The Members of
Modella Woollens Limited
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of Modella WoollensLimited (the Company') which comprise the balance sheet as at March 31 2019the statement of profit and loss and the cash flow statement for the year then ended anda summary of significant accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors are responsible for the matters stated in Section134(5) of the Companies Act 2013 (the Act') with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with the Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of accounting records relevant to the preparation andpresentation of financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
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 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 the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are 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 standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements read with the notes thereongive the information required by the Act in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the company as at March 31 2018 and its loss and its cash flows forthe year ended on that date.
EMPHASIS OF MATTERS
We draw attention to the following matters in the Notes to the financial statements:
(a) Note 15(ii) to the financial statement regarding cheques towards rent paid butuncashed by the landlord.(b) Note 21 (ii) in the financial statements which indicates thatthe Company has accumulated losses and its net worth has been fully / substantiallyeroded the Company has incurred a net loss/net cash loss during the current and previousyear(s) and the Company's current liabilities exceeded its current assets as at thebalance sheet date. These conditions along with other matters indicate the existence ofa material uncertainty that may cast significant doubt about the Company's ability tocontinue as a going concern. However based on the representation received from themanagement regarding continuing support the financial statements of the Company have beenprepared on a going concern basis.
Our opinion is not modified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditor's Report) Order 2016 (the Order') issuedby the Central Government of India in terms of sub-section (11) of section 143 of the Actwe give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.
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 purpose of our audit;
b) In our opinion proper books of accounts as required by the 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 cash flow statement dealtwith by this report are in agreement with the books of account;
d) In our opinion the aforesaid standalone financial statements comply with theaccounting standards specified under Section 133 of the Act 2013 read with Rule 7 ofCompanies (Accounts) Rules 2014;
e) The going concern matter described in sub paragraph (b) under Emphasis of Mattersparagraph above in our opinion may have adverse effect on the functioning of theCompany.
f) On the basis of written representations received from the directors as on March 312018 taken on record by the Board of Directors none of the directors are disqualified ason March 31 2018 from being appointed as a director in terms of the Section 164(2) ofCompanies Act 2013.
g) In our opinion the company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the company
h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of Companies (Audit and Auditors) Rules 2014 in our opinion andto the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations if any on itsfinancial position in its financial statements
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
|Place : Mumbai. ||For Kochar & Associates |
|Date : 29th May 2019 ||Chartered Accountants |
| ||CA Piyush Kochar |
| ||Partner |
| ||Membership No. 106049 |
| ||Firm No. 105256W |