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Mohit Industries Ltd.

BSE: 531453 Sector: Industrials
NSE: MOHITIND ISIN Code: INE954E01012
BSE 00:00 | 21 Feb 9.00 -0.28
(-3.02%)
OPEN

9.13

HIGH

9.13

LOW

9.00

NSE 00:00 | 21 Feb 8.30 0
(0.00%)
OPEN

8.20

HIGH

8.60

LOW

8.10

OPEN 9.13
PREVIOUS CLOSE 9.28
VOLUME 51
52-Week high 39.20
52-Week low 6.64
P/E 12.86
Mkt Cap.(Rs cr) 13
Buy Price 8.80
Buy Qty 1.00
Sell Price 9.00
Sell Qty 3000.00
OPEN 9.13
CLOSE 9.28
VOLUME 51
52-Week high 39.20
52-Week low 6.64
P/E 12.86
Mkt Cap.(Rs cr) 13
Buy Price 8.80
Buy Qty 1.00
Sell Price 9.00
Sell Qty 3000.00

Mohit Industries Ltd. (MOHITIND) - Auditors Report

Company auditors report

To The Members of

MOHIT INDUSTRIES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Mohit IndustriesLimited (‘the Company') which comprise the balance sheet as at 31st March 2018 theStatement of Profit and Loss including other comprehensive income the Cash FlowStatement the Statement of Changes in Equity for the year ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance including other comprehensive incomecash flows and statement of changes in equity of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

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 standalone financial statements.

Basis of Qualified Opinion

The company has not provided for Post Employment Benefits and other long term employeebenefits under Defined Benefit Plans on accrual basis but provides the same as and whenthey become due for payment. This method of accounting of Post Employment Benefits andother long term employee benefits under Defined Benefit Plans is in deviation with Ind AS– 19 on Employee Benefits. As there is no actuarial report or basis of calculationavailable with the management of such Post Employment Benefits and other long termemployee benefits the quantum of deviation cannot be ascertained. If the company hadfollowed the method accounting as per Ind AS – 19 then employee benefit expensewould have increased and correspondingly Profit for the period would have reduced.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of matter described in the ‘Basis of QualifiedOpinion' Paragraph above the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2018 and its profit and its cash flows for theyear ended on that date.

Emphasis of Matter

1) We draw attention to Note No. 32(i) on "Contingent Liabilities"forming part of financial statements which describes various tax demands liabilitiesagainst the Company under litigation.

Our opinion is not modified 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 the Annexure "A" a statement on the matters specified inthe paragraph 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:- a) We have sought &obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccounts as required by law have been kept by the company so far as appears from ourexamination of such books. c) The Balance Sheet the Statement of Profit and Lossincluding Other Comprehensive Income the Cash Flow Statement and Statement of Changes inEquity dealt with by this report are in agreement with the books of account; d) Inour opinion the aforesaid Ind AS financial statements comply with the Indian AccountingStandards prescribed under Section 133 of the Act except for Ind AS – 19 onEmployee Benefits in respect of provision for Long Term Employee Benefit & DefinedBenefit plans. e) In our opinion the tax demands litigation matters described insub-paragraph (1) under the ‘Emphasis of Matters' paragraph above if decided againstthe company may have an adverse effect on the functioning of the Company. f) On thebasis of the written representations received from the directors as on 31st March 2018and taken on record by the Board of Directors none of the directors is disqualified as on31st March 2018 from being appointed as a director in terms of section 164(2) of the Act.g) 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". h) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its financial statements – Refer Note 32(i)to the financial statements; ii. The Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses; iii.There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For Rajendra Sharma & Associates Chartered Accountants

Firm Registration No.:- 108390W

(Rajendra Ratanlal Sharma)

Partner

M. No. : 044393

Surat 21st May 2018

Annexure "A" to the Independent Auditors' Report of Mohit Industries Limitedfor Year Ended 31st March 2018

(Referred to in Paragraph ‘1' under "Report on Other Legal and RegulatoryRequirements' of our report of even date)

i. (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 fixed assets are verified at reasonable intervals. In accordance with thisprogramme certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii. As informed to us physical verification of inventory has been conducted by themanagement at reasonable intervals during the year. As explained to us no materialdiscrepancies were noticed on such physical verification.

iii. The Company has granted unsecured loans to one company covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act').

(a) In our opinion the rate of interest and other terms and conditions on which theloans had been granted to the company listed in the register maintained under Section 189of the Act were not prima facie prejudicial to the interest of the Company

(b) As informed to us the principal and interest of above loans were repayable as andwhen demanded and accordingly repayments or receipts were regular as and when demanded bythe company.

(c) There are no overdue amounts in respect of the loans granted to the company listedin the register maintained under section 189 of the Act.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

v. According to information & explanation given to us the company has not acceptedany deposit from the public.

vi. As explained to us the company is maintaining cost accounts and records prescribedby the Central Government under section 148 (1) of the Companies Act 2013. However thesecost accounts/records were not examined by us.

vii. (a) The company has generally been regular in depositing the undisputed statutorydues including provident fund employees' state insurance income tax sales tax servicetax duty of customs duty of excise value added tax cess and other material statutorydues applicable to it with the appropriate authorities.

According to the information and explanation given to us no undisputed amounts inrespect of income tax sales tax service tax duty of customs duty of excise valueadded tax cess were in arrears as at 31st March 2018 for a period of more than sixmonths from the date they became payable.

(b) According to the information and explanations given to us there are no materialdues of duty of customs which have not been deposited with the appropriate authorities onaccount of any dispute. Details of Income Tax Sales Tax Service Tax Excise Duty ValueAdded Tax (VAT) Entry Tax and Cess which have not been deposited as on 31 March 2018 onaccount of disputes are given below:

Name of The Statute Nature of Dues Amount Period to which the amount relates Forum where dispute is pending
` ( . In Lakhs)
Sales Tax Law of Gujarat Sales Tax 4.86 FY 2001-02 Gujarat Value Added Tax Tribunal
Gujarat Entry Tax Laws Gujarat Entry Tax 433.18 FY 2006-07 First Appellate Authority
Gujarat Entry Tax Laws Gujarat Entry Tax 1097.25 FY 2007-08 First Appellate Authority
Gujarat Entry Tax Laws Gujarat Entry Tax 513.82 FY 2009-10 First Appellate Authority

 

Name of The Statute Nature of Dues Amount Period to which the amount relates Forum where dispute is pending
( ` . In Lakhs)
Gujarat VAT Act Gujarat VAT 301.49 FY 2010-11 First Appellate Authority
Gujarat Entry Tax Laws Gujarat Entry Tax 323.53 FY 2010-11 First Appellate Authority
Gujarat VAT Act Gujarat VAT 28.96 FY 2012-13 First Appellate Authority
Gujarat Entry Tax Laws Gujarat Entry Tax 339.64 FY 2012-13 First Appellate Authority
Central Excise Act Excise Duty & Penalty Excise duty rebate 174.74 FY 2012-13 CESTAT Ahmedabad
Central Excise Act rejection 8.90 2013-14 Commissioner (Appeals) Surat
Finance Act 1994 Service Tax & Penalty 7.90 Sept. 2005 to March 2010 CESTAT Ahmedabad

viii. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of loans or borrowings to the banks financialinstitutions or government. As explained to us no debenture has been issued by thecompany.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments). According to information and explanations givento us we are of the opinion that the term loans have been applied for the purposes forwhich they were raised.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non–cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

xvi. The Company is not required to be registered under section 45–IA of theReserve Bank of India Act 1934.

For Rajendra Sharma & Associates Chartered Accountants

Firm Registration No.:- 108390W

(Rajendra Ratanlal Sharma)

Partner

M. No. : 044393

Surat 21st May 2018