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
M V COTSPIN LIMITED Report on the Financial Statements
We have audited the standalone financial statements of M V COTSPIN LIMITED (CIN:L18101WB1993PLC060752) (the Company) which comprise the balance sheet as at31st March 2021 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 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 March 31 2021 and profit/loss the statement of changes in equity and its cashflows for the year ended on that date.
Basis for Opinion
We have conducted our audit in accordance with the Standards on Auditing (SAs)specified under section 143(10) of the Companies Act 2013. Our responsibility under thoseStandards is further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We have independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and We have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence We haveobtained is sufficient and appropriate to provide a basis for our 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.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in firming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
Auditor's Responsibilities for the Audit of the Financial Statements
Our 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 our 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 We exercise professional judgment andmaintain professional skepticism throughout our audit. We 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 forour 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 We have also responsible for expressing our 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 We conclude that a material uncertainty existsWe have required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditreport. However future events or conditions may cause the Company to cease to continue asa going concern.
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.
We 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 We have identified during our audit.
We also provide those charged with governance with a statement that We have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance We determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances We determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected 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 (theOrder) issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 We have give in Annexure A a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
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 & Loss Statement of Changes in Equityand the Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount.
d) In our 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 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 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 ourseparate 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 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 our Report of even date to the members ofM V COTSPIN LIMITED on the accounts of the company for the year ended 31stMarch 2021.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipments;
(b) The Property Plant and Equipments have been physically verified by the managementat reasonable intervals; no material discrepancies were noticed on such verification;
(c ) The title deed of the immovable property disclosed in the financial statements isheld in the name of the company;
ii. According to the explanations and information given to us 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) there is no stipulation with regards to repayment of principal and payment ofinterest hence we are unable to comment relating to their repayments or receipts areregular;
(c ) In absence of any stipulation no amount is overdue;
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 our opinion and according to the information and explanations given to us 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 our opinion and according to the information & explanation given to usmaintenance 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 us and the recordsexamined by us 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 us 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 us 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 us the company has notraised money by way of initial public offer (including debt instruments) except termloans which is applied for the purpose for which it was raised.
x. According to the information and explanations given to us 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 our opinion all the transaction with related parties are in compliancewith the Section 177 And 188 of the Companies Act 2013 and have been disclosed in theNote 24 of the financial statements for the year as required by the applicable accountingstandards.
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 our opinion the Company is not required to be registered under section 45-IAof the 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 M V COTSPIN LIMITED
Report on the Internal Financial Controls under Clause (c) of Sub-section 3 of Section143 of the Companies Act 2013 (the Act)
We have audited the internal financial controls over financial reporting of M V COTSPINLIMITED (the Company) as of March 31 2021 in conjunction with Our audit ofthe 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.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We have conducted audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the Guidance Note) and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that We comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 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 2021 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.