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Moschip Semiconductor Technology Ltd.

BSE: 532407 Sector: IT
NSE: N.A. ISIN Code: INE935B01025
BSE 00:00 | 15 Feb 19.10 -0.35
(-1.80%)
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19.10

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NSE 05:30 | 01 Jan Moschip Semiconductor Technology Ltd
OPEN 19.10
PREVIOUS CLOSE 19.45
VOLUME 7140
52-Week high
52-Week low
P/E
Mkt Cap.(Rs cr) 281
Buy Price 18.70
Buy Qty 10.00
Sell Price 19.75
Sell Qty 150.00
OPEN 19.10
CLOSE 19.45
VOLUME 7140
52-Week high
52-Week low
P/E
Mkt Cap.(Rs cr) 281
Buy Price 18.70
Buy Qty 10.00
Sell Price 19.75
Sell Qty 150.00

Moschip Semiconductor Technology Ltd. (MOSCHIPSEMICON) - Auditors Report

Company auditors report

To

The Members of

MosChip Semiconductor Technology Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of MoschipSemiconductor Technology Limited(the Company)which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss Standalone statement of changes in Equityand the Cash Flow Statement for the year then ended and a summary of the significantaccounting policies and other explanatory information for the year then ended.

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 Act2013 (the Act) with respect to the preparation of thesestandalone financial statements that give a true and fairview of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards prescribedunder section133 of the Act as applicable.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 and the Order under section143 (11) of the Act.

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error.

In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our auditopini on on the standalone financial statements.

Other Matters

The previous year's comparative financial information of the Company for the year endedMarch 31 2017 and the transition date balance sheet as at April 01 2016 (‘theComparative financial information') prepared and restated in compliance of provisions asper Indian Accounting Standards (Ind As) read with the Companies (Indian AccountingStandards) Rules2015are included in these financial statements. The comparativefinancial information are based on the statutory financial statements prepared inaccordance with the Companies (Accounting Standards) Rules 2006 audited by thepredecessor auditor for the year ended March 31 2016 and 2017 and expressed an unmodifiedopinion on those statutory financial statements and these have been restated to complywith Ind AS for presenting them as comparative financial information Adjustments made tothe previously issued said financial information prepared in accordance with the Companies(Accounting Standards) Rules 2006 to comply with Ind AS have not been audited by us.

Our opinion on the financial statements is not modified in respect of this matter.

Opinion

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 2018 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 prescribed under section 133 of the Act as applicable.

e) On the basis of the written representations received from the directors as on 31stMarch 2018takenon record by the Board of Directors none of the directors is disqualifiedas on 31st March2018 from being appointed as a director in terms of Section 164 (2) ofthe Act.

f) 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 A.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule11 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) There are no pending litigations which would impact the financial position of thecompany;

(ii) The Company has no foreseeable losses on long-term contracts and has no derivativecontracts outstanding as at 31st March2018;

(iii) The company has no duesrequired to be transferred to the Investor Education andProtection Fund;

2. As required by the Companies (Auditor's Report) Order 2016 (the Order) issued bythe Central Government in terms of Section 143(11) of the Act we give in Annexure B astatement on the matters specified in paragraphs 3 and 4 of the Order.

For S.T. Mohite & Co.

Chartered Accountants

Firm Regn. No. 011410S

M.T. Sreenivasa Rao

Partner Membership No 015635 Hyderabad 28 May 2018

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF MOSCHIP SEMICONDUCTOR TECHNOLOGY LIMITED

(Referred to in paragraph (f) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013.

We have audited the internal financial controls over financial reporting of MoschipSemiconductor Technology Limited ("the Company") as of March 31 2018 inconjunction with our audit of the standalone financial statements of the Company for theyear 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. 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 of 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that We comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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.

Opinion

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 March 31 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia..

For S.T. Mohite & Co.

Chartered Accountants

Firm Regn. No. 011410S

M.T. Sreenivasa Rao

Partner Membership No 015635 Hyderabad 28 May 2018

Annexure B to the Independent Auditors' Report

(Referred to in Paragraph 1 of the section on "Report on other legal andregulatory requirements" of our Report of even date)

Sl No. Ref to Report by Independent Auditors
CARO
1 3(I) Fixed Assets
3(i)(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.
3(i)(b) As explained to us all the fixed assets have been physically verified by the management in a phased periodical manner which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.
3(i)(c) The company is not holding any immovable properties and hence para 3(i)(c) of the Order is not applicable.
2 3(ii) Inventories
As explained to us the inventories has been physically verified during the year by the management at regular intervals .In our opinion the frequency of such verification is reasonable.
3 3(iii) Loans to parties covered by Sec.189 of the Companies Act2013 ("The Act)
3(iii)(a) According to the information and explanation given to us the company has during the year not granted any loans secured or unsecured to companies firms limited liability partnership firms or other parties covered in the register required to be maintained U/s 189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable to the company.
3(iii)(b)
3(iii)(c)
4 3(iv) Loans guarantees securities to and investments in other companies
In our opinion and according to the information and explanation given to us the company has no transactions for compliance u/s 185 and complied with the provisions of Sec. 186 of the Act with respective investments and guarantees.
5 3(v) Acceptance of deposits
In our opinion and according to the information and explanation given to us The company has not accepted any deposits covered by provisions of Sec.73 to 76 of the Act and hence paragraph 3(v) of the Order is not applicable to the company.
6 3(vi) Maintenance of cost records
In our opinion and according to the information and explanation given to us the Central Government has not specified maintenance of cost records u/s 148(1) of the Act.
7 3(vii) Statutory Dues
3(vii)(a) According to the records examined by us the company is regular in depositing with appropriate authorities undisputed statutory dues including Provident fund Employee state insurance Sales tax Service tax Customs duty Excise duty Value added tax cess and other statutory dues where ever applicable. According to the information and explanation given
3(vii)(b) According to the information and explanation given to us there are no material dues of statutory dues of Income tax sales tax Service tax Customs duty Excise duty Value added tax cess and other dues have not been deposited..
8 3(viii) Defaults in repayments to Financial Institutions/Banks/Debenture holders
The company has borrowed Term loans and working capital loans from banks and has not issued any debentures. According to the information and explanation given to us and based on our verification the company has not defaulted in the payment/repayments of loans or borrowings to the banks.
9 3(ix) Initial public offer/further offer
In our opinion and according to the information and explanation given to us the company has not made any initial public offer or further public offer of securities (including debt instruments) and the term loans have been applied by the company during the year for the purposes for which they are raised.
10 3(x) Frauds by or on the company
Based upon the audit procedures performed and to the best of our knowledge and according to the information and explanation given to us by the management we report that no fraud by the company and no material fraud on the company by its officers or employees has been noticed are reported during the course of our audit.
11 3(xi) Managerial Remuneration
The company has paid/provided managerial remuneration to its whole time director during the year and in our opinion and according to the information and explanation given to us such managerial remuneration is according with the provisions of section 197 of the Act read with schedule V to the Act.
12 3(xii) Nidhi company
In our opinion and according to the information and explanation given to us the company is not a Nidhi company and hence paragraph 3(xii) of the order is not applicable to the company.
13 3(xiii) Transactions with Related parties
As explained to us and as per records of the company in our opinion the transactions with related parties are in compliance with provisions of section 177 and section 188 of the Act and the details have been disclosed in the financial statements as required by the applicable accounting standards.
14 3(xiv) Preferential allotment u/s 62 or private placement u/s 42 of the Act
According to the records of the company it has made preferential allotment of 12936000 Warrants fully convertible into equal number of equity shares and effected partial conversion of 6264300 Warrants into equal number equity shares was effected during the year.
The company has not issued shares on private placement or fully or partly convertible debentures during the year under report. Accordingly paragraph 3(xiv) of the Order is not applicable to the company for making private placement of shares or issuing debentures.
15 3(xv) Non-cash transactions with director's u/s 192 of the Act
According to the records of the company the company has not entered during the year in to any non cash transactions with directors or directors of its subsidiaries or associate companies or persons connected with him and hence provisions of Sec 192 of the Act and paragraph 3(xv) of the Order is not applicable to the company.
16 3(xvi) Registration u/s 45-1A of RBI Act1934
The company is not required to be registered under section 45-1A of the Reserve bank of India Act 1934 and hence paragraph 3(xvi) of the order is not applicable to the company.

For S.T. Mohite & Co.

Chartered Accountants

Firm Regn. No. 011410S

M.T. Sreenivasa Rao

Partner

Membership No 015635

Hyderabad

28 May 2018