| 1. We have audited the accompanying financial statements of M/s Mirch
Technologies Limited (the 'Company"), which comprise the Balance Sheet
as at 31st March , 2014, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Management is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the
Company in accordance with the Accounting Standards referred to in
sub-section (3C) of section 211 ofthe Companies Act, 1956 ("the
Act"). This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or
error.
Auditors' Responsibility
3-Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing and other applicable authoritative
pronouncements issued by the Institute of Chartered Accountants of
India. Those Standards require that we comply with the ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from
material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements.
The procedures selected depend on the auditor's judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to
the Company's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances but not for the purpose of expressing an opinion on
the effectiveness of the entity's internal control. An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation ofthe
financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6.ln our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a)in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the loss of
the Company for the year ended on that date, and
(c) in the case ofthe Cash Flow Statement, ofthe cash flows ofthe
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7-As required by the Companies (Auditor's Report) Order, 2003, as
amended by the companies (auditor's report)(Amendments) order 2004
("the Order") issued by the Central Government of India in terms .of
sub-section (4A) of section 227 of the Act (hereafter refer to as the
order) and on the basis of such checks of the books and the records
ofthe company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure a ®
statement on the matters specified In paragraphs 4 and 5 of the Order.
8. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of
our audit.
(b) ln our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) ln our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis ofthe written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March,
2014 from being appointed as a director in terms of clause (g) of
subsection (1) of section 274 of the Act
Annexure To The Independent Auditor's Report
Referred to in paragraph 7 of the Independent Auditor's Report of even
date to the members of Mirch Technologies Limited on the Financial
Statements as of and for the year ended 31st March 2014.
(i) (a) The company has maintained proper records showing full
particulars, Including quantitative details and situation of its fixed
assets. Independent Auditor's Report
(b)The fixed assets have been physically verified by the management at
regular interval considering the size of the Company and nature of
assets. No material discrepancies were noticed on such verification.
(it)a) As informed to us, company does not have any stock during the
year.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of its
inventories and the discrepancies noticed on such physical
verification between physical stock and the book of records were not
material and have been adequately dealt with In the books of accounts.
(iii) According to the information and explanation given to us; a)
During the year, Company has taken unsecured loans and advance from
companies, firms or the other parties listed in the register
maintained under section 301 of the Companies Act, 1956 comprising (i)
from companies aggregating to Rs.71,95,596.75/-, the maximum amount
Rs. 73,18,096.75/-, and the year end balance was Rs 71,95,596.75/- and
(ii) from director and his relatives aggregating to Rs.
2,14,96,319.49/- ,the maximum amount Rs.2,37,40,919.49/- and year end
balance was Rs.. 2,14,96,319.49/-. The company has not granted any
loan during the year to any party covered in the register maintained
under section 301 of the Companies Act,1956,
b) No interest is charged/ paid on such loans and other terms and
conditions of the aforesaid unsecured loans/advances taken by the
company are not prima fade, prejudicial to the Interest of tire
Company.
c) The Terms of repayment have not been stipulated
d) There is no overdue amount of loans/advances taken.
(iv) The Company has adequate internal control system commensurate
with the size of the Company and the nature of its business with
regards to purchase of inventory and other assets and sale of goods.
We have not come across any major weakness in internal control by
management.
(v) (a)Jn our opinion and according to the information and explanation
given to us, transactions that need to be entered into the register
maintained under section 301 have been so entered.
(b) In our opinion and according to the information and explanations
given to us there is no transactions made in pursuance of contracts or
arrangements entered in register maintained U/s.301 of companies Act,
1956 and exceeding Rs. Five Lacs in respect of any parly during the
year.
(vi) As the company has not accepted deposits from the public to which
provisions of Sections 58A and 58AA or any other provision of the
companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from the public.
(vii) Although it is required to have internal audit system, No
internal audit was carried out during the year. However, effective
internal controls are being exercised by the management, which are
generally commensurate with the size and nature of its business.
(viii) There is no record prescribed by The Central Government for the
maintenance of cost records prescribed under Section 209(1 )(d) of the
Act.
(ix) a) According to the records of the Company, the company is not
regular in depositing, undisputed statutory dues except the income tax
and professional tax with the appropriate authorities. According to
the information and explanation given to us, there are undisputated
dues payable in respect of Mumbai sates tax Rs.46,891/-, Central Sales
Tax Rs.7,30,249/-,VAT payable Rs.43,358.71/- Income Tax payable
relating to A.Y.1998-99 of Rs.6,56,680/- which have remained
outstanding as at 31st March,2014, for a period of more than sbc month
from the day they become payable.
(b)According to the information and explanation given to undisputed
sales Tax demands aggregating to Rs.3.19 Lakhs has not been deposited,
since matters are pending with appellate authorities.
(x) The accumulated losses of the company as at 31st March,2014 are
more than 50% of its net worth. The company has incurred cash losses
excluding exceptional items during the financial year covered by our
audit.
(xi) Based on our audit procedures and on the Information and
explanations given by the management, the company has not defaulted in
payment of dues to financial institution, bank or debenture holders.
(xii) According to the information and explanation given to us, the
Company has not granted any loan and advanced on the basis of security
by way of pledge of shares, debenture and other securities. -
(xiii) ln our opinion, the company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provision of clause
4{xiii) of the Order are not applicable to the company.
(xiv) As the Company is not trading in shares and securities the
provision of clause 4(xiv) of the companies (auditors reports) Order,
2003 are not applicable to the company.
(xv) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) The company has not taken any term loans during the year.
(xvii) According to the information and explanation given to us and on
an overall examination of the cash flow statement and balance sheet of
the Company, in our opinion the funds raised on short-term basis have,
prima fade, not been used for long-term investment.
(xvii) According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from the
banks and financial institutions
(xix) During the year, the company has not issued and allotted any
shares.
(xx) Since the company does not have any debentures, the question of
creation of securities for debentures does not arise.
(xxi) Since the company does not raised money by public Issue, this
clause is not applicable.
(xxii) To the best of our knowledge and belief and accounting to the
information and explanation given to us, during the year, no fraud on
or by the Company has been noticed as reported during the courses of
our audit
For and on behalf of
U.S.Tanwar & Co.
Chartered accountants
F.R. No:110B10W
Place: Mumbai (U.S.Tanwar)
Date: 20th May, 2014 Proprietor
ICAI M.No:030440 |