Indo Cotspin Limited Panipat
Report on Financial Statements
We have audited the accompanying financial statements of Indo Cotspin Limited("the company") which comprise of the Balance Sheet as at 31 March 2017 theProfit & Loss Statement Cash Flow Statement for the year ended and a summary ofsignificant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors are responsible for the matters stated in section134(5) of the Companys Act 2013 ("The Act") with respect to thepreparation and presentation of these financial statements that give a true and fair viewof financial position financial performance and cash flows of the company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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 there under.
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 the 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 anddisclosures in the financial statements. The procedures selected depend upon theauditors judgments including the assessment of the risks of material misstatementsof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompanys preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances but not forthe purpose of expressing an opinion on whether the company has in place and adequateinternal financial controls system over financial reporting and the operating theeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by thecompanys Directors as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statement.
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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(i) In the case of Balance Sheet of state of affairs of the Company as at 31st March2017.
(ii) In the case of Profit & Loss Account of the profit for the year ended on thatdate; and (iii) In the case of Cash Flow Statement of Cash Flows for the year ended onthat date.
Report on Other Legal and Regulatory Matters
1. As required by the Companies (Auditors Report) Order 2017 ("theorder") issued by Central Government of India in terms of sub-section (11) of section143 of the Act we give in the "Annexure A" a statement on the mattersspecified in the paragraph 3 and 4 of the Order to the extent applicable.
2. 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 purpose of our audit;
b) In our opinion proper books of accounts 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 Profit & Loss Statement and Cash Flow Statement dealtwith by this report are in agreement with the books of accounts;
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
e) On the basis of written representations received from the directors as on 31 March2017 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct
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 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:
i) The Company does not have any pending litigations which would impact its financialposition.
ii) The Company did not have any long term contracts including derivative contracts; assuch question of commenting on any material foreseeable losses thereon does not arise.
iii) There are no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv) The company has provided requisite disclosure in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period 8th November 2016to 30th December 2016 and these are in accordance with the books of accounts maintainedby the company.
For Manish Jain & Associates.
FCA Parveen Bansal
M. No. 097408
Firm Regd. No. 015608N
Panipat: 12th May 2017
"Annexure A" to Auditors Report
1. In respect of its Fixed Assets:
(a) The Company had maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.
(b) As explained to us the fixed assets have been physically verified by themanagement during the year in a phased periodical manner which in our opinion isreasonable having regard to the size of the company and nature of its fixed assets. Nomaterial discrepancies were noticed on such physical verification.
(c) The Title deeds of immovable properties are held in the name of the company.
2. In respect of its Inventories:
As explained to us inventories have been physically verified by the management atregular intervals during the year and there was no material discrepancies noticed onphysical verification of inventory as compared to the book records.
3. In respect of Loans:
As per the information furnished the company has not granted any loans secured orunsecured to the company firms Limited Liability partnerships or other parties coveredin the Register maintained under section 189 of the Companies Act 2013. Accordingly theprovisions of clause 3(iii)(a) to 3(iii)(c) of the Companies (Auditors Report)Order 2017 are not applicable to the company.
4. In our opinion and according to the information and explanations 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.
5. The company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the Companies (Acceptance of Deposit)Rules 2015 with regard to the deposits accepted from the public are not applicable.
6. W e have broadly reviewed the cost records maintained by the company pursuant to theCompanies (Cost Accounting Records) Rules 2011 prescribed by the Central Government underSection 148 (1) of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.
7. In respect of Statutory Dues:
(a) According to the records of the Company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees State Insurance IncomeTax Sales Tax Wealth Tax Service Tax Custom Duty Excise Duty Cess and otherStatutory Dues have been generally regularly deposited with the appropriate authorities.
(b) According to the information and explanations given to us no disputed amountspayable in respect of the aforesaid dues were outstanding as at 31st March 2017 for aperiod of more than six months from the date of becoming payable.
8. In our opinion and according to the information and explanation given to us thecompany has not defaulted in repayment of dues to financial institutions banks or anyother organization.
9. The Company has neither raised moneys by way of public issue/ follow-on offer(including debt instruments) nor taken any term loans during the year. Accordingly theprovisions of clause 3(ix) are not applicable to the Company.
10. To the best of our knowledge and belief and according to the information andexplanations given to us and considering the size and nature of the Companysoperations no fraud by the Company and no fraud of material significance on the Companyby its officers/ employees has been noticed or reported during the year that causes thefinancial statements to be materially misstated.
11. In our opinion and according to the information and explanations given to usManagerial Remuneration has been paid/provided in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Companies Act.
12. The company is not a nidhi company. Therefore the provisions of clause (xii) ofthe Companies (Auditors Report) Order 2017 is not applicable to the company.
13. Based on our audit procedure and according to the information and explanation givento us we are of the opinion that all the transactions with the related parties are incompliance with section 177 and 188 of the Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements as required by the accountingstandards and Companies Act 2013.
14. The company has not made any preferential allotment / private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of clause 3 (xiv) of the Companies (Auditors Report) Order 2017 is notapplicable to the company.
15. Based on our audit procedure and according to the information and explanation givento us during the year the Company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of Section 192 of theCompanies Act 2013 are not applicable.
16. In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Companies (Auditors Report) Order 2017 is not applicable to the company.
For Manish Jain & Associates.
FCA Parveen Bansal
Firm Regd. No. 015680N
Panipat: 12th May 2017
"Annexure B" to Auditors Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013.
We have audited the internal financial controls over financial reporting of IndoCotspin Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalfinancial controls based on financial reporting criteria established by the Companyconsidering the essential components of internal controls over Financial Reporting issuedby the Institute of Chartered Accountants of India. These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to companys 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 Companys 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 auditors judgement 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 Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys 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 thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompanys 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 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 March 31 2017 based oninternal 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 Manish Jain & Associates.
FCA Parveen Bansal
Firm Regd. No. 015680N
Panipat: 12th May 2017