To the Members of MAX ALERT SYSTEMS LIMITED
Report on the Audit of the Financial Statements Opinion
We have audited the financial statements of MAX ALERT SYSTEMS LIMITED Company("the Company") which comprise the balance sheet as at 31st March 2020 and thestatement of profit and loss and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2020 and its profit and its cash flows for the year ended onthat 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 Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key Audit matters are those matters that in our professional judgement were of mostsignificant 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 in forming our opinion thereon and we do not provide a separate opinion onthese matters.
Other Information [or another title if appropriate such as "Information Otherthan the Financial Statements and Auditor's Report Thereon"]
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Board's report but does not includethe financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit 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 and Those Charged with Governance for the FinancialStatements
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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial 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 responsible for overseeing the Company's financialreporting 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 we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
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 Companies Act 2013 we give in the 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 (the Statement of Changes inEquity) and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164(2) of the Act.
(f) Since the Company's turnover as per last audited financial statements is less thanRs.50 Crores and its borrowings from banks and financial institutions at any time duringthe year is less than Rs.25 Crores the Company is exempted from getting an audit opinionwith respect to the adequacy of the internal financial controls over financial reportingof the company and the operating effectiveness of such controls vide notification datedJune 13 2017;
(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 pending litigations which would impact its financialposition;
ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses and;
iii) There were no amounts required to be transferred to the Investor Education &Protection Fund by the Company during the year under review.
| ||For Agrawal Desai and Shah |
| ||Chartered Accountants |
| ||ICAI FRN: 124850W |
|Place: Mumbai || |
|Date: 31st July 2020 || |
| ||CA. Rishi Sekhri |
| ||(Partner) |
| ||M. No.:126656 |
"Annexure A"to the Independent Auditor's Report
[As referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' of our Report of even date to the members of Max Alert Systems Limited onthe accounts of the Company for the year ended 31stMarch 2020]
On the basis of such checks as we considered appropriate and according to theinformation and Explanations given to us during the course of our audit we report that inour opinion:
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.
(b) The fixed assets have been physically verified by the management during the year inaccordance with the phased programme of verification adopted by the management which inour opinion provides for physical verification of all the fixed assets at reasonableintervals. According to the information and explanations given to us no materialdiscrepancies were noticed on such verification.
(c) The title deed of all immovable properties is held in the name of company.
(ii) In respect of inventory:
Physical verification of inventory has been conducted at reasonable intervals by themanagement but discrepancies could not be noticed and they have not been completely dealtwith in the books of account on day to day basis. Closing Stock has taken as certified bythe management.
(iii) The Company has not entered into contracts and arrangements with parties coveredin the Register maintained under section 189 of the Companies Act 2013 during the year.
(iv) In our opinion the Company has in respect of loans & advances complied withthe provisions of section 185 & 186 of the Act.
(v) The Company has not received any public deposits during the year.
(vi) As informed to us the Central Government has not prescribed maintenance of costrecords under sub section (1) of Section 148 of the Act in respect of the activitiescarried on by the Company.
(vii) In respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues ofProvident Fund Employees state insurance (ESI) Income-tax Tax deducted at sourcesProfession Tax Service Tax and other material statutory dues applicable to it with theappropriate authorities.
(b) According to the information and explanations to us there are disputed amountsremaining in respect of Income-tax and accordingly reporting required is mentioned below:
|TAX ||FORUM ||YEAR ||AMOUNT |
|Income Tax ||AO ||2009-10 ||3936518/- |
|Income Tax ||AO ||2010-11 ||2027470/- |
|Income Tax ||AO ||2011-12 ||6212600/- |
|Income Tax ||AO ||2012-13 ||13205160/- |
(viii) The Company has not taken any loan from Government and also has not raised anymoney by way of debentures. But the company has taken loan from financial institution andthere is default in the repayment of relevant dues. The principal amount outstanding onthe 31.03.2020 is Rs. 9795156/-.
(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans during the year and hence reporting underparagraph 3(ix) of the Order is not required.
(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company has been noticedor reported during the year.
(xi) In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.
(xii) The Company is not a Nidhi Company and hence reporting under paragraph 3(xii) ofthe Order is not required.
(xiii) In our opinion and according to the information and explanations given to usthe Company is in compliance with Sections 177 and 188 of the Companies Act 2013wherever applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the financial statements etc. asrequired by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underparagraph 3(xiv) of the Order is not required for the year under review.
(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into non-cash transactions with director's orany person connected with them. Hence no requirement of reporting under this clause.
(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
For Agrawal Desai and Shah Chartered Accountants
ICAI FRN: 124850W
|Place: Mumbai || |
|Date: 31th July 2020 ||CA. Rishi Sekhri |
| ||(Partner) |
| ||M. No.:126656 |