To the Members of
M/s Chitradurga Spintex Limited
Report on the Financial Statements
I have audited the accompanying financial statements of M/s Chitradurga Spintex Limited("the Company") which comprise the balance sheet as at 31st March 2018 and thestatement of profit and loss and cash flow statement for the year then ended and a summaryof significant accounting policies and other explanatory information.
Management s Responsibility for the Financial Statements
Management is responsible for the matters in sec 134(5) of the Companies Act 2013("the Act") with respect to the preparation of financial statements that give atrue and fair view of the financial position financial performance and cash flows of thecompany in accordance with accounting principles generally accepted in India includingthe Accounting Standards specified u/s 133 of the Act read with Rule 7 of the Companies(Account) Rules 2014. This responsibility also includes the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding the assetsof the Company and for preventing and detecting the frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design and implementation and maintenanceof internal financial controls that were operating effectively for ensuring the accuracyand completeness of the accounting records relevant to the preparation and presentationof the financial statements that give a true and fair view and are free from materialmisstatements whether due to fraud or error.
Auditor s Responsibility
My responsibility is to express an opinion on these financial statements based on myaudit.
I have taken into account the provisions of the Act and matters which are required tobe included in the audit report under the provisions of the Act and Rules made thereunder.
I conducted my audit in accordance with the Standards on Auditing specified u/s 143(10)of the Act issued by the Institute of Chartered Accountants of India. Those Standardsrequire that I comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
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.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion.
In my opinion and to the best of my information and according to the explanations givento me the financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India:
(i) in the case of the balance sheet of the state of affairs of the Company as at 31stMarch 2018;
(ii) in the case of the statement of profit and loss of the profit for the year endedon that date. and
(iii) in the case of the Cash flow statement of the cash flow for the yearended 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 Act I give in the Annexure a statement on the matters specified in paragraphs 3 and 4of the Order.
2. As required by section 143(3) of the Act I report that:
a. I have obtained all the information and explanations which to the best of myknowledge and belief were necessary for the purpose of my audit;
b. in my opinion proper books of account as required by law have been kept by theCompany so far as appears from my examination of those books;
c. the Balance Sheet and Statement of Profit and Loss dealt with by this Report are inagreement with the books of account;
d. in my opinion the Balance Sheet and Statement of Profit and Loss comply with theAccounting Standards referred to in section 133 of the Act read with Rule 7 of theCompanies(Accounts) Rules 2014 ; and
e. On the basis of written representations received from the directors as on 31stMarch 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms ofsection 164 of the Companies Act 2013.
f. with respect to the internal financial controls over financial reporting of thecompany and the operating effectiveness of such controls we express an unmodified opinionon the adequacy and operating effectiveness of the internal financial controls overfinancial reporting of the Company.
g. with respect to other matters to be included in the Auditor s Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:
i. The Company do not have pending litigations on its financial position in itsfinancial statements;
ii. The Company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company
CHETAN NANJI DEDHIA
Membership No: 044402
28th May 2018
Annexure to the Auditors Report
The Annexure referred to in our report to the members of Chitradurga Spintex Limited( The Company ) for the year ended 31 March 2018 and on the basis of such checks as Iconsidered appropriate and according to the information and explanations given to usduring the course of our audit I report that:
(i) As the Company does not hold any fixed assets for the year the requirement ofclause (i) of paragraph 3 of the Order is not applicable to the company.
(ii) As the Company does not hold any inventories for the year the requirement ofclause (ii) of paragraph 3 of the Order is not applicable to the company.
(iii) The company has not granted any loans secured or unsecured to/from companiesfirms or other parties covered in the register maintained u/s 189 of the Act.
(iv) The company has not granted any loans secured or unsecured under section 185made any investment provided any guarantee or security. Hence the question of reportingunder the clause 3(iv) of the order does not arise.
(v) In our opinion and according to the information and explanation given to us theCompany has compiled with the directives issued by the Reserve Bank of India and theprovision of section 73 to 76 or any other relevant provision of the Companies Act and therules framed there under to the extent applicable. We are informed by the Management thatno order has been passed by the Company Law Board or National Company Law Tribunal orReserve Bank of India or any court or any Tribunal in this regard.
(vi) As informed to us the Central Government has not prescribed maintenance of CostRecords under sub-section (1) of the section 48 of the Act.
(vii) a. According to the information and explanation given to us and according torecords of the Company examined by us in our opinion the Company is generally regular indepositing with the appropriate authorities undisputed statutory dues including Providentfund employees state insurance income tax sales tax wealth tax customs duty exciseduty cess and other material statutory dues wherever applicable. According to theinformation and explanation given to us no undisputed amount payable in respect ofaforesaid dues were outstanding as at March 31 2018 for more than six months from thedate they became payable.
b According to the information and explanation given to us there are no disputedamounts payable in respect of income tax Sales tax Wealth tax Customs duty Excise dutyand Cess outstanding as at the year end except for Entry Tax of Rs 3.91 Lakhs for theyear 1992-93.
(viii) We have been informed that the Company has not defaulted in repayment of loan orborrowings to financial institution banks and Government The Company has not raised anyfunds through debentures.
(ix) The Company has not raised money by the way of initial public offer or furtherpublic offer (including debt instrument).
(x) No fraud has been noticed or reported on or by the company during the year.
(xi) The managerial remuneration has been paid in accordance with the requisiteapprovals mandated by the provision of section 197 read with schedule V to the Act
(xii) The Company is not a chit fund or a Nidhi company. Hence the question ofreporting under clause 3(xii) of the order does not arise.
(xiii) The Company has compiled with the provision of section 177 and 188 of the inrespect of transaction with the related parties and the details have been disclosed in theFinancial Statement etc as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.
(xv) The Company has not entered into any non-cash transaction with directors or personconnected with him covered under the provision of section 192 of the Act.
(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
CHETAN NANJI DEDHIA
Membership No: 044402
28th May 2018
Annexure - B to the Auditors Report
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 ChitradurgaSpintex Limited ("the Company") as of 31 March 2018 in conjunction with ouraudit 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 ( 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 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.
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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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.
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 31 March 2018 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.
CHETAN NANJI DEDHIA
Membership No: 044402
Mumbai 28th May 2018