To the Members of Mitshi India Limited
Report on the Audit of the Financial Statements
We have audited the financial statements of Mitshi India Limited ("theCompany) which comprise the Balance Sheet as at 31st March 2021 and the Statementof Profit and Loss Statement of Changes in Equity and Statement of Cash Flows for theyear then ended and Notes to the financial statements including a summary of significantaccounting policies and 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 March312021 and of profit changes in equity and its cash flows for the year ended on thatdate
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 Auditors 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 Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
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. There were nomaterial Key Audit Matters in the context of our audit of the financial statements as awhole and in forming our opinion thereon and hence we do not provide a separate opinionon these matters.
Management's Responsibility for the Financial Statements
The Company s Board of Directors is responsible for the matters slated 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 financialstatements as a whole are tree 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 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 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 todesign audit procedures that are appropriate in the circumstances Under section
143(3)(i) of the Companies Ad 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management
Conclude on the appropriateness of management's use of the 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditorsreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
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 identity 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor s report unless law or regulation precludes public disclosure about the matter orwhen 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
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.
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 we re 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 cur 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
(e) On the basis of the 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 in terms of Section164 (2) of the Act.
(0 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.
(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 does net have any pending litigations which would impact its financialposition
ii. The Company did not have any long-term contracts including derivative contracts forwhich 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 A.A.Siddiqui & Co Chartered Accountants Firm Regn. No.14308lW |
| ||A.A.Siddiqui Proprietor M. No 173290 UDIN : 21173290AAAAFN7892 |
|Place: Mumbai Dated: 30th June 2021 || |
ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in our Report of even date on the Ind AS financial statements for the yearended March 31 2021 of MITSHI INDIA LIMITED (FORMERLY DERA PAINTS & CHEMICALSLIMITED). Reported on the basis of verification of records of the Company and as per theinformation and explanations given by the Company.)
(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of
(b) These fixed assets have been physically verified by the management at reasonableintervals during the year and we are informed that no material discrepancies were noticedon such verification
(c) The Company does not own any immovable property.
(ii) Physical verification of inventory has been conducted at reasonable intervals bythe management and no discrepancies were noticed during the physical verifications.
(iii) The Company has not granted any loan to companies firms Limited Liabilitypartnerships or ether parties covered in the register maintained under section 189 of theCompanies Act 2013.
(iv) The Company has not given any loan or guarantee/security to its directors or toany other persons in whom the directors are interested or to any person or other bodycorporate but has made investment in the subsidiary company as per the provisions ofsection 185 and 186 of the Companies Act 2013
(v) The Company has not accepted any deposits from the public as defined under theprovisions of sections 73 to 76 or any other relevant provisions of the Companies Act2013 and the Rules framed there under
(vi) The maintenance of Cost Records has not been specified by the Central Governmentunder sub-section (1) of Section 148 of the Companies Act 2013 in respect of theactivities earned on by the Company
(vii) (a) The Company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees'
State insurance income-tax Sales-tax Wealth Tax Service Tax Custom Duty ExciseDuty cess Value added tax GST and any other statutory dues as applicable with theappropriate authorities which is outstanding for more than six months as on last day ofthe financial year.
(b) There are no dues of Income tax/Sales tax/Wealth tax/ Service tax/ Custom duty/Excise duty/cess GST and Value added tax which have not been deposited on account of anydispute.
(viii) The Company has not taken any loan from banks or financial institutions or fromthe government and has not issued any debentures
(ixj The Company has not raised moneys by way of initial public offer or further publicoffer including debt Instruments and Term Loans during the year under audit
(x) No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the year
(xi) Managerial remuneration has bear paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct2013
(xii) The Company is not a Nidhi Company and therefore reporting under this clause Isnot applicable to the Company.
(xiii) All transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 and the details have been disclosed in the Financial Statementsas required by the applicable accounting standards
) The Company has not made any preferential allotment of Equity shares during the yearunder audit.
(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with them and hence question of reporting under this clause dose notarise
(xvi) The Company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934 and hence question of reporting under this clause dose not arise.
| ||For A.A.Siddiqui & Co. Chartered Accountants Firm Regn. No.143081W |
|Place ; Mumbai Dated. 30th June 2021 ||A.A.Siddiqui Proprietor M.No. 173290 UDIN : 21173290AAAAFN7892 |
ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT
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 MITSHIINDIA LIMITED (FORMERLY DERA PAINTS & CHEMICALS LIMITED) (the Company") asof March 312021 in conjunction with our audit of the Ind AS financial statements of theCompany for the year ended on that date Management's Responsibility for Internal FinancialControls
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 Interna! 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 cf 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 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 cfIndia. 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 interna! financial controls system over financial reporting and their operatingeffectiveness Our audit of infernal financial controls over financial reporting includedobtaining an understanding of interna! 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 s 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 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 authorisations of management and directors of the company: and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements inherent Limitations of internalFinancial 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 (he 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 generally operating effectively as at March 31 2021 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
| ||For A.A.Siddiqui & Co. |
| ||Chartered Accountants |
| ||Firm Regn No143081W |
| ||A.A.Siddiqui |
|Place : Mumbai ||Proprietor |
|. Dated ; 30th June 2021 ||UDIN : 21173290AAAAFN7892 |