1. We have audited the attached Balance Sheet of MID INDIA INDUSTRIES
LIMITED, as at 31 st March, 2014 , Statement of Profit and Loss Account
and also the Cash Flow Statement of the company for the ended on that
date annexed thereto which we have signed under reference to this
report. These financial statements are the responsibility of the
Company''s management. Our Responsibility is to express an opinion on
these financial statements based on our audit.
2. 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 principals used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides areasonable basis for
3. As required by the Companies (Auditor''s Report) Order 2003, issued by
the Central Government of India in terms of Section
227(4A)oftheCompanies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said order
4. Further to ourcomments in the annexure referred to in paragraph (1)
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 purpose of our
b. In our opinion, proper books of accounts, as required by law, have
been kept by the company so far as appears from our examinations of
c. The Balance Sheet, Statement of Profit & Loss Account and the Cash
Flow Statement, dealt with by this report, are in agreement with the
books of account.
d. In our opinion, the Statement of Profit & Loss Account, the Balance
Sheet and Cash Flow Statement comply with the accounting standards
referred to in Section 211(3C) of the Companies Act, 1956 to the extent
they are applicable to the company.
e. On the basis of the information and explanations given to us none of
the directors of the company are prima facie disqualified from being
appointed as Director of the Company under 274 (1 )(g) of the Companies
f. In our opinion and to the best of our information and according to
explanations given to us, the said accounts read together with and
subject to the notes give the information required by the Companies
Act, 1956, in the manner so required and give a true and fair view:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March 2014,
(ii) In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that day and
(iii) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year
Annexure to the Auditor''s Report
(Refer to in paragraph (3) of our report of even date to the members of
Mid India Industries Limited on the Financial Statements for the years
ended 31 st March, 2014.)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) A major portion of the assets has been physically verified by the
Management in accordance with a phased program of verification adopted
by the Company. In our opinion, the frequency of verification is
reasonable having regard to size of the Company and the nature of its
assets. To the best of our knowledge, no material discrepancies have
been noticed on verification.
(ii) (a) The inventory has been physically verified by the management
during the year. In our opinion the frequency of verification is
(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 are reasonable and adequate in relation to
the size of the company and the nature of the business.
(c) In our opinion and according to the information and explanation
given to us, the company is maintaining proper records of inventory. No
material discrepancies noticed between records of inventory andphysical
verifications of inventory.
(iii) (a) The Company has taken unsecured loans from companies and
firms or other parties covered in the register maintained under section
301 ofthe Companies Act, 1956.
(b) In view of our comment in paragraph III (a) above, clauses 111 (b)
to III (g) of paragraph 4 of the Companies ( Auditors Report) Order,
2003 are not applicable to the company.
(iv) 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 the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the correct major weakness in internal control.
(v) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that the
company entered into transactions that need to be entered into the
register maintained under section 301 ofthe Companies Act, 1956
(b) In view of our comment in paragraph v (a) above, clause v (b) of
the aforesaid order in our opinion is not applicable.
(vi) The Company has not accepted any deposits from public consequently
the provisions of Section 58A ofthe Companies Act, 1956 and Companies
(Acceptances of Deposit) Rules, 1975 are not applicable.
(vii) In our opinion the company has an adequate internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
records in respect of Cotton & P.C. Yarn under section 209(l)(d) in the
companies act, 1956. We have broadly reviewed the books of accounts
maintained & in our opinion the company has prima facie maintained the
prescribed accounts & records.
(ix) (a) In our opinion the company is regular in depositing undisputed
statutory dues with the appropriate authorities.
(b) 1 n respect of undisputed income-tax, wealth tax, sales tax, custom
duty and excise duty, there were no amounts outstanding as on 31 st
March, 2013 which have remained unpaid for more than six months from
the date on which they became payable.
(x) The company has accumulated losses but has not incurred any cash
losses during the financial year covered by our report.
(xi) In our opinion and explanations given to us, the company has not
defaulted in repayment of dues to the bank.
(xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi /
mutual benefit fund society. Therefore the provisions of clause 4(xiii)
of Companies (Auditor''s Report) Order, 2003 are not applicable to the
(xiv) In our opinion, the company is not dealing in or trading in
share, 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.
(xv) 1 n our opinion, the Company has not given guarantees for loan
taken by others from banks or financial institutions.
(xvi) The company has not taken a term loan.
(xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
(xviii) The Company has not made any preferential allotment of share
during the year, therefore, the provisions of clause (xviii) of
paragraph 4 of the aforesaid order are not applicable to the company.
(xix) The Company has not issued any debenture during the year.
Accordingly the provisions of clause (xix) of paragraph 4 ofthe
aforesaid order are not applicable to the company.
(xx) The Company has not raised any money by the way of Public Issue
during the year, therefore, the provision of clause (xx) of paragraph 4
ofthe aforesaid order are not applicable to the company.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
information and explanations given by the management, we report that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
for KVNG & ASSOCIATES
PLACE: Indore (M.P.) (Registration No.002628C)
DATE : 30/05/2014
(Membership No. 071749)