To,
The Members of,
MMS INFRASTRUCTURE LIMITED
Report on the Financial Statements
1. We have audited the accompanying financial statements of MMS INFRASTRUCTURE
LIMITED ( the company), which comprises Balance Sheet as at 31st March
2016, the Statement of Profit and Loss account and Cash Flow Statement for the year then
ended, and a Summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
2. The Companys 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 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 provision 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 materials 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 have taken into account the provision 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 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 procedure 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 assessment, the
auditor considers internal financial control relevant to the Companys 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
and the operating effectiveness of such control. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness of the accounting
estimates made by the Companys 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
4. In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid 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 cash flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
5. As required by the Companies (Auditors Report) Order, 2016 (the Order) issued by
the Central Government in terms of Section 143 (11) of the Act, we enclosed in the
annexure a statement on matters specified in paragraph 3 and 4 of the said order.
6. 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 purpose of our audit.
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c) The Balance Sheet and the Statement of Profit and Loss and 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 and taken on record by the Board of Directors, we report that none of the
directors is disqualified as on 31st March 2016 from being appointed as a
directors in terms of section 164(2) of the Act.
f) Report on the Internal Financial Controls under Clause (1) of Sub-section 3 of
section 143 of the companies Act, 2013 ("the Act")- is enclosed an annexure to
this report.
g) With respect to the other matters to be included in the Auditors 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. As informed to us the Company does not have any pending litigations which would
impact its financial position
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.
For RAR & Associates.
CHARTERED ACCOUNTANTS
FRN 100431W
Sd/-
CA Anil Goyal
Partner
Membership No.043429
Place : Mumbai
Date : 31/12/2016
ANNEXURE A TO INDEPENDENT AUDITORS REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal and
Regulatory Requirements" of our report of even date
On the basis of such checks as we considered appropriate and in terms of the
information and explanations given to us, we state that: -
i. a. The Company has generally maintained proper records showing full particulars,
including quantitative details and situation of fixed assets, however as on the balance
sheet date there are no fixed assets.
b. We have been informed that the fixed assets of the Company have been physically
verified by the management during the year and no material discrepancies have been noticed
on such verification.
ii. In respect of inventories:
Considering the nature of business, the company does not have inventory. In view of
this, paragraph 3 (ii) of the order is not applicable to the company.
iii. According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company has not granted any loans, secured or
unsecured, to companies, firms, Limited Liability Partnerships or other parties listed in
the register maintained under Section 189 of the Companies Act, 2013.Consequently, the
provisions of clauses iii (a), (b) and (c) of the order are not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us,
company has complied with the provision of section 185 and 186 of the Companies Act, 2013
In respect of loans, investment, guarantees, and security.
v. The company has not accepted any deposits from the public and hence the directives
issued by the Reserve Bank of India and the provision of sections 73 to 76 or any other
relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules,2015 with
regards to the deposits accepted from the public are not applicable.
vi. As per information & explanation given by the management, maintenance of cost
records has not been specified by the Central Government under sub-section (1) of section
148 of the Companies Act, 2013, Hence the clause (vi) is not applicable.
vii. a. According to information and explanations given to us and on basis of our
examination of the books of account, and records, the company has been generally regular
in depositing undisputed statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-tax, Sales-tax, Service Tax, Custom
Duty, Excise Duty, value added tax, cess and any other statutory dues with the appropriate
authorities. According to the information and explanations given to us there were no
outstanding statutory dues as on 31st of March, 2016 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 is no amount
payable in respect of income tax, service tax, sales tax, customs duty, excise duty, value
added tax and cess whichever applicable, which have not been deposited on account of any
disputes.
viii. In our opinion and according to the information and explanations given by the
management, we are of the opinion that, the Company has not defaulted in repayment of dues
to a financial institution or bank. The Company has taken any loan from financial
institutions or from the government and has not issued any debentures.
ix. Based on our audit procedures and according to the information given by the
management, the company has not raised any money by way of initial public offer or further
public offer (including debt instruments) or taken any term loan during the year.
x. According to the information and explanations given to us, we report that no fraud
by the company or any fraud on the Company by its officers or employees has been noticed
or reported during the year.
xi. According to the information and explanations given to us, we report that
managerial remuneration has been paid or provided in accordance with the requisite
approvals mandated by the provisions of section 197 read with Schedule V to the Companies
Act.
xii. The company is not a Nidhi Company. Therefore clause xii) of the order is not
applicable to the company.
xiii. According to the information and explanations given to us, all transactions with
the related parties are in compliance with sections 177 and 188 of Companies Act, 2013
where applicable and the details have been disclosed in the Financial Statements etc. as
required by the applicable accounting standards.
xiv. The company has not made any preferential allotment or private placement of share
or fully or partly convertible debentures during the year under review and hence
provisions of Clause 3(xiv) of the aforesaid Order are not applicable to company.
xv. Based upon the audit procedures performed and the information and explanations
given by the management, the company has not entered into any non-cash transactions with
directors or person connected with him. Accordingly, the provision of clause 3 (xv) of the
Order are not applicable to the Company and hence not commented upon.
xvi. The Company Is not required to obtain registration as required under section 45-IA
of the Reserve bank of India Act, 1934.
For RAR & Associates.
CHARTERED ACCOUNTANTS
FRN 100431W
Sd/-
CA Anil Goyal
Partner
Membership No.043429
Place : Mumbai
Date : 31/12/2016
Annexure B
REPORT ON INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Report on the Internal Financial Controls under Clause (il of Sub-section 3 of Section
143 of the Companies Act. 2013 ("the Act")
We have audited the internal financial controls over financial reporting of MMS
INFRASTRUCTURE LIMITED ("the Company") as of March 31,2016 in conjunction
with our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys 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. 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 companys 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.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys 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 "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. 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 auditors judgement,
including the assessment of the risks of material misstatement of the 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 Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys 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 financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
3. Provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over 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, 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 March 31,2016, 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.
For RAR & Associates.
CHARTERED ACCOUNTANTS
FRN 100431W
Sd/-
CA Anil Goyal
Partner
Membership No.043429
Place : Mumbai
Date : 31/12/2016.
+91-9892691696
