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Khator Fibre & Fabrics Ltd.

BSE: 521127 Sector: Industrials
NSE: N.A. ISIN Code: INE964G01016
BSE 15:42 | 17 Jan 17.65 0.80
(4.75%)
OPEN

16.85

HIGH

17.65

LOW

16.85

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 16.85
PREVIOUS CLOSE 16.85
VOLUME 1493
52-Week high 25.00
52-Week low 9.05
P/E 8.96
Mkt Cap.(Rs cr) 8
Buy Price 17.65
Buy Qty 400.00
Sell Price 0.00
Sell Qty 0.00
OPEN 16.85
CLOSE 16.85
VOLUME 1493
52-Week high 25.00
52-Week low 9.05
P/E 8.96
Mkt Cap.(Rs cr) 8
Buy Price 17.65
Buy Qty 400.00
Sell Price 0.00
Sell Qty 0.00

Khator Fibre & Fabrics Ltd. (KHATORFIBRE) - Auditors Report

Company auditors report

THE MEMBERS OF KHATOR FIBRE AND FABRICS LIMITED Report on the Standalone FinancialStatements

We have audited the accompanying standalone financial statements of KHATOR FIBRE ANDFABRICS LIMITED (‘the Company') which comprise the Balance Sheet as at 31tfMarch2017 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 [inwhich are included the returns of one branch of the Company audited by branch auditor forthe year ended on that date].

Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

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 require that we comply with ethicalrequirements and plan

and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement An audit involves performing procedures toobtain audit evidence about the amounts and the disclosures in the financial statements.The procedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 3 1 "March 2017 its profit and its cash flows for the year ended on thatdate.

Other Matter

We did not audit the financial statements of one branch of the Company i.e."Integrated Skill Development Scheme (ISDS)" branch included in the standalonefinancial statements of the Company as considered in the standalone financial statementsof the branch has been audited by the branch auditors whose reports have been furnished tous and our op inion so far as it relates to the amount and disclosures included inrespect of the branch is based solely on the report of such branch auditor.

Our opinion is not modified in respect of these matters.

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 Section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the Order.

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 ourknowledge and belief 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 reports on the accounts of the branch office of the company audited undersection 143(8) of the Act by the branch auditor has been sent to us and has been properlydealt with by us in preparing this report

d) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;

e) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

f) On the basis of the written representations received from the directors as on

31 "March 2017 taken on record by the Board of Directors none of the directorsis disqualified as on 31 "March 2017 from being appointed as a director in terms ofSection 164 (2) of the Act;

g) 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".

h) With respect to the other matters to be included in die 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. The Company did not have any pending litigations on its financial position in itsfinancial statements.

ii. The Company did not have any long term contracts including derivative contracts forwhich there were

any material foreseeable losses.

iii. There is no requirement for funds to be transferred to die Investor Education andProtection Fund by the Company.

iv. The company had provided requisite disclosures in its financial statements as toholdings as well as

dealings in Specified Bank Notes during the period from 8th November 2016 to 30thDecember 2016 and these are in accordance with the books of accounts maintained by thecompany.

For S. R Goyal & Co.

Chartered Accountants FR No.: 001537C

Place: Mumbai

Date: 30/05/2017 AJC. AtoKa

(Partner)

M. No.: 077201

Annexure A to the Independent Auditors' Report

to the members of KHATOR FIBRE AND FABRICS LIMITED

Report on the matters specified in paragraph 3 of the Companies (Auditor's Report)Order 2016 ("the Order') issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act") as referred to inparagraph 1 of ‘Report on Other Legal and Regulatory Requirements' section

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregards to size of the company and nature of its assets. No material discrepancies werenoticed on such physical verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the company.

(ii) Physical verification of inventory has been conducted at reasonable intervals bythe management and no material discrepancies were noticed.

(iii) The Company has not granted loans secured or unsecured to companies firms andlimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Therefore paragraph 3 (iii) (a) (b) & (c) ofthe Order are not applicable;

(iv) According to the information and explanation given to us the company has compliedwith the provisions of section 185 and 186 of Act with respect to the loans investmentsguarantees and security made.

(v) As informed to us the Company has not accepted any deposit from the public duringthe year within the meaning of section 73 or 76 of the Companies Act 2013 and the rulesframed there under. Therefore the directives issued by the reserve bank of India or anyother relevant provisions of the Companies Act and the rules framed there under are notapplicable.

(vi) As per information and explanations given to us the cost records as prescribed bythe Central Government u/s 148(1) of the Companies Act 2013 in respect of process houseare being made and maintained. We have however not made a detailed examination of thesaid records with a view to determine whether they are accurate or complete.

(vii) (a) The Company is generally regular in depositing undisputed statutory duesincluding provident fond employees' state insurance income-tax sales-tax service taxduty of customs duty of excise value added tax cess and any other statutory dues to theappropriate authorities. There are no arrears of outstanding statutory dues as at the lastday of the financial year concerned for a period of more than six months from the datethey became payable.

(b) According to the information and explanation given to us there are no dues inrespect of Income tax wealth tax excise duty custom duty service tax and cess thathave not been deposited with appropriate authorities on on account of any dispute.

(viii) The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Accordingly paragraph 3(ix) ofthe Order is not applicable.

(x) According to the information and explanations given to us no fraud by the Companyor fraud on the Company by its officers or employees has been noticed or reported duringthe year;

(xi) According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has paid or provided for themanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V of the Act;

(xii) The Company is not a Nidhi Company hence clause (xii) of para 3 of the Order isnot applicable to the Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with sections 177 and 188 of the act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards;

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or frilly or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly clause (xv) ofpara 3 of the Order is not applicable;

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934;

For S. R. Goya! & Co.

Chartered Accountants FRNo.: 001537C

Place: Mumbai

Date: 30/05/2017 A.K. AtoBa

(Partner)

M.No.: 077201

Annexure B to the Independent Auditor's Report

to the members of KHATOR FIBRE AND FABRICS LIMITED

Report on the Interna] Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to In paragraph 2(0 of‘Report on Other Legal and Regulatory Requirements' section

We have audited the internal financial controls over financial reporting of KHATORFIBRE AND FABRICS LIMITED (‘the Company') as of 31* March 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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 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 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 accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by 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 the Guidance Noterequire that 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 about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement 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:

a) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and

dispositions of the assets of the company;

b) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial

statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and

c) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or

disposition of the 0009)80/8 assets that could have a material effect on the financialstatements.

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".

Explanatory paragraph

We also have audited in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India specified under Section 143(10) of the Actthe financial statements of the Company which comprise the Balance Sheet as at March 312017 and the related Statement of Profit and Loss and Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation and our report dated March 312017 expressed an unqualified opinion thereon.

For S. R. Goyal & Co. Chartered Accountants

FR No.: 001537C

Place: Mumbai

Date: 30/05/2017 A.K. Atolia

(Partner)

M. No.: 077201