TO THE MEMBERS OF MILESTONE FURNITURE LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of MILESTONEFURNITURE LIMITED ('the company') which comprise the balance sheet as at 31stMarch 2019 Cash Flow Statement and the statement of profit and loss for the year thenended and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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
a) In the case of Balance Sheet of the state of affairs of the Companyas at 31st March 2019 and
b) In case of Statement of Profit & Loss of the profit for theyear ended on that date.
c) In case of Cash Flow Statement of the cash flows for the year endedon that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon
We have determined that there are no key audit matters to communicatein `our report.
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the annualreport but does not include the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statement or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation; we are required to report that fact. We have nothing to report in thisregard.
Responsibility of Management for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 (the Act) with respect to thepreparation and presentation of these financial statements that give a true and fair viewof the financial position and financial performance 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 recordsin accordance with the provisions of the Act for safeguarding the assets of the companyand for preventing and detecting frauds and other irregularities; selection andapplications of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. That Board of Directors are also responsible foroverseeing the company's financial reporting process.
Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.
As part of an audit in accordance with Standards on Auditing(`SAs') we exercise professional judgment and maintain professional skepticismthroughout the audit. We also:
identify and assess the risks of material misstatement of thefinancial statements whether due. to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3) of the Act we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. if we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related disclosures in the financial statements or if such disclosures areinadequate to modify our option. Our conclusions are based on the audit evidence obtainedup to the date of our auditor's report. However future event of conditions may causethe Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
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 mattersspecified in the paragraphs 3 and 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b. In our opinion proper books of account as required by law have beenkept by the company so far as it appears from our examination of those books;
c. The balance sheet and statement of profit and loss dealt with bythis Report are in agreement with the books of account;
d. In our opinion the aforesaid financial statements comply with theAccounting Standards specified under section 133 of the Act read with rule 7 of theCompanies (Accounts) Rules 2014
e. On the basis of the written representations received from thedirectors as on 31 March 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2019 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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in Annexure B
g. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company does not have any pending litigations which would impactits financial position;
ii. The Company did not have any long term contract includingderivative contract; as such the question of commenting on any material foreseeable lossesthereon does not arise;
iii. There has not been any occasion in case of the Company during theyear under report to transfer any sums to the investor education and protection fund. Thequestion of delay in transferring such sums does not arise.
|For: NGST & Associates|
|Place: Mumbai Date: 30th May 2019||Firm registration number: 135159W|
|Bhupendra S Gandhi|
|Membership no.: 122296|
ANNEXURE - A TO THE AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report tothe members of the Company on the Financial Statements for the year ended 31stMarch 2019 we report that:
i. (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
(b) According to the information and explanation given to us all thefixed assets have been physically verified by the Management during the year along withtechnical expert but we cannot comment neither on any material discrepancies which werenoticed on such verification nor we can comment on whether the same has been properlydealt with in books of accounts as records were not available for the verification.
(c) There is no immovable property in the name of the company andtherefore this clause is no applicable.
ii. (a) The management has conducted physical verification of inventoryat reasonable intervals during the year.
(b) As explained to us there is no material discrepancy noticed onphysical verification of inventory as compared to book records.
iii. In our opinion and according to the information and explanationgiven to us the company has not granted any secured or unsecured loans to companiesfirms limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013 and therefore clause iii b and iii c are notapplicable.
iv. In our opinion and according to the information and explanationsgiven to us in respect of loans investments guarantees and security the provisions ofsection 185 and 186 of the Act has been complied with.
v. In our opinion and according to the information and explanationgiven to us by the management the company has not accepted any deposit from the publicand therefore the directives issued by the Reserve Bank of India and the provisions ofsections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder are not applicable.
vi. To the best of our knowledge and belief and according to theinformation and explanation given to us no cost records are required to be maintained bythe Company under the Companies (Cost Audit Rules) 2014.
vii. a. According to the information and explanation given to us and onthe basis of our examination of the records of the Company the company is generallyregular in depositing with the appropriate authorities undisputed statutory dues includingprovident fund income tax value added tax duty of customs service tax cess and othermaterial statutory dues applicable to it.
b. There were no material undisputed amounts payable in respect ofprovident fund income tax value added tax duty of customs service tax cess and othermaterial statutory dues in arrears as at March 31 2019 for a period of more than sixmonths from the date they became payable.
c. According to the information and explanations given to us there areno material dues of income tax sales tax service tax wealth tax duty of excise dutyof customs and cess which have not been deposited with the appropriate authorities onaccount of any dispute.
viii. According to the records of the Company examined by us and theinformation are given to us the Company has not defaulted in repayment of dues tofinancial institutions of banks Further the Company has not issued any debenture.
ix. The Company has raised money by way of initial public offer duringthe year. As per the information and explanation given to us by the management theproceeds were partially applied for the purpose for which the money was raised and part ofthe money is still to be utilised.
x. According to the information and explanations given to us nomaterial fraud by company or on the Company by its officers or employees has been noticedor reported during the course of our audit.
xi. According to the information and explanations give to us and basedon our examination of the records of the Company the Company has paid / provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.
xiii. According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.
xiv. This clause is not applicable since the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.
xv. According to the information and explanation given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is notapplicable.
|For: NGST & Associates|
|Firm registration number: 135159W|
|Bhupendra S Gandhi|
|Date: 30th May 2019||Membership no.: 122296|