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Flora Textiles Ltd.

BSE: 530705 Sector: Industrials
NSE: N.A. ISIN Code: INE161F01011
BSE 00:00 | 22 Jan Flora Textiles Ltd
NSE 05:30 | 01 Jan Flora Textiles Ltd
OPEN 6.65
PREVIOUS CLOSE 6.65
VOLUME 100
52-Week high 7.45
52-Week low 6.65
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.65
CLOSE 6.65
VOLUME 100
52-Week high 7.45
52-Week low 6.65
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Flora Textiles Ltd. (FLORATEXTILES) - Auditors Report

Company auditors report

TO THE MEMBERS OF FLORA TEXTILES LIMITED

Report on the Financial Statements

1. We have audited the accompanying financial statements of Flora Textiles Limited (thecompany) which comprise the Balance Sheet as at 31st March 2017 the Statement Profit& Loss the Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act2013 with respect to the preparation of these financialstatements that give a true & fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds & 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 arenecessary for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act Rules the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under.

4. 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.

5. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgement 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

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

Opinion

7. 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 theCompanies Act 2013 in the manner so required and present a true and fair view inconformity with the accounting principles generally accepted in India:

a In so far as it relates to Balance Sheet of the state of affairs of the Company asat 31st March 2017;

b In the case of the Profit & Loss Account of the Loss of the company for the yearended on that date; and

c In the case of the Cash Flow Statement of cash flows of the company for the yearended on that date.

Report On Other Legal And Regulatory Requirements

8. As required by 'the Companies (Auditor's Report) order 2016 (the Order) issued bythe Central Government of India in terms of sub-section (11) of Section 143 of the Act wegive in the "Annexure A" a statement on the matters specified in theparagraph 3 and 4 of the order to the extent applicable.

As required by section 143(3) of the act we report that:

9. a) We have sought and obtained all the information and explanations which to thebest of 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 Statement of Profit and Loss and Cash flow Statement dealt withby this report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the mandatoryAccounting Standards referred in section 133 of the Companies Act 2013 read with Rule 7of the Companies (Accounts) Rules 2014;

e) On the basis of written representations received from the directors as on March312017 and taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2017 from being appointed as a director in terms of Section164 (2) of the Companies Act 2013.

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"; and

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:

I The Company did not have any pending litigations which affects its financial positionas at 31st March 2017;

II The Company did not have material foreseeable losses on long-term contracts;

III There was no amount requiring transfer to Investor Education and Protection Fundduring the year.

IV. The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and they are in accordance with the books ofaccounts as maintained by the company. However we are unable to obtain sufficient andappropriate audit evidence to report on whether the disclosures are in accordance with thebooks of account maintained by the Company and as produced to us by the Management - ReferNote No.10 to the financial statements.

Place: Coimbatore FOR ANJANA & CO
Date : 30.05.2017 (FRN No 006724S)
CHARTERED ACCOUNTANTS
PRAVIN KUMAR MAHESHWARI
PARTNER
(Membership no 026866)

"ANNEXURE A" TO INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 8 of our report of even date

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

(b) As per the information and explanation given to us the fixed assets of the Companyhave been physically verified by the management during the year at reasonable intervals.No material discrepancies were noticed on such verification.

(c) The title deeds of the immovable properties recorded in the books of the Companyare held in the name of the Company.

(ii) The inventory has been physically verified during the year by the Management. Inour opinion the frequency of verification is resonable. The discrepancies noticed inverification between the physical stock and book records were not material and have beenproperly dealt within the books of accounts.

(iii) As informed the Company has not granted loans to parties covered in the registermaintained under Section 189 of the Act. Consequently the provisions of Clause 3 iii (a)3 iii (b) and 3 iii (c) of the order are not applicable to the Company.

(iv) The Company has not granted any loans made investments provided guarantees orsecurity and hence report under clause (iv) of the CARO 2016 order is not applicable..

(v) According to the information and explanations given to us the company has notaccepted any deposits during the year to which the provisions of Section 73 to 76 or anyother relevant provisions of Companies Act 2013 were applicable.

(vi) As per information & explanation given by the management maintenance of costrecords is not required to be maintained as per Rule 3 of Companies (Cost Records andAudit) Amendment Rules 2014.

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income tax salestax wealth tax service tax value added tax customs duty excise duty cess and anyother material statutory dues applicable to it.

AND

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax sales taxwealth tax service tax value added tax customs duty excise duty cess and any othermaterial statutory dues applicable to it were outstanding as at 31st March 2017 for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to us the company does nothave any disputes in respect of provident fund employees' state insurance income taxsales tax wealth tax service tax value added tax customs duty excise duty cess andany other material statutory dues applicable to it

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of dues to financial institution bank or Government. The companyhas not issued any debentures.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause (ix) ofthe CARO 2016 Order is not applicable.

(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 fraud by the Company or on the Company by its officers or employees noticedor reported during the year.

(xi) According to the information and explanations given to us and the records of theCompany examined by us the company the company has not paid any managerial remunerationduring the year.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theCARO 2016 Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with Sections 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Financial Statements etc. as required by theapplicable accounting standards.

(xiv) Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any noncash transactions with itsdirectors or persons connected with them and accordingly paragraph 3 (xv) of the order isnot applicable.

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

Place: Coimbatore FOR ANJANA & CO
Date : 30.05.2017 (FRN No 006724S)
CHARTERED ACCOUNTANTS
PRAVIN KUMAR MAHESHWARI
PARTNER
(Membership no 026866)

"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 9(f) of our 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")

We have audited the internal financial controls over financial reporting of FloraTextiles Limited ("the Company") as of March 312017 in conjunction with ouraudit of the 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient 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.

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 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 312017 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Place: Coimbatore FOR ANJANA & CO
Date : 30.05.2017 (FRN No 006724S)
CHARTERED ACCOUNTANTS
PRAVIN KUMAR MAHESHWARI
PARTNER
(Membership no 026866)