Krishana Fabrics Ltd.
|BSE: 539446||Sector: Financials|
|NSE: N.A.||ISIN Code: INE627Q01018|
|BSE 05:30 | 01 Jan||Krishana Fabrics Ltd|
|NSE 05:30 | 01 Jan||Krishana Fabrics Ltd|
|BSE: 539446||Sector: Financials|
|NSE: N.A.||ISIN Code: INE627Q01018|
|BSE 05:30 | 01 Jan||Krishana Fabrics Ltd|
|NSE 05:30 | 01 Jan||Krishana Fabrics Ltd|
for the year ended 31st March 2016
KRISHANA FABRICS LIMITED CHENNAI
Report on the Financial Statements
1. We have audited the accompanying financial statements of M/s. Krishana FabricsLimited (the Company) which comprises the Balance Sheet as at 31st March 2016 theStatements of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
2. The companys Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 with respect to the preparation andpresentations of these financial and cash statements that give financial position financialtrue and fair view of the flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatementswhether due to fraud or error.
3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting standards and matters which are required to be included in theaudit report.
5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Companys Directors as well as evaluating the overallpresentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
8. 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 2016 and its profit/(loss) and its cash flows for the year ended on that date.
Emphasis of Matter
a. Confirmation of balances of Loans and Advances are not available for verification.
Report on other Legal and Regulatory Requirements
9. As required by the Companies (Auditors Report) Order 2016 issuedby the Central Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure B a statement on thematters specified in paragraphs 3 and 4 of the Order.
10. 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 the agreement with the books of accounts;
(d) In our opinion the Balance Sheet the Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in section 133 of the CompaniesAct 2013 read with rule 7 of the Companies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on records by the Board of Directors none of the directors isdisqualified as on 31 st March 2016 from being appointed as a director in termsof Section 164(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 A.
(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 knowledge and according the explanations given to us none of theclauses are applicable to the Company.
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
Referred to in paragraph 10(f) of the Independent Auditors Report of even date tothe members of the year ended March 31 2016 M/s. Krishana Fabrics Limited on thestandalone financial
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act
1. We have audited the internal financial controls over financial reporting of M/s.Krishana Fabrics Limited ("the Company") as of March 31 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Managements Responsibility for Internal Financial Controls
2. The Companys management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit ofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteof CharteredAccountants of India (ICAI). These responsibilities include the design implementation andmaintenance of for ensuring the orderly adequate internal financial and efficient conductof its business including adherence to companys policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Act.
3. controls over Our responsibility is to express an opinion on the Companysinternal financial reporting based on our audit. We conducted our audit in accordance withthe Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of internal financial controls and both issued bythe ICAI. 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.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial reporting and their operating effectiveness. Our controls systemover audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
5. 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
6. A companys internal financial control over financial reporting is a processdesigned to reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A companys internal financial control over financialreporting includes those policies and procedures that
a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
b) 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 authorisations of management and directors of the company; and
c) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the companys assets that could havea material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. 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 control over internalfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial operating effectively as at March 31 2016 based on the internal controlover financial criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.
For Manish Mitesh & Associates
Membership No. 230206
Date: May 30 2016
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
Referred to in paragraph 9 of the Independent Auditors Report of even date to themembers of M/s. Krishana Fabrics Limited on the standalone financial statements for theyear ended
1) In respect of its Fixed Assets:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;
b) These fixed assets have been physically verified by the management at reasonableintervals; no material discrepancies were noticed on such verification the same have beenproperly dealt with in the books of account;
2) In respect of Inventory:
a) The management has conducted physical verification of inventory at reasonableintervals during the year.
b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c) The company is maintaining proper records of inventory and no material discrepancieswere noticed on physical verification.
3) The Company has not granted any loan to any parties covered in the registermaintained under section 189 of the Companies Act 2013. Hence clauses (b) & (c) arenot applicable.
4) The Company has not granted loans or made investment or given any guarantee orsecurity as covered in the provisions of section 185 and 186 of the Companies Act 2013therefore Clause (IV) of the order is not applicable to the company.
5) The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified
6) The requirement of maintaining Cost Records as specified by the Central Governmentunder section 148(1) of the Companies Act 2013 is not applicable to the company.
7) a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund investor education and protection fundemployees state insurance income-tax sales-tax wealth-tax service taxcustoms duty excise duty cess and other material statutory dues applicable to it.
b) According to the information and explanations given to us no disputed amountspayable in respect of provident fund investor education and protection fundemployees state insurance income-tax wealth-tax service tax customs duty exciseduty cess and other material statutory dues were outstanding at the year end for aperiod of more than six months from the date they became payable.
c) There are no outstanding dues as on 31st March 2016 for a period of morethan six months from the date they become payable except Income Tax for the AY 2014-15 (FY2013-14) payable Rs. 573879/- excluding interest.
d) The Company is not required to transfer any funds to the Investor Education andProtection
Fund in accordance with the relevant provisions of the Companies Act.
8) The Company has not taken loan from any financial institution or bank thereforeClause (VIII) of the order is not applicable to the company.
9) According to the information and explanations given to us the Company has notraised any money by way of initial public offer or further public offer hence notcommented upon.
10) Based on the Audit procedures performed for the purpose of reporting the true andfair view of financial statements and according to the information and explanationsprovided to us we report that no material fraud by the Company or on the Company by theofficers and employees of the Company has been noticed or reported during the year.
11) According to the information and explanations given to us the managerialremuneration has been paid and provided in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V of the Act.
12) In our opinion the Company is not a nidhi company. Therefore the provisions ofClause 3(xii) of the order are not applicable to the Company and hence not commented upon.
13) According to the information and explanations given to us transactions withrelated parties are in compliances with section 177 and 188 of the Act where applicableand details have been disclosed in the notes to the financial statements as required bythe applicable accounting standards.
14) According to the information and explanations given to us and on overallexamination of Balance Sheet the Company has not made any Preferential Allotment orprivate placement of Shares or fully or partly convertible debentures during the year andhence reporting requirements under clause 3(xiv) are not applicable to the Company andnot commented upon.
15) According to the information and explanations given to us the Company has notentered into any non-cash transactions with Directors or persons connected with him.
16) According to the information and explanations given to us we report that theCompany is not required to be registered itself under section 45-IA of the Reserve Bank ofIndia Act 1934.