You are here » Home » Companies » Company Overview » MPS Infotecnics Ltd

MPS Infotecnics Ltd.

BSE: 532411 Sector: IT
NSE: VISESHINFO ISIN Code: INE861A01058
BSE 14:39 | 16 Jan 0.17 0.01
(6.25%)
OPEN

0.17

HIGH

0.17

LOW

0.17

NSE 15:43 | 16 Jan 0.25 0.05
(25.00%)
OPEN

0.25

HIGH

0.25

LOW

0.25

OPEN 0.17
PREVIOUS CLOSE 0.16
VOLUME 103550
52-Week high 0.25
52-Week low 0.11
P/E
Mkt Cap.(Rs cr) 64
Buy Price 0.17
Buy Qty 35421103.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.17
CLOSE 0.16
VOLUME 103550
52-Week high 0.25
52-Week low 0.11
P/E
Mkt Cap.(Rs cr) 64
Buy Price 0.17
Buy Qty 35421103.00
Sell Price 0.00
Sell Qty 0.00

MPS Infotecnics Ltd. (VISESHINFO) - Auditors Report

Company auditors report

TO

THE MEMBERS

MPS INFOTECNICS LIMITED (FORMERLY KNOWN AS VISESH INFOTECNICS LIMITED)

Report on the Financial Statements

We have audited the accompanying financial statements of MPS Infotecnics Limited NewDelhi ("the Company") which comprise the Balance Sheet as at March 31 2016and the Statement of Profit and Loss and 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 in section 134 (5)of the Companies Act2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position andfinancial performance and Cash Flow Statement 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 the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimate that arereasonable and prudent; and design implementation and maintenance of internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

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 true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company’s Directors as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statement.

Basis of Qualified Opinion

1. The company has shown in the balance sheet bank balance in Banco Efisa (LisbonPortugal) amounting to Rs. 347892163/- (in USD8883210.75) which the Bank has adjustedand the matter is in court of law. Consequently the bank balance shown in balance sheet isoverstated by Rs. 347892163/- (Refer Note No. 11(a)).

2. The Company has increased its authorised capital from Rs. 52.45 Crores to Rs. 377.50Crores during the period From FY 2010-11 to FY 2012-13 ROC fees of Rs.3.90 Crores towardsthe same stands payable under the head "Other Current Liabilities" in theFinancial Statements. (Refer Note No.1 and 4)

3. Income tax form the A.Y. 2013-14 amounting to Rs. 2.49 Crores and Intrest thereon ispayble (Refer Note No. 5)

Qualified Opinion

In our opinion except for the effects of the matter described in the Basis ofQualified Opinion paragraph and to the best of our information and according to theexplanations given to us the financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India: a) In the case of the Balance Sheet ofthe state of affairs of the Company as at March 31 2016; b) In the case of the Profit andLoss Account of the Profit for the year ended on that date; and c) In the case of theCash Flow Statement of the 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 ("theOrder") as amended issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the "Annexure A" astatement on the matters specified in paragraphs 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 purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014.

e. On the basis of the written representations received from the directors as referredin Para No. 26 as on record by the board of director none of the director of this companyis disqualified as on 31 March 2016 from being appointed as a director in terms ofSection 164(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 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 no. 20 to the financial statements.

II. As per information furnished to us the Company does not have any long-termcontracts including derivatives contracts for which there were any material foreseeablelosses.

III. There were no amounts which required to be transferred to the investor Educationand Protection Fund by the Company.

For and on behalf of M/s. RMA & Associates
Chartered Accountants
Firm Reg. No.: 000978N
Santosh Verma
Place: - New Delhi Partner
Date : 30th May 2016 M. No. 533944

MPS Infotecnics Limited

"Annexure A" to the Independent Auditors’ Report

Referred to in paragraph 1 under the heading ‘Report on Other Legal &Regulatory Requirement’ of our report of even date to the financial statements of theCompany for the year ended March 31 2016: On the basis of such checks as we consideredappropriate and in terms of the information and explanations given to us we further stateas under:

1. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) All the assets have not been physically verified by the management during the yearbut there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

(c) The title deeds of immovable properties are held in the name of the company.

2. (a) The management has conducted the physical verification of inventory atreasonable intervals during the year. In our opinion the frequency of such verificationis reasonable.

b) The discrepancies noticed on physical verification of the inventory as compared tobook records were not material and have been dealt with in the books of account.

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 paragraph 3 (iii) of the order is not applicable tothe Company.

4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of loans investments guarantees and security.

5. The Company has not accepted any deposits from the public. Therefore the directiveissued by the Reserve Bank of India and the provision of section 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under does notarise.

6. As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.

7. (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 31 2016 for a period of more than six monthsfrom the date on when they become payable.

b) According to the information and explanation given to us there are statutory dueswhich have not been deposited on account of any dispute detail is given below:-

(a) Dues of income tax

a) Rs. 5104827/- related to A.Y. 2005-06 against this Rs. 4000000/- deposited underprotest with income-tax authorities

b) Rs.1245589/- related to A.Y. 2006-07 and

c) Rs. 43851395/- related to A.Y. 2008-09 against this Rs. 1500000/- depositedunder protest with income-tax authorities. Order passed in favour of the company by CIT(A) XIX New Delhi and further department has filed appeal with ITAT New Delhi againstCIT(A)’s order.

d) In respect of A.Y. 2009-2010 income tax demand is Rs. 27487250/- . Order passed infavour of the company by CIT (A) XIX New Delhi and further department has filed appealwith ITAT New Delhi against CIT(A)’s order.

e) Rs.27306810/- related to A.Y. 2010-11. Order passed in favour of the company byCIT (A) XIX New Delhi and further department has filed appeal with ITAT New Delhiagainst CIT(A)’s order. In respect of A.Y. 2005-06 & 2006-07 appeals of theCompany are pending before the commissioner of income tax (Appeals) Bangalore

(f) in respect of assessment year 2011-12 income tax demand of Rs. 445798390 hasbeen raised by the income tax authority. An appeal is pending before CIT(A) XXXIII inrespect of said demand and

g) A.Y. 2012-13 income tax demand of Rs. 8830590 has been raised by the income taxauthority an appeal in this regard is pending before CIT (A) IX New Delhi.

8. According to the information and explanations given to us and based on the documentsand records produced to us the company is not regular and has defaulted in repayment ofdues to their Bankers and Banker has considered the company as NPA.

Sr. No. Name of Bank Amount (Rs. In lacs) Nature of dues Period of default of repayment
1. Allahabad Bank (South Extension) New Delhi 274.21 Interest (Working capital limit A/c ) From 01.09.2013 to 31.03.2016

However the company has entered into one time settlement agreement with Allahabad Bankon 14th Jan 2016 and has settled for a sum of Rs. 1186.00 lakhs plus interest thereonfrom the date of settlement to the date of payment.

9. Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable.

10. Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company and nor any fraud on thecompany by its officers or employees has been noticed or reported during the year.

11. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

12. In our opinion the company is not a Nidhi company within the meaning of relevantlaw.

13. In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

14. Based on the audit procedures performed and the information and explanations givenby the management the company has not made any preferential allotment or privateplacement of shares or partly convertible debentures u/s 42 of the Companies Act 2013during the year.

15. Based on the audit procedures performed and the information and explanations givenby the management the company has not entered in to any non-cash transaction withdirectors or others in contravention of section 192 of the Companies Act 2013.

16. In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934.

For and on behalf of M/s. RMA & Associates
Chartered Accountants
Firm Reg. No.: 000978N
Santosh Verma
Place: - New Delhi Partner
Date : 30th May 2016 M. No. 533944

"Annexure B" to the Independent Auditor’s Report of even date on theStandalone Financial Statements of MPS INFOTECNICS LIMITED (Formerly known as ViseshInfotecnics Ltd.)

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 MPSINFOTECNICS LIMITED ("the Company") as of March 31 2016 in conjunction with ouraudit of the 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. 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 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 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 reporting included obtaining an understanding ofinternal financial controls over financial reporting that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor’s judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theCompany’s internal financial controls system over financial 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 assurance that transactions arerecorded as necessary to permit preparation of financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company’s assetsthat 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.

For and on behalf of M/s. RMA & Associates
Chartered Accountants
Firm Reg. No.: 000978N
Santosh Verma
Place: - New Delhi Partner
Date : 30th May 2016 M. No. 533944