MAX ALERT SYSTEMS LIMITED
Report on the Financial Statements for the F.Y. 2017-18
We have audited the accompanying financial statements of Max Alert System Limited("the Company") which comprise the Balance Sheet as at 31st March2018. the Statement of Profit and Loss for the year ended on 31st March 2018and a summary of Significant Accounting Policies and Additional Notes to the accountscontaining other explanatory information.
Management's Responsibility for the 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 financial statements that give a true and fair view of thefinancial position financial performance of the Company in accordance with the Accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofaccounting 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.
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 & AuditingStandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under and the Order under section 143(11)of the Act.
We conducted our audit of the financial statements in accordance with the Standards ofAuditing specified under section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments: the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial
Statement's that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of accounting estimates made by Company'sDirectors as well as evaluating the overall presentation of 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31stMarch 2018 and its Loss 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 sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in the paragraphs 3 & 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 & 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 it appears from our examination of those books;
c) The Balance Sheet and the Statement of Profit and Loss and Statement of Cash Flowdealt with by this Report are in agreement with the books of account:
d) In our opinion the Balance Sheet and the Statement of Profit and Loss and Statementof Cash Flow' comply with the Accounting Standards specified under Section 133 of the Act.read with Rule 7 of the Companies (Accounts) Rules 2014;
e) On the basis of written representations received from the Directors as on March 312018 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2018 from being appointed as a Director in terms of Section 164(2) of theAct;
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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit & Auditors) Rules 2014. in ouropinion and 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 & Shah |
| ||Chartered Accountants |
|Place: Mumbai ||ICAI FRN: 124850W |
|Date: 09th June 2018 || |
| ||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 31st March 2018]
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 are 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. But in case of Goods & Service Tax since the GSTR 3B were notproperly filled company has not paid its monthly liability of GST properly.
(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 || |
|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 31.03.2018 is Rs. 6000843/-.
(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under paragraph 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 infonnation 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 us.the 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 45-1A of the ReserveBank of India Act 1934.
| ||For Agrawal Desai and Shah |
| ||Chartered Accountants |
| ||ICAI FRN: 124850W |
|Place: Mumbai ||CA. Rishi Sekhri |
|Date: 09th June 2018 ||(Partner) |
| ||M. No.: 126656 |
"Annexure - B" to the Independent Auditor's Report
[As referred to in paragraph 2(f) of our Report of even date to the members of Max AlertSystems Limited for the year ended 31st March 2018]
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act'')
We have audited the internal financial controls over financial reporting of Max AlertSystems Limited ("the Company") as of March 31 2018 in conjunction with ouraudit of the financial statements of the Company for the year ended on that 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 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 the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 judgement including the assessment of the risks ofmaterial misstatement of the financial 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 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.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
| ||For Agrawal Desai and Shah |
| ||Chartered Accountants |
| ||ICAI FRN:.124850W |
| ||CA. Rishi Sekhri |
|Place: Mumbai ||(Partner) |
|Date: 09th June 2018 ||M. No.: 126656 |