You are here » Home » Companies » Company Overview » Ashapura Intimates Fashion Ltd

Ashapura Intimates Fashion Ltd.

BSE: 535467 Sector: Industrials
NSE: AIFL ISIN Code: INE428O01016
BSE 00:00 | 20 Jul 443.80 -1.05
(-0.24%)
OPEN

446.80

HIGH

448.95

LOW

442.90

NSE 00:00 | 20 Jul 446.00 0.60
(0.13%)
OPEN

447.00

HIGH

449.00

LOW

444.50

OPEN 446.80
PREVIOUS CLOSE 444.85
VOLUME 206123
52-Week high 568.95
52-Week low 382.25
P/E 17.99
Mkt Cap.(Rs cr) 1,119
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 446.80
CLOSE 444.85
VOLUME 206123
52-Week high 568.95
52-Week low 382.25
P/E 17.99
Mkt Cap.(Rs cr) 1,119
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ashapura Intimates Fashion Ltd. (AIFL) - Auditors Report

Company auditors report

TO

THE SHAREHOLDERS OF

ASHAPURA INTIMATES FASHION LIMITED

MUMBAI.

We have audited the accompanying merged financial statements of ASHAPURA INTIMATESFASHION LIMITED (hereinafter referred to as "the Company") which comprisethe Balance Sheet as at 31st March 2017 the Statement of Profit and Loss the Cash FlowStatement for the year then ended and a summary of the significant accounting policiesand other explanatory information in which have been incorporated in the financialinformation of erstwhile MOMAI APPARELS LIMITED now a part of the Company (hereinafterreferred to as "erstwhile Momai" or "amalgamating company") for theyear ended on that date consequent to its amalgamation into the Company with theappointed date of 1st April 2016 audited by other auditors referred in the ‘OtherMatter Rs.section below.

Management's Responsibility for the Financial Statements

The Company's Management is responsible for the preparation of these financialstatements that give a true and fair view of the Merged financial position Mergedfinancial performance and Merged cash flows of the Group in accordance with the accountingprinciples generally accepted in India. This responsibility includes the designimplementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these Merged financial statements basedon our audit. We conducted our audit in accordance with the Standards on Auditing issuedby the Institute of Chartered Accountants of India. The Standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatements.

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 control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements

We believe that the audit evidences we have obtained are sufficient and appropriate toprovide a basis for our audit opinion.

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:

(a) In the case of the Merged Balance Sheet of the state of affairs of the Company asat March 312017;

(b) In the case of the Merged Statement of Profit and Loss of the profit of theCompany for the year ended on that date; and

(c) In the case of the Merged Cash Flow Statement of the cash flows of the Company forthe year ended on that date.

Other Matter

The merged financial statements include the financial information of erstwhile MomaiApparels Limited consequent to its amalgamation into the Company with the appointed dateof 1st April 2016. We did not audit the financial information of erstwhile Momai ApparelsLimited included in the merged financial statements of the Company for the year ended onthat date as considered in the standalone financial statements. This financialinformation of erstwhile Momai Apparels Limited has been audited by other auditors whosereport has been furnished to us and our opinion in so far as it relates to the amountsand disclosures included in respect of erstwhile Momai Apparels Limited and our report interms of sub-sections (3) and (11) of Section 143 of the Act insofar as it relates toerstwhile Momai Apparels Limited is based solely on the report of such other auditors.

Our opinion on the standalone financial statements and our report on the Other Legaland Regulatory Requirements below is not modified in respect of the above matter withrespect to our reliance on the work done and the report of the other auditors.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") as amended issued by the Central Government of India in terms of subsection (11) of section 143 of the Act we give in the "Annexure A".

As required by section 143 (3) of the Act we report to the extent possible 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 of the aforesaidMerged financial statements

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 and the reports of theother auditors

c) The Merged Balance Sheet the Merged Statement of Profit and Loss and the MergedCash Flow Statement dealt with by this Report are in agreement with the books of accountmaintained for the purpose of preparation of the Merged financial statements

d) In our opinion the aforesaid Merged financial statements comply with the AccountingStandards specified under section 133 of the Act.

e) On the basis of written representations received from the directors of the Companyas on March 312017 taken on record by the Board of Directors of the company and thereports of the statutory auditors of its other/amalgamting company none of the directorsis disqualified as on March 31 2017 from being appointed as a director in terms ofSection 164 (2) 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". which is based on the auditors reports of theamalgamated company and the amalgamating company.

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: theCompany and its amalgamating company does not have any pending litigations which wouldimpact its financial position.

terms of Section 164 (2) of the Act. For JDNG & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 104315W
Place: MUMBAI CA JAYESH S. RAWAL
Date : 29th May 2017 PARTNER
Membership No: 104738

Annexure A to the Independent Auditors Rs.Report

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act based on ourcomments and in terms of the comments in the report of the other auditors (amalgamatingcompany auditors) in respect of the amalgamating Company referred in the ‘OtherMatter Rs.section above we give in the ‘Annexure A Rs.statement

1. (a) The Company has maintained proper records showing full including quantitativedetails and situation of fixed assets;

(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.

(c) The title deeds of immovable properties are held in the name of the company.

2. (a) The management has conducted the physical verification of inventory atreasonable intervals.

b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.

3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act.

4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013In respect of loans investments guarantees and security.

5. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76. or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

6. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies ( Cost Records and Audit) Rules 2014 as amended and prescribed by the CentralGovernment under subsection (1) of Section 148 of the Companies Act 2013 and are of theopinion that prima fade the prescribed cost records have been made and maintained. Wehave however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.

7. (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income- Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of the above were in arrears as at March 312017 for a period of morethan six months from the date on when they become payable.

(b) According to the information and explanation given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added taxoutstanding on account of any dispute except given below:

Rs.in Lakhs
Name of the Statute Nature of Dues Amount Period Covered Forum where dispute is pending
Incomen Tax Act 1961 Tax Deducted at Source Rs. 11.12 FY 201213 AY 201314 The Commissioner of Income Tax (TDS)

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments).

10. Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

11. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

13. In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

14. According to the information and explanations give 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 fully or partly convertible debentures duringthe year.

15. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

16. In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For JDNG & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 104315W
Place: MUMBAI CA JAYESH S. RAWAL
Date : 29th May 2017 PARTNER
Membership No: 104738

Annexure B to the Independent Auditor's Report of even date.

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

In conjunction with our audit of the merged financial statements of the Company as ofand for the year ended March 31 2017 and relying upon the report of the auditor of theother/amalgamating company for the said period we have audited the internal financialcontrols over financial reporting of Ashapura Intimates Fashion Limited ("theCompany") and its amalgamating company as of that date.

Management's Responsibility for Internal Financial Controls

The respective Board of Directors of the company and its other/ amalgamating companyare responsible for establishing and maintaining internal financial controls. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013. Auditors Rs.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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence obtained by us and the other auditor in terms oftheir report is sufficient and appropriate to provide a basis for audit opinion on theinternal financial controls system over 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 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 to the best of our information and according to the explanations givento us and based on the consideration of report of other auditor The Group companies havein all material respects an adequate internal financial controls system over financialreporting and such internal financial controls over financial reporting were operatingeffectively as at March 312017 Other Matter

Our aforesaid reports under section 143(3)(i) of the Act on the adequacy and operatingeffectiveness of the internal financial controls over financial reporting is so far as itrelates to financial statements of its other/amalgamating company is based on thecorresponding report of the auditor of such company.

For JDNG & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 104315W
CA JAYESH S. RAWAL
PARTNER
Membership No: 104738
Place: MUMBAI
Date : 29th May 2017