|BSE: 500101||Sector: Industrials|
|NSE: ARVIND||ISIN Code: INE034A01011|
|BSE 15:48 | 19 Feb||383.15||
|NSE 15:52 | 19 Feb||382.55||
|Mkt Cap.(Rs cr)||9,909|
|Mkt Cap.(Rs cr)||9909.03|
Arvind Ltd. (ARVIND) - Auditors Report
Company auditors report
To the Members of Arvind Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statementsof Arvind Limited ("the Company") which comprise the Balance Sheet as at31st March 2017 and the Statement of Profit and Loss (including Other
Comprehensive Income) the Cash Flow Statement and the Statement of
Change in Equity for the year then ended and a summary of significantaccounting policies and other explanatory information.
Management's Responsibility for the Standalone Ind AS FinancialStatements
The Company's Board of Directors is responsible for the mattersstated in
Section 134(5) of the Companies Act 2013 ("the Act") withrespect to the preparation of these standalone Ind As financial statements that give atrue and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone Ind AS financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone Ind ASfinancial statements based on our audit.
We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone Ind AS financial statements. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the standalone Ind ASfinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the
Company's Directors as well as evaluating the overallpresentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone Ind
AS financial statements.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including the IndAS of the state of affairs of the Company as at 31st March 2017 and its profit(including other comprehensive income) its cash flows and the changes in equity for theyear ended on that date.
The comparative financial information of the Company for the year ended
31st March 2016 and the transition date opening balancesheet as at 1st April
2015 included in these standalone Ind AS financial statements arebased on the previously issued statutory financial statements prepared in accordance withthe Companies (Accounting Standards) Rules 2006 (as amended) which were audited by uswhose report for the year ended 31st March 2016 and 31st March2015 dated 12th May 2016 and 14th May 2015 respectively expressedan unmodified opinion on those standalone financial statements as adjusted for thedifferences in the accounting principles adopted by the Company on transition to the IndAS which have been audited by us.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016("the
Order") issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Act we give in the Annexure A a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss (includingother comprehensive income) the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone Ind AS financialstatements comply with the Indian Accounting Standards prescribed under section 133 of theAct.
(e) On the basis of the written representations received from thedirectors as on 31st March 2017 and taken on record by the Board of Directorsnone of the directors is disqualified as on 31st March 2017 from beingappointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".
(g) With respect to the other matters to be included in the
Auditor's Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. The Company has disclosedthe impact of pending litigations on its standalone Ind AS financial position in itsstandalone Ind AS financial statements; ii. Provision has been made in the standalone IndAS financial statements as required under the applicable law or accounting standards formaterial foreseeable losses if any on long-term contracts including derivativecontracts.
iii. There has been no delay in transferring amount required to betransferred to the Investor Education and Protection Fund by the Company. iv. The Companyhas provided requisite disclosures in the standalone Ind AS financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with booksof account maintained by the Company and as produced to us by the Management.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT OF EVENDATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF ARVIND LIMITED
Referred to in Paragraph 1 under the heading "Report on otherlegal and regulatory requirements" of our Independent Auditor's Report of evendate (i) (a) The Company has generally maintained proper records showing fullparticulars including quantitative details and situation of its fixed assets.
(b) As explained to us the fixed assets have been physically verifiedby the management during the year in accordance with a phased programme of verificationwhich in our opinion provides for physical verification of all the fixed assets atreasonable intervals. We are informed that no material discrepancies were noticed on suchverification.
(c) The title deeds of immovable properties other than self-constructedimmovable property (buildings) as disclosed in fixed assets to the standalone Ind ASfinancial statements are held in the name of the Company except for the following:
Formalities for change of name are in progress.
(ii) As explained to us physical verification of inventory has beenconducted at reasonable intervals by the management and the discrepancies noticed onverification between the physical stocks and the book records were not material havingregard to the size of the Company and the same have been properly dealt with in the booksof account.
(iii) The Company has not granted secured / unsecured loans toCompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under Section 189 of the Act. Consequently requirements of clause (iii) ofparagraph 3 of the order are not applicable.
(iv) In our opinion and according to the information and explanationsgiven to us the Company has not advanced any loan or given any guarantee or provided anysecurity or made any investment covered under section 185 of the Act. However the Companyhas advanced loans or given guarantees or provided security or made investments coveredunder section 186 of the Act. We are of the opinion that provisions of section 186 of theAct have been complied with.
(v) In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public within the meaningof Sections 73 to 76 or any other relevant provisions of the Act and rules framedthereunder. No order has been passed by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any Court or any other Tribunal.
(vi) We have broadly reviewed the cost records maintained by theCompany as specified by the Central Government under sub-section (1) of Section
148 of the Companies Act 2013 and are of the opinion that primafacie the prescribed cost records have been made and maintained. We have however notmade a detailed examination of the cost records with a view to determine whether they areaccurate or complete (vii) (a) The Company is generally regular in depositing withappropriate authorities undisputed statutory dues including Provident FundEmployees' State Insurance Income Tax Wealth Tax Sales Tax Service Tax Duty ofCustom Duty of Excise Value added tax Cess and other material statutory dues applicableto it. According to the information and explanations given to us no undisputed amountspayable in respect of outstanding statutory dues were in arrears as at March 31 2017 fora period of more than six months from the date they became payable.
(b) Following amounts have not been deposited as on March 31 2017 onaccount of any dispute :
(viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of dues to financial institutionsand banks.
(ix) To the best of our knowledge and belief and according to theinformation and explanations given to us the Company has not raised moneys by way ofinitial public offer or further public offer. However the term loans obtained during theyear were prima facie applied by the Company for the purpose for which they wereraised other than temporary deployment pending application.
(x) To the best of our knowledge and belief and according to theinformation and explanations given to us no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year.
(xi) To the best of our knowledge and belief and according to theinformation and explanations given to us managerial remuneration has been paid/ providedin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.
(xii) The Company is not a Nidhi Company. Consequently requirements ofclause (xii) of paragraph 3 of the order are not applicable.
(xiii) To the best of our knowledge and belief and according to theinformation and explanations given to us all transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and the details have beendisclosed in the standalone Ind AS financial statements etc. as required by the applicableaccounting standards.
(xiv) To the best of our knowledge and belief and according to theinformation and explanations given to us the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review. Consequently requirements of clause (xiv) of paragraph 3 of theorder are not applicable.
(xv) To the best of our knowledge and belief and according to theinformation and explanations given to us the Company has not entered into any non-cashtransactions with directors or persons connected with him.
(xvi) According to the nature of the business the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE "B"TO THE INDEPENDENT AUDITOR'S REPORT OF EVENDATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF ARVIND LIMITED
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Arvind Limited ("the Company") as of March 31 2017 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on "the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(ICAI)". These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on
Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the standalone Ind AS financial statements whetherdue to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone Ind AS financial statements for externalpurposes in accordance with generally accepted accounting principles. A company'sinternal financial control over financial reporting includes those policies and proceduresthat (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) providereasonable assurance that transactions are recorded as necessary to permit preparation ofstandalone Ind AS 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) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets that could have a material effect on thestandalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2017 basedon "the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".