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Modella Woollens Ltd.

BSE: 503772 Sector: Others
NSE: N.A. ISIN Code: INE380D01012
BSE LIVE 15:14 | 22 Sep Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 4.50
PREVIOUS CLOSE 4.67
VOLUME 37
52-Week high 6.56
52-Week low 4.50
P/E
Mkt Cap.(Rs cr) 0
Buy Price 4.50
Buy Qty 915.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.50
CLOSE 4.67
VOLUME 37
52-Week high 6.56
52-Week low 4.50
P/E
Mkt Cap.(Rs cr) 0
Buy Price 4.50
Buy Qty 915.00
Sell Price 0.00
Sell Qty 0.00

Modella Woollens Ltd. (MODELLAWOOLLENS) - Auditors Report

Company auditors report

To

The Members of

Modella Woollens Limited

REPORT ON THE FINANCIAL STATEMENTS

We haye audited the accompanying standalone financial statements of Modella WoollensLimited ('the Company') which comprise the balance sheet asat March 312016 thestatement of profit and loss and the cash flow statement for the year then ended and asummary of significant accounting policies and other explanatory information.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company's Board of Directors are responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act1) with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act. read with the Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of accounting records relevant to the preparation andpresentation of financial statements that give a true and fair view and are free frommaterial misstatement. whether due to fraud or error.

AUDITOR’S RESPONSIBILTY

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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions 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 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 a true and fair view in order to design audit proceduresthat are 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 opinionon 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 read with the notes thereongive the information required by the Act in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the company as at March 31 2016 and its loss and its cash flows forthe year ended on that date.

EMPHASIS OF MATTERS

We draw attention to the following matters in the Notes to the financial statements:

(a) Note 15(ii) to the financial statement regarding cheques towards rent paid but notencashed by the landlord.

(b) Note 21 (ii) in the financial statements which indicates that the Company hasaccumulated losses and its net worth has been fully/substantially eroded the Company hasincurred a net loss/netcash loss during the current and previous year(s) and theCompany's current liabilities exceeded its current assets as at the balance sheet date.These conditions along with other matters indicate the existence of a materialuncertainty that may cast significant doubt about the Company's ability to continue as agoing concern. However based on the representation received from the management regardingcontinuing support the financial statements of the Company have been prepared on a goingconcern basis.

Our opinion is not modified in respect of this matter.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

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 accounts as required by the law have been kept by theCompany so far as it appears from our examination of those books;

c. The Balance Sheet thestatement of profit and loss and cash flow statement dealtwith by this report are in agreement with the books of account;

d. In our opinionthe aforesaid standalone financial statements comply with theaccounting standards specified under Section 133 of theAct2013 read with Rule 7 ofCompanies (Accounts) Rules 2014 ;

e. The going concern matter described in sub paragraph (b) under Emphasis of Mattersparagraph above in our opinion may have adverse effect on the functioning of theCompany.

f. On the basis of written representations received from the directors as on March312016 taken on record by the Board of Directors none of the directors are disqualifiedas on March 312016 from being appointed as a director in terms of the Section 164(2) ofCompanies Act 2013.

g. In our opinion .the company has . in all material respects an adequate internalfinancial controls .system over financial reporting and such internal financial controlover financial reporting were operating effectively as at March 312016 based on theinternal control over financial reporting criteria established by the company

h. With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of Companies (Audit and Auditors) Rules. 2014 in our opinion andto the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations if any on itsfinancial position in it: financial statements

ii. the Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

Place : Mumbai For Vinay Sanjay and Associates
Date : 18/5/2016 Chartered Accountants
CA Sanjay R Bhat
Partner
Membership No. 43376
Firm No.112195W

ANNEXURE TO THE AUDITOR’S REPORT

As required by the Companies (Auditors' Report) Order 2015 issued by the Company LawBoard in term; of Section 143 of the Companies Act 2013. we further report that:

i. The Company has maintained proper records showing full particulars includingquantitative detail and situation of its fixed assets.'

We are informed that fixed assets have been physically verified by the management atreasonabl interval and no material discrepancies were noticed on such verification. In ouropinion this periodicit of physical verification is reasonable having regard to the sizeof the Company and nature of its asset: The Company does not own any immoveable propertyas on date of balance sheet

ii. We are informed that there was no stock of goods during the year or at the year endand heno physical verification of stock were not required to be conducted by themanagement. In view of abov therefore we have no comment to offer on frequency of thephysical verification of such stocks.

Since company is not having any stock we have no comment to offer on whether theprocedures c physical verification of stocks followed by the management are reasonable andadequate in relation t the size of the Company and nature of its business.

Since company is not having any stock we have no comment to offer on maintainingproper record of inventory and discrepancies on physical verification of stocks ascompared to book records.

iii. The Company has not granted any loans secured or unsecured to companies firms orother partie covered in register maintained under section 189 of the Companies Act 2013.Accordingly paragraph 3(iii) (a) and (b) of the Order are not applicable.

n. The Company has not granted any loans or has made investments or given any guaranteec security within the meaning of Section 185 and 186 of the Companies Act 2013 and henceth provision of this clause is not applicable for the year under audit.

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public. Therefore the provisions of Clause (v) of paragraph3 of the CARO 2016 are not applicable to the Company.

vi. As informed to us the maintenance of cost Records has not been specified by thecentral government under section 148(1) of the Act.

vii. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employee's stateinsurance and other material statutory dues have been regularly deposited during the yearby the Company with the appropriate authorities. As explained to us the Company did nothave any dues on account of Income Tax Sales Tax Wealth Tax Service Tax Custom Dutyandduty of excise.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employee’s state insuranceand other materialstatutory dues were in arrears as at March 312016 for a period of more than six monthsfrom the date they became payable. We are informed that dues of income tax sales taxwealth tax service tax duty of customs and duty of excise are not in dispute.

According to'the information and explanations given to us there are no dues of incometax wealth tax sales tax service tax duty of customs and duty of excise which have notbeen deposited with the appropriate authorities on account of any dispute.

viii. The company has not taken any loans from any financial institution or bank ordebenture holdersand hence the question of default in payment does not arise.

ix. The Company during the year has not raised any money from initial public offer orfurther public offer but has taken the unsecured loan from one of the Directors andCompany in which Directors are interested and the same has been applied for the purposefor which it has been raised.

x. According to information and explanations given to us no material fraud on or bythe Company has been noticed or reported during the course of our audit.

xi. The Company has provided for the gratuity liability of Managing Director as per theagreement which is in accordance with the provisions of Section 197 read with Schedule Vto the Companies Act

xii. As the company is not a Nidhi Company the said clause is not applicable

xiii. All the transactions with the related parties are in compliance with Section 177and 188 of the Companies Act 2013 and the details of same has been disclosed in Note 12 ofNotes forming part of the financial statement

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures

xv. During the year the Company has not entered into any non-cash transactions withDirectors or persons connected with them

xvi. In our opinion and as per the information and explanation made available to us theCompany is not required to register under Section 45-IAoflhe Reserve Bank Of India Act1934

Fiace : Mumbai. For Vinay Sanjay & Associates
Date : 18/5/2016 Chartered Accountants
CA Sanjay R Bhat
Partner
Membership No. 43376
Firm No.112195W