TO THE MEMBERS OF JINA AM'S DRESS LIMITED
Report on the Audit of the Financial Statements
We have audited the accompanying financial statements of JINA AM'S DRESS LIMITED (the Company) which comprise the Balance Sheet as at March 31 2019 and the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31 2019 and its profit and its cash flow for the year ended on that date.
Basis for Opinion
We conducted our audit of the Financial Statements in accordance with the Standards on Auditing (SAs) as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the `Auditor's Responsibilities for the Audit of the Financial Statements' section of our report. We are independent of the Company in accordance with the `Code of Ethics' issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Financial Statements.
Key Audit Matters
Since the Company is not listed as on 31st MARCH 2019 Hence Key Audit Matters is not applicable to it.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report but does not include the Financial Statements and our auditor's report thereon.
Our opinion on the Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements our responsibility is to read the other information and in doing so consider whether such other information is materially inconsistent with the Financial Statements or our knowledge obtain in the audit or otherwise appears to be materially misstated. If based on the work we have performed we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Management and Board of Directors of the Company are responsible for the matters stated in Section 134(5) of the Companies Act 2013 (the Act) with respect to the preparation of these financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under section 133 of the Act read with rule 7 of Companies (Accounts) Rules 2014. This responsibility includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; design implementation and maintenance of adequate internal financial control that are operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing the company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs We exercises professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error to design and perform audit procedures responsive to those risks and to obtain audit evidence that is sufficient and appropriate to provide a basis for the auditor's opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Companies Act 2013 we are responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosure in the financial statements or if such disclosures are inadequate to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor's report. However future events or conditions may cause an entity to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that individually or in aggregate makes it probable that the economics decisions of a reasonably knowledgeable user of the financial statement may be influenced. We consider quantitative materiality and qualitative factor in (i) planning the scope of our audit work and in evaluating the result of our work and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 (the Order) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act we give in the Annexure
A a statement on the matters specified in paragraph 3 and 4 of the Order.
2. As required by section 143(3) of the Act we report that:
a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c. The Balance Sheet Statement of Profit and Loss Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d. In our opinion the aforesaid financial statements comply with the Accounting Standards referred to in 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 March 31 2019 and taken on record by the Board of Directors none of the directors is disqualified as on March 31 2019 from being appointed as a director in terms of section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in Annexure B and
g. In our opinion the managerial remuneration for the year ended March 31 2019 has been paid/ provided by the company to its directors in accordance with the provisions of section 197 read with schedule V to the Act.
h. In our opinion and to the best of our information and according to the explanations given to us we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014:
i. The Company does not have any pending litigations which would impact its financial position
ii. The company does not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses does not arise.
iii. There has not been an occasion in case of the company during the year under report to transfer any sums to the investor Education and Protection Fund.The question of delay in transferring such sums does not arise.
C. S. JARIWALA & CO
FRN - 114906W
(ANUJ C. JARIWALA - PARTNER)
Membership No. 109919
Date: 05 June 2019
UDIN : 19109919A A A AEC4152
Annexure-A to the Auditors' Report
Annexure referred to in above paragraph of our report of even date to the members of Company on the accounts of the Company for the year ended 31st March 2019.
1 PROPERTY PLANT AND EQUIPMENT:
a. The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.
b. All the Fixed Assets have not been physically verified by the management during the year but there is a regular programme of verification which in our opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.
c. According to the information and explanations given to us there have been no immovable properties of land and buildings which are freehold held in the name of the Company as at the balance sheet date. However the company has incurred capital expenditure on Building premises taken on lease which have been shown as Fixed assets - Value additions in Building (Construction) in the books of account.
As explained to us the inventories were physically verified during the year by the management at reasonable intervals and the discrepancies noticed on verification between the physical stocks and the book records were not material.
3.The Company has not granted any loans secured or unsecured to companies firms and limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. Consequently the provisions of clauses iii (a) (b) and (c) of the order are not applicable to the Company.
4.In our opinion and according to the information and explanations given to us the company has complied with the provisions of section 185 and 186 of the Act in respect of grant of loans making investments and providing guarantees and securities as applicable.
5.The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 with regards to the deposits accepted from public are not applicable.
6.We have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 148 of the Act and are of the opinion that prima facie the prescribed accounts and records have been made and maintained .
7.IN RESPECT OF STATUTORY DUES :
a. According to the informations and explanations given to us and based on the records of the company examined by us the company has been regular in depositing the undisputed statutory dues including Provident Fund Employees' State Insurance Income Tax Sales - Tax Wealth Tax Goods and Service Tax Service Tax Custom Duty Excise Duty cess and other material statutory as applicable with the appropriate authorities in India.
b. According to the information and explanations given to us no undisputed amounts payable in respect of income Tax Wealth Tax Goods and Service Tax Service Tax Sales Tax Customs Duty and Excise Duty were outstanding as at 31-03-2019 for a period of more than six months from the date they became payable.
c. According to the records of the company there are no dues of sale-tax Goods and Service Tax income tax customs-tax/wealth-tax excise duty/cess which have not been deposited on account of any dispute.
8.According to the records of the Company examined by us and as per the information and explanations given to us we are of opinion that the company has not made default in repayment of dues to financial institutions or banks and further the company has not issued debentures.
9. The company has not raised moneys by way of Initial public offer or further public offer (including debt instruments). Further the company has raised term loans during the year and was applied for the purposes for which they are raised.
10.During the course of our examination of the books and records of the company carried in accordance with the auditing standards generally accepted in India we have neither come across any instance of fraud by the company or by its officers or employees on or by the company noticed or reported during the course of our audit nor have we been informed of any such instance by the Management.
11.According to the information and explanation provided by the management the managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act 2013.
12.The company is not a Nidhi company and hence reporting under this clause of order is not applicable.
13.In our opinion and according to the information and explanations given to us the company is in compliance with section 177 and 188 of the Act where applicable for all transactions with related parties and details of related party transactions have been disclosed in the financial statement as required by the applicable accounting standards.
14.During the year the Company has made Private placement of shares and based on informations and explanations Provided to us we are of opinion that the company has complied with the requirement of section 42 of the Companies Act 2013 and amount have been used for the purpose for which the funds have been raised.
15.In our opinion and according to the information and explanations given to us during the year the company has not entered into any non - cash transactions with its Directors or persons connected to its directors and hence provisions of section 192 of the Act are not applicable.
16.The company is not required to be registered under section 45-I of Reserve bank of India Act 1934.
For and on behalf of
C. S. JARIWALA & CO
FRN - 114906W
ANUJ C. JARIWALA - PARTNER
Membership No. 109919
Date: 05 June 2019
UDIN: 19109919A A A AEC4152
Annexure-B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (the Act)
We have audited the internal financial controls over financial reporting of JINA AM'S DRESS LIMITED (the Company) as of 31 March 2019 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Control
The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the guidance note on audit of internal financial controls over financial reporting by the institute of Chartered Accountants of India (`ICAI'). These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the company's internal financial controls over financial reporting based on our audit. We conducted our audits in accordance with the guidance notes on audit of internal financial controls over financial reporting (the Guidance Note) and the standards on auditing issued by ICAI and deemed to be prescribed under section 143(10) of the companies act 2013 to the extent applicable to an audit of internal financial controls both applicable to an audit of internal financial and both issued by the Institute of Chartered Accountants of India. Those standards and the guidance note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial control over financial reporting included obtaining an understanding of internal financial control over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment including the assessment of material misstatement of the financial statements whether due to fraud or error.
We believe that audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the company's internal financial controls system over financial reporting.
Meaning of internal financial controls over financial reporting
A company's internal financial control over financial reporting is a process designed to provide assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable details accurately and fairly reflect the transaction and dispositions of the assets of the company; (2) provide reasonable assurance that transaction are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition use or disposition of the company'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 financial reporting including the possibility of collusion or improper management override of controls materials misstatements due to error fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 march 2019 based on the internal controls over financial reporting criteria established by the company considering the essential components of internal control stated in the guidance note on audit of internal financial controls over financial reporting issued by the institute of chartered accountants of India.
For and on behalf of
C. S. JARIWALA & CO
FRN - 114906W
ANUJ C. JARIWALA - PARTNER
Membership No. 109919
Date: 05 June 2019
UDIN: 19109919A A A AEC4152