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Maestros Electronics & Telecommun. Systems Ltd.

BSE: 538401 Sector: Others
NSE: N.A. ISIN Code: INE318N01011
BSE 00:00 | 07 Aug 92.30 4.35
(4.95%)
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92.30

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92.30

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92.30

NSE 05:30 | 01 Jan Maestros Electronics & Telecommun. Systems Ltd
OPEN 92.30
PREVIOUS CLOSE 87.95
VOLUME 4940
52-Week high 92.30
52-Week low 48.95
P/E 23.55
Mkt Cap.(Rs cr) 51
Buy Price 92.30
Buy Qty 8351.00
Sell Price 92.00
Sell Qty 3.00
OPEN 92.30
CLOSE 87.95
VOLUME 4940
52-Week high 92.30
52-Week low 48.95
P/E 23.55
Mkt Cap.(Rs cr) 51
Buy Price 92.30
Buy Qty 8351.00
Sell Price 92.00
Sell Qty 3.00

Maestros Electronics & Telecommun. Systems Ltd. (METS) - Auditors Report

Company auditors report

To

The Members of

MAESTROS ELECTRONICS AND TELECOMMUNICATIONS SYSTEMS LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of Maestros Electronics &Telecommunications SystemsLimited ("the Company") which comprise the BalanceSheet as at 31st March 2019 and the Statement of Profit and Loss (statement of changesin equity) and statement of cash flows for the year ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation. In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Financial Statements give theinformation required by the Companies Act 2013("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under Section 133 of the Act read with the companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2019and profit and total comprehensive income (including other comprehensive income) changesin equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

We have determined the matters described below to be key audit matter to becommunicated in our report.

Key Audit Matter Auditors Response
1. Authenticity of recognition presentationand disclosures of revenues and other related balances in view of adoptionof Ind AS 115"Revenue from Contracts with Customers" (new revenue accounting standard) measurementWe assessed the Company's process to identify the impact of adoption of the new revenue accounting standard.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparationof the otherinformation.The other information comprises the information included in Management andAnalysis Board's Report including Annexures to Board's Report Corporate Governance andShareholders Information but does not include the standalone financials statements andour auditors report thereon. Our opinion on the Standalone Financial Statements does notcover the other information and we do not any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the information ismaterially inconsistent Financial Statements or our knowledge obtained during the courseof our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management 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 preparation ofthese standalone financial fair view of the financial position financial performancechanges in equity and cash accordance with the accounting principles generally accepted inIndia including the under section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating 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.

In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.Those Board of Directors are also responsiblefor overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements. As part of an audit in accordance with SAs weexercise professional judgment and maintain professional skepticism throughout the audit.We also:

Identify and assess the risk of material misstatement of the Standalone FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether has adequateinternal financial controls systems in place and the operating effectiveness of suchcontrols.

policies used and the reasonableness of accounting estimatesEvaluatetheappropriatenessofaccounting and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertainty exitsrelated to events or conditions that may cast significant doubt on the Company's abilityto continue as a going concern. If we conclude that a material uncertainty exits we arerequired to draw attention in our auditor's report to the related disclosures in theStandalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue

Evaluate the overall presentation structure and content of the standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. Materiality is the magnitude of misstatement in the standalone FinancialStatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the Financial Statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatement in the Financial Statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including andsignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we may havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act we report that:

(a) We have sought andobtainedalltheinformationand explanations which to the best ofour knowledge and belief were necessary for the purposes of ouraudit.

(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) Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of accounts.

(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) Rules2014. (e) On the basis of the written representations receivedfrom the directors as on 31st March 2019 taken on record by the Board ofDirectors none of the directors is disqualified as on 31st March 2019 frombeing appointed as a director in terms of Section 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 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 tous: i. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements Refer Note XX to the financial statements; [or the Company does nothave any pending litigations which would impact its financialposition] ii. The Company hasmade provision as required under the applicable law or accounting standards for materialforeseeable losses if any on long-term contracts including derivative contracts ReferNote XX to the financial statements; [or the Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeablelosses.] iii.There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company {or following are the instances ofdelay in transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company or there were no amounts which were required to betransferred to the Investor Education and Protection Fund by theCompany}.

2. 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 Companies the Annexure ‘A' statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable

For DMKH & CO. Chartered Accountants

Firm's Registration No. : 116886W

Sd/-

Manish Kankani Partner Membership No. 158020

Place: Mumbai Date: May 30 2019

ANNEXURE "A" TO INDEPENDENT AUDITORS' REPORT

Referred to in Paragraph 2 under the heading of "Report on other Legal andRegulatory Requirements" of our report to the members of Maestros Electronics &Telecommunications Systems Limited of even date

On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we report that: -

i. In respect of companies fixed assets: a. The Company has maintained proper recordsshowing full particulars including quantitative details and situation of its fixedassets. b. The Company has a regular programme of physical verification of its fixedassets by which fixed assets are verified in a phased manner over regular interval. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets. c) According to the information and explanations given to us thetitle deeds of immovable properties included in fixed assets are held in the name of theCompany. ii. a. As explained to us management has conducted physical verification ofinventory at regular intervals during the year. b) In our opinion and according to theinformation and explanations given to us the procedures of physical verification ofinventory followed by the Management were reasonable and adequate in relation to the sizeof the Company and nature of its business. c) In our opinion and according to theinformation and explanations given to us the Company has maintained proper records of itsinventories and no material discrepancies were noticed on physical verification. iii.According to the information and explanations given to us the Company has not grantedloans secured or unsecured to companies firms Limited Liability Partnerships or otherparties listed in the register maintained under Section 189 of the Companies Act 2013.Accordingly the provisions of clauses 3(iii) (a) (b) and (c) of the order are notapplicable to the Company. iv. In our opinion and according to the information andexplanations given to us the Company has complied with the provisions of Section 185 and186 of the Act in respect of grant of loans making investment and providing guaranteesand securities as applicable. v. In The Company has not accepted any deposits from thepublic within the meaning of the directives issued by the Reserve Bank of India provisionof Section 73 to 76 of the Act any other relevant provision of the Act and the relevantrules framed thereunder. vi. The maintenance of cost records has not been specified by theCentral Government under Section 148(1) of under clause carriedout by the company thusreporting activities thecompaniesAct2013forthebusiness 3(vi) of the order is notapplicable to the Company. vii. a. According to information and explanations given to usthe Company has been generally regular in depositingundisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Goods and Service Tax CustomDuty Cess Professional Tax and other material statutory dues applicable to it with theappropriate authorities. b. According to the information and explanations given to us noundisputed amounts payable in respect of Provident Fund Employees' State InsuranceIncome Tax Goods and Service Tax Custom Duty Cess Professional Tax and other materialstatutory dues in arrears as at March 31 2019 for a period of more than six months fromthe date they became payable viii. Based on our audit procedures and on the basis ofinformation and explanations given by the management we are of the opinion that theCompany has not defaulted in repayment of loans or borrowings from banks and debentureholders. The Company has not taken any loans from Government or any Financial Institution.ix. Based on audit procedure and on the basis of information and explanation given by themanagement we are of the opinion that money raised by Company by way of term loan hasbeen applied for the purpose for which they were raised. The Company did not raise anymoney by way of Initial Public offer or further public offer. x. To the best of ourknowledge and according to the information and explanations given to us no fraud by theCompany or no material fraud on the company by its officers or employees has been noticedor reported during the year. xi. In our opinion and according to the information andexplanations given to us the company has paid / provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act. xii. In our opinion and according to the informationand explanations given to us the Company is not a Nidhi company. Therefore paragraph3(xii) of the Order is not applicable. xiii. In our opinion and according to theinformation and explanationsgiven to us the Company is in compliance with Sections 177and 188 of the Companies Act 2013 where applicable for all transactions related partiesand the details of related party transactions have been disclosed in the StandaloneStatements as required by the applicable accounting standards. xiv. During the Year thecompany has not made any preferential allotment or private placement of shares fully orpartly paid convertible debentures and hence reporting under clause 3 (xiv) of the Orderis not applicable to the Company. xv. In Our opinion and according to the information andexplanations given to us during the year the Company has not entered into any non-cashtransactions with its Directors or persons connected to its directors and hence provisionsof Section 192 of the Companies Act 2013 are not applicable to the Company. xvi. TheCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For DMKH & CO. Chartered Accountants

Firm's Registration No. :

Sd/-

Manish Kankani Partner Membership No. 158020

Place: Mumbai Date: May 30 2019

Annexure B to the Auditors' Report

Referred to in Paragraph 1(g) under the heading of "Report on other Legal andRegulatory Requirements" of our report to the members of Maestros Electronics &Telecommunications SystemsLimited of even date Report on the Internal Financial Controlsunder 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 MaestrosElectronics & Telecommunications Systems Limited ("the Company") as ofMarch 31 2019 in conjunctionwith our audit of the financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial on the internal control over financial components of internal control stated inthe Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby 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 respective company's policies the safeguarding of itsassets the prevention and detection of frauds of the accounting records and the timelypreparation of reliable financial information 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. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial 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 controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. 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.

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

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 financial reportingincludes those policies and procedures that

1. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; 2. providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and 3. provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherentlimitations financialreporting including the possibilityofinternalfinancialcontrolsover of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not bedetected.Alsoprojectionsofanyevaluationoftheinternalfinancialcontrols over financialreporting tofutureperiodsaresubjecttotheriskthattheinternalfinancialcontrol over financialreporting become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our informationand according to the explanations givento us the Company has in all material respects financialreporting and suchinternal adequateinternal controlssystemover as at March 31 2019 based on the internalfinancialcontrolsoverfinancial control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For DMKH & CO. Chartered Accountants

Firm's Registration No. :

Sd/-

Manish Kankani Partner Membership No. 158020

Place: Mumbai Date: May 30 2019\