To the Members of
MITCON Consultancy & Engineering Services Limited
Report on the Audit of Standalone Financial Statements
1) We have audited the accompanying standalone financial statements of MITCONConsultancy & Engineering Services Limited ("the Company") which comprisethe Balance Sheet as at 31st March 2021 and the Statement of Profit and Lossand Statement of Cash Flows for the year then ended and notes to the standalone financialstatements including a summary of significant accounting policies and other explanatoryinformation.
2) 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 Companies Act 2013 ("the act") in the manner so required and give a trueand fair view in conformity with the Accounting Standards prescribed under section 133 ofthe act read with the Companies (Accounts) Rules 2014 as amended ("AS")and theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2021 its loss and its cash flows for the year ended on that date.
Basis for Opinion
3) 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 thestandalone financial statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Companies Act 2013 and theRules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the standalone financial statements.
Key Audit Matter
4) Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.
The auditor determines that there are no Key Audit Matters during the year.
Information other than the Financial Statements and Auditor's Report thereon
5) The Company's Board of Directors is responsible for the other information. The otherinformation comprises Board's report Report on Corporate Governance and BusinessResponsibility report but does not include the consolidated financial statementsstandalone financial statements and our auditors' report thereon. The Annual Report isexpected to be made available to us after the date of this auditor's report. Our opinionon the standalone financial statements does not cover th e other information and we willnot express any form of assurance conclusion thereon. In connection with our audit of thestandalone financial statements our responsibility is to read the other informationidentified above when it becomes available and in doing so consider whether the otherinformation is materially inconsistent with the standalone financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. When weread the Annual Report if we conclude that there is a material misstatement therein weare required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements
6) 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 financiaposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; 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 standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
7) In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
8) Those Board of Directors are also responsible for overseeing the company's financialreporting process.
Auditors' Responsibilities for the Audit of the Standalone Financial Statements:
9) Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.
10) As part of an audit in accordance with SA's on Auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatements of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
Evaluate the appropriateness of the accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of the management's use of going concern basisof accounting 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 standalone financial statements or if such disclosu res 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 the content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
11) We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
12) We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
13) From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements:
14) 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 Act2013 we give in the Annexure 'B' a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.
15) 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 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director interms of Section 164(2) of the Act.
(f) With respect to the adequacy of internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A".
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended.
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
(h) 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 vide Note 26 in its standalone financial statements.
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
|For J Singh & Associates || |
|Chartered Accountants || |
|(Firm Reg. No: 110266W) || |
|Sd/- ||Place: Pune |
|(CA. S. P. Dixit) ||Dated: 7th June 2021. |
|(Partner) || |
|(Membership No.: 041179). || |
|UDIN: 21041179AAAADI4465 || |
Annexure "A" To the Independent Auditors' Report
The Annexure referred to in paragraph 15 (f) under 'Report on Other Legal andRegulatory Requirements' section of our report of even date
Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act").
We have audited the internal financial controls over financial reporting of MITCONConsultancy & Engineering Services Limited ("the Company") as of 31stMarch 2021 in conjunction with our audit of the standalone financial statements of theCompany 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 ("ICAI"). 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 the Company's policies the safeguardingof its 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.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.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 were established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thestandalone 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 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 standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of the management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the Company's assets that could have a material effect on the standalonefinancial 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 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 31st March 2021 based on thecriteria for internal financial controls over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India.
|For J Singh & Associates || |
|Chartered Accountants || |
|(Firm Reg. No: 110266W) || |
|Sd/- ||Place: Pune |
|(CA. S. P. Dixit) ||Dated: 7th June 2021. |
|(Partner) (Membership No.: 041179). || |
|UDIN: 21041179AAAADI4465 || |
Annexure "B" To the Independent Auditors' Report
The Annexure referred to in paragraph 14 under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date
1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of three years. Inour opinion this periodicity of physical verification is reasonable having regard to sizeof the Company and the nature of its assets. Pursuant to the program certain fixed assetswere physically verified by the Management during the year. According to the informationand explanations given to us no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and the records examinedby us including registered title deeds we report that the title deeds comprising allthe immovable properties of the Company are held in the name of the Company.
2. The inventory have been physically verified by the management during the year. Inour opinion the frequency of such verification is reasonable. No discrepancies were foundduring such verification.
3. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to Firms Limited Liability Partnerships or Otherparties except to the three of its wholly owned Subsidiary Companies and a step downSubsidiary Company covered in the register maintained under section 189 of the CompaniesAct 2013 in respect of which :
a) The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the Company's interest.
b) The schedule of repayment of principal and payment of interest has been stipulatedon demand and repayments or receipts of principal amounts and interest have been regularas per stipulations.
c) The total amount due from these Companies were INR 1590 lakh and INR 112.52 lakh onaccount of principal and interest respectively at the year end.
4. In our opinion and according to information and explanations given to us theCompany has complied with provisions of Section 185 and 186 of the Act in respect of grantof loans making investments and providing guarantees and securities as applicable.
5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public in accordance with the provisions ofSections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Accordingly paragraph 3(v) of the Order is not applicable to the Company.
6. According to the information and explanations given to us the Central Governmenthas specified maintenance of cost records under Sec.148 (1) of the Act applicable inrespect of wind power generation activity of the company and we are of the opinion thatprima facie such accounts and records have been so made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theywere accurate or complete.
7. According to the information and explanations given to us and the records of theCompany examined by us in respect of statutory dues:
a) The Company has been regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income-tax Sales-tax Service Tax CustomsDuty Excise Duty Value Added Tax Goods and Service Tax Cess and other materialstatutory dues applicable to it to the appropriate authorities.
There were no undisputed amounts payable in respect of Provident Fund Employees' StateInsurance Income-tax Sales-tax Service Tax Customs Duty Excise Duty Value Added TaxGoods and Service Tax Cess and other material statutory dues in arrears as at 31stMarch 2021 for a period of more than six months from the date they became payable.
b) There were no dues of income Tax sales Tax service Tax duty of Customs and dutyof Excise or value added tax or goods and service Tax which have not been deposited as at31st March 2021 on account of any disputes .
8. According to the records of the Company examined by us and as per the informationand explanations given to us the Company has not defaulted during the year in repaymentof loan or borrowing to financial institutions Banks Government or dues to debentureholders. The Company did not have any outstanding debentures during the year.
9. According to the information and explanations given to us the term loans wereapplied for the purposes they were raised during the year. The Company has not raisedmoney by way of initial public offer or further public offer (including debt instruments)during the year.
10. To the best of our knowledge and according to the information and explanationsgiven to us and based on audit procedures performed no fraud by the Company and no fraudon the Company by its officers or employees has been noticed or reported during the yearnor we have been reported of such case by the management.
11. According to the information and explanations given to us managerial remunerationhas been paid or provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with schedule V to the Companies Act.
12. According to the information and explanations given to us the Company is not aNidhi Company as prescribed under section 406 of the Act. Accordingly reporting underclause (xii) of the Order is not applicable to the Company.
13. To the best of our knowledge and according to the information and explanationsgiven to us all transactions with the related parties are in compliance with section 177and 188 of the Companies Act 2013 where applicable and the details have been disclosed inthe Standalone financial statements as required by the applicable Accounting Standards.
14. According to information and explanations given to us the Company has not made anypreferential allotment or private placement of shares or fully or partly paid debenturesduring the year and hence reporting under clause 3(xiv) is not applicable to the Company.
15. To the best of our knowledge and according to the information and explanationsgiven to us the Company has not entered into any non-cash transactions with directors orpersons connected with him and hence provisions of section 192 of the Companies Act 2013are not applicable to the Company during the year.
16. According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934accordingly the provisions of Clause 3(xvi) of the Order are not applicable to the Companyduring the year.
For J Singh & Associates
(Firm Reg. No. 110266W)
S. P. Dixit
Membership No.: 041179.
UDIN : 21041179AAAADI4465
Place : Pune
Dated : 7th June 2021.