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Mewar Polytex Ltd.

BSE: 531236 Sector: Industrials
NSE: N.A. ISIN Code: INE404E01018
BSE 00:00 | 03 Mar Mewar Polytex Ltd
NSE 05:30 | 01 Jan Mewar Polytex Ltd
OPEN 24.00
PREVIOUS CLOSE 24.00
VOLUME 1000
52-Week high 24.00
52-Week low 0.00
P/E 2.29
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 24.00
CLOSE 24.00
VOLUME 1000
52-Week high 24.00
52-Week low 0.00
P/E 2.29
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mewar Polytex Ltd. (MEWARPOLYTEX) - Auditors Report

Company auditors report

To the Members of Mewar Polytex Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Mewar Polytex Limited ("thecompany") which comprises the Balance Sheet as at 31 March 2016 the Statement ofProfit and Loss the Cash Flow Statement for the year ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board ofDirectors is responsible for the matters in section 134(5) of theCompanies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 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 provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; makingjudgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a 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 financial statements based on ouraudit.

We have taken into account the provisions 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 the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor'sjudgment 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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 the Balance Sheet of the state of affairs of the Company as at March312016;

b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Government of India in terms of subsection (11) of section 143 of theCompanies Act 2013 we give in the "Annexure A" a statement on thematters specified in paragraph 3 and 4 of the Order.

2) As required by section 143(3) of theAct 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 the Statement of Profit and Loss and Cash Flow Statement dealtwith 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 ofthe 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 312016 taken on record by the Board of Directors none of the directors is disqualified ason March 312016 from being appointed as a director in terms of Section 164 (2) of theAct.

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".

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 has disclosed the impact of pending litigations on its financialposition in its financial statements if any.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

For Om Prakash S Chaplot & Co.
Chartered Accountants
FRN: 000127C
(O.P.Chaplot)
Place: Udaipur Partner
Date : 28-May-2016 M.No. 010184

"ANNEXURE A" TO THE INDEPENDENT AUDITORS' REPORT

[Referred to in paragraph 1 under the heading ’Report on Other Legal &Regulatory Requirement’ of our report of even date for the period ended 31stMarch 2016]

i) a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b) Physical verification of fixed assets has been carried out by the managementaccording to the program of physical verification in phased manner and no materialdiscrepancies were noticed from such verification.

c) The title deeds of immovable properties are held in the name of the company.

ii) Physical verification of inventories has been conducted by the management onceduring the period under audit. In respect of inventories lying with third parties if anythese have substantially been confirmed by them. In our opinion frequency of verificationis reasonable.

a) The procedure of physical verification of inventory followed by the management isreasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

b) The Company is maintaining proper records of inventory and material discrepanciesnoticed on physical verification have been properly dealt with in the books of accounts.

iii) The Company has not granted any loans secured or unsecured to Companies firmsLimited Liability partnerships or other parties covered in the register maintained u/s 189of the Act. Accordingly the provisions of clause 3 (iii) (a) to (c) of the Order are notapplicable to the Company and hence not commented upon.

iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.

v) The Company has not accepted any deposits from public within the meaning of thedirectives issued by the Reserve Bank of India and under the provisions of section 73 to76 or any other relevant provisions of the Act and the Rules framed there under. Asinformed to us no order has been passed by the Company Law Board or National Law Tribunalor Reserve Bank of India or any court or any other tribunal in this regard.

vi) The Company is not covered under the order made by the Central Government for themaintenance of cost records under section 148(1) of the Companies Act 2013.

vii) a) According to the records of the Company and information and explanations givento us the Company is regular in depositing undisputed statutory dues including ProvidentFund Employees State Insurance Entry Tax Sales Tax Wealth Tax Service Tax CustomDuty Excise VAT Cess and other material Statutory dues with the appropriate authoritiesto the extent applicable. There are no material statutory dues payable for a period ofmore than six months from the date they became payable as at 31st March 2016.

b) According to the records and information and explanations given to us there arefollowing dues under various taxes which has not been deposited on account of any disputeand the amounts involved and the forum where dispute is pending are given below: -

Name of the Statute Name of the Dues Period to which Amount Relates Forum where dispute is pending Amount (in Rs.)
Income Tax Act 1961 Trading Disallowance Assessment Year 2012-13 Commissioner of Income Tax (Appeals) Udaipur 31140

viii) On the basis of records made available and information and explanations given tous the Company has not defaulted in repayment of dues to financial institutions banksetc.

ix) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

x) Based on the audit procedures performed and on the basis of information andexplanations provided by the management which have been relied upon by us we report thatno fraud by the Company or on the company by its officers or employees has been noticed orreported during the year.

xi) Based upon the audit procedures performed and the information and explanationsgiven by the management no managerial remuneration has been paid or provided during theyear hence not commented upon.

xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

xiii) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

xiv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.

xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

xvi) In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.

For Om Prakash S Chaplot & Co.
Chartered Accountants
FRN: 000127C
(O.P.Chaplot)
Place: Udaipur Partner
Date : 28-May-2016 M.No. 010184

"ANNEXURE B" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 under Report on Other Legal and Regulatory Requirements'section of our report of even date)

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 MewarPolytex Limited ("the Company") as on March 31 2016 in conjunction with ouraudit of the financial statements of the Company for the year ended on that 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 CharteredAccountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding 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 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 CharteredAccountants 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 judgement 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 appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 March 31 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 Om Prakash S Chaplot & Co.
Chartered Accountants
FRN: 000127C
(O.P.Chaplot)
Place: Udaipur Partner
Date : 28-May-2016 M.No. 010184