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Mewar Hi-Tech Engineering Ltd.

BSE: 540150 Sector: Engineering
NSE: N.A. ISIN Code: INE957U01011
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NSE 05:30 | 01 Jan Mewar Hi-Tech Engineering Ltd
OPEN 27.75
PREVIOUS CLOSE 27.75
VOLUME 3000
52-Week high 35.50
52-Week low 24.75
P/E 120.65
Mkt Cap.(Rs cr) 11
Buy Price 26.25
Buy Qty 3000.00
Sell Price 28.30
Sell Qty 3000.00
OPEN 27.75
CLOSE 27.75
VOLUME 3000
52-Week high 35.50
52-Week low 24.75
P/E 120.65
Mkt Cap.(Rs cr) 11
Buy Price 26.25
Buy Qty 3000.00
Sell Price 28.30
Sell Qty 3000.00

Mewar Hi-Tech Engineering Ltd. (MEWARHITECH) - Auditors Report

Company auditors report

To the Members Of

Mewar Hi-Tech Engineering Limited Udaipur

Report on the Financial Statements

We have audited the accompanying financial statements of Mewar Hi-Tech EngineeringLimited Reg. Off :-- 1- Hawa Magri Industrial Area Sukher Udaipur ("theCompany") which comprise the Balance Sheet as at 31st March 2018 the Statement ofProfit & Loss and the Cash Flow Statement for the year then ended and a summary ofthe 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 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 flow of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards referredspecified 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 provisions 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 estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors’ 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 there under. We conducted our audit in accordance with the Standards onAuditing 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 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 a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and operating effectiveness of such controls. Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Company’s Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the financial statements.

Opinion

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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2018 and its profit/loss and its cash flow for the year ended on that date. [Subjectto comments in Note-1 & 2 of Accounting Policy & Note On Account]

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure B " a statement on the mattersspecified in the paragraph 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 and 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 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 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial control over financialreporting of the company and the operating effectiveness of such control refer to ourseparate Report in "Annexure A". Our report expresses an opinion on the adequacyand 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 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 litigation on its financial position in itsfinancial statement.

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 which required to be transferred by the Company to theInvestor Education and Protection Fund.

Place: Udaipur For: SAGAR GOLCHHA & CO.
Dated: July 23 2018 Chartered Accountants
Firm Registration No: 007755C
[CA. Sagar Golchha ]
M.No.- 076797

The Annexure A referred to in our Independent Auditors’ Report to the members ofthe Mewar Hi-Tech Engineering Limited Udaipur on the financial statements for the yearended 31 March 2018 we report that:

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 MewarHi-Tech Engineering Limited ("the Company") as of 31 March 2018 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 (‘ICAI’).

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable 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 deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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.

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 controlssystem over 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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.

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 31 March 2018 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. [Subject to comments in Note-1 & 2 of Accounting Policy &Note On Account]

Place: Udaipur For: SAGAR GOLCHHA & CO.
Dated: July 23 2018 Chartered Accountants
Firm Registration No: 007755C
[CA. Sagar Golchha ]
M.No: 076797
Proprietor

The Annexure B referred to in our Independent Auditors’ Report to the members ofthe Mewar Hi-Tech Engineering Limited on the financial statements for the year ended 31March 2018 we report that:

The Annexure referred to in Independent Auditors’ Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2018 we reportthat:

1. In respect of fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. As explained us the fixed assets have been physically verified by themanagement according to a phase programmed which in our opinion is reasonable havingregard to the size of the company and nature of its assets. According to the informationand explanations given to us no material discrepancies were noticed on such verification.

c. According to the information and explanations given to us the title deeds ofimmovable properties are held in the name of the company and the same have been disclosedas fixed assets in the financial statement. Details are as under:-

Particulars of assets Date of Purchases Description Mortgage / Pledged Book Value As On 31.03.2018 (Rs.)
Factory Land 26.06.2008 Araji No.1863/414 Area 0.21 Hectare With Corporation Bank 11264470/-
Factory Land 18.06.2010 Araji No.1862/414 Area 3 Bigha’s With Corporation Bank

2. In respect of Inventories:-

As explained to us the inventories (excluding third parties) were physically verifiedduring the year by the management at reasonable intervals and according to the informationand explanations given to us no material discrepancies were noticed on physicalverification.

However in our observation it is found that the company needs significant method tomaintain inventory records. The persuasive inventory record must be maintained on accountof proper verification and safeguard of the company. In our opinion the maintained recordsis insufficient hence we not verified. The management has valued / verified inventorytaken in the Balance Sheet.

It is observed that no record have been produced for our verification of service workin progress hence not verified. There is no service (repairing / job) in WIP at the endof the year.

3. The Company has not granted any loans secured or unsecured to companies firmslimited liability partnership or other parties covered in the register maintained underSection 189 of the Companies Act 2013.

4. In our opinion and according to the information and explanations given to usthe Company has complied with the provisions of section 185 and 186 of the Act withrespect to the loans and investments made.

5. According to the information and explanations given to us and record of thecompany examined by us the Company has not accepted any deposits from the public duringthe year. The company has complied with the provision of sec. 73 to 76 or any otherrelevant provisions of the Companies Act 2013.

6. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company.

7. a. According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including GST Income Tax Service TaxExcise TDS and other material statutory dues have been noticed irregular to depositsduring the year by the Company with the appropriate authorities.

According to information and explanations given to us the following statutory dueswere in arrears as at 31 March 2018 for a period of more than six months from the datethey became payable.

S. No. Nature of dues Amount outstanding as on 31.03.2018 Amount Pending more than six months Related period Remarks
1 Fringe Benefits 59024 59024 FY 10-11
2 TDS 1268652 -- FY 17-18
3 ESI Payable 250852 -- FY 17-18
4 PF Payable 451423 -- FY 17-18
5 GST (Net) 10509213 -- FY 17-18
6 Excise 3956703 3956703 FY 16-17
7 CST Payable 319150 319150 FY 15-16
8 VAT 64399 -- FY 17-18
9 Service Tax 833662 833662 FY 16-17
10 Income Tax For A.Y. 2018-19 [Provision made in books ] 7500000 5625000 15th June 2017 & 15th Sept 2017 15th Dec 2017 Tax was to be payable in advance

b. According to the information and explanations given to us details of dues ispayable which has been quantified by the any Govt. Authority.

Name of the statute Nature of dues Amount Payable (in Rs) Period to which the amount relates (F.Y.) Forum where dispute is pending /Remarks
Income Tax Tax and interest 478050 2012-13 CIT-appeal Udaipur
Income Tax Tax and interest 779980 2013-14 CIT-appeal Udaipur
Income Tax Tax and interest 125330 2014-15 Demand raised by AO
VAT Declaration Forms and others 5170989 2013-14 and back years Related to non submission of forms

8. According to the records of the company examined by us and the information andexplanation given to us the company has not defaulted in repayment of dues to financialinstitutions or Bank.

9. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyclause (ix) of the Order is not applicable.

10. During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the company notice or reported during the year nor we havebeen informed of such case by the management.

11. Managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule V to theCompanies Act.

12. In our opinion and according to the information and explanations given to usthe Company is not a Nidhi Company. Accordingly clause (xii) of the Order is notapplicable.

13. All transactions with the related parties are in compliance with Section 188and 177 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the accounting standards and Companies Act 2013.

14. The company has not made any preferential allotment / private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly clause (xiv) of the Order is not applicable.

15. The company has entered into non-cash transactions with directors or personsconnected with him.

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

Place: Udaipur For: SAGAR GOLCHHA & CO.
Dated: July 23 2018 Chartered Accountants
Firm Registration No: 007755C
[CA. Sagar Golchha ]
M.No: 076797
Proprietor