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Kavita Fabrics Ltd.

BSE: 535136 Sector: Industrials
NSE: N.A. ISIN Code: INE149O01018
BSE LIVE 14:16 | 17 Nov 7.35 -0.15
(-2.00%)
OPEN

7.35

HIGH

7.35

LOW

7.35

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 7.35
PREVIOUS CLOSE 7.50
VOLUME 30
52-Week high 10.74
52-Week low 7.31
P/E 147.00
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 7.35
Sell Qty 870.00
OPEN 7.35
CLOSE 7.50
VOLUME 30
52-Week high 10.74
52-Week low 7.31
P/E 147.00
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 7.35
Sell Qty 870.00

Kavita Fabrics Ltd. (KAVITAFABRICS) - Auditors Report

Company auditors report

To the Members of M/s Kavita Fabrics Ltd Report on the Financial Statements

We have audited the accompanying financial statements of Kavita Fabrics Ltd (TheCompany) which comprise the Balance Sheet as at March 31 2016 and the Statement ofProfit and Loss and Cash Flow Statement for the year ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 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 detecting 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.

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 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. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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 2016 and its profit and its 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 Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent

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.

(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 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 written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 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"

Sanjay Maheshwari & Associates
(Chartered Accountants)
Firm Reg No. : - 113289W
Place: Surat (Sanjay Maheshwari)
Date: May 12 2016 Partner

ANNEXURE A

Referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory

Requirements" of our report on even date

(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. In our opinion company has not disposed off substantial parts of fixed assets duringthe year and the going concern status of the company has not affected.

(ii) In Respect of Stock:

1. The Company has carried out physical verification at reasonable intervalscommensurate to its size and nature of business and no discrepancy has been found.

2. In our opinion and according to the explanations given to us the procedure ofphysical verification of the inventories followed by the management is reasonable andadequate in relation to the size of company and nature of business.

3. The company is maintaining proper records of inventory. As explained to us therewere no material discrepancies noticed on physical verification of inventories as comparedto the book records.

(iii) In Respect of loans secured or unsecured granted or taken by the company to orfrom companies firms or other parties covered in the register maintained u/s 189 of theAct According to the information and explanation given to us the company has not grantedor taken any secured or unsecured loans from or to companies Firms and other partieslisted in the register. Consequently the requirement of clauses (iii) (a) to (iii) (b) ofthe order is not applicable.

(iv) In our opinion and explanation given to us there is generally adequate internalcontrol procedure commensurate with the size of the company and the nature of itsbusiness with regard to purchase of inventory and fixed assets and for sale of goods.

(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) Since the company is in textile sector therefore the provision of clause (vi) ofmaintenance of cost record paragraph 4 of the order are not applicable to the company.

(vii) The company is generally regular in depositing of undisputed statutory dues. Asinformed to 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.

There is no overdue balance of the amount which is required to be transferred toinvestor education and protection fund in accordance with the relevant provisions of theCompanies Act 1956 (1 of 1956) and rules made there under.

(viii) The company does not have accumulated losses of more than 50% of its Net Worthat the end of the financial year; The Company has not incurred cash losses in the currentas well as in the previous financial year.

(ix) Based on our audit and according to the information and explanations given to uswe are of the opinion that the company has not defaulted in repayment of dues to financialinstitution Banks.

(x) According to the information and explanations provided to us the Company has notentered into any non-cash transactions with directors or persons connected with him.

(xi) According to information and explanations given to us the company has not givenguarantee for loans taken by others from banks or financial institutions.

(xii) The Company has a term loans from banks and outstanding as on 31st March2016 isas follows:

1. Kotak Mahindra Bank Term Loan Rs. 808800/-

(xiii) 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.

Sanjay Maheshwari & Associates
(Chartered Accountants)
Firm Reg No. : - 113289W
Place: Surat (Sanjay Maheshwari)
Date: May 12 2016 Partner

ANNEXURE B: TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS OF KAVITA FABRICS LIMITED

Report on the Internal Financial Controls

Under Clause (i) of sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financial reporting of KAVITAFABRICS LIMITED ("the Company") as of 31st March 2016 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.

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 to the extent applicable toan audit of internal financial controls both issued by the Institute of CharteredAccountants of India. 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.

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 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.

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

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 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

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 maintained in all material respects adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as of 31st March 2016 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.

Sanjay Maheshwari & Associates
(Chartered Accountants)
Firm Reg No. : - 113289W
Place: Surat (Sanjay Maheshwari)
Date: May 12 2016 Partner