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 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure "A" a statement on the matters specified inthe paragraph 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:- a) We have sought &obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccounts as required by law have been kept by the company so far as appears from ourexamination of such books. c) The Balance Sheet the Statement of Profit & Loss andthe cash flow statement dealt with by this report are in agreement with the books ofaccount. 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 except for Accounting Standard-15 on Employee Benefitsin respect of provision for Long Term Employee Benefit & Defined Benefit plans. e) Inour opinion the tax demands litigation matters described in sub-paragraph (1) under the‘Emphasis of Matters' paragraph above if decided against the company may have anadverse effect on the functioning of the Company. f) On the basis of the writtenrepresentations received from the directors as on 31st March 2017 and taken on record bythe Board of Directors none of the directors is disqualified as on 31st March 2017 frombeing appointed as a director in terms of section 164(2) of the Act. g) With respect tothe adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate report in"Annexure B". h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements – Refer Note 27(i) to the financialstatements; ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses; iii. There were no amountswhich were required to be transferred to the Investor Education and Protection Fund by theCompany. iv. The company has provided requisite disclosures in its financial statements asto holdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 40 to the financial statements.

For RKM & CO.

Chartered Accountants

Firm Registration No.: 108553W

(Deepak V. Bhatia)

Partner

Membership No. 102465

Surat 30th May 2017

Annexure "A" to the Independent Auditors' Report of Mohit Industries Limitedfor Year Ended 31st March 2017

(Referred to in Paragraph ‘1' under "Report on Other Legal and RegulatoryRequirements' of our report of even date) i. (a) The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets.

(b) The Company has a regular programme of physical veri3cation of its fixed assets bywhich fixed assets are veri3ed at reasonable intervals. In accordance with this programmecertain fixed assets were veri3ed during the year and no material discrepancies werenoticed on such veri3cation.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii. As informed to us physical veri3cation of inventory has been conducted by themanagement at reasonable intervals during the year. As explained to us no materialdiscrepancies were noticed on such physical veri3cation.

iii. The Company has granted unsecured loans to one company covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act').

(a) In our opinion the rate of interest and other terms and conditions on which theloans had been granted to the company listed in the register maintained under Section 189of the Act were not prima facie prejudicial to the interest of the Company

(b) As informed to us the principal and interest of above loans were repayable as andwhen demanded and accordingly repayments or receipts were regular as and when demanded bythe company.

(c) There are no overdue amounts in respect of the loans granted to the company listedin the register maintained under section 189 of the Act.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

v. According to information & explanation given to us the company has not acceptedany deposit from the public.

vi. As explained to us the company is maintaining cost accounts and records prescribedby the Central Government under section 148 (1) of the Companies Act 2013. However thesecost accounts/records were not examined by us.

vii. (a) The company has generally been regular in depositing the undisputed statutorydues including provident fund employees' state insurance income tax sales tax servicetax duty of customs duty of excise value added tax cess and other material statutorydues applicable to it with the appropriate authorities. According to the information andexplanation given to us no undisputed amounts in respect of income tax sales taxservice tax duty of customs duty of excise value added tax cess were in arrears as at31st March 2017 for a period of more than six months from the date they became payable.(b) According to the information and explanations given to us there are no material duesof duty of customs which have not been deposited with the appropriate authorities onaccount of any dispute. Details of Income Tax Sales Tax Service Tax Excise Duty ValueAdded Tax (VAT) Entry Tax and Cess which have not been deposited as on 31 March 2017 onaccount of disputes are given below:

Name of The Statute Nature of Dues Amount (`. In Lakhs) Period to which the amount relates Forum where dispute is pending
Gujarat Value Added Tax
Sales Tax Law of Gujarat Sales Tax 4.86 FY 2001-02
Tribunal
Gujarat Entry Tax Laws Gujarat Entry Tax 433.18 FY 2006-07 First Appellate Authority
Gujarat Entry Tax Laws Gujarat Entry Tax 1097.25 FY 2007-08 First Appellate Authority

 

Name of The Statute Nature of Dues Amount (`. In Lakhs) Period to which the amount relates Forum where dispute is pending
Gujarat Entry Tax Laws Gujarat Entry Tax 513.82 FY 2009-10 First Appellate Authority
Gujarat VAT Act Gujarat VAT 301.49 FY 2010-11 First Appellate Authority
Gujarat Entry Tax Laws Gujarat Entry Tax 323.53 FY 2010-11 First Appellate Authority
Gujarat VAT Act Gujarat VAT 28.96 FY 2012-13 First Appellate Authority
Gujarat Entry Tax Laws Gujarat Entry Tax 339.64 FY 2012-13 First Appellate Authority
Central Excise Act Excise Duty & Penalty 174.74 FY 2012-13 CESTAT Ahmedabad
Central Excise Act Excise duty rebate rejection 8.90 2013-14 Commissioner (Appeals) Surat
Finance Act 1994 Service Tax & Penalty 7.90 Sept. 2005 to March 2010 CESTAT Ahmedabad

viii. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of loans or borrowings to the banks financialinstitutions or government. As explained to us no debenture has been issued by thecompany.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments). According to information and explanations givento us we are of the opinion that the term loans have been applied for the purposes forwhich they were raised.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi. According to the information and explanations give 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.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii. 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.

xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv. 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 non–cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

xvi. The Company is not required to be registered under section 45–IA of theReserve Bank of India Act 1934.

For RKM & CO.

Chartered Accountants

Firm Registration No.: 108553W

(Deepak V. Bhatia)

Partner

Membership No. 102465

Surat 30th May 2017

Annexure "B" to the Independent Auditor's Report of Even date on theStandalone Financial Statements of Mohit Industries Limited for year ended on 31st March2017

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

We have audited the internal financial controls over financial reporting of MohitIndustries Limited ("the Company") as of 31st March 2017 in conjunction withour audit of standalone financial statements of the Company for the year ended on thatdate.

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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and effcientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' 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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 unauthorised 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 31st March 2017 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.