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Moschip Semiconductor Technology Ltd.

BSE: 532407 Sector: IT
NSE: N.A. ISIN Code: INE935B01025
BSE 00:00 | 22 May 33.05 1.05
(3.28%)
OPEN

31.85

HIGH

33.05

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31.80

NSE 05:30 | 01 Jan Moschip Semiconductor Technology Ltd
OPEN 31.85
PREVIOUS CLOSE 32.00
VOLUME 17082
52-Week high 57.30
52-Week low 28.05
P/E
Mkt Cap.(Rs cr) 435
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 31.85
CLOSE 32.00
VOLUME 17082
52-Week high 57.30
52-Week low 28.05
P/E
Mkt Cap.(Rs cr) 435
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Moschip Semiconductor Technology Ltd. (MOSCHIPSEMICON) - Auditors Report

Company auditors report

To

The members

Moschip Semiconductor Technology Limited

Report on the Standalone financial statements

We have audited the accompanying Standalone financial statements of MoschipSemiconductor Technology Limited which comprise the Balance Sheet as at March 31 2017the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda 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 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 safeguardingof the 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 Standalone financial statements that give a true andfair 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 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 Standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the

Standalone financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the Standalonefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of theStandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the Standalone 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 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 loss 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 2016 (‘ the order‘) issued by the Central Government of India in terms of Subsection 11 of Section143 of the Companies Act 2013 we give in ‘Annexure A' a statement on the mattersspecified 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 does not have any pending litigations which would impact its financialposition.

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 required to be transferred to the Investor Education andProtection Fund by the Company during the year.

iv. The company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodNovember 08 2016 to December 30 2016 and these are in accordance with the books ofaccount maintained by the company.

For Gokhale & Co

Chartered Accountants Firm Regn. No: 000942S

Chandrashekhar Gokhale

Partner Membership No 023839

Place: Hyderabad Date: May 22 2017

Annexure A to the Auditors' report dated May 22 2017 issued to the Members of MoschipSemiconductor Technology Limited

As required by the Companies ( Auditor's Report ) Order 2016 issued by the CentralGovernment of India in terms of Sub-section (11) of section 143 of the Companies Act 2013(18 of 2013 ) and on the basis of such checks as we considered appropriate we furtherreport that:i.

a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The fixed assets have been physically verified by the management according to aphased programme designed to cover all assets on rotation basis. In respect of assetsverified according to this programme which is reasonable no material discrepancies werenoticed.

c) The company is not holding any immovable property and hence paragraph 3 (i) (c ) ofthe order is not applicable.

ii. The company is a service company primarily rendering software services.Accordingly it does not hold any physical inventories. Thus paragraph 3(ii) of the orderis not applicable to the company.

iii. The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act.

iv. In our opinion and according to the explanations given to us the company hascomplied with the provisions of Sec.185 and 186 of the Act with respect to the loans andinvestments made.

v. The company has not accepted deposits from the public covered by the provisions ofsections 73 to 76 of the Companies Act.

vi. The Central government has not prescribed maintenance of cost records under section148(1) of the Act for any of the services rendered by the company. vii.

a) The company has been regular in depositing its undisputed statutory dues includingtowards Provident Fund ESI Income-tax Sales-tax Wealth Tax Service Tax Customs DutyExcise Duty Value Added Tax and Cess. There were no statutory dues at the yearendoutstanding for a period of more than six months from the date they became payable.

b) As at the yearend there were no dues of income tax sales tax wealth tax servicetax or duty of customs or duty of excise value added tax or cess which have not beendeposited on account of any dispute.

viii. The Export Packing Credit balance of Rs

14297119 payable to UCO Bank as at the Balance Sheet date of previous year have beenpaid during the year. There were no dues payable to any financial institution/s during theyear

ix. The company has not taken any fresh term loans during the year.

x. On the basis of 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 year.

xi. According to information and explanations given to us and on the basis of ourexamination of the records of the company the company has paid or provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act.

xii. In our opinion 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 information and explanations given to us and on the basis of ourexamination of the records of the company transactions with related parties are incompliance with sections 177 and 188 of the act and details of such transactions have beendisclosed in the Standalone financial statements as required by the applicable accountingstandards.

xiv. During the year under review the Company has allotted 67757000 equity shares ofRs. 2/- each at a price of Rs.5.41/- per share to the subscribers to the issue of shareson Preferential basis and also allotted 451000 equity shares of Rs. 2/- each at a priceof Rs.5.98/- per share to the employees upon their exercise of Stock Options. Further theCompany has allotted 5124998 equity shares of Rs. 2/- each at a price of Rs.21.80/- pershare to the subscribers on Preferential basis. With respect to the above allotments therequirement of section 42 of the Companies Act 2013 have been complied with and theamounts raised have been used for the purposes for which the funds were raised.

xv. According to information and explanations given to us and on the basis of ourexamination of the records of the company the company has not entered into any non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv) ofthe order is not applicable.

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

For Gokhale & Co

Chartered Accountants Firm Regn. No: 000942S

Chandrashekhar Gokhale

Partner Membership No 023839

Place: Hyderabad Date: May 22 2017

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls over Financial Reporting in terms of

Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct").

We have audited the Internal Financial Controls over financial reporting of MoschipSemiconductor Technology Limited (‘the Company') as of March 31 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 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 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 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial controls 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

(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(iii) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of Internal Financial Control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Gokhale & Co

Chartered Accountants Firm Regn. No: 000942S

Chandrashekhar Gokhale

Partner Membership No 023839

Place: Hyderabad Date: May 22 2017