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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 201
52-Week high 1.13
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P/E
Mkt Cap.(Rs cr) 2
Buy Price 1.07
Buy Qty 4799.00
Sell Price 1.05
Sell Qty 90.00
OPEN 1.07
CLOSE 1.07
VOLUME 201
52-Week high 1.13
52-Week low 0.30
P/E
Mkt Cap.(Rs cr) 2
Buy Price 1.07
Buy Qty 4799.00
Sell Price 1.05
Sell Qty 90.00

Mid India Industries Ltd. (MIDINDIA) - Auditors Report

Company auditors report

To

The members of

MID INDIA INDUSTRIES LIMITED CIN: L17124MP1991PLC006324

Report on the Financial Statements

Opinion

We have audited the accompanying financial statements of MID INDIA INDUSTRIES LIMITED("the Company”) which comprise the Balance Sheet as at 31st March 2019 theStatement of Profit and Loss the Statement of Changes in Equity and the Cash FlowStatement for the year then ended and a summary of the 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 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 March31 2019 its Loss changes in 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 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.

Emphasis of Matters :

The previous year's losses of the company have wiped off the book value of net worth ofthe company. However in the opinion of management the going concern of the company isstill intact and has not got defeated as the fair market value of land exist in thefinancial statement of company is more than sufficient to mitigate the liabilities of thecompany and moreover the company has leased out the manufacturing facility of company'sunit with Plant & machinery and civil construction thereon for usually carrying onmanufacturing and trading activities during the financial year. Our opinion is notmodified in respect of this matter.

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.

Information Other than the Financial Statements and Auditor's Report Thereupon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report 2018-19 but does notinclude the Ind AS financial statements and our auditor's report thereon. Our opinion onthe Ind AS financial statements does not cover the other information and we do not expressany form of assurance conclusion thereon. In connection with our audit of Ind AS financialstatements our responsibility is to read the other information and in doing so considerwhether such other information is materially inconsistent with the Ind AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. 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.

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 financial statements that give a true and fair view of the financial positionfinancial performance (changes in equity) and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the accountingStandards specified 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 of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative 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 Ind AS 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 Ind AS financial statements .

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the Ind AS 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 to designaudit procedures that are appropriate in the circumstances. Under section 143(3) (i) ofthe Companies Act 2013 we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

- Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates 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 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 Ind AS 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 as a going concern.

- Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

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 with those charged with governance we determine thosematters that were of most significance in the audit of the Ind AS financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits 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 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 on our 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 Statement of Changes in Equityand the Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount.

(d) In our opinion the aforesaid financial statements generally comply with the IndianAccounting Standards specified under Section 133 of the Act read with companiesaccounting rules 2015 as amended.

(e) On the basis of the written representations received from the directors of theCompany as on 31st March 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2019 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 on theadequacy 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 2014as 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 financial statements - Refer Note 1.4 (h) to the financial statements;

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

iii. There were no amount which was required to be transferred to the InvestorEducation and Protection Fund by the Company.

Place: Indore For C. Lasod & ASSOCIATES
Date: May 24 2019 Chartered Accountants
(Firm Registration No. 006842C)
CA. Chandan Jain
Partner
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 2019

(i) 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) As informed and explained to us the inventory has been physically verified by themanagement during the year. In our opinion the frequency ofverification is reasonable.

(iii) The Company has granted unsecured loans to one party outstanding of the same asat year end Rs. 90000 related to register maintained under Section 189 of the CompaniesAct2013 ("the Act”).

(a) The terms and conditions of the grant of such loan are not prejudicial to theCompany's interest.

(b) The terms of arrangements do not stipulate repayment schedule and the loans arerepayable on demand.

(c) Accordingly paragraph 3(iii)(c) of the Order is not applicable to the Company inrespect of repayment of the principal amount.

(iv) In our opinion and according to the information and explanations given to ustheCompany has complied with the provisions of section 185 and 186 of the Act withrespectto grant of loans making investments providing guarantees and securities as applicable.

(v) In our opinion and according to the information and explanation given to us thecompanyhas 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) As informed to us the Central Government has not prescribed the maintenance ofcost records under Section 148(1) of the Companies Act 2013.

(vii) (a) According to the information and explanation given to us the Company hasbeen generally regular in depositing undisputed statutory dues relating to Provident FundEmployees' State Insurance Income Tax Goods and Service Tax Sales Tax ServiceTaxDuties 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 at year endfor 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 year end onaccount 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. 867215.00

(d) Details of dues of Indirect Taxes which have not been deposited as at year end onaccount of dispute are given below:

Nature of the Statue Nature of dues Forum where dispute is pending Period to which amount relates Amount
The Central Sales Tax Act 1956 Central Sales tax demand U/s 21(1) Jurisdictional Commissioner (Appeal) A.Y.2015-2016 Rs. 405564
Madhya Pradesh VAT Act 2002 Rule 40 of Madhya Pradesh VAT Act Jurisdictional Commissioner (Appeal) AY 2016-2017 Rs. 222976

(viii) According to information and explanation given to us by the management thecompany has not defaulted in repayment of dues to Financial Institutions Banks andGovernment or debentures holders.

(ix) According to information and explanation given to us the company has not raisedmoney by way of Initial/Further Public Offer and no term loan has been obtained by thecompany during the year.

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

(xi) As informed and explained to us the managerial remuneration has beenpaid/provided in accordance with the requisite approvals mandated by the provisions ofsection 197 read with schedule V to the Companies Act 2013.

(xii) To the best of our knowledge and belief the company is not a chit fund or Nidhimutual benefit fund/society Company; hence this clause is not applicable.

(xiii) In our opinion and according to the information and explanations given to usthe Company 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 financial statements as required by the applicableaccounting standards.

(xiv) As informed and explained to us the company has not made any preferentialallotment/ private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to information and explanation given to us the company has not enteredinto any material non-cash transactions with directors or persons connected with him.

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

Place: Indore For C. Lasod & ASSOCIATES
Date: May 24 2019 Chartered Accountants
(Firm Registration No. 006842C)
CA. Chandan Jain
Partner
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 2019

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 MID INDIAINDUSTRIES LIMITED ("the Company”) as of March 31 2019 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 Board of Directors of the Companyis responsible for establishing and maintaininginternal financial controls based onthe 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.

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.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial 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 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 to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance 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 2019 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: May 24 2019 Chartered Accountants
(Firm Registration No. 006842C)
CA. Chandan Jain
Partner
Membership No. 075062