Mar 31, 2023
Mold-Tek Technologies Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Mold-Tek Technologies Limited ("the Company"), which comprise the Standalone Balance Sheet as at 31st March 2023, and the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2023, and its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics issued by the Institute of Chartered Accountants of India. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Sr. No. |
Key Audit Matter |
Auditor''s Response |
1 |
Revenue Recognition (Ind AS 115, Revenue from contracts with Customers) The revenue standard establishes a comprehensive framework for determining whether, how much and when revenue is recognized. This involves certain key judgments relating to identification of distinct performance obligations, determination of transaction price of identified performance obligation, the appropriateness of the basis used to measure revenue recognized over a period. Refer Note 2 to the standalone financial statements - Significant Accounting Policies |
Principal Audit Procedures Our audit procedures in revenue included - ⢠Assessing the appropriateness of Company''s revenue recognition in line with Ind AS 115 - Revenue from Contracts with Customers. ⢠Evaluated the design and implementation of the processes and internal controls relating in respect of revenue recognition. ⢠Testing the effectiveness of such controls over revenue cut off at year-end. ⢠Testing the supporting documentation for sales transactions recorded during the period closer to the year end and subsequent to the year end and ⢠Performing analytical procedures on current year revenue based on monthly trends and where appropriate, conducting further enquiries and testing. |
Sr. No. |
Key Audit Matter |
Auditor''s Response |
2 |
Leases (Ind AS 116 ''Leases'') The standard introduces a new lease accounting model, wherein lessees are required to recognise a right-of-use (ROU) asset and a lease liability arising from a lease on the balance sheet. Adoption of the standard involves significant judgements and estimates including, determination of the discount rates and the lease term. Refer Note 2 to the standalone financial statements - Significant Accounting Policies |
Principal Audit Procedures Our audit procedures on adoption of Ind AS 116 include: ⢠Evaluated the appropriateness of the accounting policy and the design and implementation of the processes and internal controls in respect of the lease accounting standard (Ind AS 116); ⢠Assessed the appropriateness of leases identified by the Company based on the contractual agreements and our knowledge of the business; ⢠Evaluated the completeness and accuracy of presentation and disclosures relating to Ind AS 116 including, disclosures relating to transition. |
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Company''s Annual Report but does not include the standalone financial statements, consolidated financial statements and our auditor''s report thereon.
The other information is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the other information included in the annual report, if we conclude that that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian accounting standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act based on our audit, we report that:
(a) We have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books.
(c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31st March 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2023 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to the standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A".
(g) In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion 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 financial position in its standalone financial statements (Refer Note No. 36 of the standalone financial statements);
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are
material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause
(i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The interim dividend declared and paid by the Company during the year and until the date of this audit report is in accordance with section 123 of the Companies Act 2013.
The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Companies Act 2013 to the extent it applies to payment of dividend.
As stated in Note. 34 B to the standalone financial statements, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
2. As required by the Companies (Auditor''s Report) Order, 2020, (''the Order'') issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
Chartered Accountants
(Firm''s Registration No. 002739S)
Sd/-
CA Sri Raghuram Praturi
Partner
Membership No: 221770
UDIN: 23221770BGYUUX9364
Place: Hyderabad
Date : 02.05.2023
Mar 31, 2018
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
We have audited the accompanying Standalone Ind AS Financial Statements of Mold-Tek Technologies Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement, Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these Standalone Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS Financial Statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Standalone Ind AS Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Ind AS Financial Statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Standalone Ind AS Financial Statements that give a true and fair 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 and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Standalone Ind AS Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS 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, of the state of affairs of the Company as at 31st March, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matter
The comparative financial information of the Company for the year ended 31st March, 2017 and the transition date opening balance sheet as at 1st April, 2016 included in these Standalone Ind AS Financial Statements, are based on the previously issued statutory financial statements for the years ended 31st March, 2017 and 31st March, 2016 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by the predecessor auditor who expressed an unmodified opinion vide reports dated 30th May, 2017 and 17th May, 2016 respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition date to Ind AS have been audited by us. Our opinion is not modified in respect of this matter.
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 best of 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 the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act, read with relevant rules issued thereunder.
(e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the board of directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as director in terms of section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Aâ.
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion 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 financial position in its Standalone Ind AS Financial Statements - Refer Note 36
ii) The Company does not have any longterm contracts including derivative contracts for which there were any material foreseeable losses;
iii) There has been no delay in transferring amounts, which were required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Bâ, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Mold-Tek Technologies Limited (âthe Companyâ) as of 31st March 2018 in conjunction with our audit of the Standalone Ind AS Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) issued by the ICAI and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Ind AS Financial Statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone Ind AS Financial Statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the Standalone Ind AS Financial Statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the 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 given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Annexure - B
Annexure - B to the Independent Auditorsâ Report
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified by the management in a periodical manner, which in our opinion is reasonable, having regard to the size of the Company and the nature of its business. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The Company does not have any inventories. Accordingly, reporting under clause 3 (ii) of the Order is not applicable to the company.
(iii) The Company has not granted any loans to companies, firms, LLP or other parties covered in the register maintained under section 189 of the Act. Accordingly, reporting under clause 3 (iii) of the Order is not applicable to the company.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 186 of the Act in respect of making investments. The Company has not granted loans, or provided guarantees and securities.
(v) According to the information and explanations given to us, the Company has not accepted deposits within the meaning of Sections 73 to 76 of the Act and the rules framed thereunder.
(vi) Maintenance of cost records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act.
(vii) (a) According to the information and explanations given to us and the records of the Company examined by us, the Company is regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, value added tax, goods and service tax, wealth tax, service tax, customs duty, excise duty, cess and any other statutory dues as applicable with the appropriate authorities and there were no arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and records of the Company examined by us, the particulars of income tax, sales tax, value added tax, goods and service tax, wealth tax, service tax, customs duty, excise duty or cess as at 31st March, 2018 which have not been deposited on account of any dispute pending are as under:
Name of the statute |
Nature of the dues |
Amount (Rs. in â000) |
Period to which the amount relates |
Forum where the dispute is pending |
Income-tax Act, 1961 |
Income tax |
6312.78 |
AY 2008-09 |
CIT (Appeals) |
1742.77 |
AY 2009-10 |
|||
2037.02 |
AY 2010-11 |
|||
16550.98 |
AY 2013-14 |
|||
10199.22 |
AY 2014-15 |
|||
Income-tax Act, 1961 |
Dividend distribution tax |
70.35 |
AY 2015-16 |
CIT (Appeals) |
Income-tax Act, 1961 |
Income tax |
716.10 |
AY 2007-08 |
ITAT, Hyderabad |
Income-tax Act, 1961 |
Income tax |
1708.98 |
AY 2008-09 |
ITAT, Hyderabad |
Income-tax Act, 1961 |
Income tax |
827.08 |
AY 2009-10 |
ITAT, Hyderabad |
Income-tax Act, 1961 |
Income tax |
430.66 |
AY 2010-11 |
ITAT, Hyderabad |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to financial institutions, banks and government. The Company has not issued any debentures.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which the loans were obtained.
(x) 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.
(xi) In our opinion and according to the information and explanations give to us the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Standalone Ind AS Financial Statements as required by the applicable Indian accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and hence reporting under clause (xiv) of the Order is not applicable.
(xv) In our opinion and according to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him and hence provisions of section 192 of the Act are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For M. Anandam & Co.
Chartered Accountants
(Firmâs Registration No. 000125S)
M.R.Vikram
Partner
Membership No.021012
Place: Hyderabad
Date: 29th May, 2018
Mar 31, 2016
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of MOLD-TEK TECHNOLOGIES LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, 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 Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Standalone 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Standalone Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
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 internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair 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 and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone 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, of the state of affairs of the Company as at 31st March, 2016, 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 the Companies (Auditor''s Report) Order, 2016 (''the Order'') issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A statement on the matters specified in the paragraph 3 and 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 best of 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 the Company 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 Statement dealt with by this Report are in agreement with the books of account
(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure ''B''.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion 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 financial position in its financial statements - Refer Note 34 to the financial statements.
ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts- Refer Note 31 to the Financial Statements.
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education sand Protection fund by the Company.
The Annexure referred to in our Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31 March 2016, we report that:
(i) a. The Company maintains a soft copy record of its depreciable assets, reflecting a year wise classification of assets of such category. The record does not include quantitative details and the situation/ location of its depreciable assets are not recorded.
b. We are informed that no physical verification of fixed assets has been carried out by the management during the year ended 31st March, 2016.
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-in process being a portion of unbilled service works at the Balance Sheet date is as certified by management and is suitably accounted.
(iii) The Company has not granted/ taken any loans, secured or unsecured to/ from the companies, firms of other parties covered in the register maintained under Section 189 of the Companies Act, 2013, except in respect of current account transactions with its associate/ group company, M/s Mold-tek Packaging Limited.
(a) The terms and conditions of the grant of such loans are not pre judicial to the Company''s interest.
(b) In respect of the debit balances and advances in the nature of loans, including amounts due on current accounts, no stipulations have been made as to repayments, and management expresses confidence 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 company are 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 accepted any deposits from the public attracting the provisions of Sections 73 to 76 of the Companies Act, 2013 and the rules framed there under. No order has been passed by the Company Law Board regarding compliance of above said provisions.
vi) The Central Government has not prescribed the maintenance of cost records under section 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 of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income tax, sales tax, wealth tax, serace tax, duty of customs, value added tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of employees'' state insurance and duty of excise.
b) According to the information and explanations given to us, there are no material dues of wealth tax, duty of customs and cess which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of income tax, sales tax, service tax and value added tax have not been deposited by the Company on account of disputes (Issues under 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 |
7,16,713 |
AY 2007-08 |
ITAT |
Section 201(1) |
TDS on payment made to purchase of software permanent use licenses |
17,08,981 |
AY 2008-09 |
ITAT |
Section 201(1) |
TDS on payment made to purchase of software permanent use licenses |
8,27,076 |
AY 2009-10 |
ITAT |
Section 201(1) |
TDS on payment made to purchase of software permanent use licenses |
4,30,661 |
AY 2010-11 |
ITAT |
(viii) In our opinion and according to the information and explanations given to us, there 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, the Company 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 for the purpose for which they were raised.
(x) According to the information and explanations given to us, no material fraud on or by 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 the managerial Remuneration in accordance with the requisite approvals mandated by the provisions 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 2016 is not applicable to the Company.
(xiii) According to the information and explanations given to us, all the transactions with the related parties are in compliance with section 177 and section 188 of companies act, and have been disclosed in the Financial Statements as required by the applicable accounting standards
(xiv) According to the information and explanations given to us, the company during the year has made allotment of 600000 equity shares of Rs. 10 Paid up against conversion of warrants issued on preferential basis at Rs. 31.20 including premium of Rs. 21.20 per share during financial year 13-14.
(xv) According to the information and explanations given to us, the Company has not entered 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 not required 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
Partner
Membership No. 221770
Place: Hyderabad
Date : 17th May, 2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of
MOLD-TEK TECHNOLOGIES LIMITED , which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss, 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 Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these Standalone 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 principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these Standalone
Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting and
auditing standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made there
under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
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 internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid Standalone 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, of the state of affairs of the Company as
at 31st March, 2015, and its profit/loss and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ('the
Order') issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 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 best of 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 the Company 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 Statement dealt with by this Report are in agreement with the
books of account
(d) In our opinion, the aforesaid Standalone Financial Statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion 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
financial position in its financial statements - Refer Note 35 to the
financial statements;
ii) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long- term contracts including derivative contracts- Refer Note 32
to the Financial Statements.
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
(i) a) The Company maintains a soft copy record of its depreciable
assets, reflecting a year wise classification of assets of such
category. The record does not include quantitative details and the
situation/ location of its depreciable assets are not recorded.
b) We are informed that no physical verification of fixed assets has
been carried out by the management during the year ended 31st March,
2015.
During the year, we are informed that the company has not disposed of a
substantial part of its fixed assets.
(ii) The company has no inventories or stocks inviting comment on
inventories. Work-in process being a portion of unbilled service works
at the Balance Sheet date as certified by management and is suitably
accounted.
(iii) a) The Company has not granted/ taken any loans, secured or
unsecured to/ from the companies, firms of other parties covered in the
register maintained under Section 189 of the Companies Act, 2013,
except in respect of current account transactions with its associate/
group company, M/s Mold-tek Packaging Limited.
b) In respect of the debit balances and advances in the nature of
loans, including amounts due on current accounts, no stipulations have
been made as to repayments, and management expresses confidence in
recovering and/or adjustment of the amounts due.
(iv) a) In our opinion and according to the information and
explanations given to us, there exist adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of fixed assets and sale of services.
The activities of the Company do not involve purchase of inventory and
the sale of goods.
b) Certain areas /procedures and control weaknesses identified during
the course of internal/statutory audit and other reviews need to be
considered for improvement and up-gradation to better levels.
c) While we have not observed any continuing failure of intent to
correct identified weaknesses in internal controls during the course of
our audit, observations made need to be comprehensively addressed and
rectified.
(v) In our opinion and explanations given to us, the company has not
invited or accepted any deposits from the public attracting the
provisions of Sections 73 to 76 of the Companies Act, 2013 and the rules
framed there under. No order has been passed by the Company Law Board
regarding compliance of above said provisions.
(vi) The Central Government has not prescribed the maintenance of cost
records under section 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 of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, income tax, sales tax, wealth
tax, service tax, duty of customs, value added tax, cess and other
material statutory dues have been regularly deposited during the year
by the Company with the appropriate authorities. As explained to us,
the Company did not have any dues on account of employees' state
insurance and duty of excise.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
sales tax, wealth tax, service tax, duty of customs, value added tax,
cess and other material statutory dues were in arrears as at 31 March
2015 for a period of more than six months from the date they became
payable.
b) According to the information and explanations given to us, there are
no material dues of wealth tax, duty of customs and cess which have not
been deposited with the appropriate authorities on account of any
dispute. However, according to information and explanations given to
us, the following dues of income tax, sales tax, service tax and value
added tax have not been deposited by the Company on account of
disputes:
Name of the Nature of dues
statute
Income Tax TDS on payment made to purchase of
Section 201(1) software permanent use Licenses
Section 201(1) TDS on payment made to purchase of
software permanent use licenses
Section 201(1) TDS on payment made to purchase of
software permanent use licenses
Section 201(1) TDS on payment made to purchase of
software permanent use licenses
Period to Forum where
Amount which the dispute is
(in Rs) amount relates pending
Income Tax 7,16,713 AY 2007-08 ITAT
Section 201(1) 17,08,981 AY 2008-09 ITAT
Section 201(1) 8,27,076 AY 2009-10 ITAT
Section 201(1) 4,30,661 AY 2010-11 ITAT
c) According to the information and expLanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the reLevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time.
(viii) In our opinion, there are no accumulated Losses of the Company
and therefore disclosure of the same is not applicable. The Company has
not incurred cash Losses during the financial year covered by our
audit.
(ix) In our opinion and according to the information and expLanation,
there are no defaults on dues to financial institutions, banks or
debenture holders during the year.
(x) In our opinion and according to the information and the expLanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xi) In our opinion, the Company did not have any term loans outstanding
during the year.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For Praturi & Sriram
Chartered Accountants
Fim Reg. No. 002739S
Sri Raghuram Praturi
Partner
Membership No. 221770
Hyderabad
19th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Mold-Tek
Technologies Limited, 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
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 of the Companies Act, 1956 (''the Act'') read with
the General Circular 15/ 2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and in accordance with the accounting principles
generally accepted in India. 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
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 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.
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. 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 of the financial statements.
We bedieve that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In 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 subject to:
i. Of the debtors balances, Rs. 82.47 lakhs have been written off
during the year (which includes an amount of Rs. 70.91 lakhs receivable
from subsidiaries). No provision has been made for the debtors
outstanding for more than 9 months to the tune of Rs. 93.19 lakhs, for
which the management opines that all the amounts are good and
recoverable.
ii. Under or non-provision of gratuity liability based on actuarial
valuation of Rs. 53.30 lakhs as at beginning of the year i.e. 31st
March, 2013 in accordance with the requirements of Accounting Standard
15 and leave encashment as per actuarial valuation Rs. 19.14 lakhs,
adversely impacting long-term liabilities, earlier years'' profits and
correspondingly reserves.
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 profit of
the Company for the year ended on that date, and
c. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order'') issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. 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. 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
those books and proper returns adequate for the purposes of our audit
have been received from branches not visited by us.
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 and with the returns received from branches not visited by us.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement comply with the Accounting Standards notified
under the act read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of Companies Act, 2013 except for AS-22 and 15, referred to
in sub-section (3C) of Section 211 of the Companies Act, 1956;
e. On the basis of the 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
sub-section (1) of Section 274 of the Companies Act, 1956.
The annexure referred to in paragraph 1 of the our report of even date
to the members of Mold-Tek Technologies Limited on the accounts of the
company for the year ended 31st March, 2014
1. In respect of its fixed assets:
a. The Company maintains a soft copy record of its depreciable assets,
reflecting a year wise classification of assets of such category. The
record does not include quantitative details and the situation/
location of its depreciable assets. Non- depreciable assets are not
recorded.
b. We are informed that no physical verification of fixed assets has
been carried out by the management during the year ended 31st March,
2014.
c. During the year, we are informed, that the Company has not disposed
off a substantial part of its fixed assets.
2. The Company has no inventories or stocks inviting comment on
inventories. Work-in- process being a portion of unbilled service works
at the Balance Sheet date as certified by management and is suitably
accounted.
3. a. The Company has not granted/taken any loans, secured or
unsecured to/from the companies, firms of other parties covered in the
register maintained under Section 301 of the Companies Act, 1956,
except in respect of current account transactions with its
associate/group company, M/s. Mold-Tek Packaging Limited.
b. In respect of the debit balances, amounts due on current accounts, &
advances in the nature of loans, no stipulations have been made as to
repayments, and management expresses confidence in recovering and/or
adjustment of the amounts due.
4. a. In our opinion, and according to the information and
explanations given to us, there exist adequate internal control
procedures commensurate with the size of the Company, and the nature of
its business for the purchase of inventory & fixed assets and for the
sale of services.
b. Certain areas/procedures and control weaknesses identified during
the course of internal/statutory audit and other reviews need to be
considered for improvement and up-gradation to better levels.
c. While we have not observed any continuing failure of intent to
correct identified weaknesses in internal controls during the course of
our audit, observations made need to be comprehensively addressed and
rectified.
5. a. According to the information and explanations provided by the
management, the transactions that need to be entered in the register
maintained under Section 301 of the Companies Act, 1956 have been so
entered.
b. In our opinion and according to the explanations given to us, there
are transactions made in pursuance of contracts or arrangements entered
in the register maintained under Section 301 of the Companies Act, 1956
and exceeding the value of Rupees five lakhs in respect of any party
during the year, at prices which are prima facie reasonable having
regard to prevailing market prices.
6. In our opinion and explanations given to us, the company has not
invited or accepted any deposits from the public attracting the
provisions of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under. No order has been passed by the Company Law
Board regarding compliance of above said provisions. However, security
deposits received from employees Rs. 3.41 lakhs are not maintained in a
separate bank account as stipulated in Section 417 of Companies Act,
1956.
7. The Company presently has an internal audit conducted by an
external agency, which needs to be modified/reviewed for its depth &
scope so as to make it commensurate with the size of the Company & the
nature of its business.
8. The Central Government has prescribed maintenance of cost records
under Section 209(1)(d) of the Companies Act, 1956 for the services of
the Company, as per Cost Accounting Records Rules, 2011. A suitable
compliance/ report in this regard remains pending.
9. a. According to the records of the Company furnished to us, the
Company is regular in depositing undisputed statutory dues including,
provident fund, employees state insurance, income tax, sales tax,
customs duty, excise duty, cess and other material statutory dues with
delays of nominal nature.
b. According to the information and explanations given by the
management, there are no undisputed amounts payable in respect of,
service tax, wealth tax, customs duty and cess or other material
statutory dues were in arrears as at 31st March, 2014 for a period of
more than six months from the date they become payable.
c. However, according to the information and explanation given to us,
the following are details of the issues on which the Company is
disputing the payment of taxes:
Name of the Nature of dispute Disputed
statute tax amount
Rs.
Income Tax
Section 201(1) TDS on payment made to purchase of
software permanent use licenses 7,16,713
Section 201(1) TDS on payment made to purchase of
software permanent use licenses 17,08,981
Section 201(1) TDS on payment made to purchase of
software permanent use licenses 8,27,076
Section 201(1) TDS on payment made to purchase of
software permanent use licenses 4,30,661
Name of the Period to which Forum where
statute the payment dispute is
relates (AY) pending
Income Tax
Section 201(1)
AY 2007-08 ITAT
Section 201(1) AY 2008-09 ITAT
Section 201(1) AY 2009-10 ITAT
Section 201(1) AY 2010-11 ITAT
10. In our opinion, there are no accumulated losses of the Company and
therefore disclosure of the same is not applicable. The Company has not
incurred cash losses during the financial year covered by our audit.
11. In our opinion and according to the information and explanations
given to us, there are no defaults on dues payable to
institutions/banks/ others on the date of the Balance Sheet.
12. We are informed that the company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15. We are informed that the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
16. In our opinion, the term-loans availed have generally been applied
for the purpose for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that during the period under review, long-term funds of Rs. 244.46
lakhs have been used for short- term purposes.
18. According to the information and explanations given to us, during
the period covered by our audit report, allotted warrants on
preferential basis at Rs. 31.20.
19. According to information and explanations given to us, during the
period covered by our audit report, the Company has not issued
debentures.
20. According to information and explanations given to us, the Company
has not raised monies by means of public issue during the year.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For PRATURI & SRIRAM
Chartered Accountants
Firm Registration No. 002739S
Sri Raghuram Praturi
Hyderabad Partner
29th May, 2014 Membership No. 221770
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Mold-Tek
Technologies Limited, which comprise the Balance Sheet as at 31st
March, 2013, 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
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 of the Companies Act, 1956 (''the Act''). This
responsibility includes the design, implementation and maintenance of
internal control/s 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
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 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.
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 controls 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. 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 of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In 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, subject to the following:
1. Under or non-provision towards employee benefits in accordance with
Accounting Standard -15 (Employee Benefits), of gratuity liability and
leave encashment, thereby adversely impacting long term liabilities,
current liabilities and correspondingly profits for the current year
and reserves. We are unable to quantify the extent of short provision
in the absence of suitable actuarial valuation [Refer Note 7(b)].
2. Non-provision of cumulative deferred tax liability in accordance
with Accounting Standard 22 Taxes on Income, ofRs.147.52 lakhs (net),
impacting noncurrent liabilities and reserves and surplus values as the
year end [Refer Note 8].
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
b. in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
c. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003(''the
Order'') issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. 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. 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
those books and proper returns adequate for the purposes of our audit
have been received from branches not visited by us.
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 and with the returns received from branches not visited by us.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards except
for Accounting Standards 22 and 15, referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956;
e. On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
1. In respect of its fixed assets:
a. The Company maintains a soft copy record of its depreciable assets,
reflecting a year wise classification of assets of such category. The
record does not include quantitative details and the situation/
location of its depreciable assets.
b. We are informed that no physical verification of fixed assets has
been carried out by the management during the year ended 31st March,
2013.
c. During the year, we are informed, that the Company has not disposed
off a substantial part of its fixed assets.
2. The Company has no inventories or stocks inviting comment on
inventories. Work-in-process being a portion of unbilled service works
at the Balance Sheet date as certified by management and is suitably
accounted.
3. a. The Company has not granted/taken any
loans, secured or unsecured to/from the companies, firms of other
parties covered in the register maintained under section 301 of the
Companies Act, 1956, except in respect of transactions with its
associate/group company, M/s. Mold-Tek Packaging Limited.
b. In respect of the debit balances, amounts due on current accounts, &
advances in the nature of loans, no stipulations have been made as to
repayments, and management expresses confidence in recovering and/or
adjustment of the amounts due.
4. a. In our opinion, and according to the information and
explanations given to us, there exist adequate internal control
procedures commensurate with the size of the Company, and the nature of
its business for the purchase of inventory & fixed assets and for the
sale of services.
b. Certain areas/procedures and control weaknesses identified during
the course of internal/statutory audit and other reviews need to be
considered for improvement and up-gradation to better levels.
c. While we have not observed any continuing failure of intent to
correct identified weaknesses in internal controls during the course of
our audit,
observations made need to be comprehensively addressed and rectified.
5. a. According to the information and
explanations provided by the management, the transactions that need to
be entered in the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
b. In our opinion and according to the explanations given to us, there
are transactions made in pursuance of contracts or arrangements entered
in the register maintained under Section 301 of the Companies Act, 1956
and exceeding the value of Rupees five lakhs in respect of any party
during the year, at prices which are prima facie reasonable having
regard to prevailing market prices.
6. In our opinion and explanations given to us, the company has not
invited or accepted any deposits from the public attracting the
provisions of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under. No order has been passed by the Company Law
Board regarding compliance of above said provisions. However, security
deposits received from employees Rs.3,86,107 are not maintained in a
separate bank account as stipulated in Section 417 of Companies Act,
1956.
7. The Company presently has an internal audit conducted by an
external agency, which needs to be modified/reviewed for its depth &
scope so as to make it commensurate with the size of the Company & the
nature of its business.
8. The Central Government has prescribed maintenance of cost records
under Section 209(1)(d) of the Companies Act, 1956 for the services of
the Company, as per Cost Accounting Records Rules, 2011. A suitable
compliance/ report in this regard remains pending.
9. a. According to the records of the Company
furnished to us and information and explanations given to us by the
management, the Company is regular in depositing undisputed statutory
dues including, provident fund, employees state insurance, income tax,
sales tax, customs duty, excise duty, cess and other material statutory
dues with delays of nominal nature.
b. According to the information and explanations given by the
management, there are no undisputed amounts payable in respect of,
service tax, wealth tax, customs duty and cess or other material
statutory dues were in arrears as at 31st March, 2013 for a period of
more than six months from the date they become payable.
c. However, according to the information and explanation given to us,
the following are details of the issues on which the company is
disputing the payment of taxes:
Name of the Nature of dispute Disputed Period to
which Forum where
statute tax amount the payment dispute is
Rs relates (AY) pending
Income Tax
Section 201(1) TDS on payment
made to purchase
of software
permanent use
licenses 7,16,713 AY 2007-08 ITAT
Section 201(1) TDS on payment
made to purchase
of software
permanent use
licenses 17,08,981 AY 2008-09 ITAT
Section 201(1) TDS on payment
made to purchase
of software
permanent use
licenses 8,27,076 AY 2009-10 ITAT
Section 201(1) TDS on payment
made to purchase
of software
permanent use
licenses 4,30,661 AY 2010-11 ITAT
36,83,431
10. In our opinion, there are no accumulated losses of the Company and
therefore disclosure of the same is not applicable. The Company has not
incurred cash losses during the financial year covered by our audit.
11. In our opinion and according to the information and explanations
given to us, there are no defaults on dues payable to
institutions/banks/ others on the date of the Balance Sheet.
12. We are informed that the company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15. We are informed that the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
16. In our opinion, the term-loans availed have generally been applied
for the purpose for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that during the period under review, long term funds have not been used
for short term purposes.
18. According to information and explanations given to us, during the
period covered by our audit report, the company has not made any
preferential allotment to the parties covered in the register
maintained under Section 301 of the companies act.
19. According to information and explanations given to us, during the
period covered by our audit report, the Company has not issued
debentures.
20. According to information and explanations given to us, the Company
has not raised monies by means of public issue during the year.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For PRATURI & SRIRAM
Chartered Accountants
Firm Registration No. 002739S
Sri Raghuram Praturi
Hyderabad Partner
30th May, 2013 Membership No. 221770
Mar 31, 2012
We have audited the attached Balance Sheet of Mold- Tek Technologies
Limited as at 31st March, 2012 and also the Statement of Profit and
Loss and the Cash Flow Statement of the Company for the year ended on
that date, both annexed thereto. These financial statements are the
responsibility of the Company's management and our responsibility is to
express an opinion on these financial statements based on our audit.
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, evidencing supporting the amounts 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 presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India, in terms of Section 227(4A) of the
Companies Act, 1956 we enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order to the extent
applicable.
2. Further to our comments in the annexure referred to above, 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. In our opinion, proper books of accounts, as required by law, 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 and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
d. In our opinion, subject to our comments in Para 2 (f) below, these
financial statements have been prepared in compliance with the
applicable accounting standards referred to in sub-clause (3C) of
Section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the 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 31st March,
2012 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956; and
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required subject
to:
i. Non-provision of Rs.26,69,089 towards gratuity and Rs.12,95,806 towards
leave encashment during the year based on actuarial valuation,
resulting in overstatement of profits of the current year to the tune
of Rs.39,64,895 and correspondingly understating long term liabilities
(refer Note 25).
ii. In addition to the (i) above, non- provision of Rs.36,85,306 towards
gratuity and Rs.21,62,843 towards leave encashment pertaining to earlier
years, as at Balance Sheet date based on actuarial valuation, resulting
in overstatement of reserves and surplus to the tune of Rs.58,48,149 and
correspondingly, understating long-term liabilities (refer Note 8).
gives 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, 2012;
ii. In the case of Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
1. In respect of its fixed assets:
a. The Company maintains a soft copy record of its depreciable assets,
reflecting a year wise classification of assets of such category. The
record does not include quantitative details and the situation/
location of its depreciable assets. Non- depreciable assets are not
recorded.
b. We are informed that no physical verification of fixed assets has
been carried out by the management during the year ended 31st March,
2012.
c. During the year, we are informed, that the Company has not disposed
off a substantial part of its fixed assets.
2. The Company has no inventories or stocks inviting comment on
inventories. Work-in- process being a portion of unbilled service works
at the Balance Sheet date as certified by management is suitably
accounted.
3. a. The Company has not granted/taken any loans, secured or unsecured
to/from the companies, firms of other parties covered in the register
maintained under Section 301 of the Companies Act, 1956 except in
respect of current account transactions with its associate/group
company, M/s. Mold-Tek Packaging Limited.
b. In respect of the debit balances and advances in the nature of
loans, including amounts due on current accounts, no stipulations have
been made as to repayments, and management expresses confidence in
recovering and/or adjustment of the amounts due.
4. a. In our opinion, and according to the information and explanations
given to us, there exist adequate internal control procedures
commensurate with the size of the Company, and the nature of its
business for the purchase of inventory & fixed assets and for the sale
of goods and services.
b. Certain areas/procedures and control weaknesses identified during
the course of internal/statutory audit and other reviews need to be
considered for improvement and up-gradation to better levels.
c. While we have not observed any continuing failure of intent to
correct identified weaknesses in internal controls during the course of
our audit, observations made need to be comprehensively addressed and
rectified.
5. a. According to the information and explanations provided by the
management, the transactions that need to be entered in the register
maintained under Section 301 of the Companies Act, 1956 have been so
entered.
b. In our opinion and according to the explanations given to us, there
are transactions made in pursuance of contracts or arrangements entered
in the register maintained under Section 301 of the Companies Act, 1956
and exceeding the value of Rupees five lakhs in respect of any party
during the year, at prices which are prima facie reasonable having
regard to prevailing market prices.
6. In our opinion and explanations given to us, the Company has not
invited or accepted any deposits from the public attracting the
provisions of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under. No order has been passed by the Company Law
Board regarding compliance of above said provisions. However, security
deposits received from employees Rs.5,62,047 are not maintained in a
separate bank account as stipulated in Section 417 of the Companies
Act, 1956.
7. The Company presently has an internal audit conducted by an external
agency, which needs to be reviewed for its depth & scope so as to make
it commensurate with the size of the Company & the nature of its
business.
8. The central government has prescribed maintenance of cost records
under Section 209(1)(d) of the Companies Act, 1956 for the services of
the Company, as per Cost Accounting Records Rules, 2011. A suitable
compliance/ report in this regard remains pending.
9. a. According to the records of the Company furnished to us, the
Company is regular in depositing undisputed statutory dues including,
provident fund, employees state insurance, income tax, sales tax,
customs duty, excise duty, cess and other material statutory dues with
delays of nominal nature.
b. According to the information and explanations given by the
management, there are no undisputed amounts payable in respect of
income tax, sales tax, wealth tax, customs duty and excise duty and
cess which were in arrears as 31st March, 2012 for a period of more
than six months from date they become payable.
10. In our opinion there are no accumulated losses of the Company and
therefore disclosure of the same is not applicable. The Company has not
incurred cash losses during the financial year covered by our audit.
11. In our opinion and according to the information and explanations
given to us, there are no defaults on dues payable to
institutions/bank/ others on the date of the Balance Sheet.
12. We are informed that the Company has not granted loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
13. In our opinion, the Company is not a chit or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
14. In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
15. We are informed that the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
16. In our opinion, the term-loans availed have generally been applied
for the purpose for which they were raised.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
during the period under review, long-term funds to the extent of
Rs.372.58 lakhs have been used for short term purposes.
18. The company has made a preferential allotment of 5,10,000 equity
shares of Rs.10 each at a premium of Rs.70 to parties and companies, some
of whom are covered in the register maintained under Section 301 of the
Act, at prices which are determined in accordance with Chapter XIII of
SEBI Regulations, 2000, and thereby not prejudicial to the interest of
the Company.
19. According to information and explanations given to us, during the
period covered by our audit report, the Company has not issued
debentures.
20. According to information and explanations given to us, the Company
has not raised monies by means of public issue during the year.
21. According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the course of
our audit.
For PRATURI & SRIRAM
Chartered Accountants
Firm Registration No. 002739S
Sri Raghuram Praturi
Hyderabad Partner
29th May, 2012 Membership No. 221770
Mar 31, 2010
We have audited the attached Balance Sheet of Mold-Tek Technologies
Limited as at 31st March, 2010 and also 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 Companys management
and our responsibility is to express an opinion on these financial
statements based on our audit.
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 amounts 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 presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India, in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order to the extent
applicable.
2. Further to our comments in the annexure referred to above, 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. In our opinion, proper books of accounts, as required by law, have
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 accounts;
d. In our opinion, these financial statements have been prepared in
compliance with the applicable accounting standards referred to in
sub-clause (3C) of Section 211 of the Companies Act, 1956.
e. On the basis of written representations 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; and
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required, subject
to:
- the impact of non consideration of a suitable charge off of goodwill
forming part of fixed assets (Refer Note 6 c);
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, 2010;
ii. in the case of Profit and Loss Account, of the profit of the
Company for the period ended on that date; and
iii. in case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Annexure to Auditors Report
(Referred to in paragraph 1 of our report of even date attached)
1. In respect of its fixed assets
a. The Company maintains a soft copy record of its depreciable assets,
reflecting a year-wise classification of assets of such category. The
record does not include quantitative details and the situation/
location of its depreciable assets. Nondepreciable assets are not
recorded.
b. We are informed that no physical verification of fixed assets has
been carried out by the management during the year ended 31st March,
2010.
c. During the year we are informed that the Company has not disposed
off a substantial part of its fixed assets. It however sold a part of
its office building and land thereto to Mold-tek Packaging Limited,
after obtaining the necessary no objection clearances approvals from
the bankers.
2. The Company has no inventories or stocks inviting comment on
inventories. Work-in-process, being a portion of unbilled service works
as at the balance sheet date, is suitably accounted.
3. a. The Company has not granted/taken any
loans, secured or unsecured to/from the companies, firms of other
parties covered in the register maintained under Section 301 of the
Companies Act, 1956, except in respect of current account transactions
with its associate/group company, Mold-tek Packaging Limited.
b. In respect of the debit balances and advances in the nature of
loans, including amounts due on current accounts, no stipulations have
been made as to repayments, and management expresses confidence in
recovering and/or adjustment of the amounts due.
4. a. In our opinion, and according to the information and
explanations given to us, there exits adequate internal control
procedures commensurate with the size of the Company, and the nature of
its business for the purchase of inventory & fixed assets and for the
sale of goods and services.
b. Certain areas/procedures and control weaknesses identified during
the course of internal/statutory audit and other review need to be
considered for improvement and up-gradation to better levels.
c. While we have not observed any continuing failure of intent to
correct identified weaknesses in internal controls during the course of
our audit, observations made need to be comprehensively addressed and
rectified.
5. a. According to the information and explanations provided by the
management, the transactions that need to be entered in the register
maintained under Section 301 of the Companies Act, 1956 have been so
entered.
b. In our opinion and according to the explanations given to us, there
are transactions made in pursuance of contracts or arrangements entered
in the register maintained under Section 301 of the Companies Act, 1956
and exceeding the value of Rupees five lakhs in respect of any party
during the year, at prices which are prima facie reasonable having
regard to prevailing market prices.
6. In our opinion and explanations given to us, the Company has not
invited or accepted any deposits from the public attracting the
provisions of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under. No Order has been passed by the Company Law
Board regarding compliance of above said provisions.
7. The Company presently has an internal audit conducted by an
external agency, which needs to be reviewed for its depth and scope so
as to make it commensurate with the size of the Company & the nature of
its business.
8. We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 for any products of the Company.
9. a. According to the records of the Company furnished to us, the
Company is regular in depositing undisputed statutory dues including,
provident fund, employees state insurance, income tax, sales tax,
customs duty, excise duty, cess and other material statutory dues,
except instances of Income Tax Deducted at Source which has been
deposited with the appropriate authorities with delays of nominal
nature.
b. According to the information and explanations given by the
management, there are no undisputed amounts payable in respect of
income tax, sales tax, wealth tax, customs duty and excise duty and
cess which were in arrears as at 31st March, 2010 for a period of more
than six months from date they become payable
10. In our opinion there are no accumulated losses of the company and
therefore disclosure of the same is not applicable. The Company has not
incurred cash losses during the financial year covered by our audit.
11. In our opinion and according to the information and explanations
given to us, there are no dues payable to institutions/bank/others on
the date of signing of this report.
12. We are informed that the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion the company is not a Chit or a Nidhi/Mutual Benefit
Fund/Society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
14. In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of Clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
15. We are informed that the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
16. In our opinion, the term-loans availed have generally been applied
for the purpose for which they were raised.
17. According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the Company, we report that
during the year under review, long term funds from sale of fixed assets
of ?4.40 crore have been used for short term purposes.
18. According to information and explanations given to us, during the
period covered by our audit report, the Company has not issued
debentures.
19. According to information and explanations given to us, the Company
has not raised money by public issue during the year.
20. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For PRATURI & SRIRAM
Chartered Accountants
Firm Registration No. 002739S
K. SRIRAM
Hyderabad Partner
1st September, 2010 Membership No. 37821
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article