To the Members of
M/s MIDEAST (INDIA) LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/s MIDEAST (INDIA) LIMITED("the Company") which comprise the Balance Sheet as at March 31 2017theStatement of Profit and Loss 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 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 flows 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 maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 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 2017 and its profit and its cash flows 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 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 purpose of our audit;
(b) In our opinion proper books of account as required by law have been kept by thecompany so far as appears from our examination of those books of accounts;
(c) There is no branch office of the company;
(d) The Balance sheet the Profit and loss statement and Cash Flow Statement dealt withthis report are in agreement with the books of account;
(e) 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;
(f) In our opinion there are no adverse observations and comments on the financialtransactions or matters which have any adverse effect on the functioning of the company;
(g) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director interms of sub-section (2) of section 164;
(h) 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";
(i) In our opinion there are no qualifications reservation or adverse remark relatingto the maintenance of accounts and other matters connected therewith;
(j) 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 has disclosed the impact if any of pending litigations as at 31stMarch 2017 on its financial position in its financial statements.
ii. The Company did not have any long-term contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company
iv. The Company has disclosed the required details of Specified Bank Notes (SBN) heldand transacted during the period from 8 November 2016 to 30 December 2016 in the FinancialStatements.
For Sangram Paul and Company
Membership No. 013015
Place:- New Delhi
The Annexure referred to in paragraph 1 of Our Report on "Other Legal andRegulatory Requirements" for Mideast (India) Limited for the financial year ended on31st March 2017
We report that:
(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) These fixed assets have been physically verified by the management at reasonableintervals; and no material discrepancies were noticed on such verification.
c) The title deeds of immovable properties are held in the name of the company.
(ii) The Company does not have any inventory consequently clause (ii) of paragraph 3of the Order is not applicable to the Company.
(iii) The Company has not granted any secured or unsecured loans to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Consequently clause (iii) of paragraph 3 of theOrder is not applicable.
(iv) In respect of loans investments guarantees and security provisions of section185 and 186 of the companies Act 2013 have been complied with.
(v) The company has not accepted any deposits consequently clause (v) of paragraph 3of the Order is not applicable.
(vi) The company is not required to maintain cost records under sub-section (1) ofsection 148 of the Companies Act;
(vii) (a) The company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income tax sales- tax services tax duty ofcustoms duty of excise value added tax cess and any other statutory dues to theappropriate authorities and there are no arrears of outstanding statutory dues as on 31stof March 2017 for a period of more than six months from the date they became payable;
(b) There are no dues of income tax or sales tax or service tax or duty of customs orduty of excise or value added tax which have not been deposited on account of any dispute.
(viii) The company has no dues to a financial institution or bank or Government ordebenture holders. Hence Lender wise details of banks and financial institutions are notnecessary consequently clause (viii) of paragraph 3 of the Order is not applicable.
(ix) The company has not raised money either from public offer or from further publicoffer or from any term loan during the year; hence clause (ix) of Para 3 of the Order isnot applicable to the Company.
(x) No fraud by the company or any fraud on the company by its officers or employeeshas been noticed or reported during the year
(xi) Requisite approvals mandated by the provision of section 197 read with Schedule Vto the Companies Act 2013 for managerial remuneration paid during the year were taken.
(xii) The provisions of clause (xii) of the para 3 of the Order are not applicable tothe company as the company is not a Nidhi Company.
(xiii) All transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment/ private placement of sharesor fully or partly paid convertible debentures during the year under review. ConsequentlyClause xiv of Para 3 of order is not applicable.
(xv) The Company has not entered into any non-cash transactions with the directors orpersons connected with the director. Hence Section 192 of the Companies Act 2013 is notapplicable to the Company. Consequently clause (xv) of the Order is not applicable.
(xvi) The company is not required to be registered under section 45-1A of the ReserveBank of India Act 1934 and consequently clause (xvi) of Para 3 of Companies(Auditor'sReport) Order is not applicable.
For Sangram Paul and Company
Membership No. 013015
Place:- New Delhi
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 M/s MIDEAST(INDIA) LIMITED ("the Company") as of March 31 2017 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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 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 ReportingA company's internal financial control over financial reporting is a process designed toprovide 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.
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 March 31 2017 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.
For Sangram Paul and Company
Membership No. 013015
Place:- New Delhi