Independent Auditor's Report on Standalone Financial Results of the Company Pursuant tothe Reaulation 33 and Reauiation 52 read with Regulation 63(2) of theSEBI (Listing Obligations and Disclosure Reauirements) Regulations. 2015
The Board of Directors
M/s Citizen Yarns Limited
These standalone financial results are based on the standalone financial statements forthe year ended 31st March 2018 prepared in accordance with the accountingprinciples generally accepted in India including Indian Accounting Standards (INDAS') specified under Section 133 of the Companies Act 2013 (the Act') and publishedstandalone year to date figures up to the end of the third quarter of the financial yearprepared in accordance with the regulation and measurement principles laid down in IND AS34 Interim Financial Reporting specified under Section 133 of the Act and SEBICirculars CIR/CFD/CMD/15/2015 dated 30h November 2015 and CIR/CFD/FAC/62/2016dated 5th July 2016 which are the responsibilities of the Company'smanagement. Our responsibility is to express an opinion on these standalone financialresults based on our audit of the standalone financial statements for the year ended 31stMarch 2018 and our review of standalone financial results for the nine months periodended 31st December 2017.
We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we plan andperform the audit to obtain reasonable assurance about whether the Statement is free frommaterial misstatement. An audit includes examining on test basis evidence supportingamounts disclosed on the Statement. An audit also includes evaluating the appropriatenessof the accounting policies used and the reasonableness of the significant accountingestimates made by the Management as well as evaluating the overall presentation of theStatement. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial results:
(i) are presented in accordance with the requirements of Regulation 33 of the SEB(Listing Obligations and Disclosure Requirements) Regulations 2015 read with SEBICirculars CIR/CFD/CMD/15/2015 dated 30th November 2015 and CIR/CFD/FAC/62/2016dated 5th July 2016 in this regard; and
(ii) give a true and fair view of the standalone net profit (including othercomprehensive income) and other financial information in conformity with the accountingprinciples generally accepted in India includimjJHfi^S specified under Section 133 of theAct for the year ended 31st March
The Company has prepared separate standalone results for the year ended 31stMarch 2017 based on the standalone financial statements for the year ended 31stMarch 2017 prepared in accbrdance with Accounting Standards (AS') prescribed underSection 133 of the Act read with Rule & of the Companied (Accounts) Rules 2014 (asamended) on which we issued auditor's report dated 30th May 2017 andstandalone financials results for the nine months period ended 31st December2016 prepared in accordance with the recognition and measurement principles laid down inAS 25 Interim Financial Reporting prescribed under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014 (as amended) and other accountingprinciples generally accepted in India which have not been audited/reviewed by us. Thesestandalone financials statements for the year ended 31th March 2017 have been adjustedfor the differences in the accounting principles adopted by the Company on transition toIND AS which have also been audited by us. Our opinion is not modified in respect forthis matter.
" Referred to in Paragraph 1 under the heading of "Report on other Legaland Regulatory Requirements" of our report of even date
On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we state that: -
a. There is no Fixed Asset at year end.
(i) There is no Inventory at year end.
(ii) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties listed inthe register maintained under Section 189 of the Companies Act 2013.Consequently theprovisions of clauses iii (a) (b) and (c)of the order are not applicable to the Company.
(iii) In our opinion and according to the information and explanations given to uscompany has complied with the provision of section 185 and 186 of the Companies Act 2013In respect of loans investment guarantees and security.
(iv) The company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provision of sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules2015 withregards to the deposits accepted from the public are not applicable.
(v) As per information & explanation given by the management maintenance of costrecords has not been specified by the Central Government under sub-section (1) of section148of the Companies Act 2013.
(vi) According to information and explanations given to us and on basis of ourexamination of the books of account and records the company has been generally regularin depositing undisputed statutory dues including Income-tax Sales-tax Service TaxCustom Duty Excise Duty value added taxcess and any other statutory dues with theappropriate authorities. According to the information and explanations given to us therewere no outstanding statutory dues as on 31st of March 2018 for a period of more than sixmonths from the date they became payable.
(vii) In our opinion and according to the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution or bank. The Company has not taken any loan either fromfinancial institutions or from the government and has not issued any debentures.
(viii) Based on our audit procedures and according to the information given by themanagement the company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) or taken any term loan during the year.
(ix) According to the information and explanations give^iedt^we report that no fraud bythe company or any fraud on the Company by its officers or empU^^ST^^^en noticed orreported during the year.
(x) According to the information and explanations given to us we report thatmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.
(xi) The company is not a Nidhi Company. Therefore clause (xii) of the order is notapplicable to the company.
(xii) According to the information and explanations given to usall transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.
(xiii) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has made preferential allotment during the year underreview.
Based upon the audit procedures performed and the information and explanations given bythe management the company has not entered into any non-cash transactions with directorsor person connected with him. Accordingly the provision of clause 3 (xv) of the Order arenot applicable to the Company and hence not commented upon.
In our opinion the company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934. And accordingly the provisions of clause 3 (xvi) of theOrder are not applicable to the Company and hence not commented upon.
For Arpit Shah & Co.
CA. Arpit T. Shah