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Cravatex Ltd.

BSE: 509472 Sector: Others
NSE: N.A. ISIN Code: INE145E01017
BSE LIVE 15:40 | 15 Dec 436.60 -13.40
(-2.98%)
OPEN

441.00

HIGH

445.00

LOW

430.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 441.00
PREVIOUS CLOSE 450.00
VOLUME 321
52-Week high 538.25
52-Week low 191.00
P/E
Mkt Cap.(Rs cr) 113
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 441.00
CLOSE 450.00
VOLUME 321
52-Week high 538.25
52-Week low 191.00
P/E
Mkt Cap.(Rs cr) 113
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Cravatex Ltd. (CRAVATEX) - Auditors Report

Company auditors report

To the Members of Cravatex Limited

Report on the Financial Statements

We have audited the accompanying standalone financial statements of Cravatex Limited("the Company") which comprise the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and a summaryof significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

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 thereunder.

We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2017 and its loss and its cash flows for the year ended on that date.

Other Matters

An amount of Rs.7750000 is due from a party with whom the Company had entered into aContract of Engagement as a Consultant in an earlier year. The Contract was terminatedwith effect from 1 April 2007. The Company initiated Arbitration proceedings and ishopeful of recovering this amount (refer to Note ‘2.27' to the financial statements).We are however unable to comment on the fate of this debt.

Our report is not qualified in respect of other 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 of section 143 of the Act we give inthe Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books (and proper returns adequatefor the purposes of our audit have been received from branches not visited by us).

c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account (and with the returns receivedfrom branches not visited by us).

d. In our opinion aforesaid financial statements comply with the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

e. On the basis of written representations received from the directors as on 31 March2017 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2017 from being appointed as a director in terms of section 164(2) of theAct.

f. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rule 2014 in our opinionand to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of the pending litigation on its financialstatements. (Refer to Note ‘2.27' to the financial statements)

(ii) The Company has made provision as required under any applicable law or accountingstandards for material foreseeable losses if any and as required on long- termcontracts.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

(iv) The Company has provided requisite disclosure in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accounts maintainedby the Company (Refer Note ‘2.34' in the financial statements).

For S. P. CHOPRA & CO.

Chartered Accountants

Firm Registration No. 101911W
Y. K. Shankardass

Partner.

Membership No. F-5106
Place : Mumbai
Dated : May 29 2017

Annexure to the Auditors' Report

Annexure referred to in paragraph 1 of Report on Other Legal and RegulatoryRequirements of even date to the Members of Cravatex Limited

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) According to the information and explanations given to us the assets have not beenphysically verified by the management during the year but there is a regular programme ofverification which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. We are informed that no material discrepancies were noticedon such verification.

(c) According to the information and explanations given to us the title deeds ofimmovable properties are held in the name of the company.

(ii) As explained to us the inventory has been physically verified during the year bythe management. In our opinion the frequency of verification is reasonable and thediscrepancies noticed on verification between the physical stock and the book records werenot 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.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has not prescribed maintenance of cost records undersection 148 (1) of the Companies Act 2013 for any of the product of the Company.

(vii) (a) According to the records maintained by the Company the Company is regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand any other statutory dues applicable to it with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof such statutory dues were in arrears as on 31 March 2017 for a period of more than sixmonths from the date they became payable.

(b) According to the records of the Company there are no dues of income-tax or salestax or service tax or duty of customs or duty of excise or value added tax or cess whichhave not been deposited on account of any dispute.

(viii) As per information and explanations given by the management the Company has notdefaulted in repayment of loans or borrowing from banks. The Company does not have anyloans or borrowings from any financial institution government or debenture holders duringthe year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the records maintained by the Company and as per information andexplanations given to us the managerial remuneration has been paid in accordance with therequisite approvals as required under section 197 read with Schedule V to the CompaniesAct 2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company.

Accordingly paragraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements (Note ‘2.35').

(xiv) The Company has made private placement to related parties of 9000000 4%Non-convertible Cumulative Redeemable Preferential Shares of Rs.10/- each during the yearin compliance with Section 42 of the Companies Act 2013 and the amount raised has beenused for the purpose for which the funds were raised.

(xv) As per information and explanations given to us the Company has not entered intoany non-cash transactions with directors or persons connected with him.

(xvi) As explained to us the Company is not required to be registered under section45-1A of the Reserve Bank of India Act 1934 as this is not applicable to the Company.

For S. P. CHOPRA & CO.

Chartered Accountants

Firm Registration No. 101911W
Y. K. Shankardass

Partner.

Membership No. F-5106
Place : Mumbai
Dated : May 29 2017