Alstone Textiles (India) Ltd.
|BSE: 539277||Sector: Others|
|NSE: N.A.||ISIN Code: INE184S01016|
|BSE 05:30 | 01 Jan||Alstone Textiles (India) Ltd|
|NSE 05:30 | 01 Jan||Alstone Textiles (India) Ltd|
|BSE: 539277||Sector: Others|
|NSE: N.A.||ISIN Code: INE184S01016|
|BSE 05:30 | 01 Jan||Alstone Textiles (India) Ltd|
|NSE 05:30 | 01 Jan||Alstone Textiles (India) Ltd|
Annexure-IV INDEPENDENT AUDITORS REPORT
ALSTONE TEXTILES (INDIA) LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of ALSTONE TEXTILES (INDIA)LIMITED which comprise the Balance Sheet as at March 31 2017 & the Statement ofProfit and Loss & the cash flow statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 with respect to the preparation and presentation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flow of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit .We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement. Anaudit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give true and fair view In order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and operating effectiveness of such controls. Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Companys Directors as well asevaluating the overall presentation of the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: (a) In the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2017; and (b) In the case of the Profit and LossAccount Profit of Rs.199009.00 for the period ended on 31st March 2017. (c)In the case of the cash flow statement of the cash flows for the year ended 31 March2017.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure A a statement on the matters specified inthe paragraph 3 and 4 of the order.
2. As required by section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c) The Balance Sheet the Statement of Profit and Loss and thecash 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 theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014; e) In our opinion and based on the information andexplanations provided to us there are no financial transactions or matters which haveadverse effect on the functioning of the Company. f) On the basis of writtenrepresentations received from the directors as on 31 March 2017 taken on record by theBoard of Directors none of the directors is disqualified as on 31 March 2017 from beingappointed as a director in terms of Section 164(2) of the Act. g) With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate report in"Annexure B"; and h) In our opinion and to the best of our information andaccording to the explanations given to us we report as under with respect to othermatters to be included in the Auditors Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Amendment Rules 2017: i. There were pending litigationswhich could impact the financial position in the financial statements of the company ii.The Company did not have any long-term contracts including derivatives contracts for whichthere were any material foreseeable losses. iii. The Company did not have any amount fortransfer to the Investor Education and
Protection Fund. iv. The Company has provided requisite disclosure in financialstatement as to holdings and dealings in Specified Bank Notes (SBN) in notes to accountduring the period 08.11.2016 to 30.12.2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the company and as produced to us by the management (Refer Note).
Annexure A to the Auditors Report
The annexure a referred to in paragraph 3 and 4 of the our Report of Even date to themembers of ALSTONE TEXTILES (INDIA) LIMITED on the Accounts of the Company for the yearended 31st March 2017
(i) In respect of its Fixed Assets: a) In our opinion and according to the informationand explanations given to us the company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets. b) According tothe information and explanations given to us fixed assets of the company have beenphysically verified by the management at reasonable intervals which in our opinion isreasonable having regard to the size of the company and the nature of its assets. Nomaterial discrepancies were noticed on such verification. c) In our opinion and accordingto information and explanations provided by the management no land exist in the name ofthe company.
(ii) The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable and as per information andexplanation provided by the management discrepancies noticed on verification betweenphysical stocks and the book records were not material.
(iii) The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 therefore the provision of clause (iii) (a) &(b) of the orders are not applicable to the company.
(iv) As per the information and explanations provided to us and on the basis of ourexamination of the records of the Company the Company has given loan of Rs. 2692000/-which was very old as per information provided by the management proper measures has beentaken place to recover the same. Therefore provision of Sec 185 of the Companies Act 2013was not applicable whereas the Company having investment in shares which exceeds thelimit refer to in Sec 186 of the Companies Act 2013. As per provision of Sec 186 priorapproval by means of special resolution passed at general meeting for such investment. Buttill now no special resolution taken place.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company.
(vii) In respect of statutory dues: a. According to the information and explanationsgiven to us and on the basis of our examination of the records of the company amountdeducted/accrued in the books of account in respect of undisputed statutory dues includingProvident fund Employees State Insurance Income Tax Sales Tax Services Tax Dutyof Customs Duty of Excise Value Added Tax Cess and other material statutory dues havebeen regularly deposited during the year by the company with the appropriate authorities.As explained to us the Company did not have any undisputed liability at the end of theyear which was outstanding for a period of more than six months from the date it becamepayable by the company.
b. In Case of the Income Tax following are the outstanding disputed tax demand
(viii) The company has not taken any loan or borrowings from financial institutionBank Government or dues to debenture holders hence the default in repayment of dues tofinancial institutions banks and Government does not arise.
(ix) In our opinion and according to the Information & Explanation given to us thecompany has not raised moneys by way of initial public offer or further public offer(including debt instruments) and term loans so the clause is not applicable for thecompany.
(x) Based on the procedure performed and the information and explanation given to uswe report that no fraud on or by the company has been noticed or reported during the yearnor we have been informed of such cases by the management.
(xi) In our opinion and according to the information and explanation given to uscompany has no liability regarding managerial remuneration in accordance with therequisite approval mandated by the provisions of section 197 read with Schedule V to theCompanies Act.
(xii) The company is not a Nidhi company hence the provision related to the NidhiCompany is not applicable.
(xiii) In our opinion and according to the information and Explanation given to uscompany has complied the provision of related party transaction refer in sections 177 and188 of Companies Act 2013 and the detail have been disclosed in the financial statementas required by the applicable Accounting Standard.
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.
(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him.
(xvi) The company is not an NBFC hence the company is not to be registered undersection 45-IA of the Reserve Bank of India Act 1934.
For SANJEEV GAURAV & ASSOCIATES (Chartered Accountants) Firm Registration No:017483C
CA Gaurav Agarwal Partner (Membership No.: 415745)
Place: New Delhi Date: 26.05.2017
Annexure B to the Auditors Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of"ALSTONE TEXTILES (INDIA) LIMITED" as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to companys policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:-
1. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company.
2. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountant of India.
For SANJEEV GAURAV & ASSOCIATES
Firm Registration No: 017483C
CA Gaurav Agarwal
(Membership No.: 415745)
Place: New Delhi