The members of GUJARAT COTEX LIMTED
(Formerly known as OCTAGON INDUSTRIES LIMITED.)
Report on Financial Statements
We have audited the accompanying standalone financial statements of GUJARAT COTEXLIMIED ("The Company") which comprise the Balance Sheet as at March 312017 the Statement of Profit and Loss and Cash Flow Statement for the year then ended anda summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The company BOARD OF DIRECTOR S is responsible for the matters stated in Section 134(5)of the Companies Act 2013("THE ACT") WITH RESPECT TO THE PREPARATION of thesestandalone 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 referred toSection 133 o f the Companies Act read with the Rule 7 of the COMPANIES (Accounts) rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the company andfor preventing and detecting frauds and other irregularities and design implementationand maintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have conducted our audit in accordance with the Standards onAuditing specified under section 143(10) of the 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.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditors'judgment 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 control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. but not for the purpose of expressing an opinion on whether the Companyhas in place an adequate internal financial control system over financial reporting andoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us th 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 state of affairs of the Company as atMarch 31 2017;
(b) in the case of the Statement of Profit and Loss of the profit for the year endedon that date; and
(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements:
(1) As required by the Companies (Auditors' Report) Order 2015 ("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 statement on the matters specified in paragraphs 3 and4 of the Order.
(2) As required by section 143(3) of the Act we report that:
a. we have obtained all the information and explanations which to the best of ourknowledge 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;
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
d. in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules2014.
e. on the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) ofthe Act.
f. With respect to the other matters to be included in Auditors Report in accordancewith the Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and tothe best of our information and according to explanations given to us ;
1. The company do not have pending litigation having impact on its financial position.
2. The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
3. There were no amounts that were required to be transferred to the Investor Educationand protection Fund by the Company during the year.
As per Our Report of Even Date
For Aadil Aibada & Associates
(Aadil S. Aibada)
Membership No. 045310.
ANNEXURE TO AUDITORS' REPORT
[Referred to in paragraph 3 of the Auditors' Report of even date to the members ofGujarat Cotex Limited on the financial statements for the year ended March 31 2017]
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that;
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As per the information and explanations provided by the management all the fixedassets have been physically verified by the management during the year and there is aregular programme of verification which in our opinion is reasonable having regard tothe size of the Company and the nature of its assets.
(ii) (a) The inventory has been physically verified by the management during the year.In our opinion the frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation of the size of the Company and the nature of itsbusiness.
(c) The Company is maintaining proper records of inventory and no materialdiscrepancies were noticed on physical verification carried out at the end of the year.
(iii) (a) The Company has not granted any secured or unsecured loan to any partycovered in the register maintained under section 189 of the Companies Act 2013. Thereforethe requirements of sub clause (a) and (b) of clause (iii) are not applicable to thecompany.
(b) In our opinion and according to the information and explanations given to us theCompany has not given loan and hence charging of interest is not applicable.
(c) The Company has not accepted any deposits from Public or Directors in terms ofsection 73 of the Companies Act 2013 .
(d) No interest paid by the Company.
(iv) In our opinion and according to the information and explanations given to usthere exist internal control system however we are unable to comment on it beingcommensurate with the size of the Company and the nature of its business with regard topurchase of inventory fixed assets and with regard to the sale of goods and services.
(v) We have broadly reviewed the books of account maintained by the company in respectof Trading of Goods where pursuant to the Rules made by the Central Government of Indiathe maintenance of cost records has been not prescribed under sub-section (1) of Section148 of the Companies Act2013.
(vi) The Company has inform ed us that provident fund investor education andprotection fund employees? state insurance to the company are not applicable.
(vii) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund education and protection fund employees' stateinsurance income tax wealth tax service tax sales-tax customs duty excise duty cessand other undisputed statutory dues were outstanding at the year end for a period ofmore than six months from the date they became paya le.
(viii) The company has accumulated losses at the end of the financial year and it hasincurred cash losses in the current and immediately preceding financial year. Th e Companyhas been registered for a period of more than five years. Therefore requirement of theorder of reporting on accumulated losses which are Rs 9114662/- As on 31/03/2017 arenot applicable. During the year Company booked Bed Debts of Rs. 6365131/- directlydebited to Reserves & Surplus Account shown in BALANCE SHEET. In Profit and LossAccount Net Loss of Rs. 718472/- including depretiation shown .
(ix) In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to financial institutions bank ordebenture holders.
(x) According to the information and explanations given to us and based on thedocuments and records produced to us the company has not granted loans & advances onthe basis of security by way of pledge of shares debentures and other securities.
(xi) In our opinion and according to the information and explanations given to us thecompany has not given any guarantee for loans taken by others from banks or financialinstitutions during the year.
(xii) In our opinion the term loans have not been raised and hence application of thesame is not applicable.
(xiii) According to the information and explanations given to us and on an overallexamination of the balance sheet of the Company we report that no funds raised onshort-term basis have been used for long-term investment.
(xiiv) The Company did not have any outstanding debentures during the year.
(xiv) The Company has not raised money by way of public issue during the year.
(xv) 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 andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the company noticed or reported during the year nor we havebeen informed of such case by the managem ent.
As per Our Report of Even Date
For Adil Aibada & Associates
(Aadil S. Aibada)
Membership No. 045310.