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MV Cotspin Ltd.

BSE: 531286 Sector: Others
NSE: N.A. ISIN Code: INE586D01014
BSE 05:30 | 01 Jan MV Cotspin Ltd
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MV Cotspin Ltd. (MVCOTSPIN) - Auditors Report

Company auditors report

To the Members of

MV COTSPIN LIMITED

Report on the Financial Statements

Opinion

We have audited the standalone financial statements of M/S M V COTSPIN LIMITED (CIN:L18101WB1993PLC060752) ("the Company") which comprise the balance sheet as at31st March 2019 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 2019 and profit/loss the statement of changes in equity and its cashflows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013.Our responsibility under those Standardsis further described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are 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 our audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled myother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto 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 equity and 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

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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 (ll) of section 143 ofthe Companies Act 2013 we 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 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 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 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 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 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 our opinionand to the best of our information and according to the explanations given to us:

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.

Place: Kolkata For P. K. Ajitsaria & Co.
Dated: 17th Day of May 2019 Chartered Accountants
Firm Regn. No. 317046E
(Pawan Kr. Ajitsaria)
Partner
Membership No. 53109

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 2019.

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. 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 us the Management hasphysically verified the inventory at reasonable intervals and no material discrepancieshave been noticed on physical verification.

iii. The Company has not granted loans secured or unsecured to Companies firmsLimited Liability Partnership or other parties listed in the Register maintained underSection 189 of The Companies Act 2013 hence clause (iii)(a) (iii)(b) and (iii)(c) ofthe said above order are not applicable to the Company.

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 suchas Provident Fund Employees' State Insurance Income-tax Sales-tax Service Tax CustomDuty Excise Duty Value Added Tax 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 Sales-tax Service TaxCustom Duty Excise Duty Value Added Tax. Cess.

viii. The Company has not taken any loan from financial institution or bank orGovernment or debenture holders hence clause (viii) is not applicable to the Company.

ix. According to the information and explanations given to us 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 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. According to the information and explanations given to us the Company has not paidany managerial remuneration hence clause (xi) is not applicable.

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 compliance withthe Section 177 And 188 of the Companies Act 2013 and have been disclosed in thefinancial statements 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 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.

Place: Kolkata For P. K. Ajitsaria & Co.
Dated: 17th Day of May 2019 Chartered Accountants
Firm Regn. No. 317046E
(Pawan Kr. Ajitsaria)
Partner
Membership No. 53109

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")

We have audited the internal financial controls over financial reporting of MVCOTSPIN LIMITED ("the Company") as of March 31 2019 in conjunction with ouraudit 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on my audit. We have conducted 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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 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.

Opinion

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 2019 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.

Place: Kolkata For P. K. Ajitsaria & Co.
Dated: 17th Day of May 2019 Chartered Accountants
Firm Regn. No. 317046E
(Pawan Kr. Ajitsaria)
Partner
Membership No. 53109