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LWS Knitwear Ltd.

BSE: 531402 Sector: Industrials
NSE: N.A. ISIN Code: INE281M01013
BSE 00:00 | 10 Apr 3.86 0
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3.86

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3.86

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NSE 05:30 | 01 Jan LWS Knitwear Ltd
OPEN 3.86
PREVIOUS CLOSE 3.86
VOLUME 300
52-Week high 12.91
52-Week low 3.51
P/E 12.87
Mkt Cap.(Rs cr) 2
Buy Price 3.86
Buy Qty 100.00
Sell Price 4.20
Sell Qty 1500.00
OPEN 3.86
CLOSE 3.86
VOLUME 300
52-Week high 12.91
52-Week low 3.51
P/E 12.87
Mkt Cap.(Rs cr) 2
Buy Price 3.86
Buy Qty 100.00
Sell Price 4.20
Sell Qty 1500.00

LWS Knitwear Ltd. (LWSKNITWEAR) - Auditors Report

Company auditors report

The Shareholder

M/s. LWS KNITWEAR LTD G.T.ROAD (WEST)

LUDHIANA

REPORT ON STANDALONE IND AS FINANCIAL STATEMENTS

We have audited the accompanying standalone Ind AS financial statements of M/s. LWSKNITWEAR LIMITED (‘the Company') G.T.ROAD (WEST) LUDHIANA which comprise theBalance Sheet as at 31.03.2017 the statement of Profit & Loss Account(including other comprehensive income) Cash Flow Statement and the statement of changesin equity for the year ended on that date and a summary of significant accounting policiesand other explanatory information (herein after referred to as "standalone Ind ASfinancial statements").

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing 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 for ensuring accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements that givea true and fair view and are free from material misstatement whether due to fraud orerror.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the standalone Ind AS financialstatements are free from material misstatement. An audit involves performing procedures toobtain audit evidence about the amounts and the disclosures in the standalone Ind ASfinancial statements. The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the standalone Ind AS financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thestandalone Ind AS financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of suchcontrols..

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation of the standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS:

1. In the case of Balance Sheet of the state of affairs (Financial Position) of theCompany as at 31st March 2017

2. In the case of the Statement of Profit & Loss of the profit (financialperformance including other comprehensive income) for the year ended on that date

3. In the case of Cash Flow Statement of the cash flows for the year ended on thatdate

4. In the case of Statement of Changes in Equity of the change in the equity for theyear ended in that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order 2015 issued by the CentralGovernment of India in terms of Section 143 (11) of the Companies Act 2013 we give inthe annexure a statement on the matters specified in paragraphs 3 & 4 of the order.

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 appears from our examination of those books.

(c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt andstatement of change in equity dealt with by this report are in agreement with the books ofaccount.

(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 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms ofSection 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 included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to ourbest of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations if any as at 31st March2017 on its financial position in its standalone Ind AS financial statements -Refer Note39 to the standalone Ind AS financial statements;

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

iii. There has been no amount which required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The company has provided requisite disclosures in the financial statements as toholdings as well as dealing in Specified Bank Notes during the period from 08thNovember 2016 to 30th December 2016. Based on audit procedures and relying onthe management representations we report that the disclosures are in accordance with booksof account maintained by the company and as produced by the management – Refer Note39 to the Ind AS financial statements.

For Rajesh K. Sharma & Associates
Chartered Accountants
Sd/-
Date: 30.05.2017 (Rajesh Sharma)
Place: Ludhiana Partner
M.No- 092948

ANNEXURE A

TO THE INDEPENDENT AUDITOR'S REPORT

In the Annexure as required by the Companies (Auditor's Report) Order 2015 issued bythe Central Government in terms of Section 143 (11) of the Companies Act 2013 on thebasis of checks as we considered appropriate we report on the matters specified inparagraphs 3 and 4 of the said order to the extent applicable to the Company.

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone Ind AS financial statements for the year ended 31 March 2017 we reportthat:

(i)

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) The Company physically verified all its fixed assets at reasonable intervals. Inour opinion periodicity of physical verification is reasonable having regard to the sizeof the Company and nature of the assets. We have been informed that no materialdiscrepancy was noted on such physical verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company has no immoveable properties.

(ii) As informed to us stock of inventory has been physically verified during the yearby the Management at reasonable intervals. In our opinion the procedures of physicalverification of inventory followed by the management are reasonable and adequate inrelation to the size of the Company and the nature of its business. The Company ismaintaining proper records of inventory. The discrepancies noticed on physicalverification of stocks as compared to book records were not material; however the samehave been dealt with the books of account.

(iii) The company has not granted any loans secured or unsecured to companies firmsLLP or other parties covered in the register maintained under Section 189 of the CompaniesAct. Therefore provisions of Clause 3 (iii) of the CARO are not applicable.

(iv) The company has complied with the provisions of the section 185 and 186 of theCompanies Act 2013 in respect of loans investments guarantees and security.

(v) The Company has not accepted any deposits from public during the year andaccordingly the provisions of Sections 73 to 76 of the Act and Rules framed there underand any directive issued by the Reserve Bank of India are not applicable to the Company.

(vi) Provisions of Section 148 of the Companies Act 2013 for the maintenance of costrecords is not applicable to company.

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including the Provident Fund Employees State Insurance Income Tax SalesTax Wealth Tax Service Tax Duty of Customs Duty of Excise value added tax cess andany other statutory dues applicable to it.

(b) According to the information and explanation given to us there are no dues ofincome tax sales tax wealth tax service tax custom duty excise duty cess which havenot been deposited on account of any dispute.

(c) In our opinion and according to the information and explanation given to us duringthe year no amount was pending to be transferred to Investor Education and ProtectionFund.

(viii) In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of dues for loan taken from financial institutionsor bank or debenture holders.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone Ind AS financial statements as requiredby the applicable accounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

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

For Rajesh K. Sharma & Associates
Chartered Accountants
Sd/-
Date: 30.05.2017 (Rajesh Sharma)
Place: Ludhiana Partner
M.No- 092948

ANNEXURE B

TO THE INDEPENDENT AUDITOR'S REPORT

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls over financial reporting of LWSKnitwear Limited ("the Company") as of 31 March 2017 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date.

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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 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 auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error.

We believe that the audit evidence we have obtained is sufficient and appropriate 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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

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.

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 2017 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 Rajesh K. Sharma & Associates
Chartered Accountants
Sd/-
Date: 30.05.2017 (Rajesh Sharma)
Place: Ludhiana Partner
M.No- 092948