Office No.

15, Dalal Chambers

DAYANAND SHETTY & CO. Market Yard, Gultekdi
CHARTERED ACCOUNTANTS Pune, Maharashtra-411037

“Annexure A” to the Independent Auditor’s Report

Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of
our report of even date to the financial statements of M-Tech Innovations Limited for the year ended on
31st March, 2019.

(i) In Respect of Fixed Assets

a). The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets.

b). As explained to us, all the fixed assets have been physically verified by the management at
reasonable intervals during the year. And according to the information and explanations given
to us in respect of assets physically verified during the year, no material discrepancies have
been noticed on such verifications as compared to the book records.

c). According to the information and explanations given to us, the records examined by us and
based on the examination of the conveyance deeds provided to us, we report that, the title
deeds, comprising all the immovable properties of land and buildings which are freehold, are
held in the name of the Company as at the balance sheet date.

In respect of immovable properties of land and building that have been taken on lease and
disclosed as fixed assets in the financial statements, the lease agreements are in the name of the
Company.

(ii) In Respect of Inventories

The inventory has been physically verified by the management during the year. In our opinion,
the frequency of such verification is reasonable. According to the information and explanations
given to us and as examined by us, no material discrepancies were noticed on such verification.

(iii) Compliance under section 189 of the Companies Act, 2013

According to information and explanation given to us, the company has not granted any loan,
secured or unsecured to companies, firms, limited liability partnerships or other parties covered in
the register required under section 189 of the Companies Act, 2013. Accordingly, paragraph 3 (iii)
of the order is not applicable.
 Office No.15, Dalal Chambers
DAYANAND SHETTY & CO. Market Yard, Gultekdi
CHARTERED ACCOUNTANTS Pune, Maharashtra-411037

(iv) Compliance under section 185 and 186 of the Companies Act, 2013
According to the information and explanations given to us, the Company has not made any
loans, investments, provided guarantees or security during the year, hence reporting on
compliances with the provisions of section 185 and 186 of the Companies Act, 2013 is not
applicable.

(v) Compliance under section 73 to 76 of the Companies Act, 2013 and Rules framed
thereunder while accepting deposits
According to the information and explanations given to us, the Company has not accepted any
deposit from the public, thus the compliance with the directives issued by the Reserve Bank of
India and the provisions of the sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed thereunder is not applicable to the company. Since
no order has been passed by Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any court or any other tribunal, the compliance with such orders is
not applicable to the Company.

(vi) Maintenance of Cost Records

In our opinion and according to the information and explanations given to us, the activities of
the Company are not covered under the rules made by the central government for maintenance
of cost records under section 148(1) of the Companies Act, 2013 and accordingly paragraph 3
(vi) of the order is not applicable to the company.
 Office No.15, Dalal Chambers
DAYANAND SHETTY & CO. Market Yard, Gultekdi
CHARTERED ACCOUNTANTS Pune, Maharashtra-411037

(vii) Deposits of Statutory Dues

a). According to the records of the company, the company is not regular in depositing
with appropriate authorities the undisputed statutory dues including provident fund,
employees’ state insurance , income-tax, sales-tax, Goods and Service Tax, wealth tax, service
tax, customs duty, excise duty, value added tax, cess and other statutory dues applicable to it .
According to the information and explanations given to us, there are no undisputed amounts
payable in respect of provident fund, employees’ state insurance contribution, income-tax,
sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and
other statutory dues outstanding for a period more than six months as on 31st March, 2018,
from the date they became payable, except dues as follows:
Sr.
Nature of Dues Financial Year Amount (Rs.)
No.
1)
2)
3)
4)
5)
6)
7)

8)
9)
10)
11)
12)
13)
14)
15)
16)
17)
18)
19)
20)
21)
 Office No.15, Dalal Chambers
DAYANAND SHETTY & CO. Market Yard, Gultekdi
CHARTERED ACCOUNTANTS Pune, Maharashtra-411037

b) According the records of the Company, there are no dues of income tax, sales tax,
wealth tax, service tax, duty of customs, duty of excise, value added tax or cess which have not
been deposited with the appropriate authorities on account of any dispute except the following:

Amount
Name of Period to which Forum where dispute
Nature of Dues (Rs.in
Statute amount Relates is pending
lakhs)
 Office No.15, Dalal Chambers
DAYANAND SHETTY & CO. Market Yard, Gultekdi
CHARTERED ACCOUNTANTS Pune, Maharashtra-411037

(viii) Repayment of Loans and Borrowings

Based on our Audit Procedures and according to the information and explanations given by
the management, during the year under review the Company has defaulted in repayment of
dues to banks as follows:

Total Amount Period of

Sr.
Particulars of Default Default
No.
(Rs. In lakhs) (in days)

State Bank of India Term Loan Account No.

1. 81.35 1 to 15 days
II 30340363394

State Bank of India Term Loan Account No.

2. 9.82 1 to 13 days
III 30662778597

State Bank of India Working Capital Term

3. 22.34 1 to 13 days
Loan II Account No. 32726296676

Vishweshar Shah Sahakari Bank Ltd.

4. 41.06 1 to 29 days
Account No. 2219/1019

These defaults have been paid before the year end. Defaults which was outstanding at the year
end has since then been paid. There are no debenture holders at any time during the financial
year.

ix) Utilization of Money Raised by Public Offers and Term Loan for which they Raised
According to the records of the Company and as per the information & explanation given to
us, the company has not raised moneys by way of Initial Public Offer, or further Public Offer,
but has obtained a term loan during the year which has been applied for the purpose for which
it was raised.

x) Reporting of Fraud During the Year

Based on our audit procedures and the information and explanations made available to us by
the management, no such fraud has been noticed or reported during the course of our audit.
 Office No.15, Dalal Chambers
DAYANAND SHETTY & CO. Market Yard, Gultekdi
CHARTERED ACCOUNTANTS Pune, Maharashtra-411037

xi) Managerial Remuneration

According to the information and explanations given to us by the management, 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, 2013.

xii) Compliance by Nidhi Company regarding Net Owned Funds to Deposit Ratio
In our opinion and to the best of our information and according to explanations provided by the
management, we are of the opinion that the company is not a Nidhi Company, hence in our
opinion, the requirements of Clause 3(xii) of the Order is not applicable to the company.

xiii) Related party compliance with Section 177 and 188 of companies Act - 2013
In our opinion, and to the best of our information and according to explanations given by the
management, the related party transactions entered into by the company during the period under
review are in compliance with the provisions of Section 177 and 188 of Companies Act 2013
where applicable and the details of the transactions have been disclosed in the Financial
Statements as required by the applicable accounting standards.

xiv) Compliance under section 42 of Companies Act - 2013 regarding Private placement of
Shares or Debentures.
According to information and explanation given to us, the company has not made preferential
allotment of Equity Shares private placements of shares or fully or partly convertible
debentures during the year under review. Accordingly, the provisions of Clause 3 (xiv) of the
Order on whether the company has complied with the provisions of Section 42 of the
Companies act 2013 are not applicable and hence not commented upon.

xv) Compliance under section 192 of Companies Act – 2013.

Based on the Audit procedures performed and the information and explanations given to us, the
Company has not entered into non-cash transactions with the directors / person connected with
the director during the year hence in our opinion, the requirements of Clause 3(xv) of the Order
is not applicable to the Company.
 Office No.15, Dalal Chambers
DAYANAND SHETTY & CO. Market Yard, Gultekdi
CHARTERED ACCOUNTANTS Pune, Maharashtra-411037

xvi) Requirement of Registration under 45-IA of Reserve Bank of India Act, 1934
In our opinion the company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934 and accordingly, the provisions of clause 3(xvi) of the Order is not
applicable to the Company and hence not commented upon.

For Dayanand Shetty & Co.

Chartered Accountants
ICAI Firm Regn. No. 112989W

CA Dayananda Shetty
Proprietor
Membership No. 042348
Place: Pune,
Dated: 17th August 2018