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First Winner Industries Ltd.

BSE: 532996 Sector: Industrials
NSE: FIRSTWIN ISIN Code: INE315J01015
BSE 00:00 | 26 Nov First Winner Industries Ltd
NSE 05:30 | 01 Jan First Winner Industries Ltd
OPEN 0.89
PREVIOUS CLOSE 0.89
VOLUME 770
52-Week high 1.94
52-Week low 0.89
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.89
CLOSE 0.89
VOLUME 770
52-Week high 1.94
52-Week low 0.89
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

First Winner Industries Ltd. (FIRSTWIN) - Auditors Report

Company auditors report

To the Members of

First Winner Industries Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of First WinnerIndustries Limited ("the Company") comprise the Balance Sheet as at 31March 2017 and the Statement of Profit and Loss for the year then ended and a summary ofthe significant accounting policies and other explanatory 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors' 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 thereunder.

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 andthe disclosures in the financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of the standalonefinancial statements.

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

Opinions

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 31 March 2017 and its loss for the year ended on that date.

Matter of Emphasis

1. Financial statements of the Company in respect of high trade receivables which ismore than 365 days and no turnover default in repayment of its dues to lenders whichindicates the existence of material uncertainty that may cast significant doubt about theCompany's ability to continue as going concern. The Company has prepared the accompanyingfinancial statements on going concern assumption.

2. Based on our examination of records and according to information and explanationgiven to us the Company has defaulted in repayment of dues to State Bank of India andother banks for Short term borrowing and from others - refer "Note 4 7 and 9".

Report on other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 (‘the Order') issuedby the Central Government of India in terms of sub-section (11) of Section 143 of the Actwe give in the Annexure A a statement on the matters specified 4 of the Order.

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 and the Statement of Profit and Loss dealt with by this Reportare 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 31March 2017 taken on record by the Board of Directors none of the Directors aredisqualified as on 31 March 2017 from being appointed as a Director in terms of Section164(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 the Annexure B; and

(g) with respect to the other matters to be included in the Auditors' 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:

1. the company does not have any pending litigations which would impact its financialpositions except this

Name of the Statute Nature of Dues Amount (In Rs.) Period to which the amount relates (Assessment Year) Forum where dispute is pending
The Income Tax Act 1961 Income Tax & Interest Demand (Reopening) Rs. 57897238/- 2008-09 Commissioner of Income Tax (Appeals) 51 Mumbai
The Income Tax Act 1961 Income Tax & Interest Demand (Search) Rs. 151127369/- 2009-10 Commissioner of Income Tax (Appeals) 51 Mumbai
The Income Tax Act 1961 Income Tax & Interest Demand (Search) Rs. 2845147/- 2010-11 Commissioner of Income Tax (Appeals) 51 Mumbai
The Income Tax Act 1961 Income Tax & Interest Demand (Search) Rs. 95915749/- 2011-12 Commissioner of Income Tax (Appeals) 51 Mumbai
The Income Tax Act 1961 Income Tax & Interest Demand (Search) Rs. 82112598/- 2012-13 Commissioner of Income Tax (Appeals) 51 Mumbai
The Income Tax Act 1961 Income Tax & Interest Demand Rs. 2952870/- 2011-12 Income Tax Appellate Tribunal

2. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

3. there has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.

AVESH PATEL & Co.

Chartered Accountants

Avesh A. Patel

Proprietor

[M. No. : 125396]

F.R.NO : 133174W

Place : Mumbai

Date : 30/05/2017

Annexure A to the Independent Auditors' Report – 31 March 2017.

With reference to the Annexure A referred to in the Independent Auditors' Report to themembers of the Company on the standalone financial statements for the year ended 31 March2017 we report the following:

(i) (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 the fixed assets are verified by the management according to a phased programmedesigned to cover all the items over a period of three years.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties asdisclosed in Note No. 11 to the standalone financial statements are held in the name ofthe Company.

(ii) The Company does not have any inventory at the close of the year. Hence therequirement of clause (ii) of paragraph 3 of the said Order is not applicable to theCompany.

(iii) (a) The Company has not granted loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of grant of loans making investments and providing guarantees and securitiesas applicable.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits as per the directives issued by the Reserve Bank ofIndia and the provisions of Sections 73 to 76 or any other relevant provisions of the Actand the rules framed thereunder. Accordingly paragraph 3(v) of the Order is notapplicable to the Company.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company.

(a) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident fundEmployees' State Insurance Income-tax Sales-tax Service tax Duty of customs Duty ofexcise Value added tax cess and other material statutory dues have not beengenerally regularly deposited during the year by Company with the appropriateauthorities.

According to the information and explanations given to us company has no transactionduring the year and in current year there were no undisputed amounts payable in respect ofProvident fund Employees' State Insurance Income-tax Sales-tax Service tax Duty ofcustoms Duty of excise Value added tax cess and other material statutory dues were inarrears as at 31 March 2017 for a period of more than six months from the date they becamepayable.

(b) According to the information and explanations given to us there are no dues ofIncome-tax Sales tax Service tax Duty of customs Duty of excise and Value added taxesat 31 March 2017 which have not been deposited with the appropriate authorities on accountof any dispute except following:

Name of the Statute Nature of Dues Amount (In Rs.) Period to which the amount relates (Assessment Year) Forum where dispute is pending
The Income Tax Act 1961 Income Tax & Interest Demand (Reopening) Rs. 57897238/- 2008-09 Commissioner of Income Tax (Appeals) 51 Mumbai
The Income Tax Act 1961 Income Tax & Interest Demand (Search) Rs. 151127369/- 2009-10 Commissioner of Income Tax (Appeals) 51 Mumbai
The Income Tax Act 1961 Income Tax & Interest Demand (Search) Rs. 2845147/- 2010-11 Commissioner of Income Tax (Appeals) 51 Mumbai
The Income Tax Act 1961 Income Tax & Interest Demand (Search) Rs. 95915749/- 2011-12 Commissioner of Income Tax (Appeals) 51 Mumbai
The Income Tax Act 1961 Income Tax & Interest Demand (Search) Rs. 82112598/- 2012-13 Commissioner of Income Tax (Appeals) 51 Mumbai
The Income Tax Act 1961 Income Tax & Interest Demand Rs. 2952870/- 2011-12 Income Tax Appellate Tribunal

(vii) The Company have outstanding dues to financial institutions banks or debentureholders during the year refer "Note 4 7 and 9".

(viii) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not raised any moneys by way ofinitial public offer or further public offer (including debt instruments) and has notobtained any term loans during the year. Accordingly paragraph 3(ix) of the Order is notapplicable to the Company.

(ix) 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 by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

(x) In our opinion and according to the information and explanations given to us themanagerial remuneration has not been paid or provided.

(xi) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company and the Nidhi Rules 2014 are not applicable to it.Accordingly paragraph 3(xii) of the Order is not applicable to the Company.

(xii) In our opinion and according to the information and explanations given to us theCompany has not entered into transactions with related parties.

(xiii) According to the information and explanations given 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.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with them. Accordingly paragraph3(xv) of the Order is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

AVESH PATEL & Co.

Chartered Accountants

Avesh A. Patel

Proprietor

[M. No. : 125396]

F.R.NO : 133174W

Place : Mumbai

Date : 30/05/2017

Annexure B to the Independent Auditors' Report of even date on the Financial statementsof First Winner Industries Limited – 31 March 2017

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 FirstWinner Industries Limited(the Company)as of 31 March 2017 in conjunction with our audit ofthe standalone financial statements of the Company for the year 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').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' 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 Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 auditors' 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.

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 financialcontrols overfinancial reporting to future periods are subject to the risk that internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Basis of Qualified Opinion

The standard operating procedures and internal controls procedures are not establishedsince there are no transactions. opinion

In our opinion the Company has in all material respect except to the mattersmentioned in the basis for qualified opinion paragraph an adequate internal financialcontrols system over financial reporting reporting were operating effectively as at 31March 2017 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

AVESH PATEL & Co.

Chartered Accountants

Avesh A. Patel

Proprietor

[M. No. : 125396]

F.R.NO : 133174W

Place : Mumbai

Date : 30/05/2017