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Auditor Report of Mirch Technologies Ltd. Company
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Auditor Report of Mirch Technologies Ltd.

Mar 31, 2014

1. We have audited the accompanying financial statements of M/s Mirch Technologies Limited (the ''Company"), which comprise the Balance Sheet as at 31st March , 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

2. The Company’s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 ofthe Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

3-Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements.

The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation ofthe financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6.ln our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a)in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014;

(b) in the case of the Statement of Profit and Loss, of the loss of the Company for the year ended on that date, and

(c) in the case ofthe Cash Flow Statement, ofthe cash flows ofthe Company for the year ended on that date.

Report on Other Legal and Regulatory Requirements

7-As required by the Companies (Auditor''s Report) Order, 2003, as amended by the companies (auditor’s report)(Amendments) order 2004 ("the Order") issued by the Central Government of India in terms .of sub-section (4A) of section 227 of the Act (hereafter refer to as the order) and on the basis of such checks of the books and the records ofthe company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a « statement on the matters specified In paragraphs 4 and 5 of the Order.

8. As required by Section 227(3) of the Act, we report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

(b) ln our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) ln our opinion, the Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act.

(e) On the basis ofthe written representations received from the directors as on 31st March, 2014 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2014 from being appointed as a director in terms of clause (g) of subsection (1) of section 274 of the Act

Annexure To The Independent Auditor''s Report

Referred to in paragraph 7 of the Independent Auditor''s Report of even date to the members of Mirch Technologies Limited on the Financial Statements as of and for the year ended 31st March 2014.

(i) (a) The company has maintained proper records showing full particulars, Including quantitative details and situation of its fixed assets. Independent Auditor''s Report

(b)The fixed assets have been physically verified by the management at regular interval considering the size of the Company and nature of assets. No material discrepancies were noticed on such verification.

(it)a) As informed to us, company does not have any stock during the year.

b) In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) In our opinion and according to the information and explanation given to us, the Company has maintained proper records of its inventories and the discrepancies noticed on such physical verification between physical stock and the book of records were not material and have been adequately dealt with In the books of accounts.

(iii) According to the information and explanation given to us; a) During the year, Company has taken unsecured loans and advance from companies, firms or the other parties listed in the register maintained under section 301 of the Companies Act, 1956 comprising (i) from companies aggregating to Rs.71,95,596.75/-, the maximum amount Rs. 73,18,096.75/-, and the year end balance was Rs 71,95,596.75/- and (ii) from director and his relatives aggregating to Rs. 2,14,96,319.49/- ,the maximum amount Rs.2,37,40,919.49/- and year end balance was Rs.. 2,14,96,319.49/-. The company has not granted any loan during the year to any party covered in the register maintained under section 301 of the Companies Act,1956,

b) No interest is charged/ paid on such loans and other terms and conditions of the aforesaid unsecured loans/advances taken by the company are not prima fade, prejudicial to the Interest of tire Company.

c) The Terms of repayment have not been stipulated

d) There is no overdue amount of loans/advances taken.

(iv) The Company has adequate internal control system commensurate with the size of the Company and the nature of its business with regards to purchase of inventory and other assets and sale of goods. We have not come across any major weakness in internal control by management.

(v) (a)Jn our opinion and according to the information and explanation given to us, transactions that need to be entered into the register maintained under section 301 have been so entered.

(b) In our opinion and according to the information and explanations given to us there is no transactions made in pursuance of contracts or arrangements entered in register maintained U/s.301 of companies Act, 1956 and exceeding Rs. Five Lacs in respect of any parly during the year.

(vi) As the company has not accepted deposits from the public to which provisions of Sections 58A and 58AA or any other provision of the companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

(vii) Although it is required to have internal audit system, No internal audit was carried out during the year. However, effective internal controls are being exercised by the management, which are generally commensurate with the size and nature of its business.

(viii) There is no record prescribed by The Central Government for the maintenance of cost records prescribed under Section 209(1 )(d) of the Act.

(ix) a) According to the records of the Company, the company is not regular in depositing, undisputed statutory dues except the income tax and professional tax with the appropriate authorities. According to the information and explanation given to us, there are undisputated dues payable in respect of Mumbai sates tax Rs.46,891/-, Central Sales Tax Rs.7,30,249/-,VAT payable Rs.43,358.71/- Income Tax payable relating to A.Y.1998-99 of Rs.6,56,680/- which have remained outstanding as at 31st March,2014, for a period of more than sbc month from the day they become payable.

(b)According to the information and explanation given to undisputed sales Tax demands aggregating to Rs.3.19 Lakhs has not been deposited, since matters are pending with appellate authorities.

(x) The accumulated losses of the company as at 31st March,2014 are more than 50% of its net worth. The company has incurred cash losses excluding exceptional items during the financial year covered by our audit.

(xi) Based on our audit procedures and on the Information and explanations given by the management, the company has not defaulted in payment of dues to financial institution, bank or debenture holders.

(xii) According to the information and explanation given to us, the Company has not granted any loan and advanced on the basis of security by way of pledge of shares, debenture and other securities. -

(xiii) ln our opinion, the company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provision of clause 4{xiii) of the Order are not applicable to the company.

(xiv) As the Company is not trading in shares and securities the provision of clause 4(xiv) of the companies (auditors reports) Order, 2003 are not applicable to the company.

(xv) According to the information and explanation given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) The company has not taken any term loans during the year.

(xvii) According to the information and explanation given to us and on an overall examination of the cash flow statement and balance sheet of the Company, in our opinion the funds raised on short-term basis have, prima fade, not been used for long-term investment.

(xvii) According to the information and explanation given to us, the company has not given any guarantee for loans taken by others from the banks and financial institutions

(xix) During the year, the company has not issued and allotted any shares.

(xx) Since the company does not have any debentures, the question of creation of securities for debentures does not arise.

(xxi) Since the company does not raised money by public Issue, this clause is not applicable.

(xxii) To the best of our knowledge and belief and accounting to the information and explanation given to us, during the year, no fraud on or by the Company has been noticed as reported during the courses of our audit

For and on behalf of U.S.Tanwar & Co. Chartered accountants F.R. No:110B10W

Place: Mumbai (U.S.Tanwar) Date: 20th May, 2014 Proprietor ICAI M.No:030440


Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s. Mirch Technologies Limited as at 31Sl March 2012, together with the Profit and Loss Account of the Company for the year ended on that date, annexed thereto. These Financial statements are the responsibility of the company's Management, Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement resentation. We believe that our audit provides a reasonable basis for our opinion.

3. The company's accumulate losses ass on 3fl March, 2012 have eroded the entire share capital, the accounts are continued to be prepared on the assumption of a going concept basis.

4. As required by the Companies (Auditors Report) order,2003 as amended by the Companies (Auditors Report ) (Amendment) order 2004 (together The Order'), issues by the Central Government of India In terms of sub-section (4A) of section 227 of the Companies Act,1956 of India (the 'Act') and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information ancl explanations given to us, we annex hereto a statement on the matters specified In paragraphs 4 and 5 of the said Order.

5. Further to our comments, we report that:

(a) We have obtained all the information and explanations which to the. best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination, of the books;

(c) The Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of account;

(d) In our opinion, the profit and loss account and the balance sheet complies with the Accounting Standards referred to in sub-section 3(c) of Section 211 of the Companies Act 1956.

(e) On the basis of written representation received by directors, as on 31st March,2012 and taken on record by the Board of directors, we report that none of the directors is disqualified as on 3Vl march.2012 from being appointed as director in the term under clause (g) of sub-section clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(f) Subject to above in our opinion and to the best of our information and according to the explanations given to us, the accounts give the information required by the Companies Act, 1.956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India ,

(i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31i[ March, 2012,

(ii) In the case of the Protit and Loss Account, of the Loss for the vear ended on that date; and

(iii) In the case of cash flow statement, of the cash flow for the year ended on that dale.

ANNEXURE TO THE AUDITORS' REPORT

Referred to in paragraph 3 of our report of even date on the Financial Statements for the year ended 31st March 2012 of Mirch Technologies Limited

(i) (a) The company has maintained proper records showing full particulars,

Including quantitative details and situation of its fixed assets,

(b) The fixed assets have been physically verified by the management at reqular interval considering the size of the Company and nature of assets, No material discrepancies were noticed on such verification.

(c) No substantial part of the fixed assets has been disposed off during the year.

(ii) a) As explained to us, the inventories were physically verified by the management at reasonable intervals.Company does not have any stock during the year.

b) In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c} In our opinion and according to the information and explanation given to us, the Company has maintained proper records of its inventories and the discrepancies noticed on such physical verification between physical stock and the book of records were not material and have been adequately dealt with in the books of accounts.

(iii) According to the information and explanation given to us;

a) During the year, Company has taken unsecured loans and advance from companies, firms or the other parties listed in the register maintained under section 301 of the Companies Act, 1956 comprising (i) from company aggregating to Rs./-85,000/-, the maximum amount Rs.75,04,571/- and the year end balance was Rs.75,02,571/- and (ii) from director and his relatives aggregating to Rs.21,54,603/- ,the maximum amount Rs.1,27,90,849/- and year end balance was Rsl,22,09,786/-. The company has not granted any loan during the year to any party convered in the register maintained under section 301 of the Companies Act,1956.

b) No interest is charged/ paid on such loans and other terms and conditions of the aforesaid unsecured loans/advances taken by the company are not prima facie, prejudicial to the interest of the Company.

c) The Terms of repayment have not been stipulated

d) There is no overdue amount of loans/advances taken.

(iv) The Company has adequate internal control system commensurate with the size of the Company and the nature of its business with regards to purchase of inventory and other assets and sale of goods. We have not come across any major weakness in internal control by management.

(v) (a) In our opinion and according to the information and explanation given to us, transactions that need to be entered into the register maintained under section 301 have been so entered.

(b) In our opinion and according to the information and explanations given to us there is no transactions made in pursuance of contracts or arrangements entered in register maintained U/s.301 of companies Act, 1956 and exceeding Rs.Five Lacs in respect of any party during the year.

(vi) As the company has not accepted deposits from the public to which provisions of Sections 58A and 58AA or any other provision of the companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

(vii) Although it is required to have internal audit system, No internal audit was

carried out during the year. However, effective internal controls are being exercised by the management, which are generally commensurate with the size and nature of its business.

(viii) There is no record prescribed by The Central Government for the maintenance of cost records prescribed under Section 209(l)(d) of the Act.

(ix) a)According to the records of the Company, the company is not: regular in depositing, undisputed statutory dues except the income tax and professionai tax with the appropriate authorities. According to the information and explanation given to us, there are undisputated dues payable in respect of Mumbai sales tax Rs.46,891.22/-, Central Sales Tax Rs.7,15,420.96/-.VAT payable Rs.50,206.96/- Income Tax payable relating to A,Y.1998-99 of Rs.6,56,680/- which have remained outstanding as at 315i March,20.1.2. for a period of more than six month from the day they become payable.

(b)According to the information and explanation given to us,dispuated sales Tax demands aggregating to Rs.3,19 Lakhs has not been deposited, since matters are pending with appellate authorities.

(x) The accumulated losses of the company as at 31st March,2012 are more than 50% of its net worth. The company has incurred cash losses during the financial year covered by our audit.

(xi) Based on our audit procedures and on the information and explanations given by the management, the company has not defaulted in payment of dues to financial institution, bank or debenture holders.

(xii) According to the information and explanation given to us, the Company has not granted any loan and advanced on the basis of security by way of pledge of shares, debenture and other securities.

(xiii) in our opinion, the company is not a chit fund or a nidhi / mutual benefit fund / society.Therefore, the provision of clause 4(xiii) of the companies (auditors reports) Order, 2003 are not applicable to the company.

(xiv) As the Company is not trading in shares and securities the provision of clause 4{xiv) of the companies (auditors reports) Order, 2003 are not applicable to the company.

(xv) According to the information and explanation given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) The company has not taken any term ioans during the year.

(xvii) According to the information and explanation given to us and on an overall examination of the cash flow statement and balance sheet of the Company, in our opinion the funds raised on short-term basis have, prima facie, not been used for long-term investment.

(xviii) According to the information and explanation given to us, the company has not given any guarantee for loans taken by others from the banks and financial institutions

(xix) During the year, the company has not issued and allotted any shares.

(xx) Since the company does not have any debentures, the question of creation of securities for debentures does not arise.

(xxi) Since the company does not raised money by public issue, this clause is not applicable.

(xxii) To the best of our knowledge and belief and accounting to the information and explanation given to us, during the year, no fraud on or by the Company has been noticed as reported during the courses of our audit.

For and on behalf of

U.S.Tanwiir & Co..

Chartered Accountants

Place: Mumbai, U.S.Tanwar

Dated; 29th Aug 2012 Proprietor

M.No.033440


Mar 31, 2011

1. We have audited the attached Balance Sheer of MIRCH TECHNOLOGIES LTD. as at 31st March , 2011, the Profit and loss account and also Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the accounting standards generally accepted in India . Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement . An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in die financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation . We believe that our audit provides a reasonable basis for our opinion .

3. The Company's accumulated Losses as on 3f! March , 2011 have eroded the entire share capital, the accounts are continued to be prepared on the assumption of a going concern concept basis .

4. As required by the Companies (Auditor's Report) order, 2003 as amended by the Companies (Auditor's Report) (Amendment) Order 2004 (together 'the Order'), issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act. 1956 of India (the 'Act'), and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us., we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Further to our comment in the Annexure referred to in paragraph 3 above, We report that :

a. We have obtained all the information and explanation, which to the best of our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion, proper books of account as repeated by law hate been kept , by the Company so far as appears from our examination of those books;

c. The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account;

d. In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, to the extent applicable :

e. On the basis of written representation received from the directors, as on 31st March , 2011 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March , 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

f. Reference is invited to Note No. (2) in respect of provision for gratuity, (4) in respect confirmation of balance due to and due from various parties, (7) in respect of disclose of expenses separately as required by part II of schedule VI, and (9) in respect of redeemable preference shares,

g. Subject to matters stated in paragraph 3 and 5(f) above, In our opinion an to the best of oar information and according to the explanation given to us, the said accounts, read together with notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :

i. In the case of the balance sheet, of the state of affairs of the Company as at 31st March, 2011 .

ii. In the case of the profit and loss account, of the Loss for the year ended on that date; and

iii. In the case of cash flow statement, of the cash flow for the year ended on that date.

1)a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) These fixed assets have been physically verified by the management at regular interval considering the size of the company and nature of assets. No material discrepancies have been noticed on such verification.

c) No disposal of a substantial, part of fixed assets of the Company has taken place during the year .

2)a) As explained to us , the inventories were physical verified by the management at reasonable intervals. Company does not have any stock during the year,

b) In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories followed by the management are, reasonable and adequate in relation to the size of the Company and the nature of its business .

c) In our opinion and according to the information and explanation given to us, the Company has maintained proper records of its inventories and the discrepancies noticed on such physical verification between physical stock and the book records were not material and have been adequately deal, with in the books of account.

3) As per information and explanations provided to us :.

(a) During the year Company has taken unsecured Loans / advances from companies, firms and other panics coveted in the Register maintained under section 301 of the Companies Act, 1956 comprising (i) from Company aggregating to Rs. NIL , the maximum amount Rs.74.36 Lacs and the year end balance was Rs.74.30 Lacs, and (ii) from directors and his relatives aggregating to Rs. 22.70 Lacs , the maximum amount and year end balance was Rs. 108.60 Lacs. The Company has not granted any Loan during the year to any party covered in the register maintained under Section 301 of the Companies Act. 1956 .

(b) No interest is charged / paid on such Loans and other terms and conditions of the aforesaid unsecured loans / advances taken by the company are not prima facie, prejudicial to the interest of the Company.

(c) The terms of repayment have not been stipulated .

(d) There is no overdue amount of Loans / advances taken.

4) The Company has adequate internal management control procedure Commensurate with the size of the Company and nature of its business with regard to purchase of inventory and other assets and sale of goods. We have not come across any major weakness in internal control by management.

5) a) In our opinion and according to the information and explanations given to us, transactions that need to be entered into a Register in pursuance of section 301 of the Companies Act, 1956 have been so entered ;

b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of contracts or arrangements entered in the Register maintained under section 301 of the Companies Act, 1956 and exceeding Rs. Five lacs in respect of any party during the year .

6) As the Company has not accepted deposits from the public, compliance of the Provision of section 58A and 58AA of the Companies Act 1956 and the Companies (Acceptance of Deposits) Rules 1975 , with regard to the deposits accepted from public does not apply .

7) Although it is required to have internal Audit system, the Company has no such system canned out during the year under review . However die Company has adequate internal management control procedure commensurate with the size of the Company and nature of its business.

8) The Central Government has not prescribed the maintenance of the cost records under Section 209 (l)(d) of the Companies Act. 1956 for the Company .

9) a) According to the records of the Company, the Company is not regular in depositing undisputed statutory dues except the Income Tax and Professional Tax with the appropriate authorities. According to the information and explanation given to us .there arc undisputed clues payable In respect of Mumbai, Sales Tax Rs. 46,891,22, Central Sales Tax Rs. 7,15,420.96, C.S.T. - Cuddapah Rs. 2,33,362/-. APGST Rs. 66,366/- and VAT payable Rs. 50,206/96 which have remained outstanding as at 31st March 2011, for a period of more than six months from the day they become payable.

b) According to Information and explanation given to us, disputed Sale Tax demands aggregating to Rs.3.19 Lakhs has not been deposited , since matters are pending with the Appellate authorities.

10) The accumulated loses of the Company as at 31st March 2011 are mote than 50% of its net worth. The Company has incurred cash losses in the current financial year.

11) The Company does nut have any borrowings from any financial institutions or Banks. The Company has not issued any debenture.

12) The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures or other securities .

13) The provisions of any Special Statue applicable to Chit Fund s, Nidhis or Mutual Funds / Societies are not applicable to the Company .

14) The Company is not dealing in or trading in shares, securities, debentures, or other investments and hence . requirement of paragraph 4 (xiv) are not applicable to the Company .

15) According to the information and explanation given to us. the Company has not given any guarantee for loans taken by cithers from the Banks and Financial Institutions .

16) The Company has not taken any Term Loans during the year.

17) On the basis of an overall examination of the Balance Sheet of the company and according to the Cash Flow Statement and other records examined by us and on the basis of information and explanation green to us, on an overall basis, funds raised on Short Term basis have, prima facie, not being used during the year for Long Term investment and vice versa .

18) During the year, the Company has not issued and allotted any shares.

19) Since the Company does not have any debentures, the question of creation of securities for debentures does not arise.

20) Since the Company does not raised money by public Issue, this clause is not applicable .

21) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year .

For K.R. Manik & Co.

Chartered Accountants

Place : Mumbai K. R. Manik

Date : 21st SEP 2011 (Proprietor)


Mar 31, 2010

1. We have' audited the attached Balance Sheet of MIRCH TECHNOLOGIES LTD. as at 31st March . 2010, the Profit and Loss account and also Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the accounting standards generally- accepted in India . Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material miss-statement . An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation . We believe that our audit provides a reasonable basis for our opinion .

3. The Company's accumulated Losses as on 31st March , 2010 have eroded the entire share capita!, the accounts are continued to be prepared on the assumption of a going concern concept basis.

4. As required by the Companies (Auditor's Report) order, 2003 as amended by the Companies (Auditor's Report) (Amendment) Order 2004 (together "the Order'), issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 of India (flea's), and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on of the alters specified 'in.paragraphs.4¦ and 5 of the said Order.

5. Further to our comment in the annexure referred to in paragraph 3 above we report that: a we have obtained all the information and explanation, which to the best of our knowledge and belief were necessary for the purpose of our audit;

b- In our opinion, proper books of account as required by law have been kept by the Company so lair as appears from our examination of those books:

c The balance sheet profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account;

d- In our opinion, the balance sheet, Profit and loss account and cash flow statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956, to the extent applicable

e- 0n the basis of written representation received from the directors , as on 31st March ,2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March , 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956; / Reference is invited to Note No. (2) in respect of provision for gratuity,

(4) in respect confirmation of balance due to and due from various parties, (7) in respect of disclose of expenses separately as required by part II of schedule VI, and (9) in respect of redeemable preference shares,

g. Subject to matters stated in paragraph 3 and 5(f) above. In our opinion and to the best of our information and according to the explanation given to us, the said accounts, read together with notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India ;

i. In the case of the Balance sheet of the state of affairs of the company as at 31st March, 2011

ii. In the case of the profit and loss account, of the Profit for the year ended on that date; and

iii. In the case of cash flow statement, of the cash, flow for the year ended on that date.

ANNEXURE TO THE AUDITOR'S REPORT

(as referred to in paragraph 4 of our report of even date)

1) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets .

b) These fixed assets have been physically verified by the management at rambler interval considering the size of the Company and nature of assets. No material discrepancies have been noticed on such verification .

c) No disposal of a substantial part of fixed assets of the Company has taken Place during the year.

2) a) As explained to us, the inventories were physically verified by the management at reasonable intervals. Company does not have any stock during the Year

b) In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business .

c) In our opinion and according to the information and explanation given to us, the Company has maintained proper records of its inventories and the discrepancies noticed on such physical verification between physical stock and the book records were not material and have been' adequately, dealt with in the books of account.

3) As per information and explanations provided to ns ;

(a) During the year Company has taken unsecured Loans / advances from companies, firms and other parties covered in the Register maintained under section 301 of the Companies Act, 1956 comprising

(i) from Company aggregating to Rs. NIL , the maximum amount Rs.75.99 Lacs and the year end balance was Rs. 74.36 Lacs,

(ii) from firms aggregating to Rs. NIL , the maximum amount and the year end balance was .NIL and

(iii) from directors and his relatives aggregating to Rs. 31.64 Lacs , the maximum amount and year end balance was Rs. 85,90. Lacs. The Company Compiled by : Dijon Global Solutions Limited has not granted any Loan during the year to any part}' covered in the register maintained under Section 301 of the Companies Act, 1956

(b) No interest is charged / paid on such Loans and other terms and conditions of the aforesaid unsecured loans / advances taken by the company are not prima : facie , prejudicial to the interest of the Company .

(c) The terms of repayment, have not been stipulated ,

(d) There is no overdue amount of Loans / advances taken . Company has adequate internal. management control procedure Commensurate with the size of the Company and nature of its business with regard to purchase of inventory and other assets and sale of goods .We have not come across any major weakness in internal control by management.

5) a) In our opinion and according to the information and explanations given to us , transactions that need to be entered into a Register in pursuance of section 301 of the Companies Act, 1956 have been so entered ;

b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of contracts or arrangements entered in the Register maintained under section 301 of the Companies Act, 1956 and exceeding Rs. Five lacs in respect of any party during the year.

6) As the Company has not accepted deposits from the public, compliance of the Provision of section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975 , with regard to the deposits accepted from public does not apply .

7) Although it is required to have internal Audit system, the Company has no such system carried out during the year under review . However the Company has adequate internal management control procedure commensurate with the size of the Company and nature of its business.

8) The Central Government has not prescribed the maintenance of the cost records under Section 209 (l)of the Companies Act 1956 for the Company .

9) a) According to the records of the Company, the Company is not regular in depositing undisputed statutory dues except the Income Tax and Professional Tax with the appropriate authorities. According to the information and explanation given to us ,there are undisputed dues payable in respect of Bombay- Sales Tax Rs. 52,536/-, Central Sales Tax Rs. 7,38,313.85, C.S.T. - Cuddapha Rs. 2,33,362/-, APGST Rs. 66,366/-, Professional Tax Rs. 575/- and VAT payable Rs.64,394/96 which have remained outstanding as at 31st March 2010. for a period of more than six .months from the day they become payable .

b) According to Information and explanation given to us. disputed Sale Tax demands aggregating to Rs.3.19 Lakhs has not been deposited , since matters are pending with the Appellate authorities.

10) The accumulated losses of the Company as at 31St March 2010 are more than 50% of its net worth. The Company has not incurred cash losses in the current financial year.

11) The Company does not have any borrowings from any financial institutions or Banks. The Company has not issued any debenture.

12) The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures or other securities .

13) The Provisions of any Special Statue applicable to Chit Fund s. Nidhis or Mutual Funds / Societies are not applicable to the Company .

14) The Company is not dealing in or trading in shares, securities, debentures, or other investments and hence , requirement of paragraph 4 (xiv) are not applicable to the Company .

According to the information and explanation given to us, the Company has not given any guarantee for loans taken by others from the Banks and Financial Institutions .

16) The Company has not taken any Term Loans during the year.

17) On the basis of an overall examination of the Balance Sheet of the company and according to the Cash Flow Statement and other records examined by us and on the basis of information and explanation given to us, on an overall basis, funds raised on Short Term basis have, prima facie, not being used during the year for Long Term investment and vice versa .

18) During the year, the Company has not issued and allotted any shares.

19) Since the Company does not have any debentures, the question of creation of Compiled by : Dion Global Solutions Limited security for debentures does not arise.

20) Since the company does not raised money by public issue this clause is not applicable.

21) To the best our knowledge and behalf and according to the information and explanation given to us, fraud or by the company was noticed or reported during the year.

For K. II. Manik & Co.

Chartered Accountants

Place: Mumbai

Date:1 sep 2010 K.R.MANIK

(Proprietor)

 
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