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Morarjee Textiles Ltd.

BSE: 532621 Sector: Industrials
NSE: MORARJEE ISIN Code: INE161G01027
BSE 00:00 | 17 Aug 27.25 0.25
(0.93%)
OPEN

26.75

HIGH

27.50

LOW

26.70

NSE 00:00 | 17 Aug 27.00 0.25
(0.93%)
OPEN

26.90

HIGH

27.45

LOW

26.65

OPEN 26.75
PREVIOUS CLOSE 27.00
VOLUME 4304
52-Week high 64.50
52-Week low 26.35
P/E
Mkt Cap.(Rs cr) 99
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 26.75
CLOSE 27.00
VOLUME 4304
52-Week high 64.50
52-Week low 26.35
P/E
Mkt Cap.(Rs cr) 99
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Morarjee Textiles Ltd. (MORARJEE) - Auditors Report

Company auditors report

TO THE MEMBERS OF MORARJEE TEXTILES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone statements of MORARJEE TEXTILES LIMITED("the nancial statements. Thefi Company") which comprise the Balance Sheet asat 31st March 2017 the Statement of Profit and Loss the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone 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 view of the financial position financial performance and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit financial evidence about theamounts and the disclosures in the selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overallnancialstatementsthatgivea true andpresentation of thefinancial 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone 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 of the state of affairs of the Companyas at 31st March 2017 and its profit and its 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 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act ("theOrder") and on the basis of such checks of the books and records of the Company aswe considered appropriate and according to the information and explanations given to uswe give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

2. 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 purposes 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 and the Cash Flow Statementdealt with 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 read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to adequacy of Internal Financial Controls over Financial Reporting ofthe Company and the operating effectiveness of such controls during the period covered byour audit refer to our separate 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 Refer Note 29(A) to the financial statements;

(ii) the Company does not have any long-term contracts including derivative contractsfor which there are any material foreseeable losses.

(iii) there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

(iv) the Company has provided requisite disclosures in the standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom November 08 2016 to December 30 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with the booksof accounts maintained by the Company and as produced to us by the Management. Refer Note37 to the standalone financial statements.

For Manubhai & Shah LLP

Chartered Accountants

Firm Registration No.: 106041W / W100136

Ashish H. Shah

Partner

Membership No: 103750

Mumbai May 15 2017

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under paragraph "Report on Other Legal and RegulatoryRequirements" of the Independent Auditors' Report of even date)

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant & Equipment.

(b) There is a regular program of physical verification of Property Plant &Equipment which in our opinion is reasonable having regard to the size of the Company andthe nature of Property Plant & Equipment. No material discrepancies have been noticedin respect of the assets physically verified during the year.

(c) The title deeds of immovable properties forming part of Property Plant &Equipment of the Company as disclosed in Note 12 of the financial statements are held inthe name of the Company.

2. The inventory excluding stocks with third parties has been physically verified bythe management during the year. In our opinion the frequency of verification isreasonable. In respect of inventory lying with third parties at the year end writtenconfirmations for the same are obtained. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.

3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act.

4. 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 Act in respect ofloans and investment made and guarantee or security provided by it.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public in accordance with the provisions ofsection 73 to 76 or any other relevant provisions of the Act and rules framed there under.Accordingly paragraph 3(v) of the order is not applicable to the Company.

6. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government of India for the maintenance of cost recordsunder sub-section (1) of Section 148 of the Act and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained. We have not howevermade a detailed examination of the records with a view to determine whether they areaccurate or complete.

7. (a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess andother material statutory dues as applicable with the appropriate authorities.

According to the information and explanations given to us and the records of theCompany examined by us in our opinion no undisputed amounts payable in respect ofprovident fund employees' state insurance income tax sales tax service tax duty ofcustoms duty of excise value added tax cess and other material statutory dues asapplicable were in arrears as at 31st March 2017 for a period of more than six months fromthe date they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues of income tax sales tax service taxduty of customs duty of excise value added tax or cess as at 31st March 2017which have not been deposited on account of a dispute are as follows:

Name of the Statute Nature of Dues Financial Year Amount Rs. in lacs Forum where Dispute is Pending
Central Excise Act 1944 Interpretation of Act 1979-80 to 1985-86 6.84 First Appeal (Commissioner Level)
1990-91 0.09
1993-94 to 1995-96 146.49
1999-2000 to 2001-02 218.61
Central Excise Act 1944 Interpretation of Act 1976-77 0.19 Second Appeal (CESTAT)
1990-91 to 1991-92 2.35
1995-96 to 2002-03 45.86
2008-09 111.63
Central Excise Act 1944 Interpretation of Act 1997-98 to 2001-02 3.19 High Court
Central Excise Act 1944 Interpretation of Act 2008-09 30.72
Central Excise Act 1944 Interpretation of Act 1981-1984 296.14 Supreme Court
Maharashtra Value Added Tax Act 2002 Interpretation of Act 2006-07 to 2007-08 66.20 Joint Commissioner of Sales Tax
Maharashtra Value Added Tax Act 2002 Interpretation of Act 2003-04 112.07 Sales Tax Tribunal

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 dues to anyfinancial institution bank and government as at the balance sheet date.

9. The Company has not raised any money by way of an initial public offer or furtherpublic offer (including debt instruments). In our opinion and according to the informationand explanations given to us the term loans have been applied for the purposes for whichthey were obtained.

10. According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the course of our audit.

11. According to the information and explanations given to us the Company has compliedwith the provisions of section 197 read with schedule V of the Act with regards to paymentor provision of managerial remuneration.

12. The Company is not a Nidhi Company as defined under section 406(1) of the Act andthus Nidhi Rules 2014 are not applicable to the Company.

13. The transactions entered by the Company with related parties are in compliance withsection 177 and 188 of the Act. The details of all such transactions are disclosed in Note38 to the financial statements as required under Accounting Standard 18 Related PartyDisclosures.

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

15. In our opinion and according the information and explanations given to us theCompany has not entered into any non-cash transactions with its directors or personsconnected with him. 16. The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For Manubhai & Shah LLP

Chartered Accountants

Firm Registration No.: 106041W / W100136

Ashish H. Shah

Partner

Membership No: 103750

Mumbai May 15 2017

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2(f) under paragraph "Report on Other Legal andRegulatory Requirements" of the Independent Auditors' Report of even date)

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Act.

We have audited the internal financial controls over financial reporting of the companyas of March 31 2017 in conjunction with our audit of the standalone financial statementsof 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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") issued by ICAI and the Standards on Auditing issued byICAI and deemed to be prescribed under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal fi Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting were established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting 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 opinion on the Company's internal financial controls system overfinancial 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 ofrecords that in reasonable detail accurately and fairly reflected the transactions anddepositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable nancialcontrols.assurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

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 controlsaudit over financial reporting were operating effectively as at March 31 2017 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Manubhai & Shah LLP

Chartered Accountants

Firm Registration No.: 106041W / W100136

Ashish H. Shah

Partner

Membership No: 103750

Mumbai May 15 2017