TO THE MEMBERS OF GINNI FILAMENTS LIMITED Report on the Financial Statements
We have audited the accompanying financial statements of Ginni Filaments Limited ("theCompany") which comprise the Balance Sheet as at 31st March 2017 the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant 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 Act2013 ("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. Thisresponsibility 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 judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financialcontrols that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether dueto fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 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 financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence on a test basis about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor's judgmentincluding 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.
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 (b) In the case of the Statement of Profitand Loss of the profitsor the year on that date and f (c) In the case of Cash FlowStatement of the 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 in paragraphs 3and 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 purpose 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 Statement of Profit and Loss and CashFlow Statement dealt with by this Report are in agreement with the books of account; d. Inour opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards specified under section 133 of the Act read with Rule7 of the Companies (Accounts) Rules2014; e. On the basis of written representationsreceived from the directors as at 31st March 2017 and taken on record by the Board ofDirectors none of the directors is disqualified as at 31 st March 2017 from beingappointed as a director in terms of Section 164 (2) of the Act; (f) With respect to theadequacy of internal financial controls over financial reporting of the Company and theoperating effectiveness of such controls refer to our separate report in"Annexure-B".
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us : i theCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements- Refer Note 31 (a) and 33 to the financial statements; ii. theCompany has long-term contracts as at 31st March2017 for which there were no materialforeseeable losses. The company has not entered in to long term derivative contractsduring the year. iii there has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company. iv The Companyhas provided requisite disclosures in its financial statements as to holdings as well asdealings in Specified Bank Notes during the period from 8th November 2016 to 30thDecember 2016. However we are unable to state whether these are in accordance with booksof account maintained by the company since the company did not maintain record ofdenomination of currency notes including of specified Bank Notes in their books ofaccount as produced to us by the Management Refer Note 40 to the financial statements.
|For P.L.Gupta & Co. |
|Chartered Accountants |
|Firm Registration No.-011575C |
|YUVRAJ SINGH |
|Membership No.-071846 |
|Place : Noida |
|Dated : 12th May 2017 |
ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON FINANCIAL STATEMENTS OFGINNI FILAMENTS LIMITED
Referred to in Paragraph 1 under the heading " Report on Other Legal andRegulatory Requirements" of our report of even date.
(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verified during the year by the managementin accordance with a program of verification which in our opinion provides for physicalverification of all the fixed assets at reasonable intervals. According to information andexplanations given to us no material discrepancies were noticed on such verification. (c) The title deeds of immovable properties are held in the name of Company. (ii) Theinventory (excluding stocks with third parties and materials in transit) has beenphysically verified during the year by the management. In our opinion the frequency ofverification is reasonable. We are informed that the discrepancies identified on physicalverification of inventories as compared to book records were not material and have beenproperly dealt with in the books of account.
(iii) As informed to us the company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Act. Consequently the requirements of clauses (iii) (a) (b) and (c) of paragraph 3of the Order are not applicable for the current year.
(iv) As informed to us the company has not given any loans made investments givenguarantees and security to any person or party covered under section 185 and 186 of theCompanies Act 2013. (v) The company has not accepted any deposit from the public withinthe meaning of Section 73 to Section 76 or any other provisions of the Act and the Rulesframed there under.
(vi) Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under section 148(1) of the CompaniesAct2013 in respect of the products of the Company. We have broadly reviewed the books ofaccount and records maintained by the company in this connection and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained.However we have not made a detailed examination of the records with a view to determinewhether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and records of thecompany examined by us undisputed statutory dues including provident fund employees'state insurance Income tax sales tax service tax duty of customs duty of excisevalue added tax cess and any other statutory dues have generally been regularly depositedwith the appropriate authorities and there were no undisputed amounts payable in respectof the aforesaid dues as at 31st March 2017 for a period of more than six months from thedate they became payable.
(b) According to the information and explanations given to us and records of theCompany the dues outstanding in respect of income tax sales tax service tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows :
|Name of the Statute ||Nature of dues ||Amount (` in lacs) ||Period to which the amount relates ||Forum where dispute is Pending |
|The Income Tax Act1961 ||TDS ||1.34 ||AY-2007-08 to AY-2009-10 ||Assessing Officer Agra |
|UP Tax on Entry of || || || || |
|Goods into Local Areas ||Entry Tax ||47.39 ||FY 1999-2000 to 2000-01 and FY2003-04 to 2004-05 ||High Court Allahabad |
|Act 2007 || || || || |
|Finance Act 1994 (Service Tax Provisions) ||Service Tax ||1.39 ||April2006 to May2010 ||CESTAT Ahmedabad |
|The Central Excise ||Excise Duty ||63.69 ||March1991 to January1995 ||CESTAT New Delhi |
|Act1944 || || || || |
(viii) According to the information and explanations given to us the company has notdefaulted in repayment of loans or borrowings to any financial institutions banksGovernment or dues to debenture holders (ix) The Company has not raised moneys by way ofinitial public offer or further public offer (including debt instruments) during the year.The Company has raised moneys by way of term loan during the year and has applied for thepurposes it was raised. (x) During the course of our examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practicesin India and according to the information and explanations given to us we have neithercome across any instance of material fraud by the Company or on the Company by itsofficers or employees noticed or reported during the year. Nor have we been informed ofany such case by the Management.
(xi) According to the information and explanations given to us managerial remunerationhas been paid or provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V of the Act.
(xii) The Company is not Nidhi Company. Accordingly the clause 3 (xii) of theCompanies (Auditor's Report ) Order 2016 is not applicable. (xiii) According to theinformation and explanations given to us all transactions with related parties are incompliance with section 177 and 188 of the Companies Act 2013 and the details have beendisclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year.
(xv) According to the information and explanations given to us the Company has notentered into any non cash transactions with directors or persons connected with themduring the year.
(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act1934.
ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON FINANCIAL STATEMENTS OFGINNI FILAMENTS LIMITED
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act2013 ("the Act")
We have audited the internal financial controls over financial reporting ofGinniFilaments Limited ("the Company") as at 31st March2017 in conjunction withour audit of the financial statements of the Company for the year ended on 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. 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 company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 Institute ofChartered Accountants of India (ICAI) and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 judgment including the assessment of therisks of material misstatement of the financial statements whether due the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the Company's internal financial controls system 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 of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat 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 athorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisitions 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 financial that the internal financial controlevaluationoftheinternalfinancial over financial reporting may become inadequate because ofchanges in conditions or that the degree of the compliance with the policies orprocedures may deteriorate.
In our opinion the Company has in all material respects and adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 st March 2017 based oninternal 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 CharteredAccountants of India.
|For P.L.Gupta & Co. |
|Chartered Accountants |
|Firm Registration No.-011575C |
|YUVRAJ SINGH |
|Membership No.-071846 |
|Place ||: Noida |
|Dated ||: 12th May2017 |