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Filatex India Ltd.

BSE: 526227 Sector: Industrials
NSE: FILATEX ISIN Code: INE816B01027
BSE 12:01 | 16 Oct 35.00 -0.25
(-0.71%)
OPEN

36.40

HIGH

36.50

LOW

35.00

NSE 12:00 | 16 Oct 35.05 -0.25
(-0.71%)
OPEN

35.55

HIGH

35.85

LOW

35.00

OPEN 36.40
PREVIOUS CLOSE 35.25
VOLUME 53384
52-Week high 66.45
52-Week low 32.00
P/E 9.23
Mkt Cap.(Rs cr) 769
Buy Price 35.00
Buy Qty 751.00
Sell Price 35.30
Sell Qty 200.00
OPEN 36.40
CLOSE 35.25
VOLUME 53384
52-Week high 66.45
52-Week low 32.00
P/E 9.23
Mkt Cap.(Rs cr) 769
Buy Price 35.00
Buy Qty 751.00
Sell Price 35.30
Sell Qty 200.00

Filatex India Ltd. (FILATEX) - Auditors Report

Company auditors report

TO THE MEMBERS OF FILATEX INDIA LIMITED

Report on the Standalone Indian Accounting Standards (‘Ind AS') FinancialStatements

1. We have audited the accompanying standalone Ind AS Financial Statements of FilatexIndia Limited (‘the Company') which comprise the Balance Sheet as at March 31 2018the Statement of Profit and Loss (including other comprehensive income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.

Management's Responsibility for the standalone Ind AS Financial Statements

2. 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 Ind AS financial statements to give a true and fair view of the financialposition financial performance (including other comprehensive income) cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards specified in the Companies(Indian Accounting Standards) Rules 2015 (as amended) under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating efiectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Audit or's Responsibility

3. Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting & auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules thereunder.

5. We conducted our audit of the standalone Ind AS financial statements in accordancewith the Standards on Auditing specified under Section 143(10) of the Act and otherapplicable authoritative pronouncements issued by the Institute of Chartered Accountantsof India. Those Standards and pronouncements require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

7. We believe that the audit evidence we have obtained is suficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of afiairs of theCompany as at March 31 2018 total comprehensiveincome (comprising of profit and othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.

Other matters

9. The pr eviously issued standalone financial information the company for the yearended 31 March 2017 prepared in accordance with the Companies (Accounting Standards)Rules 2006 and audited by the predecessor statutory auditors of the company (vide theirunmodified audit report dated 9 May 2017) have been restated to comply with the IndianAccounting Standards ("Ind AS") and included in this statement as correspondingfinancial information. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

10. As required by ‘the Companies (Auditor's Report) Order 2016' issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure-A a statement on thematters specified in paragraphs 3 and 4 of the Order.

11. 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 (including other comprehensiveincome) the Cash Flow Statement and the Changes in Equity dealt with by this Report arein agreement with the books of account.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on April1 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of Section 164(2) of theAct.

(f) With respect to adequacy of the internal financial controls over financialreporting of the Company and the operating efiectiveness of such controls refer to ourseparate Report in "Annexure B''.

(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 knowledge and belief and according to the information andexplanations given to us: i) The Company has disclosed the impact if any of pendinglitigations as at March 31 2018 on its financial position in its standalone Ind ASfinancial statements - Refer Note 41 to the standalone Ind AS financial statements;

ii) The Company has made provision as at March 31

2018 as required under the applicable law or Indian Accounting Standards for materialforeseeable losses if any on long-term contracts including derivative contracts.

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312018.

iv) The reporting on disclosure relating to specified Bank Notes is not applicable tothe company for the year ended March 31 2018.

For Arun K Gupta & Associates
Chartered Accountants
Firm Registration No. 000605N
Place: New Delhi GIREESH KUMAR GOENKA
Dated: 07-05-2018 Partner
Membership No. 096655

Annexure-A to Independent Auditors' Report

Referred to in paragraph 10 of the Independent Auditors' Report of even date to themembers of Filatex India Limited on the standalone Ind AS financial statements as of andfor the year ended March 31 2018

i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management during the year ina phased manner and no material discrepancy has been noticed on such verification. In ouropinion the frequency of physical verification of fixed assets is reasonable havingregard to the size of the Company and the nature of its assets.

(c) The title deeds of free hold immovable properties are held in the name of theCompany.

ii. The management has conducted physical verification of inventory at reasonableintervalsand no material discrepancies in inventory were noticed on physical verification.

iii. The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under Section 189 of the CompaniesAct 2013. Therefore the provisions of Clause 3(iii) (iii)(a) (iii)(b)&(iii)(c) ofthe said Order are not applicable to the Company.

iv Inouropinionandaccordingtotheinformationandexplanations given to us provisions ofsection 186 of the Companies Act2013 in respect of investments made have been compliedby the Company. There are no other loans guarantees and securities granted in respect ofwhich provisions of section 185 and 186 of the Companies Act2013 are applicable.

v. The Company has not accepted any deposit from the public.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Govt. for the maintenance of Cost Records under sub section1 of section 148 of the Companies Act 2013 and are of the opinion that prima facie theprescribed accounts and records have been maintained. We have however not made a detailedexamination of these records.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax duty of customs duty of excise value added tax goods &service tax cess and other material statutory dues as applicable with the appropriateauthorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax sales taxduty of customs duty of excise service tax value added tax goods & service taxcess and other material statutory dues were in arrears as at 31 March 2018 for a periodof more than six months from the date they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us the dues outstanding of income-tax sales tax service-tax dutyof customs duty of excise value added tax goods & service tax and cess which havenot been deposited on account of any dispute as at March 31 2018 are stated below:-

Name of the Nature of Dues Amt Period to Forum where
Statute (`/lacs) Which it Dispute is pending
relates
Central Excise NCCD on 2.77 From July 2004 Commissioner of Central
Act 1944. Deemed Exports. to Nov. 2004 Excise (Appeals) Vapi
Central Excise Service Tax Credit 51.08 F.Y 2011-12 CESTAT
Act 1944. before starting of production Ahmedabad
Central Excise Service Tax Credit on Hotel 1.08 March 2012 to The Commissioner
Act 1944. Bill & outward courier Jan. 2016. (Appeals) Bharuch
Central Excise Act 1944. Credit of Service Tax availed on courier service. 0.21 F.Y's 2005-06 & The Asst. Commissioner of Central Excise Silvassa.
Central Excise Demand for sale of 472.52 FY 2008-09 CESTAT WZB
Act 1944. Grey Knitted fabrics from the premises of various job workers Ahmedabad
Central Excise Act 1944. Excess credit availed on goods supplied to 100% EOUs 35.99 FY 2007-08 & FY 2008-09 Commissioner (Appeals) C.E. Vapi
Central Excise Credit of Service tax availed on 3.17 F.Y's 2010-11 CESTAT WZB
Act 1944. the invoices issued in the name of to 2012-13 Ahmedabad
Branch ofices for the year 2010-11
2011-12 & 2012-13
Central Excise Demand of Service Tax credit availed 15.31 F.Y's 2009-10 The Addl. Commissioner
Act 1944. on Sales Commission for the & 2010-11 Central Excise Customs
years 2009-10 & 2010-11 & Service Tax Vapi
Central Excise Cenvat credit of service tax availed From Nov. 2012 Commissioner (Appeals)
Act 1944. on invoices issued in the name of branch 0.69 to Mar. 2013 C.E. Vapi
ofice for the period from Nov.-2012
to March.-2013
Central Excise Demand of Ex. duty on Polyester FDY 32.99 From Apr.-2009 The Jt. Commissioner
Act 1944. Yarn transferred to NWF on transaction to Apr -2012 Central Excise
value instead of CAS-04 for the period Customs & Service
from April-2009 to April-2012 Tax Vapi
Customs Act Difierential duty on import of chips 14.54 December 2007 Asst. Commissioner of
1962. Customs Group II E&B
JNCH Navi Mumbai.
Customs Act Co-Party made with a customer for 15.00 April 2007 CESTAT Western Zone
1962. discrepancies in compliance of export Ahmedabad.
obligation by customer.
Customs Act Fraudulentavailment of DEPB credit 8.64 March 2005 The Commissioner of
1962. by M/s Shivam Overseas Ludhiana Customs (EP) New
by resorting to overvaluation of Custom
their exported goods House Ballard Estate
Mumbai
Central Excise Demand of service tax credit availed on 20.10 April 2011 to The Additional
Act 1944 sales commission for the period December 2014 Commissioner
April 2011 to December 2014 Central excise Custom
& Service Tax
Div I Vapi.
Central Excise Demand of service tax credit availed 3.58 January 2015 to The Assistant
Act 1944 on sales commission for the period November 2015 Commissioner
January 2015 to November 2015 Central excise Custom
& Service Ta
Div I Silvassa.
Central Excise Demand of service tax credit availed on sales commission for the period April 2010 to February 2016 44.10 April 2010 to The Superinendent
Act 1944 February 2016 Central Ex & Custom
Range-III Division - V
Bharuch
Central Excise Act 1944 Excise Rebate claim sale Invoice no. 3.09 For the period The Joint
2039ARE no.8/2014-15 2014-15 Commissioner Central
Excise Raigarh

viii. A ccording to the records of the Company examined us and the information andexplanation given to us the Company has not defaulted in repayment of dues to anyfinancial institution or banks. The company does not have any outstanding debenture.

ix. Based on the audit procedures applied by us & according to the information& explanations provided by the management the Company has not raised any moneys byinitial public ofier or further public ofier(including debt instruments) during the year.Term loans taken by the company during the year have been applied for the purpose forwhich the loans were obtained.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud on or by the Company noticed or reported during the year norhave we been informed of any such case by the Management.

xi. According to the records of the Company examined by us and the information andexplanation given to us the Company has paid and provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V of the Companies Act 2013.

xii. The company is not a Nidhi Company this clause is not applicable to the company.

xiii. According to the records of the Company examined by us and the information andexplanation given to us the by company has complied with section 177 and 188 of theCompanies Act 2013 in relation to transaction with related parties and the details havebeen disclosed in the standalone Ind AS Financial Statements as required by applicableIndian Accounting Standards.

xiv. According to the information and explanations given to us and on an overallexamination of the balance sheet the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe company and not commented upon.

xv. As per the information & explanations given to us the company has not enteredinto any non-cash transactions with directors or persons connected with them as referredto in section 192 of the Companies Act2013.

xvi. According to the information and explanations given to us the provisions ofsection 45 IA of the Reserve Bank of India Act 1934 are not applicable to the company.

For Arun K Gupta & Associates
Chartered Accountants
Firm Registration No.000605N
Place: New Delhi
Dated: 07-05-2018
GIREESH KUMAR GOENKA
Partner
Membership No.-096655

Annexure-B to the Independent Auditor's Report

Report on the Internal Financial Controls

We have audited the internal financial controls over financial reporting of FilatexIndia Limited ("the Company") as of March 31 2018 in conjunction with our auditof the standalone Ind AS 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating efiectively for ensuring the orderly and eficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Audit ors' 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 efiectively 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 operatingefiectiveness. 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 efiectiveness 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 standalone Ind AS financial statements whether due to fraudor error.

We believe that the audit evidence we have obtained is suficient 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'sinternal financial control over financial reporting is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof standalone Ind AS 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 thetransactionsanddispositionsoftheassetsofthecompany;(2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of standalone Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material efiect on the standaloneInd AS 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 efiectively as at March 31 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.

For Arun K Gupta & Associates
Chartered Accountants
Firm Registration No.000605N
Place: New Delhi
Dated: 07-05-2018
GIREESH KUMAR GOENKA
Partner
Membership No.-096655