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Knitworth Exports Ltd.

BSE: 531587 Sector: Industrials
NSE: N.A. ISIN Code: INE171C01017
BSE 05:30 | 01 Jan Knitworth Exports Ltd
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Knitworth Exports Ltd. (KNITWORTHEXPORT) - Auditors Report

Company auditors report

TO THE MEMBERS OF

M/S KNITWORTH EXPORTS LIMITED Report on the Financial Statements

We have audited the accompanying financial statements of M/S KNITWORTH EXPORTS LIMITED("the Company") which comprise the Balance Sheet as at 31st March2016 the Statement of Profit and Loss and Cash Flow Statement for the year ended on thatdate and a summary of significant accounting 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 ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specifiedunder section 133 of the Act read with Rule 7 of the Companies (AccourftAT?ttloc OfYil Thic rocrrm6i1iKr alsn includes maintenance of adeauate

on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the company's management as well as evaluating theoverall presentation of the financial statements.

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

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

(a) In the case of Balance Sheet of the state of affairs of the Company as at 31stMarch 2016;

(b) In the case of Statement of Profit and Loss of the loss of the Company for theyear ended on that date; and

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies(Auditors Report) Order 2016 ('the order') issued bythe Central Government of India in terms of subsection (11) of the section 143 of the Actwe give in the Annexure a statement on the matters specified in the paragraphs 3 and 4 ofthe 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 Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the 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 the Companies(Accounts) Rules 2014.

(e) On the basis of written representations received from the directors as on 31stMarch 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in termsof Section 164 (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 " 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 does not have any pending litigations which would impact on financialposition in its financial statements;

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred by the Company to theInvestor Education and Protection Fund.

For J B S & Company
Chartered Accountants
FRN: 323734E
(Gouranga Paul)
Place: Kolkata Partner
Date: 30/05/2016 Membership Number: 063711

Annexure A to the Independent Auditor's Report (referred to in our report of even date)

The Annexure referred to in Independent Auditor's report to the members of the companyon financial statements for the year ended 31st March 2016 we report that.

(i) The company does not have any fixed assets and accordingly the provisions of clause

(i) are not applicable to the company.

(ii) The company does not .hold any physical inventories. Hence clause (ii) is notapplicable to the company.

(iii) The Company has not granted any loan secured or unsecured to companies firmsor other parties covered in the register maintained under Section 189 of the CompaniesAct 2013. Thus clause (iii) is not applicable.

(iv) In our opinion and according to the information and explanation given to us theCompany has neither granted any loan nor made any investment under section 185 and 186 ofCompanies act 2013. Thus clause (iv) is not applicable to the Company.

(v) The Company has not accepted any deposits from the public and consequently thedirectives issued by Reserve Bank of India and provisions of Section 73 to 76 of theCompanies Act 2013 and the rules framed there under are not applicable.

(vi) The Central Government has not prescribed the maintenance of the Cost recordsunder section 148(1) of the Companies Act 2013. Hence clause (vi) is not applicable.

(vii) (a) According to the information and explanations given to us and on the basis ofour

examinations of the records of the company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Income Tax and other materialstatutory dues have been regularly deposited during the year by the company with theappropriate authorities.

According to the information and explanation given to us no undisputed amounts payablein'respect of income tax and other material statutory dues were in arrears as at 31 March2016 for a period of more than six months from the date they became payables and on thebasis.

(b) According to the information and explanations given to us there are no dues ofIncome Tax and other material statutory dues which have not been deposited as on 31stMarch 2016 with the appropriate authorities on account of any dispute.

(viii) The Company does not have any loans or borrowings from any financialinstitution banks government or debentureholders during the year . Hence Para 3 clause(viii) of the order is not applicable

(ix) In our opinion and according to the information and explanation • riven tous there were no moneys raised by way of initial public offer or further p u ->licoffer or term loans by the company.

(x) According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the course of our audit.

(xi) According to the information and explanation provided to us managerialremuneration has been not been paid or provided during the year by the company.

(xii) According to the information and explanations provided to us the company is nota Nidhi Company as defined under section 406 of Companies Act 2013.

(xiii) In our opinion and according to the information and explanations given to usthere were no transactions with the related parties as given in Section 177 and 188 ofCompanies Act 2013 . Accordingly no details were required to be disclosed in theFinancial Statements as per the applicable accounting standards.

(xiv) The company has not made any preferential allotment/private placement of sharesor fully or partly convertible debentures during the year under review.

(xv) According to the information and explanation provided to us the company has notentered into any non-cash transactions with directors or persons connected with him.

(xvi) According to the information and explanation provided to us the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For J B S & Company
Chartered Accountants
FRN: 323734E
(Gouranga Paul)
Place: Kolkata Partner
Date: 30/05/2016 Membership Number: 063711

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KNITWORTHEXPORTS LIMITED ("the Company") as of 31 March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 (TCAT). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's 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.

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 andprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 appropr jte 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 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 Becauseof the inherent limitations of internal financial controls over financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

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 31 March 2016 based on theinternal 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 J B S & Company
Chartered Accountants
FRN: 323734E
Place: Kolkata (Gouranga Paul)
Date: 30/05/2016 Membership Number: 063711