REPORT ON THE FiNANCiAL STATEMENTS
We have audited the accompanying financial statements of MPS LIMITED
(the Company), 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 RESPONSiBILiTV 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 Section 211(3C)
of the Companies Act, 1956 (the Act) 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.
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
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 judgement, 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
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 Company''s internal control. An audit also includes
evaluating the appropriateness of the 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.
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:
(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 REGULATORV REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government in terms of Sec- tion
227(4A) 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
(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
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agree- ment with the
books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Ac- counting
Standards referred to in Section 211(3 C) of theAct.
(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 Section 274(1)(g) of the
ANNEXURE TO THE iNDEPENDENT AUDiTORS'' REPORT (Referred to in paragraph
1 under ''Report on Other Legal and Regulatory Requirements'' section of
our report of even date)
(i) Having regard to the nature of the Company''s
business/activities/results during the year, clauses ii, v, vi, viii,
xii, xiii, xiv, xvi, xix, xx of paragraph 4 of the Order are not
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets are physically verified by the Management in
accordance with a program of verification, which in our opinion
provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured to/ from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Compa- ny and the nature of its business with regard to purchases of
fixed assets and the rendering of services. During the course of our
audit, we have not observed any major weakness in such internal control
system. The activities of the Company do not involve purchase of
inventory and sale of goods.
(v) In our opinion, the internal audit functions carried out during the
year by an external agency appointed by the Man- agement have been
commensurate with the size and the nature of its business.
(vi) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income-tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities, except for certain delays in remittances of Valued Added
Taxes and Service Tax.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employ- ees'' State
Insurance, Income-tax, Sales tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues in arrears as
at 31st March, 2013 for a period of more than six months from the date
they became payable, other than Rs.17,699 relating to Service Tax which
has been deposited by the Company subsequent to the year end.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom duty, Excise Duty and Cess which have not been deposited as on
31st March, 2013 on account of disputes are given below:
Statute Nature of Dues Forum where Dispute is pending
Income Tax Act, 1961 Income Tax Income Tax Appellate Tribunal
Commissioner of Income Tax
Dispute Resolution Panei (DRP)
The Finance Act Service Tax Customs and Excise Service
Tax Appellate Tribunal
Statute Year to which the amount Amount
relates (Rs. in lacs)
Income Tax Act 1961 2004-05 and 2006-07 143.95
2006-07 and 2007-08 496.87
The Finance Act April 06 to September, 2008 191.47
(vii) The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
(viii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repay- ment of dues
to banks. There are no borrowings from financial institutions and the
Company has not issued any debentures.
(ix) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
(x) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have, prima facie, not
been used during the year for long- term investment.
(xi) The Company has not made any preferential allotment of shares to
parties and companies covered in the Register main- tained under
section 301 of the Act.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Com- pany has been
noticed or reported during the year.
For DELOITTE HASKINS & SELLS
(Firm Registration No. 008072S)
MUMBAI, 27th May, 2013 (Membership No. 47840)