MV Cotspin Ltd.
|BSE: 531286||Sector: Others|
|NSE: N.A.||ISIN Code: INE586D01014|
|BSE 05:30 | 01 Jan||MV Cotspin Ltd|
|NSE 05:30 | 01 Jan||MV Cotspin Ltd|
|BSE: 531286||Sector: Others|
|NSE: N.A.||ISIN Code: INE586D01014|
|BSE 05:30 | 01 Jan||MV Cotspin Ltd|
|NSE 05:30 | 01 Jan||MV Cotspin Ltd|
To the Members of
MV COTSPIN LIMITED
Report on the Financial Statements
I have audited the standalone financial statements of M/S M V COTSPIN LIMITED(CIN: L18101WB1993PLC060752) ("the Company") which comprise the balance sheetas at 31st March 2020 and the statement of Profit and Loss (including the ComprehensiveIncome) statement of Changes in Equity and statement of Cash Flows for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information .
In my opinion and to the best of my information and according to the explanations givento me the aforesaid standalone financial statements give the information required by theAct 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 March 31 2020 and profit/loss the statement of changes in equity and its cashflows for the year ended on that date.
Basis for Opinion
I have conducted my audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. My responsibility under those Standardsis further described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of my report. I am independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to my audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and I have fulfilled myother ethical responsibilities in accordance with these requirements and the Code ofEthics. I believe that the audit evidence i have obtained is sufficient and appropriate toprovide a basis for my opinion.
Management 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 financial statements that give a true and fair view of the financialposition financial performance changes in equityand Cash Flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards specified under Section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. That Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
My objective is to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes my opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
As part of an audit in accordance with SAs I exercise professional judgment andmaintain professional skepticism throughout my audit. I also:
a) Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis formy opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
b) Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 I am also responsible for expressing my opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
c) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
d) Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If i conclude that a material uncertainty existsI am required to draw attention in my auditor's report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify my opinion. Myconclusions are based on the audit evidence obtained up to the date of my audit report.However future events or conditions may cause the Company to cease to continue as a goingconcern.
e) Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
I communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that I have identified during my audit.
I also provide those charged with governance with a statement that I have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on my independenceand where applicable related safeguards.
From the matters communicated with those charged with governance i determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. I describe these matters in myauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances I determine that a matter should not becommunicated in my report because the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.
Report on Other Legal & 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 ofthe Companies Act 2013 I give in "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
As required by section 143(3) of the Act I report that:
a) I have obtained all the information and explanations which to the best of myknowledge and belief were necessary for the purpose of my audit;
b) In my opinion proper books of account as required by law have been kept by theCompany so far as appears from my examination of those books
c) The Balance Sheet Statement of Profit & Loss Statement of Changes in Equityand the Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount.
d) In my opinion aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) On the basis of written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms Section164(2) of the Act;
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 myseparate 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 my opinionand to the best of my information and according to the explanations given to me:
i. The Company does not have any pending litigations which would impact its financialposition;
ii. The Company did not have any long-term contracts including derivative contracts forwhich 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.
The Annexure A referred to in paragraph 1 of my Report of even date to the members ofMV COTSPIN LIMITED on the accounts of the company for the year ended 31stMarch 2020.
On the basis of such checks as I considered appropriate and according to theinformation and explanation given to me during the course of my audit I report that:
i. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;
ii. According to the explanations and information given to me the Management hasphysically verified the inventory at reasonable intervals and no material discrepancieshave been noticed on physical verification.
iii. As informed the Company has granted Loan secured or unsecured to Companiesfirms Limited Liability Partnership or other parties listed in the Register maintainedunder Section 189 of The Companies Act 2013
A. The terms and conditions on the basis of which the loan has been granted are notprejudicial to the company's interest
B. The receipt of the principal amount and the interest are regular
iv. The company has complied with the provision of section 185 and 186 of the CompaniesAct 2013 regarding the loans investments guarantees and security.
v. In my opinion and according to the information and explanations given to me theCompany has not accepted any deposits from the public within the meaning of the CompaniesAct 2013 hence this clause is not applicable to the Company.
vi. In my opinion and according to the information & explanation given to memaintenance of cost records has not been prescribed by the Central Government undersection 148(1) of the Companies Act 2013; hence clause (vi) is not applicable to theCompany.
vii. (a) According to the information and explanations given to me and the recordsexamined by me the Company is regular in depositing the undisputed statutory dues such asIncome-tax GST Custom Duty Cess and any other statutory dues with the appropriateauthorities. There are no arrears of outstanding dues as at the last day of the financialyear for the period of 6 months from the date they became payable.
(b) According to the information and explanations given to me there were no disputedamount payable in respect of statutory dues such as Income-tax GST Custom Duty Cess.
viii. According to the information and explanation given to me the company has notdefaulted in repayment of dues to a financial institution or government or bank ordebenture holders.
ix. According to the information and explanations given to me the company has notraised money by way of initial public offer (including debt instruments) and term loanshence clause (ix) is not applicable to the Company.
x. According to the information and explanations given to me no frauds has beennoticed or reported by the Company or any fraud on the Company by its officers/ employeesduring the year that causes the financial statements to be materially misstated.
xi. The Company has paid /provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule V to theact.
xii. The Company is not a Nidhi Company hence clause (xii) is not applicable to theCompany.
xiii. In my opinion all the transaction with related parties are in compliance with theSection 177 And 188 of the Companies Act 2013 and have been disclosed in the financialstatements for the year as required by the applicable accounting standards.
xiv. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review; hence clause (xiv)is not applicable to the Company.
xv. The Company has not entered into any non-cash transactions with Directors orpersons connected with him; hence this clause (xv) is not applicable to the Company.
xvi. In my opinion the Company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934 and hence clause (xvi) is not applicable to theCompany.
Annexure B to the Independent Auditor's Report of even date on the Financial Statementsof MV COTSPIN LIMITED
Report on the Internal Financial Controls under Clause (c) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
I have audited the internal financial controls over financial reporting of MVCOTSPIN LIMITED ("the Company") as of March 31 2020 in conjunction with Myaudit of the financial 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 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating 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 and as per the norms issued by RBI.
My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I have conducted audit in accordance with theGuidance 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 i 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.
My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My 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.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions 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 assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material 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 my opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.