TO THE MEMBERS OF SUPER FINE KNITTERS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of SUPER FINE KNITTERS LIMITED("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.
Management's Responsibility for the 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 and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsprescribed under Section 133 of the Act.
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 design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2018 its Profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act based on our audit we report to theextent applicable 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 Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on31st March 2018 from being appointed as a director interms of Section 164 (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 A".
(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 in its financial statements.
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 required to be transferred to the Investor Educationand
Protection Fund by the Company.
2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in "AnnexureB" a statement on the matters specified in paragraph 3 and 4 of the Order
|Date : 30.05.2018 ||FOR MEHTA SHARMA AND ASSOCIATES |
|Place : LUDHIANA ||(Chartered Accountants) |
| ||Reg No. :018946N |
| ||(MOHIT SHARMA) |
| ||Partner |
| ||M.No. : 501072 |
"Annexure A" to the Independent Auditor's Report of even date on theFinancial Statements of SUPER FINE KNITTERS LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of SUPER FINEKNITTERS LIMITED ("The Company") as of March 31 2018 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.
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") 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 auditinvolves performing procedures to obtain audit evidence amount the adequacy of theinternal financial control system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reportingassessing the risk that a material weakness exists and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend upon on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Company's internal financial controls system over 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 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 2018 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 issues by the Institute of CharteredAccountants of India.
|Date : 30.05.2018 ||FOR MEHTA SHARMA AND ASSOCIATES |
|Place : LUDHIANA ||(Chartered Accountants) |
| ||Reg No. :018946N |
| ||(MOHIT SHARMA) |
| ||Partner |
| ||M.No. : 501072 |
ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT
Reports under The Companies (Auditor's Report) Order 2016 (CARO 2016) for the yearended on 31st March 2018 To The Members of SUPER FINE KNITTERS LIMITED
(1) In Respect of Fixed Assets
(a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) The company has a phased programmeof physical verification of its fixed assets which in our opinion is reasonable havingregard to the size of the company and nature of its assets. As explained to us as percompany's policy discrepancies if any noticed on such verification as compared to bookrecords is properly adjusted in the books of accounts. (c) According to the informationand explanations given to us and on the basis of our examination of the records of thecompany the title deed of the Immovable Properties is held in the name of the company.
(2) In Respect of Inventories
As explained to us physical verification of inventory has been conducted by themanagement at reasonable intervals in respect of Raw Material consumables and Finishedgoods. In our opinion the frequency of such verification is reasonable and no materialdiscrepancies were noticed on such physical verification
(3) Compliance under section 189 of The Companies Act 2013
The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained u/s 189 of the companies Act-2013.thusparagraph 3(iii) of the order is not applicable to the company
(4) Compliance under section 185 and 186 of The Companies Act 2013
In our opinion and according to the information and explanations given to us thecompany while doing transaction for loans investments guarantees and security hascomplied with the provisions of section 185 and 186 of the Companies Act 2013.
(5) Compliance under section 73 to 76 of The Companies Act 2013 and Rulesframed thereunder while accepting Deposits The company has not accepted any Depositsfrom the Public as per the directives issued by the Reserve Bank of India and theprovisions of Section 73 to 76 or any other relevant provisions of the Companies Act 2013and the rules framed thereunder.
(6) Maintenance of cost records
As per information and explanations given to us the Company is not required tomaintain cost records pursuant to the Rules made by the Central Government for themaintenance of cost records under sub-section (1) of section 148 of the Companies Act2013.
(7) Deposit of Statutory Dues
In our opinion and according to the information and explanations given to us andaccording to the records of the Company the amounts deducted or accrued in the books ofaccounts in respect of undisputed statutory dues including Provident Fund Employee StateInsurance Income Tax Sales Tax/ Value Added Tax Custom Duty GST and other materialstatutory dues wherever applicable the company is regular in depositing with appropriateauthorities and there is no undisputed statutory dues payable for a period more than sixmonths from the date they became payable as on 31st March 2018.
8) Repayment of Loans and Borrowings
According to the information and explanations given to us and as per the books andrecords examined by us the company has not defaulted in repayment of dues to financialinstitution bank or debenture holders.
(9) Utilization of Money Raised by Public Offers and Term Loan For which theyRaised
The company has not raised any money by way of Initial Public offer during the yearunder consideration.
(10) Reporting of Fraud During the Year
According to the information and explanations given to us no material fraud by thecompany or on the company by its officers or its employees has been noticed or reportedduring the course of our audit.
(11) Managerial Remuneration
As per information and explanations given to us and based on our examination of therecords of the company the company has paid/provided Managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.
(12) Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio
In our opinion and according to the information and explanations given to us and as perrecords available the company is not a Nidhi Company. Accordingly paragraph (xii) of theCARO 2016 order is not applicable.
(13) Related party compliance with Section 177 and 188 of companies Act 2013
According to information and explanations given to us based on our examination of therecords of the company transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details of related party transactionshave been disclosed in the Financial Statements etc. as required by the applicableaccounting standards.
(14) Compliance under section 42 of Companies Act - 2013 regarding Privateplacement of Shares or Debentures According to information and explanations given tous based on our examination of the records of the company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures and hence reporting under clause (xiv) of CARO 2016 Order is not applicable tothe company
(15) Compliance under section 192 of Companies Act - 2013
According to information and explanations given to us based on our examination of therecords of the company the company has not entered into non-cash transaction with thedirectors or persons connected with him. Accordingly paragraph 3(xv) of the order is notapplicable.
(16) Requirement of Registration under 45-IA of Reserve Bank of India Act 1934
The company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
| ||FOR MEHTA SHARMA & ASSOCIATES |
| ||(Chartered Accountants) |
| ||Firm Registration No. 018946N |
|Place: Ludhiana ||(Mohit Sharma) |
|Date: 30.05.2018 ||Partner |
| ||M. No: 501072 |