Auditor
Independent Auditors Report
Report on the Financial Statements
We have audited the accompanying Financial Statements of Micro Technologies
(India) Limited (the Company) which comprise the Balance Sheet as at September
30, 2013, the Statements of Profit & Loss and Cash Flow for the period then ended and
a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
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 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 consolidated 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, New Delhi. 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
disclosures in the financial statements. The procedures selected depend on the auditors
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 control relevant to the Companys preparation and presentation 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 accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall presentation of the
financial statement.
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 explanation
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 case of the Balance Sheet, of the state of affairs of the Company for 18 month
period ended on 30th September 2013.
b) In case of the Statement of Profit and Loss Account, of the loss of the Company for
the18 month period ended on 30th September 2013.
c) In case of the Cash Flow Statement, of the cash flows of the Company for the 18
month period ended on 30th September 2013.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003 ("the Order")
as amended 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 purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books;
c. The Balance Sheet and the Statements of Profit & Loss and Cash Flow dealt with
by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet and the Statements of Profit & Loss and Cash
Flow comply with the Accounting Standards referred to in sub-section (3C) of section 211
of the Act and
e. On the basis of written representation received from the Directors as on 30th
September, 2013 and taken on record by the Board of Directors, none of the Directors is
disqualified as on 30th September, 2013 from being appointed as a Director in terms of
clause (g) of sub-section (1) of section 274 of the Act.
Laxmikant Kabra & Co,
Chartered Accountants
Firms Registration No. 117183W
Laxmikant Kabra
Proprietor
Membership No.- 101839
Date:- 29th November , 2013
Thane
ANNEXURE TO THE AUDITORS REPORT
The annexure referred to in our report to the members of Micro Technologies (India)
Limited (the Company) for the 18 Months period ended on 30th September, 2013
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
b) The Fixed Assets have been physically verified by the management at reasonable
intervals which in our opinion, is reasonable having regards to the size of the company.
The discrepancies noticed on such verification were not material and have been properly
dealt with in the books of Account.
c) In our opinion and according to the information and explanations given to us, the
Company has not disposed off a substantial part of its fixed assets during the year.
2. In respect of inventories:
a) As explained to us, the inventories were physically verified during the year by the
management at reasonable intervals.
b) In our opinion and according to the information and explanations given to us, the
procedure of physical verification of inventories followed by the management is 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 explanations given to us, the
Company has maintained proper records of its inventories and the discrepancies noticed on
such physical verification between physical stock and book records were not material and
have been adequately dealt with in the books of account.
3. a) The company has not granted any loans, secured or unsecured, to companies, firms
or other parties listed in the Register maintained under Section 301 of the Companies Act,
1956. As the company has not granted any loans, secured or unsecured, to parties listed in
the Register maintained under Section 301 of the Companies Act, 1956, paragraph (iii)(b),
(c) and (d) of the Order, are not applicable.
b) The company has not taken any loans, secured or unsecured, from companies, firms or
other parties listed in the Register maintained under Section 301 of the Companies Act,
1956. As the company has not taken any loans, secured or unsecured, from parties listed in
the Register maintained under Section 301 of the Companies Act, 1956, paragraphs (iii)(f)
and (g) of the Order, are not applicable.
4. In our opinion and according to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of the Company and
nature of its business with regard to purchases of inventory, fixed assets and for the
sale of goods and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control systems:
5. In respect of particulars of contracts or arrangements and transactions entered in
the register maintained in pursuance of Section 301 of the Companies Act, 1956:
a) To the best of our knowledge and belief and according to the information and
explanations given to us, particulars of contracts or arrangements that needed to be
entered into the register have been so entered.
b) In our opinion and according to the information and explanations given to us, having
regards to the fact that the items purchased/sold, services rendered/received are of a
special nature and suitable alternate sources do not exists for obtaining comparative
quotation, the transactions made in pursuance of contracts or arrangements entered into
the register in pursuance of section 301 of the Act in respect of any party during the
year, have been made at prices which are reasonable having regard to the prices at which
the transactions for similar goods/ services have been made with other parties.
6. In our opinion and according to the information and explanations given to us, the
Company has accepted deposits from the public within the meaning of section 58A and 58AA
of the Act and the rules frame there under. There are some delay in payment toward
interest/Principal during the period under review
7. In our opinion the internal audit functions carried out during the year was
commensurate with the size of the company and nature of its business.
8. The Central Government has not prescribed maintenance of Cost Records under Section
209 (1) (d) of the Companies Act, 1956 in respect of the activities carried out by the
Company.
9. According to the information and explanations given to us in respect of statutory
and other dues:
a) The Company during the 18 month period have been generally regular in depositing
with the appropriate authorities undisputed statutory dues, including Provident Fund,
Employees State Insurance, Income Tax, Value Added Tax, Central Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues.
b) According to the information and explanations given to us, no undisputed amounts
payable in respect of aforesaid, were in arrears, as at 30th September 2013, for a period
of more than six months from the date they became payable.
10.The Company does not have any accumulated losses as at the end of 18 month period as
on 30th September 2013 and has not incurred cash losses during the current financial year
and in the immediately preceding financial year.
11.Based on our audit procedures and on the basis of information and explanations given
by management, we are of the opinion that the Company has defaulted to the tune of Rs.
28927.71 Lacks in repayment of dues to financial institutions and banks.
12. According to information and explanations given to us, the Company has not granted
any loans and advances on the basis of security by way of pledge of shares, debentures and
other securities and hence, the question of maintenance of adequate records for this
purpose does not arrive.
13.In our opinion and according to information and explanations given to us, the
company is not a chit fund / nidhi / mutual benefit fund or society. Therefore the
provisions of clause (xiii) of paragraph 4 of the Companies (Auditors Report) Order, 2003
are not applicable to the Company.
14. In our opinion and according to the information and explanations given to us, the
Company is not a dealer or trader in shares, securities, debentures and other investments.
Accordingly, the provisions of clause 4(xiv) of the order are not applicable to the
Company.
15.In our opinion, and according to the information and explanations give to us, the
terms and conditions on which the company has given the guarantees for loans taken
subsidiary from bank are not prejudicial to the interest of the company.
16.To the best of our knowledge and belief and according to the information and
explanations given to us, in our opinion, term loans availed by the company were, prima
facie, applied by the company during the year for the purpose for which the loans were
obtained.
17.On the basis of an overall examination of the balance sheet of the company, in our
opinion and according to the information and explanation given to us, there are no funds
raised on short-term basis which have been used for long-term investments and vice versa.
18.The Company has made preferential allotment of shares/warrants to parties and
companies covered in the register maintained u/s 301of the Companies Act, 1956 during the
year. In our opinion, prices at which shares have been issued is not prejudicial to the
interest of the company.
19. The company has neither issued nor had any outstanding debenture during the period
under review. Accordingly, the provision of clause 4(xix) of the Order are not applicable.
20.The company has not raised any money by public issues during the year. Accordingly,
the provisions of clause 4(xx)of the Order are not applicable.
21. During the course of our examination of the books and records of the company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of material fraud on or by the company, noticed or reported during the period,
nor have we been informed of such case by the management.
Laxmikant Kabra & Co,
Chartered Accountants
Firms Registration No. 117183W
Laxmikant Kabra
Proprietor
Membership No.- 101839
Date:- 29th November , 2013
Thane
+91-9892691696
