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Mirch Technologies (India) Ltd.

BSE: 505336 Sector: Engineering
NSE: N.A. ISIN Code: INE098E01018
BSE 05:30 | 01 Jan Mirch Technologies (India) Ltd
NSE 05:30 | 01 Jan Mirch Technologies (India) Ltd

Mirch Technologies (India) Ltd. (MIRCHTECH) - Auditors Report

Company auditors report

To the Members of M/s Mirch Technologies (India) Limited.

Report on the Financial Statements

1. We have audited the accompanying financial statements of M/s Mirch Technologies(India) Limited

(the Company) which comprise the Balance Sheet as at March 312017 the Statement ofProfit and Loss for the year then ended the Cash Flow Statement for the year the endedand a summary of significant accounting policies and other explanatory information.

2. The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. 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 thereunder.

5. 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.

6. An audit involves performing procedures to obtain audit evidence about the amountsand 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.

7. 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

8. 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;

(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;

(b) in the case of the Statement of Profit and Loss of the profit of the Company forthe year ended on that date

in the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Note to the financial statements:

a) Note 2.13 in the financial statements which indicate that the Company hasaccumulated losses and its net worth has been fully / substantially eroded the Companyhas incurred a net loss/net cash loss during the current and previous year(s) and theCompany's current liabilities exceeded its current assets as at the balance sheet date.These conditions indicate the existence of a material uncertainty that may castsignificant doubt about the Company's ability to continue as a going concern. However thefinancial statements of the Company have been prepared on a going concern basis for thereasons stated in the said Note.

Our opinion is not modified in respect of these matters.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditors report) Order2016 ("the order")issued by the Central Government of India in terms of section 143(11) of the Act we givein the annexure 1 a statement on the matters specified in paragraph 3 and 4 of the order.

2. As required by section 143(3) of the Act we report to the extent applicable 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 appears from our examination of those books.

The Balance Sheet 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) The going concern matter described in subparagraph (a) under the Emphasis ofMatters paragraph above in our opinion may have an adverse effect on the functioning ofthe Company.

(f) On the basis of 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 31 March 2017 from being appointed as a director in terms of Section164(2) of the Act.

(g) Report on the Internal Financial Control under clause (1) of Sub-section 3 ofsection 143 of the Companies Act2013 ("the Act") is enclosed an annexure tothis report.

For and on behalf of
U.S.Tanwar & Co.
Chartered Accountants
F.R. No.110810W
Place:-Mumbai (CA.U.S. Tanwar)
Date: 30/05/2017 Proprietor
ICAI M.No.030440

M/s Mirch Technologies (India) Limited Annexure- Report under the Companies(Auditors'Report) Order2016

In term of the information and explanations sought by us and given by the company andthe books and records examined by us in the normal course of audit and to the best of ourknowledge and belief we state that:

(1) In Respect of its fixed assets:

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

(b) As explained to us all the assets have not been physically verified by themanagement during the year but there is regular programme of verification which in ouropinion is reasonable having regards to the size of the company and nature of its assets.No material discrepancies were noticed on such verification.

The title deeds of immovable properties are held in the name of company

(2) As explained to us the inventory has been physically verified at reasonableintervals by the management. In our opinion the frequency of verification is reasonable.The discrepancies noticed on verification between the physical stocks and the book recordswere not material. The discrepancies have been properly dealt with in the books ofaccounts.

(3) As explained to us the company had not granted any loans secured or unsecured toany companies firms Limited Liability Partnerships or other parties covered in theregister maintained under section 189 of the Act.

(4) The company has not given any loans investment guarantees and security.

(5) In our opinion and according to the information and explanations give to us thecompany has not accepted any deposits in contravention of directives issued by ReserveBank of India and the provisions of section 73 to 76 or any other relevant provisions ofthe act and rules framed there under where application. No order has been passed by theCompany Law Board or National Company Law T ribunal or Reserve Bank of India or any courtor any other tribunal.

(6) It has been explained to us that the maintenance of cost records has not beenprescribed under section 148(1) of the Act.

(7) (a) According to the records of the company the company is generally regular indepositing with the appropriate authorities the undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax wealth tax servicetax duty of customs duty of excise value added tax cess and any material statutorydues applicable to it.

According to the information and explanations given to us undisputed amounts payablein respect of income tax wealth tax service tax sales tax custom duty excise duty andCess that were in arrears as at 31-Mar-2016 for a period of more than six months from thedate they became payable are given below.

Name of the statute Nature if the Dues Amount(Rs.) Period to which Amount relates Due Date
Maharash tra Value Added Tax2002 Mumbai sales tax 30546/- Old Dues prior to 2002
Maharash tra Value Added Tax2002 Mumbai sales tax 16345/- Apr 05-Mar 05 21-04 2005
Central Sales Tax 1956 Central Sales Tax 730249/- Old Dues prior to 2002 Old Dues prior to 2002
Maharash tra Value Added Tax2002 Vat 17055/- Oct 09 to Mar 10 21-04 2010
Income Tax Act 1961 Income Tax 167207/- A.Y.1998- 99 Old Dues

(7) (b) According to the information and explanations given to us there are no dues ofsales tax income tax custom duty wealth tax excise duty and Cess which have not beendeposited on account of any dispute.

(8) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion the company has not defaulted in repayment of dues toa financial institution bank Government or dues to debenture holders.

(9) The company has not raised moneys by way of initial public offer or further publicoffer (including debt instrument) and term loans.

(10) Based upon the audit procedures performed and according to the information andexplanations given to us no fraud by the company or any fraud on the company by itsofficers or employees has been noticed or reported during the course of our audit thatcauses the financial statements to be materially misstated.

(11) No Managerial remuneration has been paid or provided.

(12) The company is not a Nidhi Company hence this clause is not applicable.

(13) Based upon the audit procedures performed and according to the information andexplanations given to us All transactions with related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial statements etc. as required by the applicable accountingstandards.

(14) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

(15) The company has not entered into any non-cash transactions with directors orpersons connected with him.

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

For and on behalf of
U.S.Tanwar & Co.
Chartered Accountants
F.R. No.110810W
Place:-Mumbai (CA.U.S. Tanwar)
Date: 30/05/2017 Proprietor