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Mid India Industries Ltd.

BSE: 500277 Sector: Industrials
NSE: MIDINDIA ISIN Code: INE401C01018
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NSE 05:30 | 01 Jan Mid India Industries Ltd
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VOLUME 118
52-Week high 0.61
52-Week low 0.26
P/E
Mkt Cap.(Rs cr) 0
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mid India Industries Ltd. (MIDINDIA) - Auditors Report

Company auditors report

To

The members of

MID INDIA INDUSTRIES LIMITED

CIN: L17124MP1991PLC006324

Report on the Standalone Financial Statements

We have audited the accompanying financial statements of MID INDIA INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2018 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility 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 statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. In conducting our audit we have taken into account the provisions ofthe Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunderand the Order issued under section 143(11) of the Act.

We have conducted our audit of the standalone financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2018 and its LOSS total comprehensive income the changes in equityand its cash flows for the year ended on that date.

Emphasis of Matters:

1. The current year losses of the company have wiped off the net worth of the company.However in the opinion of management the going concern of the company is still intact andhas not got defeated as the company is usually carrying on manufacturing and tradingactivities. However the management is looking to cut the operational cost and othersuitable measures to stabilise the financial position of the company.

2. The company has not properly complied with "IND AS 19 Employee Benefits"to the extent that the liability in respect of gratuity payable to employees is notactuarially determined by using project unit credit method.

Our opinion is not modified in respect of these matters.

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 subsection (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order. 2. As required by Section 143 (3) of the Act based onour audit 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 including Other ComprehensiveIncome Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements generally comply withthe Indian Accounting Standards specified under Section 133 of the Act except reportedelsewhere.

(e) On the basis of the written representations received from the directors of theCompany as on 31st March 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2018 from being appointed as a director interms 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". 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 and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements Refer Note 1.2 (J) (iii) to the financialstatements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There was no requirement to transfer amount to the Investor Education andProtection Fund by the Company.

For C. Lasod & ASSOCIATES
Chartered Accountants
(Firm Registration No. 006842C)
CA. Chandan Jain
Place: Indore Partner
Date: 30/05/2018 Membership No. 075062

"Annexure A" to the Independent Auditor's Report

Referred to in paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of MID INDIAINDUSTRIES LIMITED for the year ended on 31st March 2018

(i) Fixed Assets:

a). As informed to us the company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets. The entirerecords have been maintained in electronic form.

b). As per information and explanation given to us these fixed assets have beenphysically verified by the management at reasonable intervals and no materialdiscrepancies were observed on such verification.

c). According to the information and explanation given to us on the basis of ourexamination and of the records of the company the title deeds of the immovable propertyheld in the name of the company.

(ii) Inventories:

As informed and explained to us the inventory has been physically verified by themanagement during the year. In our opinion the frequency of verification is reasonable.

(iii) Loan Granted:

The company has not granted any unsecured loans to any companies firms or otherparties covered in the register maintained under section 189 of the Companies Act 2013.

(iv) Loans Investments Securities and Guarantees:

In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto grant of loans making investments providing guarantees and securities as applicable.

(v) Public Deposit:

In our opinion and according to the information and explanation given to us thecompany has neither accepted nor invited any deposit from public within the provision ofSection 73 to 76 of Companies Act 2013 and rules made there under.

(vi) Cost Record:

As informed to us the Central Government has not prescribed the maintenance of costrecords under Section 148(1) of the Companies Act 2013.

(vii) Statutory Dues:

(a) According to the information and explanation given to us the Company has beengenerally regular in depositing undisputed statutory dues relating to Provident FundEmployees' State Insurance Income Tax Goods and Service Tax Sales Tax Service TaxDuties of Customs Value Added Tax and any other statutory dues applicable to it withappropriate authorities.

(b) There are no undisputed statutory dues payable which are outstanding as at31-03-2018 for a period of more than 6 months from the date they become payable.

(c) Details of dues of Income Tax which have not been deposited as at March 312018 on account of dispute are given below:

Nature of the Statue Nature of dues Forum where dispute is pending Period to which amount relates Amount
The Income Tax Act 1961 Income tax demand U/s 143(1)(a) Jurisdictional A.O. A.Y. 2009-10 Rs. 867215

(viii) Default in repayment of dues to Financial Institutions Banks andGovernment or debenture holders:

According to information and explanation given to us by the management the company hasnot defaulted in repayment of dues to Financial Institutions Banks and Government ordebentures holders.

(ix) Application of Term Loans and Initial/Further Public Offer:

According to information and explanation given to us the company has not raised moneyby way of Initial/Further Public Offer and no term loan has been obtained by the companyduring the year.

(x) Fraud Noticed or Reported:

According to the information & explanation given to us no material fraud on or bythe company has been noticed or reported during the year.

(xi) Managerial Remuneration:

As informed and explained to us the managerial remuneration has been paid/provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V to the Companies Act 2013.

(xii) Nidhi Company:

To the best of our knowledge and belief the company is not a chit fund or Nidhi mutualbenefit fund/society Company; hence this clause is not applicable.

(xiii) Related Party Transactions:

In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.

(xiv) Preferential Allotment/ Private Placement:

As informed and explained to us the company has not made any preferential allotment/private placement of shares or fully or partly convertible debentures during the year.

(xv) Non-Cash Transactions:

According to information and explanation given to us the company has not entered intoany material non-cash transactions with directors or persons connected with him.

(xvi) Registration with Reserve Bank of India:

The Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.

For C. Lasod & ASSOCIATES
Chartered Accountants
(Firm Registration No. 006842C)
CA. Chandan Jain
Place: Indore Partner
Date: 30/05/2018 Membership No. 075062

"Annexure B" to the Independent Auditor's Report

Referred to in paragraph 2(f) under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of MID INDIAINDUSTRIES LIMITED for the year ended on 31st March 2018

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 MIDINDIA INDUSTRIES LIMITED ("the Company") as of March 31 2018 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 Standards on Auditing to the extent applicable to an audit of internal financialcontrols and the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the internal financial controls system over financialreporting.

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. Provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 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.

Place: Indore For C. Lasod & ASSOCIATES
Date: 30/05/2018 Chartered Accountants
(Firm Registration No. 006842C)
CA. Chandan Jain
Partner
Membership No. 075062