You are here » Home » Companies » Company Overview » MIRC Electronics Ltd

MIRC Electronics Ltd.

BSE: 500279 Sector: Consumer
NSE: MIRCELECTR ISIN Code: INE831A01028
BSE 00:00 | 20 Feb 9.19 0.04
(0.44%)
OPEN

9.25

HIGH

9.36

LOW

9.10

NSE 00:00 | 20 Feb 9.20 0
(0.00%)
OPEN

9.20

HIGH

9.50

LOW

9.05

OPEN 9.25
PREVIOUS CLOSE 9.15
VOLUME 2706
52-Week high 24.75
52-Week low 6.18
P/E
Mkt Cap.(Rs cr) 212
Buy Price 9.19
Buy Qty 3000.00
Sell Price 9.30
Sell Qty 22.00
OPEN 9.25
CLOSE 9.15
VOLUME 2706
52-Week high 24.75
52-Week low 6.18
P/E
Mkt Cap.(Rs cr) 212
Buy Price 9.19
Buy Qty 3000.00
Sell Price 9.30
Sell Qty 22.00

MIRC Electronics Ltd. (MIRCELECTR) - Auditors Report

Company auditors report

To the Members of MIRC Electronics Limited

Report on the Ind AS financial statements

We have audited the accompanying Ind AS financial statements of MIRC ElectronicsLimited ("the Company") which comprise the Balance Sheet as at March 31 2018the Statement of Profit and Loss including the statement of Other Comprehensive Incomethe Cash Flow Statement and the changes in Equity for the year then ended and a summaryof significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash _ows andchanges in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended. This responsibility 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 the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS 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 Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of Chartered Accountantsof India as 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 Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS 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 Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the Ind AS financial statements give the information required by the Act inthe 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 2018 its profit and its cash _ows and the changes in equity for the year ended onthat date.

Emphasis of Matter

We draw attention to note 35 to the financial statement which describes recognition ofpreference shares and de-recognition of outstanding receivables consequent to the schemeof the arrangement _led by one of the party and approved by NCLT vide its order datedAugust 24 2017. As per the terms of the scheme certain preference shares are allotted tothe Company with effect from December 01 2016. Consequent to the said allotment loss of `1507 lakhs arising on account of difference between the fair valuation of preferenceshares on December 01 2016 and the carrying value of outstanding receivables as on thatdate is recognized and disclosed as an ‘Exceptional Item' in comparative _gures forthe year ended March 31 2017. Our opinion is not qualified in respect of this matter.

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 Act we give in Annexure 1 a statement on the matters specified in paragraphs 3 and 4of the Order.

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 it appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended;

(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 isdis-qualified as on March_31_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 controls over financialreporting of the Company with reference to these Ind AS financial statements and theoperating effectiveness of such controls refer to our separate Report in Annexure 2 tothis report;

(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 has disclosed the impact of pending litigations on its financialposition in its Ind AS _-nancial statements – Refer Note 39 to the Ind AS financialstatements.

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Jayesh Gandhi

Partner

Membership Number: 037924

Place of Signature: Mumbai

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT

Date: May 17 2018

Annexure referred to in paragraph 1 under the heading ‘Report on other Legal andRegulatory Requirements' of our report of even date

Re: MIRC Electronics Limited (the "Company")

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

(b) All fixed assets were physically verified by the management in the previous year inaccordance with a planned programme of verifying them once in three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management the titledeeds of immovable properties included in property plant and equipment are held in thename of the company.

(ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of theOrder are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to usthere are no loans investments guarantees and securities given in respect of whichprovisions of section 185 and 186 of the Companies Act 2013 are applicable and hence notcommented upon.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Companies Act 2013 related to the manufacture or service ofconsumer appliances and are of the opinion that prima facie the specified accounts andrecords have been made and maintained. We have not however made a detailed examinationof the same.

(vii) (a) Undisputed statutory dues including sales tax duty of custom duty ofexcise service tax and other material statutory dues have been regularly deposited withthe appropriate authorities except income-tax provident fund goods and service taxemployees state insurance profession tax labour welfare fund where there have beendelays in few cases which are however not serious.

(b) According to the information and explanations given to us undisputed dues inrespect of provident fund and other statutory dues which were outstanding at the year-endfor a period of more than six months from the date they became payable are as follows:

Name of the statute Nature of the dues Amount (` in Lacs) Period to which the amount relates Due Date Date of Payment
The Employees Provident Fund and Miscellaneous Provisions Act 1952 Provident Fund 0.17 Aug-17 September 15 2017 Not paid

(c) According to the records of the Company the dues outstanding of income tax salestax service tax duty of excise duty of customs on account of any dispute are asfollows:

Nature of Dues Forum Years pertains to* Amount of dispute in (` in Lacs)
Income Tax ITAT 2010-2013 448.37
CIT(A) 2016 494.16
High Court 2001-2008 2011 1432.45
Service Tax CESTAT 2005-2015 6188.10
Commissioner (Appeals) 2007-2016 99.65
Excise Duty HIGH COURT 1999 10.00
CESTAT 2000 2001-2005 194.35
2007-2012
Customs CESTAT 2013 174.18
Duty
Commissioner of Customs 2013 2014 50.88
Commissioner of Customs (Appeals) 2016 0.10
Deputy Commissioner of Customs 2015 2016 88.74
Supreme Court 2013 1406.94
Additional Commissioner 2011 0.90
(Appeals)
Appellate Authority 2011-2012 2014 29.03
Assessing Authority 2010- 2013 628.72
Assistant Commissioner 2012-2015 269.90
Board of Madhya Pradesh 1998 9.72
Commercial Taxes Bhopal
Commissioner 1993-1994 1996- 129.28
1999 2001-2004
2006-2009
Deputy Commissioner 2001 370.32
(Appeals)
Deputy excise and taxation 19982000-2001 66.96
Commissioner/ Commercial 2004-20062008-10
Sales Tax Taxes/Sales tax
(Centre and
state) Deputy Commissioner 2011 2016 164.13
Excise & Taxation officer 2009 2013 4.09
High Court 2003- 2005 2011 206.63
Joint Commissioner 2002 2004 2006 12.89
2009 2011 2013
2014 2016
Joint Commissioner (Appeals) 2006-2010 4187.18
Revisional Board 2006-2011 474.57
VAT Officer 2011-13 16.67
Sr. Joint commissioner 2013 9.99
Supreme Court 2008 2010-2011 892.66
Tribunal 2003-2004 2006- 220.74
2007
Stamp Duty Chief Controlling Revenue 1996-1997 39.40
Authority

* Years represent AY for Income tax and financial year for other dues (both yearsinclusive)

(viii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to afinancial institution bank or government. The Company did not have any loans or borrowingin respect of debentures during the year.

(ix) According to the information and explanations given by the management during theyear the Company has not raised any money way of initial public offer / further publicoffer / debt instruments and term loans hence reporting under clause (ix) is notapplicable to the Company and hence not commented upon.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or no fraud on the Companyby the officers and employees of the Company has been noticed or reported during the year.(xi) According to the information and explanations given by the management the managerialremuneration has been paid / provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a Nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.(xiii) According to the information and explanations given by the management transactionswith the related parties are in compliance with section 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the notes to the financialstatements as required by the applicable accounting standards.

(xiv) According to the information and explanations given by the management theCompany has complied with provisions of section 42 of the Companies Act 2013 in respectof the preferential allotment or private placement of shares during the year. According tothe information and explanations given by the management we report that the amountsraised have been used for the purposes for which the funds were raised.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in section 192 of Companies Act 2013. (xvi) According to theinformation and explanations given to us the provisions of section 45-IA of the ReserveBank of India Act 1934 are not applicable to the Company.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Jayesh Gandhi

Partner

Membership Number: 037924

Place: Mumbai

Date: May 17 2018

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF MIRC ELECTRONICS LIMITED

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 MIRCElectronics Limited ("the Company") as of March_ 31_ 2018 in conjunction withour audit 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 the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 internal financial controls over financialreporting with reference to these financial statements

Meaning of Internal Financial Controls Over Financial Reporting With Reference to theseFinancial Statements

A company's internal financial control over financial reporting with reference to thesefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial control over financial reporting with reference to these financialstatements includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reffect 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 WithReference to these Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these financial statements including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to these financialstatements to future periods are subject to the risk that the internal financial controlover financial reporting with reference to these financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these financial statements and suchinternal financial controls over financial reporting with reference to these financialstatements 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 S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Jayesh Gandhi

Partner

Membership Number: 037924

Place of Signature: Mumbai

Date: May 17 2018