To the Members of Jagjanani Textiles Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Jagjanani Textiles Limited("the Company") which comprise the Balance Sheet as at March 31 2018 and theProfit & Loss Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated in Section134(5) of Companies Act 2013("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance of the Company in accordance with the accounting principles generally acceptedin India including the Accounting Standards specified under Section 133 of Act read withRule 7 of Companies (Accounts) Rules 2014. This responsibility also includes maintenanceof adequate accounting records in accordance with the Provision of the Act forsafeguarding the 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 implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring 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.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provision 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 Rules there under. We Conducted our audit in accordance with theStandards on Auditing specified under section 143(10) of the Act. Those Standards requirethat we comply with ethical Requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and Disclosures in the financial statements. The procedures selected depend on theauditor's 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 proceduresthat are appropriate in the Circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's directors as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.
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 of the state of affairs of the Company as at March31 2018 and its Loss for the year ended on that date.
Report on other legal and regulatory requirement
1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of the India in terms of sub-section (11) of section 143of the Act we give in the Annexure a statement on the matter specified in the paragraph 3and 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 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 Profit and Loss Statement dealt with by this report are inagreement with books of account.
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of Companies (Accounts)Rules 2014.
e) On the Basis of written Representations received from the directors as on March312017 taken on record by the board of directors none of the director is disqualified as onMarch31 2017 from being appointed as a director in terms of Section 164(2) of the Act.
Annexure to Independent Auditors' Report
Referred to in paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date:
1. The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets. All the fixed assets have beenphysically verified during the year by the Management. Further we are informed that nomaterial discrepancies were noted during such verification.
a) The Company has maintained records pertaining to finished goods stores spares rawmaterial purchases sale of goods by-products scrap and book debts.
b) Inventories have been physically verified by the management during the year and inour opinion the frequency of verification is reasonable to the extent clarified to us.
c) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
d) The discrepancies noticed on physical verification of stocks as compared to bookrecords which were not material have been properly dealt with in the books of accounts.
e) In our opinion the valuation of stock is fair and proper and in accordance withgenerally accepted accounting principles.
3. The Company has not granted any loan to companies firms and other parties listed inthe register maintained under section 189 of the Companies Act 2013. According to theinformation and explanation given to us no loans and advances in the nature of loans havebeen given to the parties including the employees.
4. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the company and thenature of its business with regards to purchases of stores raw material includingcomponents plant and machinery equipment and other assets and for the sale of goods.
5. According to the information and explanations given to us the Company has notaccepted any deposits from the public under directives issued by Reserve Bank of India andthe provisions of section 73 to 76 or any other relevant provisions of the Companies Actand rules framed there under during the year. Accordingly the clause is not applicable.
6. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act of the Companies Act2013 read with the companies (cost recordsand audit) Rules 2014 for any of the products manufactured/services rendered by theCompany
7. According to the books and records examined by us and the information andexplanation given to us no undisputed amount payable in respect of income tax wealthtax sales tax VAT custom duty service tax excise duty Cess & other materialstatutory dues applicable to it were in arrears as at 31st March 2017 for aperiod of more than six months from the date they became payable.
8. The Company has Rs.2619.30 Lacs accumulated losses as at 31st March2017. The company has incurred a loss of Rs. 200.77 Lacs in the financial year 2016-16.
9. The company has been regular in repayment of dues to financial institutions and havenot defaulted in repayment of such dues.
10. According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from banks or financial institutions.Accordingly this clause is not applicable.
11. On the basis of information and explanation given to us term loan raised during theyear has been applied for the purpose for which they were raised.
12. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company was noticed or reported during theyear that causes the financial statements to be materially misstated.
| ||For A .O. Mittal & Associates |
| ||Chartered Accountants |
| ||Firm Regn. No. - 014640C |
| ||(Arpit Mittal) |
| ||Partner |
|Jaipur ||M. No. 404415 |
|Date: 30.05.2018 || |