To The Members of Osiajee Texfab Limited
Report on theInd AS Financial Statements
We have audited the accompanying Ind AS financial statements of Osiajee Texfab Limited("the Company") which comprise the Balance Sheet as at March 31 2018 theStatement of Profit & Loss including the statement of Other Comprehensive Income theStatement of Cash Flow and the Statement of Changes in Equity for the year then ended anda summary of significant accounting policies and other explanatory information for theyear ended on that date.
Management's Responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS)specified undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015as amended.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are freefrom materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Ind AS financial statements basedon 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 of the Ind AS financial statements in accordance with theStandards on Auditing issued by the Institute of Chartered Accountants of India asspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 Ind ASfinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of theInd AS financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.
In our opinion and to the best of our information and according tothe explanationsgiven to us the Ind AS financial statements give theinformation required by the Actin themanner so required and givea true and fair view in conformity with the accountingprinciplesgenerally accepted in India of the state of affairs of theCompany as at March31 2018 its Statement of Profit & Loss including other comprehensive income itsStatement of Cash flowand the changes in equity forthe year ended on that date.
Report on Other Legal and Regulatory Requirements
1. Asrequired 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 Act we give in the Annexure "B" a statement on the matters specified inparagraphs 3and 4 of the Order.
2. As required by section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the bestof our knowledge and belief werenecessary for the purpose of our audit;
(b) In our opinion proper books of account as required bylaw have been kept by theCompany so far as it appearsfrom our examination of those books;
(c) The Balance Sheet Statement of Profit & Loss including the Statement of OtherComprehensive Income the Statement of Cash Flow and Statement of Changes in Equity dealtwith by this Report are inagreement with the books of account;
(d) In our opinion the aforesaidInd ASfinancial statements comply with theAccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 Companies (Indian Accounting Standards) Rules 2015 as amended;
(e) On the basis of written representations received fromthe directors as on March 312018 and taken on recordby the Board of Directors none of the directors isdisqualifiedas on March312018 from being appointedas a director in terms of section 164 (2) of theAct; Except Mr.TejasMhatre who has been disqualified as per list issued by Ministry ofCorporate Affairs in the month of September 2017.
(f) Withrespect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these Ind AS financial statements and theoperating effectiveness of such controls refer to our separate Report in "AnnexureA" to this report;
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule11 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 does not have any long-term contracts including derivative contractsfor which 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.
ForS C Mehra& Associates
ICAI Firm Registration Number: 106156W
CA Suresh Mehra
Membership Number: 039730
Place of Signature: Mumbai
Annexure A to 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 statements of theCompany for the year ended March 31 2018.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection143 of the Companies Act 2013 ("The Act")
1. We have audited the internal financial controls over financial reporting ofOsiajeeTexfab Limited as of March 31 2018 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
2. The Company's management is responsible for establishing and maintaining internalfinancial controlsbased on the internal control over financial reportingcriteriaestablished by the Company considering the essential components of internalcontrol stated inthe Guidance Note on Audit of Internal FinancialControls over FinancialReporting issued bythe Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the designimplementation and maintenance of adequate internalfinancial controls that were operatingeffectively for ensuringthe orderly and efficientconduct of its business including adherence tocompany's policies the safeguarding of itsassets the prevention and detection of frauds anderrors the accuracy and completeness ofthe accounting records and the timely preparation ofreliable financial information asrequired under the Act.
3. Our responsibility is to express an opinion on the Company's internal financialcontrols overfinancial reporting based on our audit. We conducted our audit in accordancewiththe Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedundersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols bothapplicable to an audit of internal financial controls and both issued by theICAI. Those Standards and the GuidanceNote require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financialreporting was established andmaintained and if such controls operated effectively in all materialrespects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyofthe internal financial controls system over financial reporting and their operatingeffectiveness.Our audit of internal financial controls over financial reporting includedobtaining anunderstanding of internal financial controls over financial reportingassessing the risk that amaterial weakness exists and testing and evaluating the designand operating effectiveness ofinternal control based on the assessed risk. The ~41 ~procedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financialstatements whether due to fraud or error.
5. 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
6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles.
A company's internal financial control over financial reporting includes those policiesand procedures that pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; andprovide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financialreporting includingthe possibility of collusion or improper management override ofcontrols material misstatementsdue to error or fraud may occur and not be detected.Alsoprojections of any evaluation of theinternal financial controls over financial reportingto future periods are subject to the risk that theinternal financial control overfinancial reporting may become inadequate because of changes inconditions or that thedegree of compliance with the policies or procedures may deteriorate.
8. In our opinion to the best of our information and according to explanation given tous the Company has in all material respects an adequate internal financialcontrolssystem over financial reporting and such internal financial controls overfinancialreporting were operating effectively as at March 31 2018 based on theinternalcontrol over financial reporting criteria established by the Company consideringtheessential components of internal control stated in the Guidance Note on Audit ofInternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants ofIndia.
For S C Mehra& Associates
Firm's Registration No. 106156W
CA Suresh Mehra
Annexure B to Independent Auditors' Report
Referred to inparagraph 1under the heading Report on Other Legal & RegulatoryRequirement' of our report of even date to the financial statements of the Companyfor theyear ended March 31 2018.
i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets of the Company have been physically verified by the Managementin aphased manner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the companydoes not have immovable properties.
ii. As explained to us the inventories were physically verified during the year atreasonable intervals and no material discrepancies were noticed on physical verification.
iii. The Company has not grantedany loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act.
Therefore the provisions of Clause 3(iii) (iii)(a) (iii)(b) and (iii)(c) of the saidOrder arenot applicable to the Company.
iv. The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Section 185 and 186. Therefore theprovisions of Clause 3(iv) of the said Order are notapplicable to the Company.
v. The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified except unsecured loan of Rs.
vi. The Central Government of India has not specified the maintenance of cost recordsunder sub-section (1) of Section 148 of the Act for any of the products of the Company.
vii. (a)According to the information and explanations given to us and the records ofthe Company examined by us in our opinionundisputed statutory dues including providentfund employees' state insurance income-tax service tax and cess have been regularlydeposited with the appropriateauthorities. There is no arrears ofoutstanding statutorydues as on the last day of the financial year concerned for a period of more than sixmonths from the date they became payable.
(b) According to the information and explanations given to us and the records of theCompany examined byus there are no dues of income-tax service-tax value added tax orGST which have not been deposited on account of any dispute.
viii. According to the records of the Company examinedby us and the information andexplanationgiven to us the Companyhas not defaulted inrepayment of loans or borrowings toany financialinstitution or bank. The Company does not have any loans from Government.Further theCompany has not issued any debenture.
ix. In our opinion and according to the information and explanations given to us nomoneys raised by way of initial public offer or further public offer (including debtinstruments) and no term loans has been taken during the year.
x. During the course of our examination of the books and records of the Companycarriedout in accordance with the generally accepted auditing practices in India and accordingto the information and explanations given to us we have neither come across anyinstanceof material fraud by the Company or on the Company by its officers oremployees noticed orreported during the year nor have we been informed of any such case by the Management.
xi. The Company has not paid/ provided for managerialremuneration during the yearhence requisite approvals mandated by the provisions of Section197 read with Schedule V tothe Act is not required.
xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto itthe provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard (AS) 18 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.
xiv. The Company has not made preferential allotment of shares during the year underreview. Hence the requirements ofSection 42 of Companies Act 2013 are not applicable tothe Company.
xiv. The Company has not entered into any non cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.
| ||For S C Mehra& Associates |
| ||FRN:106156W |
| ||Chartered Accountants |
| ||Sd/- |
| ||CA S C Mehra |
|Place: Mumbai ||Partner |
|Date: May 30 2018 ||Membership No.03973 |