TO THE MEMBERS OF MPIL CORPORATION LIMITED.
Report on the Ind As Financial statements
We have audited the accompanying standalone financial MpIL CorporAtIon LIMItedstatementsof which comprises of Balance Sheet as at 31st March 2018 and the Statement of Profit andLoss and the on that date and a summary of significant accounting policies and otherexplanatory information.
Management's responsibility for the Financial statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of these IndAS financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act.
This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Ind As financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe 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 anddisclosures in the financial
The procedures selected depend on the auditor's judgment including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Ind AS financial statements that give trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirectors as well as evaluating the overall presentation of thefinancial . statements Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the Ind As financial give the information required by the Act in the mannerso required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of state of affairs of the Company as at March 31 2018 andits profit including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.
Report on other Legal and regulatory requirements
1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of Section (11) of section 143 of the Act(hereinafterreferred to as the "Order")and on basis of such checks of the books and recordsof the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure A a statement on the matters specifiedin the paragraph
2. As required by section 143(3) of the Act we report that: a) We have sought all theinformation and explanations which to the best of our knowledge and belief were necessaryfor the purpose of our audit; b) In our opinion proper books of account as required bylaw have been kept by the Company so far as appears from our examination of those books.c) The Balance Sheet Statement of Profit and Loss Account and Cash Flow statement dealtwith by this report are in agreement with the books of account; d) In our opinion theaforesaid Ind AS financial statements comply with the Indian Accounting Standardsspecified under Section 133 of the Act; e) On the basis of written representationsreceived from the directors as on 31st March 2018 and taken on record by the Board ofDirectors we Report that none of the directors is disqualified as on 31st March2018 from being appointed as a director in terms section 164(2) of the Act. f) Withrespect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls we refer to our separate Reportin "Annexure B".
g) With respect to the other matters to be included in the Auditor's Report inaccordance with the Rule 11 of the Companies (Audit and Auditors) Rule 2014 in ouropinion and 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 financialstatements refer note 18 to the 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 required to be transferred to the Investor Educationand Protection Fund by the Company.
iv. The disclosure requirements relating to holding as well as dealing in specifiedbank notes were applicable for the period from 8th November 2016 to 30 December 2016which are not relevant to these standalone financial statements. Hence reporting underthis clause is not applicable.
ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT OF THE EVEN DATE ON THE IND ASFINANCIALS STATEMENTS OF MPIL CORPORATION LIMITED
i a The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.
i. b The Fixed Assets have been physically verified by the management during the year.In our opinion the frequency of the size of the Company and nature of its business. Nomaterial discrepancies verification . werenoticedonsuchverification
i. c The title deeds of immoveable properties taken on lease are held in the name ofthe company. ii. The Company does not have inventory therefore Para3 (ii) of the Orderare not applicable to the Company.
iii a During the year the Company has not granted any loans secured or unsecured tocompanies firms Partnership or other parties covered in the register maintained underSection 189 of the Act therefore Para 3(iii) of the order is not applicable to theCompany. iv. According to the information and explanation to given to us the company hascomplied with the provisions of section 185 & 186 of the Companies Act 2013 inrespect of loans given and investments made by it. v. No deposits within the meaning ofdirectives issued by RBI ( Reserve Bank of India) and Sections 73 to 76 or any otherrelevant provisions of the Act and rules framed thereunder have been accepted by theCompany. Therefore Para 3 (v) of the Order is not applicable to the Company. vi. TheCentral Government has not prescribed maintenance of Cost Records under Section 148 of theAct.
vii a According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues in respect of Incometax Provident Fund Employee's State Insurance Sales-tax Wealth tax Custom DutyExcise Duty value added tax cess and any other statutory dues with appropriateauthorities. No undisputed amounts payable in respect of the aforesaid statutory dues wereoutstanding as at the last date of the financial year for a period of more than six monthsform the date they became payable.
vii b According to the information and explanations given to us there are no dues ofIncome tax service tax sales-tax duty of Customs Excise Duty value added tax whichhave not been deposited on account of any dispute.
viii The Company has not taken any loan or borrowing from financial institution bankgovernment or debenture holders. Therefore Para 3 (viii) of the Order is not applicable tothe Company. ix The company has not raised funds by way of public issue/ follow-on offer(including debt instruments) during the year and has not taken any term loans. ThereforePara 3(ix) of the Order is not applicable to the Company.
x According to the information and explanation given to us no material fraud on or bythe Company has been noticed or reported during the year.
xi The Company has not paid or provided any managerial remuneration. Therefore the Para3(xi) of the Order is not applicable to the Company. xii The Company is not a NidhiCompany. Therefore the Para 3(xii) of the Order is not applicable to the Company.
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 section 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the Ind AS financial statements arerequired by the applicable accounting standards. xiv During the year the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures.
xv According to the information and explanations given to us and the representationobtained from the management the Company has not entered into any non-cash transactionswith Directors or persons connected with him. xvi The company is not required to beregistered under section 45-IA of Reserve Bank of India Act 1934.
Annexure B to the Independent AudItors' report
Referred to Para 2(f) of the Independent Auditors; Report of even date to the membersof the Company on the Standalone Financial Statements for the year ended 31st March 2018.
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 MPILCORPORATION LIMITED ("the Company") as of March 31 2018 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.
Management's responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on 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(ICAI). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating 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.
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 deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both issued by the ICAI. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial over financial reporting and their operating effectiveness. Ouraudit of internal financial obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto 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 financialreporting is a process designed toprovide 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 unauthorized 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.
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 March 31 2018 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 ICAI.
For M d pAndYA & AssoCIAtes
A. d. pAndYA
Dated: 21st May2018