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Eurotex Industries and Exports Ltd.

BSE: 521014 Sector: Industrials
NSE: EUROTEXIND ISIN Code: INE022C01012
BSE 00:00 | 20 Apr 34.55 0.30
(0.88%)
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34.55

HIGH

34.55

LOW

34.55

NSE 00:00 | 20 Apr 35.10 -1.75
(-4.75%)
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36.75

HIGH

36.75

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OPEN 34.55
PREVIOUS CLOSE 34.25
VOLUME 500
52-Week high 51.00
52-Week low 31.05
P/E
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 34.55
CLOSE 34.25
VOLUME 500
52-Week high 51.00
52-Week low 31.05
P/E
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Eurotex Industries and Exports Ltd. (EUROTEXIND) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

EUROTEX INDUSTRIES AND EXPORTS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of EUROTEX INDUSTRIES AND EXPORTSLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows 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. Thisresposibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevent to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditors' 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 specified underSection 143(10) of the Act. Those Standards required that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the 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 financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation 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 aforesaid 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 31stMarch 2017 and its loss and cash flows for the year ended on that date.

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 sub-section (11) of Section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 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 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 of account as required by law have been kept by theCompany so far as it appears from our examination of those books. (c) The Balance Sheetthe Statement of Profit and Loss and the Cash Flow Statement dealt with by this Reportare in agreement with the books of account.

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

(e) On the basis of the written representations received from the Directors as on 31stMarch 2017 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2017 from being appointed as a Director in terms of Section164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) With respect to other matter to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us: I The Company hasdisclosed the impact of pending litigations on its financial position in its financialstatements - Refer Note No. 27(1) to the financial statements.

II The Company did not have material

foreseeable losses on long term contracts including derivative contracts.

III There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company. IV The Company has disclosed the holdings aswell as dealings in Specified Bank Notes during the period from 8th November 2016 to 30thDecember 2016 in aforesaid financial statements - Refer Note 27 (16) to the financialstatements and the same was in accordance with the books of accounts maintained by theCompany.

For LODHA & CO.
Chartered Accountants
(R. P. BARADIYA)
Partner
Place : Mumbai (M. No. 44101)
Date : 20th May 2017 Firm Regn. No. 301051E

3. 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 Act. Accordingly the provisions of Clause 3(iii) of the Order are notapplicable to the Company.

4. The Company has not granted any loans guarantees and security to parties covered inSection 185 of the Act. The provisions of Section 186 of the Act have been complied inrespect of investments.

5. No deposits within the meaning of directives issued by RBI (Reserve Bank of India)and Sections 73 to 76 or any other relevant provisions of the Act and Rules framedthereunder have been accepted by the Company.

6. On the basis of records produced we are of the opinion that prima facie the costrecords and accounts prescribed by the Central Government under Section 148(1) of the Acthave been maintained. However we are not required to and thus have not carried out anydetailed examination of such accounts and records with a view to ascertain whether theseare accurate and complete.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company is generally regular indepositing undisputed statutory dues including Provident Fund Employee's State InsuranceIncome Tax Sales Tax Service Tax Duty of Customs Duty of Excise Value Added Tax Cessand other statutory dues applicable to the Company with appropriate authorities. Noundisputed amount payable in respect of the aforesaid statutory dues were outstanding asat the last day of the financial year for a period of more than six months from the datethey became payable. (b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company there are no dues of IncomeTax Sales Tax Service Tax Duty of Customs Duty of Excise Value Added Tax which havenot been deposited on account of any dispute except those mentioned in the table below:

Name of the Statute Nature of Dues Period to which it relates Amount in Rs. Forum where dispute is Pending
The Custom Act 1962 Cenvat Duty & Penalty 2006-07 13107968 Custom Excise and Service Tax Appellate Tribu- nal (CESTAT) Mumbai
The Central Excise Act 1944 Excise Duty & Penalty 2005-06 133907368 Custom Excise and Service Tax Appellate Tribu- nal (CESTAT) Mumbai
The Bombay Sales Tax Act 1959/ Central Sales Tax 2006-07 11328290 Maharashtra Sales Tax Tribunal Mumbai.
Sales Tax Act 1956 2007-08 3970230 Joint Commissi Commissionar of Sales Tax (Appeal) Kolhapur.
The Income Income Tax 2013-14 13381890 CIT(A) Mumbai
Tax Act 1961 2014-15 229915 CIT(A) Mumbai

8. The Company has not defaulted in repayment of loans or borrowings to banks duringthe year. The Company has not taken any loans or borrowings from financial institutionsgovernment and debenture holder during the year.

9. The Company has not raised any money by way of public issue or further public offerduring the year or in the recent past. Based on the information and explanations given tous by the management term loans were applied for the purpose for which the loans wereobtained.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the Generally Accepted Auditing

Practices in India and according to the information and explanations given to us wehave neither come across any instance of fraud by or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of such cases bythe management.

11. Managerial Remuneration has been paid or provided during the year in accordancewith the requisite approvals mandated by the provisions of Section 197 read with ScheduleV of the Act.

12. In our opinion the Company is not a Nidhi Company. Therfore the provisions ofClause 3(xii) of the Order are not applicable to the Company. 13. During the course of ourexamination of the books and records of the Company carried out in accordance with theGenerally Accepted Auditing Practices in India and according to the information andexplanations given to us all transactions with the related party are in compliance withsection 177 and 188 of the Act and the details have been disclosed as required by theapplicable Accounting Standard in Note no. 27(10) to the Financial Statements.

14. During the year the Company has issued 6% non-cumulative non-convertibleredeemable preference shares at par on private placement basis to PBM

Polytex Limited (a related party) to meet working capital need of the company and therequirement of Section 42 of the act has been complied with. The amount so raised has beenused for the above mentioned purpose.

15. Based on the information and explanations given to us the Company has not enteredinto any non-cash transactions prescribed under Section 192 of the Act with Directors orpersons connected with them during the year. Therefore the provisions of Clause 3(xv) ofthe Order are not applicable to the Company.

16. In our opinion the Company is not required to be registered under Section 45-IA ofthe Reserve Bank of India Act 1934. Therefore the provisions of Clause 3(xvi) of theOrder are not applicable to the Company.

For LODHA & CO.
Chartered Accountants
(R. P. BARADIYA)
Partner
Place : Mumbai (M. No. 44101)
Date : 20th May 2017 Firm Regn. No. 301051E

"ANNEXURE B"

Report on the Internal Financial Controls under Clause (i) of the Sub-Section 3 ofSection 143 of the Act.

We have audited the internal financial controls over financial reporting of EUROTEXINDUSTRIES AND EXPORTS LIMITED ("the Company") as of March 31 2017 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's 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(ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's 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 Act.

Auditors Responsibility

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 deemed to be prescribed under Section 143(10)of the Act to the extent applicable to an audit of internal financial controls bothapplicable to an audit of internal financial controls and both issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 and 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 procedureselected depends on the auditor's judgement including the assessment of the risk of thematerial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorization ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material 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.

Opinion

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"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".

For LODHA & CO.
Chartered Accountants
(R. P. BARADIYA)
Partner
Place : Mumbai (M. No. 44101)
Date : 20th May 2017 Firm Regn. No. 301051E