To The Members
MINAXI TEXTILES LIMITED
Report on the Financial Statements
We have audited the accompanying standalone Ind AS nancial statements of MINAXITEXTILES LIMITED ("the Company) which comprise the Balance Sheet as atMarch 31 2018 and the statement of Profit and loss (including Other ComprehensiveIncome) the statement of Cash Flows and the statement of changes in Equity for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation
Management's Resposibility 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 Ind As Financial statements that give a true and fair view of the nancialposition nancial performance including other comprehensive income cash ows and changesin equity of the company in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards (Ind AS) prescribed under section 133of he Act.
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 judgements and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal nancial controlsthat were operating the ectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalone Ind ASnancial statements that give a true and fair view and are free from material misstatementwhether due to fraud or error.
Our responsibility is to express an opinion on these standalone Ind AS nancialstatements based on our audit. In conducting our audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade there under and the order issued under section143(11) of the Act. We conducted ourAudit of the standalone Ind AS nancial statements in accordance with the standards onAuditing specified under section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the standalone Ind AS nancial statements are free from materialmisstatement .
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosure in the standalone Ind AS nancial statements. The procedures selected dependon the auditor's judgement including the assessment of the risks of material misstatementof the standalone.Ind AS nancial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal nancial control relevant to thecompany's preparation of the standalone Ind AS nancial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by theCompany's Directors as well asevaluating the overall presentation of the standalone Ind As nancial statements.
We believe that the audit evidence obtained by us is su cient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS nancial statements
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS nancial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of a airs of theCompany as at March 31 2018 and its profit total comprehensive income its cash ows andthe changes in equity for the year ended on that date.
The nancial information of the Company for the year ended March 31 2017 and thetransition date opening balance sheet as at April 1 2016 included in these Ind ASFinancial Statements are based on the previously issued statutory nancial statements forthe years ended March 31 2017 and March 312016 prepared in accordance with the Companies(Accounting Standards) Rules as applicable which were audited by the predecessor auditoron which they had expressed an unmodi ed opinion dated May 26 2017 and May 27 2016respectively. The adjustments to those nancial statements for the di erences in accountingprinciples adopted by the company on transition to the Ind AS have been audited by us.
Report on other Legal and Regulatory Requirements
1. As required by section 143(3) of the Act we report that
a. We have sought and obtained all the information and explanation which to the best ofour knowledge and belief were necessary for the purpose 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 including other comprehensiveincome the statement of Cash Flows and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.
d. In our opinion the aforesaid standalone Ind AS nancial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act; e. On the basis ofthe written representations received from the directors as on March 31 2018 taken onrecord by the Board of Director none of the director is disquali ed as on March 31 2018from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal nancial controls over nancial reportingofthe company and the operating the ectiveness of such controls refer to our separatereport in Annexure-A.
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 as at March 31 2018 inits Ind AS Financial statement.
ii. The Company did not have any long-term contracts including derivative contractsforwhich 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.
2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of section (11) of section 143 of theCompanies Act 2013 we give in the Annexure B a statement on the matters specifiedin paragraphs 3 and 4 of the order.
For Kewlani & Associates
Lateshkumar T. Kewlani
Membership No. 140627
Date : 15th May 2018
Annexure-A to Independent Auditor's Report
(Referred to in paragraph 1 (f) under Report on Other Legal and RegulatoryRequirements' section of our report to the Members Minaxi Textiles Limited 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 nancial reporting of MinaxiTextiles Limited ("the Company") as of 31 March 2018 in conjunction with ouraudit of the Ind AS nancial 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 internalnancial controls based on the internal control over nancial reporting criteria establishedby the company considering the essential components of internal control stated in theGuidance Note on Audit or Internal nancial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India. These responsibilities include the designimplementation and maintenance of adequate internal nancial controls that were operatingthe ectively for ensuring the orderly and the cient conduct of its business includingadherence to company's policies the safeguarding of the assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable nancial information as required under the CompaniesAct 2013.
Our responsibility is to express an opinion on the internal nancial controls overnancial reporting of the company 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") issued by the Institute of Chartered Accountants of Indiaand the Standard on Auditing prescribed under section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal nancial controls. Those Standards andGuidance Note require that we comply with the ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal nancial controlsover nancial reporting was established and maintained and if such controls operated theectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal nancial controls system over nancial reporting and their operating theectiveness. Our audit of internal nancial controls over nancial reporting includedobtaining an understanding of internal nancial controls over nancial reporting assessingthe risk that a material weakness exists and testing and evaluating the design andoperating the ectiveness of the internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of risksof material misstatement of nancial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is su cient and appropriate toprovide a basis for our audit opinion on the Company's internal nancial controls systemover nancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal nancial controls over nancial reporting is a process designed toprovide reasonable assurance regarding the reliability of nancial reporting and thepreparation of the nancial statements for external purpose in accordance with generallyaccepted accounting principles. A company's internal nancial control over nancialreporting included 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 thattransaction are recorded as necessary to permit preparation of nancial statement inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with the authorizations ofmanagement and directors of the company; and (3) Provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition ofcompany's assets that could have a material the ect on the nancial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitation of internal nancial controls over nancial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojection of any evaluation of the internal nancial controls over nancial reporting tofuture periods are subjects to the risk that the internal nancial controls over nancialreporting may become inadequate because of changes in conditions or the degree ofcompliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal nancial controlssystem over nancial reporting and such internal nancial controls over nancial reportingwere operating the ectively as at 31 March 2018 based on the internal control overnancial reporting criteria established by the Company considering the essential componentsof internal controls stated in the Guidance Note on Audit of Internal Financial ControlsOver Financial reporting issued by the Institute of Chartered Accountants of India.
For Kewlani & Associates
Lateshkumar T. Kewlani
Membership No. 140627
Date : 15th May 2018
Annexure-B to Independent Auditor's Report
(Referred to in paragraph 2 under Report on Other Legal and RegulatoryRequirements section of our report to the Members of Minaxi Textiles Limited of evendate).
1. In respect of Fixed assets a. The Company has maintained proper recordsshowing full particulars including quantitative details and situation of its Fixed Assets.
b. According to information and explanations given to us Fixed Assets of the Companyhave been physically veri ed by the management periodically and no material discrepancieshave been noticed on such physical veri cation.
c. According to information and explanations given to us and on the basis of ourexamination of records of the company the title deeds of immovable properties other thanthe self constructed immovable property (buildings) as disclosed in the xed assets to thenancial statements are held in the name of company.
d. In respect of immovable properties of land that have been taken on lease anddisclosed as xed asset in the nancial statements the lease agreements are in the name ofthe Company where the Company is the lessee in the agreement.
2. As explained to us the inventories were physically veri ed during the year by themanagement at reasonable intervals and no materials discrepancies were noticed on physicalveri cation. In respect of inventories lying with the third parties Con rmation has beenobtained by the company and there were no discrepancies.
3. The Company has not granted any loans secured or unsecured to companies rmslimited liability partnership or other parties covered in the register maintained undersection 189 of the Companies Act 2013 and therefore the provisions of clause (iii) ofthe Order are not applicable to the company.
4. In our opinion and according to the information and explanations given to us t heCompany has not granted any loans or provided any guarantees or security in respect of anyloans to any party covered under the Section 185 of the Act. The company has not givenguarantees or provided security requiring compliance under section 185 or 186 of the Act;hence clause (iv) of the order is not applicable to the Company.
5. During the year the company has not accepted any deposits from public within themeaning of provisions of section 73 to 76 of the Companies Act 2013 and the rules framedthere under and therefore the provisions of clause (v) of the Order are not applicable tothe company.
6. On the basis of the records we are of the opinion that prima facie cost records andaccounts specified by the central Government of India under sub-section (1) of section 148of the Companies Act 2013 have been maintained. However we are not required to and havenot carried out any detailed examination of such account and records.
7. In respect of Statutory Dues:
a.According to the information and explanations given to us and the records examined byus the Company is generally regular in depositing undisputed statutory dues includingIncome Tax Sales Tax/ Goods and Service Tax Wealth Tax Service Tax Custom duty Exciseduty cess and any other statutory dues with the appropriate authorities applicable to it.According to the information and explanations given to us there are no undisputed duespayable in respect of above as at 31st March 2018 for a period of more than six monthsfrom the date on which they became payable except Gratuity Liabilities of Rs 2182475/-
b. According to the records of the company and on the basis of the information andexplanations given to us there are no dues of sales tax/ Goods and Service Tax Customduty wealth tax service tax income tax etc which have not been deposited on account ofany dispute except for the following.
|Name of Statue ||Nature of dues ||Amount (Rs. In lacs) ||Forum where dispute is pending |
|Sales Tax(VAT) ||VAT Demand ||Rs. 75.04 ||High Court of Gujarat |
8. According to the records of the Company examined by us and the information andexplanations given to us the company has not defaulted in repayment of loans orborrowings to any nancial institutions or bank. The company has not issued any debenturesduring the year or in the preceding year.
9. The company has not raised moneys by the way of initial public o er or furtherpublic o er (including debt instruments) during the year and hence reporting under clause(ix) of the order is not applicable.
10. To the best of our knowledge and according to the information andexplanations given to us we have neither come across any instance of material fraud bythe Company or on the Company by its o cers or employees noticed or reported during theyear nor have we been informed of any such case by the management.
11. In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the companiesAct 2013.
12. The Company is not a Nidhi company and hence reporting under clause (12) of theorder is not applicable.
13. In our opinion and according to the information and explanations given to usthe Company is in compliance with Sections 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Ind AS nancial statements etc. as required by theapplicable accounting standards.
14. The Company has not made any preferential allotment or Private placement of sharesof fully or partly convertible debentures during the year under review and hence reportingunder clause (14) of the order is not applicable to the Company.
15. The Company has not entered into any non cash transactions with Directors orpersons connected with them and hence provisions of section 192 of the Companies Act 2013are not applicable.
16. The Company is not required to be registered u/s. 45-IA of the Reserve Bank ofIndia Act1934.
For Kewlani & Associates
Lateshkumar T. Kewlani
Membership No. 140627
Date : 15 May 2018