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PDS Multinational Fashions Ltd.

BSE: 538730 Sector: Industrials
NSE: PDSMFL ISIN Code: INE111Q01013
BSE LIVE 15:01 | 18 Aug 248.90 -1.10
(-0.44%)
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250.00

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250.00

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248.90

NSE 15:16 | 18 Aug 249.00 -1.00
(-0.40%)
OPEN

252.00

HIGH

252.00

LOW

249.00

OPEN 250.00
PREVIOUS CLOSE 250.00
VOLUME 1272
52-Week high 259.00
52-Week low 131.00
P/E 1310.00
Mkt Cap.(Rs cr) 648
Buy Price 248.50
Buy Qty 50.00
Sell Price 249.00
Sell Qty 54.00
OPEN 250.00
CLOSE 250.00
VOLUME 1272
52-Week high 259.00
52-Week low 131.00
P/E 1310.00
Mkt Cap.(Rs cr) 648
Buy Price 248.50
Buy Qty 50.00
Sell Price 249.00
Sell Qty 54.00

PDS Multinational Fashions Ltd. (PDSMFL) - Auditors Report

Company auditors report

To The Members of PDS Multinational Fashions Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of PDSMultinational Fashions Limited ("the Company") which comprise the BalanceSheet as at March 312016 the Statement of Profit and Loss the Cash Flow Statement forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

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) Rules2014. 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 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 a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on 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 March 312016 its profit and cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 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 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.

(d) 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.

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

(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 A".

(g) With respect to the other matters to be included in the 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. On the basis of written representations received from the management of the Companythe Company has disclosed the impact of pending litigations on its financial position inits financial statements—Refer Note No. 9 to the financial statements.

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

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

2. 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 "Annexure B" a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

For S.R. Dinodia & Co. LLP

Chartered Accountants

Firm Registration Number 001478N/N500005

(Sandeep Dinodia)

Partner

Membership No. 083689

Place of Signature: Gurgaon

Date: 27th May 2016

Annexure ‘A’ to the Independent Auditors’ Report of even date on thestandalone financial statement of PDS Multinational Fashions Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of PDSMultinational Fashions Limited ("the Company") as of March 31 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 (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 assetsthe prevention 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 accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 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 2016 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.

For S.R. Dinodia & Co. LLP

Chartered Accountants

Firm Registration Number 001478N/N500005

(Sandeep Dinodia)

Partner

Membership No. 083689

Place of Signature: Gurgaon

Date: 27th May 2016

Annexure ‘B’ To the Independent Auditors’ Report

The Annexure referred to in independent Auditors’ Report to the members of theCompany on the standalone financial statements for the

year ended March 312016; we report that:

i) In respect of fixed assets:

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

b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified at periodic intervals. In accordance with this programmefor the year no material discrepancies were noticed on such verification. In our opinionsuch periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

c) On the basis of written representation received from the management of the Companythe title deeds of immovable properties received pursuant to demerger have still not beenexecuted in the name of the company.

ii) The Company does not carry any inventory hence provisions of paragraph 3(ii) of theCompanies (Auditor’s Report) Order 2016are not applicable to the Company.

iii) (a) to (c) According to the information and explanation given to us the Companyhad not granted loans secured or unsecured to any of the Companies firms or otherparties covered in the register maintained under section 189 of the Companies Act 2013.Therefore the provisions of paragraph 3(iii) (a) to (c) of the Companies (Auditor’sReport) Order 2016 are not applicable to the Company.

iv) According to the information and explanation given to us the Company has no loansguarantees investments and security covered under the provisions of section 185 and 186of the Companies Act 2013. Therefore the provisions of paragraph 3 (iv) of the Companies(Auditor’s Report) Order 2016 are not applicable to the Company.

v) The Company has not accepted any deposits from the public. Accordingly theprovisions of paragraph 3(v) of the Companies (Auditor’s Report) Order 2016 are notapplicable to the Company.

vi) On the basis of available information and explanation provided to us the CentralGovernment has not prescribed maintenance of cost records under sub-section (1) of section148 of the Companies Act 2013 read with Companies (Cost Records and Audit) AmendmentRules 2014 dated December 312014 to the current operations carried out by the Company.Accordingly the provisions of paragraph 3(vi) of the Companies (Auditor’s Report)Order 2016 are not applicable to the Company.

vii) a) The Company is generally regular in depositing undisputed statutory duesincluding Provident Fund Income Tax Sales Tax Service Tax Value Added Tax Cess andany other material statutory dues applicable to it with the appropriate authorities. Theprovisions of Employees’ State Insurance duty of Customs and duty of Excise are notapplicable to the Company. There were no undisputed amounts payable in respect ofProvident Fund Income Tax Sales Tax Service Tax Value Added Tax Cess and any othermaterial statutory dues in arrears as at March 31 2016 for a period of more than sixmonths from the date they became payable.

b) According to the records of the Company examined by us and the information andexplanations given to us there were no dues of income tax or sales tax or service tax orduty of customs or duty of excise or value added tax which have not been deposited onaccount of any dispute except the following which have not been deposited on account ofdispute:

S.No Name of the Statute Nature of Dues Amount (Rs) Period to which amount relates Forum where dispute is pending
1. Stamp Act Stamp Duty on Demerger 14820000 A.Y 2014-15 Delhi High Court

viii) On the basis of information and explanation provided to us the Company has notdefaulted in repayment of loans and borrowings to financial institution and bank. TheCompany has not taken any loan from Government or has not issued any debentures.

ix) The Company did not raise any money by the way of initial public or further publicoffer (including debt instruments) during the year. However the term loans taken duringthe year are applied for the purpose for which the same has been raised.

x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

xi) The Company has paid/provided managerial remuneration in accordance with provisionsof section 197 read with Schedule V to the Companies Act 2013 as applicable to theCompany.

xii) The Company is not a NidhiCompany and hence the provisions of paragraph 3(xii) ofthe Order are not applicable to the Company.

xiii) During the course of our examination of the books and records of the Company alltransactions entered with the related parties are in compliance with sections 177 and 188of Companies Act 2013 and the details have been disclosed in the financial statementsetc as required by the applicable accounting standards.

xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of paragraph 3(xiv) of the Order are not applicable to the Company.

xv) The Company has not entered into any non—cash transactions with directors orpersons connected with him and hence provisions of section 192 of the Companies Act 2013are not applicable.

xvi) The Company is not required to be registered under section 45—IA of theReserve Bank of India Act 1934. Accordingly the provisions of paragraph 3(xvi) of theOrder are not applicable to the Company.

For S.R. Dinodia & Co. LLP

Chartered Accountants

Firm Registration Number 001478N/N500005

(Sandeep Dinodia)

Partner

Membership No. 083689

Place of Signature: Gurgaon

Date: 27th May 2016