Kapil Cotex Ltd.
|BSE: 512036||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE393H01016|
|BSE LIVE 11:54 | 01 Jun||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 512036||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE393H01016|
|BSE LIVE 11:54 | 01 Jun||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
To the Members of M/S KAPIL COTEX LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Kapil Cotex Limited (TheCompany) which comprises the Balance Sheet as at March 312017 and the Statement ofProfit and Loss for the year ended and a summary of significant accounting policies andother 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. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and delecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant 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.
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 there under.
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 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the puipose of expressing an opinion onwhether the company has in place an adequate financial controls system over financialreporting and the operating effectiveness of such controls. An audit also includesevaluating the appropriateness of accounting policies used5 and thereasonableness of
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.
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:
(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 312017;
(b) In the case of the Profit and Loss Account of the profit for the year ended onthat date;
(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 (Auditor's Report) Order 2016 (the Order)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure-A a statement on the matters specified inparagraphs 4 and 5 of the Order to the extent applicable.
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 comply with theAccounting Standards specified under Section 133 of Companies Act 2013 read with Rule 7of the Companies (Accounts) Rules 2014.
(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 sub-section (2) ofsection 164 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 the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:
i) The Company does not have any pending litigations as at March 31 2017 which wouldimpact its financial position.
ii) The Company has no long-term contracts as at March 31 2017 hence there are nomaterial foreseeable losses. The Company does not have derivative contracts as at March31 2017.
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2017.
(h) The Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30 December 2016 and these are in accordance withthe books of accounts maintained by the Company. Refer note no. (T) to Notes to Accounts.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The annexure referred to in our Independent Auditors report to the members of theCompany on thefinancial statement for the Year ended on 31st March2017Wereport that:-
(i) In Respect of Fixed Assets:
1. The company has maintained proper records showing full particulars includingquantitative details and Situation of the fixed assets.
2. As explained to us the fixed assets have been physically verified by the managementat reasonable intervals and no material discrepancies were noticed on such verification.
3. The title deeds of immovable properties are held in the name of the company.
(ii) In Respect of Stock:
The Company is providing the services of consultancy/commission basis. Accordingly itdoes not have any physical inventories in hand so the paragraph 2 of the Order is notapplicable.
(iii) In Respect of loans secured or unsecured according to the information andexplanation given to us the company has not granted any secured or unsecured loans tocompanies Firms and other parties listed in the register. Consequently the requirementof clauses (iii) (a) to (iii) (b) of the paragraph 3 of the order not applicable.
(iv) In respect of loans investments guarantees and security wherever applicableprovisions of section 185 and 186 of the Companies Act 2013 have been complied with.
(v) In our opinion and according to the information and explanation given to us thecompany has not accepted deposits from the public within the meaning of section 73 to 76of the Act & directives issued by the Reserve Bank of India.
(vi) The central Government has not prescribed the maintenance of cost records undersection 148 (1) of the Act for any services rendered by the Company.
(vii) a) The company is regular in depositing of undisputed statutory dues. As informedto us there is no arrears of outstanding statutory dues as at the last day of thefinancial year concerned for the period of more than six months from the date they becomepayable. Further it is explained to us Provident Fund Investor Education and ProtectionFund Employee's State Insurance Sales tax Wealth tax Custom Duty Excise Duty cessare not applicable to the company during the year. Professional tax under theMaharashtra State tax on Profession Trade Ceilings & Employments act 1975 has notbeen paid/provided.
b) According to the information & explanation given to us there are no materialdues of Income Tax Vat tax wealth tax duty of customs which have not been depositedwith the appropriate authorities on account of any dispute.
(viii) The company did not have any outstanding dues to financial institution Banks ordebenture holders during the year. The Company did not have any term loans outstandingduring the year.
(ix) No moneys was raised by way of initial public offer or further public offer(including debt instruments) during the year.
(x) During the course of our examination of the books of account and records of thecompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanation given to us we have neither comeacross any instance of material fraud on or by the company noticed or reported during theyear nor have we been informed of such case by the management.
(xi) According to the information & explanation given to us and based on ourexamination of the records of the company Director/Managerial remuneration has been paidto a Director during the year. The remuneration has not been approved by theresolution in a general meeting of the Shareholders as mandated by the provisions of thesection 197 read with Schedule V to the Act.
(xii) The Company is not a Nidhi Company so the relevant clause is not applicable tothe Company.
(xiii) All transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.
(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him during the year under review.
(xvi) Considering the nature of the company's business the company is not required tobe registered under section 45-IA of the Reserve Bank of India Act
Annexure A to Independent Auditors' Report
Referred to the Independent Auditors' Report of even date to the members of KAPIL COTEXLIMITED onthe financial statements as of and for the year ended March 31 2017
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143of the Act
1. We have audited the internal financial controls over financial reporting of KAPILCOTEX LIMITED (the Company) as of March 31 2017 in conjunction with our auditof the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
2. 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.
3. 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 prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an 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 proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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
7. 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.
8. 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 theinternal 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.