To the Members of Mohini Fibers Limited Indore.
Report on Financial Statements
We have audited the accompanying financial statements of Mohini Fibers Limited Indore.Which comprise the Balance Sheet as at March 31 2016 the Statement of Profit and Lossthe Cash Flow Statement for the year then ended and a summary of significant accountingpolicies and other explanatory information.
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ( " the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance 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 maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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.
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 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 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 the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances but not forthe puipose of expressing an opinion on whether the company has in place an adequateinternal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by thecompany's Directors as well as evaluating the overall presentation of the financialstatements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31st 2016 and Profit and Cash Flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended and issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act (hereinafter referred to as the "Order") and on thebasis of such checks of the books and records of the Company as we considered appropriateand according to the information and explanations given to us . we give in the Annexure B.a statement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable .
2. As required by section 143(3) of the Act we report that:
a) We have obtained all the information and explanations which to the best of ourknowledge 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 appears from our examination of those books;
c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards notified under the Act (which are deemed tobe applicable as per Section 133 of the Companies Act 2013 read with Rule 7 of theCompanies (Accounts) Rules 2014).
e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016. 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 A" and
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 opinion and tothe best of information and according to the explanation given to us:
(i) The Company does not have any pending litigation as at 31st March 2016which would impact its financial position in its financial statements.
(ii) The Company has made provisions as required under the applicable law oraccounting standards for material foreseeable losses if any on long term contractsincluding Derivative Contract.
(iii) There were no amount which required tobe transfer to the Investor Education andProtection fund by the company during the year ended on March 31st 2016.
For N.K. Dafria & Co. Chartered Accountants
Date: 10th August 2016
"Annexure A" to the Independent Auditor's Report of even date on theFinancial Statements of Mohini Fibers Limited
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 MohiniFibers Limited as of 31 March 2016 in conjunction with our audit of the financialstatements 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 Chartered Accountants of India (TCAF). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including 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.
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 deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to pennitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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.
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 financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2016 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
For N.K. Dafria & Co Chartered Aecountants
Place: Indore Date: 10th August 2016
"Annexure B" 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 to the financial statementsof the Company for the year ended March 31 2016:
I. (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets on the basis of availableinformation.
(b) As explained to us all the fixed assets have been physically verified by themanagement in phased periodically manner which in our opinion is reasonable having regardto the size of the company and the nature of its assets. No material discrepancies werenoticed in such physical verification.
(c) As per the information and explanations provided to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.
II. In our opinion the inventories have been physically verified during the year bythe management at reasonable intervals and as explained to us no material discrepancieswere noticed on physical verification.
III. In our opinion and according to the information and explanations given to us thecompany has not granted any loans secured or unsecured to companies firms LimitedLiability partnerships or other parties covered in the Register maintained under section189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (c) of the Order arenot applicable 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 Company Act 2013 inrespect of grant of loans making investments and providing guarantees and securities.
V. According to the information and explanations given to us the Company has notaccepted any deposits from the public Therefore the provisions of clause (v) ofparagraph 3 of the order is not applicable to the company.
VI. The Central Government has not prescribed maintenance of cost records under subsection (1) of section 148 of the Act for the nature of industry in which the Company isdoing business.
VII. In respect of Statutory Dues :
(a) According to the information and explanations given to us and on the basis of ourexamination of the books of account and records of the Company undisputed statutory duesincluding Provident Fund Employee State Insurance Income Tax Sales Tax Service TaxDuty of Customs Duty of Excise Value added Tax Cess and other material statutory dueshave been generally regularly deposited with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect of theaforesaid dues were in arrears as at March 31 2016 for a period of more than six monthsfrom the date of becoming payable.
(b) According to the information and explanation given to us there are no dues ofWealth Tax Income Tax Service Tax Custom Duty Excise Duty and cess outstanding onaccount of any dispute. However an Income Tax search was conducted by the Income TaxDepartment on dated 21.01.2016 in which the Company has Declared Jari Stock ofRs.70177580.00 as undisclosed Income Which has been considered in the Annual accounts ofthe Company.
VIII. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of loans or borrowings to Bank financialinstitution and government.
IX. In our opinion and according to the information and explanations given to us thecompany did not raise any money by way of initial public offer or further public offer(Including debt
'instruments). Further the Company has availed term loan facility during the year andthe tenn loan has been utilized for the purpose for which it was availed.
X. In our opinion and according to the information and explanations given to us nomaterial fraud by the company or on the company by its officers or employee has beennoticed or reported during the year.
XI. In our opinion and according to the information and explanations given to us by themanagement the Company has paid / provided for managerial remuneration in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Act.
XII. The Company is not a Nidhi Company and hence reporting under clause (xii) ofparagraph 3 of the order is not applicable to the company.
XIII. In our opinion and according to the information and explanations given to us theCompany's transactions with its related parties are in compliance with sections 177 and188 of the Company Act 2013 where applicable and details of related party transactionshave been disclosed in the financial statements etc as required by the applicableaccounting standaitL
XIV. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debenture and hence reporting underclause (xiv) of paragraph 3 of the order is not applicable to the company.
XV. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him and hence reporting under clause (xv) of paragraph3 of the Order is not applicable to the company.
XVI. In our opinion and according to information and explanations provided to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
|For N.K Dafria & Co. || |
|Chartered Accountants ||Place: Indore |
|orb-m liuci ||Date: 10th August 2016 |