TO THE MEMBERS OF MOLD-TEK TECHNOLOGIES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of MOLD-TEKTECHNOLOGIES LIMITED (the Company) which comprise the Balance Sheet as at31st March 2017 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.
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 preparation ofthese Standalone Financial Statements that give a true and fair view of the financialposition 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 read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance 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 design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
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 there under.
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.
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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 and its profit for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2017 (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 statement on the matters specified in the paragraph 3and 4 of the Order to the extent applicable.
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 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 the 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 31st March 2017 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 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 has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note No. 34 to the financial statements.
ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts- Refer Note No. 31 to the Financial Statements.
iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection fund by the Company.
iv) The Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note No. 19 to the standalone financialstatements.
| ||For Praturi & Sriram |
| ||Chartered Accountants |
| ||Firm Reg. No. 002739S |
|Place: Hyderabad ||Sri Raghuram Praturi |
|Date: 30th May 2017 ||Partner |
| ||Membership No. 221770 |
Annexure A to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2017 we reportthat:
(i) a) The Company maintains a soft copy record of its depreciable assets reflecting ayear wise on of assets of such category. The classificati record does not includequantitative details and the situation/ location of its depreciable assets are notrecorded.
b) We are informed that no physical verification of fixed assets has been carried outby the management during the year ended 31st March 2017.
c) The title deeds of Immovable properties are held in the name of the company.
(ii) The company has no inventories or stocks inviting comment on inventories. Work-inprocess being a portion of unbilled service works at the Balance Sheet date is ascertified by management and is suitably accounted.
(iii) The Company has not granted/ taken any loans secured or unsecured to/ from thecompanies firms of other parties covered in the register maintained under Section 189 ofthe Companies Act 2013 except in respect of current account transactions with itsassociate/ group company Mold-tek Packaging Limited.
a) The terms and conditions of the grant of such loans are not pre judicial to theCompany's interest.
b) In respect of the debit balances and advances in the nature of loans includingamounts due on current accounts no stipulations have been made as to repayments andmanagement expressesconfidence in recovering and/or adjustment of the amounts due.
c) There are no amounts overdue for more than 90 days.
(iv) In respect of loans investments guarantees and securities issued by the companyare in compliance with the provisions of section 185 and 186 of the Companies act.
v) In our opinion and explanations given to us the company has not invited or acceptedany deposits from the public attracting the provisions of Sections 73 to 76 of theCompanies Act 2013 and the rules framed there under. No order has been passed by theCompany Law Board regarding compliance of above said provisions.
vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Companies Act 2013 for any of the services rendered by the Company.
vii) a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees' state insurance and duty of excise.
b) According to the information and explanations given to us there are no materialdues of wealth tax duty of customs and cess which have not been deposited with theappropriate authorities on account of any dispute. However according to information andexplanations given to us the following dues of income tax sales tax service tax andvalue added tax have not been deposited by the Company on account of disputes (Issuesunder regular assessment are not reported).
|Name of the statute ||Nature of dues ||Amount (in Rs) ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax || || || || |
|Section 201(1) ||TDS on payment made to purchase of software permanent use licenses ||716713 ||AY 2007-08 ||ITAT |
|Section 201(1) ||TDS on payment made to purchase of software permanent use licenses ||1708981 ||AY 2008-09 ||ITAT |
|Section 201(1) ||TDS on payment made to purchase of software permanent use licenses ||827076 ||AY 2009-10 ||ITAT |
|Section 201(1) ||TDS on payment made to purchase of software permanent use licenses ||430661 ||AY 2010-11 ||ITAT |
(viii) In our opinion and according to the information and explanations given to usthere are no defaults in repayment of loans or borrowings to a Financial Institution/Banks/ Government/ Debenture holders on the date of Balance Sheet.
(ix) In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of Initial Public offer or further public offer(Including debt instruments) and the term loans availed have generally been applied forthe purpose for which they were raised.
(x) According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us the Company paid themanagerial Remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Companies Act.
(xii) In our opinion the Company is not a Nidhi Company; accordingly Paragraph 3 (xii)of Companies (Auditors Report) Order 2017 is not applicable to the Company.
(xiii) According to the information and explanations given to us all the transactionswith the related parties are in compliance with section 177 and section 188 of companiesact and have been disclosed in the Financial Statements as required by the applicableaccounting standards
(xiv) According to the information and explanations given 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 duringthis year.
(xv) According to the information and explanations given to us the Company has notentered into any non-cash transaction with directors or persons connected with him.
(xvi) 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 1934.
| ||For Praturi & Sriram |
| ||Chartered Accountants |
| ||Firm Reg. No. 002739S |
| ||Sri Raghuram Praturi |
|Place: Hyderabad ||Partner |
|Date: 30th May 2017 ||Membership No. 221770 |
Annexure - B
Annexure to the Independent Auditor's report of even date on the Standalone FinancialStatements of Mold-Tek Technologies 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 Mold-TekTechnologies Limited (the Company) as of 31st March 2017 in conjunction withour audit of the financial statements of the Company for the year ended as 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 Reporting (theGuidance Note) issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
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 Standards on Auditing to the extent applicable to an audit of internal financialcontrols and the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the Guidance Note) both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 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 system overfinancial 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 authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For Praturi & Sriram
Firm Reg. No. 002739S
Sri Raghuram Praturi
Membership No. 221770
Date: 30th May 2017