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Trident Texofab Ltd.

BSE: 540726 Sector: Others
NSE: N.A. ISIN Code: INE071Y01013
BSE 00:00 | 20 Mar 98.65 2.65
(2.76%)
OPEN

98.50

HIGH

98.65

LOW

98.50

NSE 05:30 | 01 Jan Trident Texofab Ltd
OPEN 98.50
PREVIOUS CLOSE 96.00
VOLUME 4000
52-Week high 147.25
52-Week low 90.55
P/E 64.90
Mkt Cap.(Rs cr) 39
Buy Price 95.00
Buy Qty 1000.00
Sell Price 99.50
Sell Qty 1000.00
OPEN 98.50
CLOSE 96.00
VOLUME 4000
52-Week high 147.25
52-Week low 90.55
P/E 64.90
Mkt Cap.(Rs cr) 39
Buy Price 95.00
Buy Qty 1000.00
Sell Price 99.50
Sell Qty 1000.00

Trident Texofab Ltd. (TRIDENTTEXOFAB) - Auditors Report

Company auditors report

To the Members of TRIDENT TEXOFAB LIMITED

Report on Financial Statements

We have audited the accompanying financial statements of TRIDENTTEXOFAB LIMITED (the Company) which comprise the Balance sheet as at March 31 2018 theStatement of Profit & Loss and the Statement of Cash flow for the year then ended anda summary of significant accounting policies and other explanatory information.

Management's Responsibility for Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financialstatements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditingspecified 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 aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2018 and its profit and its cash flows for theyear ended on that date.

Report on other Legal and 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 Section143(11) of the Act we give in the Annexure 1 a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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 best of our knowledge and belief were necessary for the purposes of ouraudit; 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 Sheetthe Statement of Profit and Loss and the Cash Flow Statement dealt with by this Reportare in agreement with the books of account; d) In our opinion the aforesaid financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014; e) On the basis of the writtenrepresentations received from the directors as on 31st March 2018 taken on record by theBoard of Directors none of the directors is disqualified as on 31st March 2018 frombeing appointed as a director in terms of Section 164 (2) of the Act; f) With respect tothe adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate Report in "Annexure 2" to this report; g) With respect to the other matters to be included inthe Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

(i) The Company has disclosed the impact of pending litigation on itsfinancial position in its financial statements. Refer Note 1.(j).(iii) to the financialstatements. (ii) The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses. (iii) The company has notdeclared any dividend so this clause is not applicable hence not commented upon.

Yours Faithfully
Bipinchandra J Modi & Co.
Chartered Accountants
Sd/-
Bipinchandra J. Modi
Partner
M. No: 31687
FRN No. 101521W

Place: Surat

Date: 28th May 2018

ANNEXURE 1 TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date

To the Members of Trident Texofab Limited

(i) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets. (b) As explained to usphysical verification of fixed assets was conducted by the management at reasonableintervals. Having regard to the size of the operation of the company and on the basis ofexplanation received in our opinion no material discrepancies were observed during suchverification. (c) As explained and information provided to us the title deeds ofimmovable properties included in property plant and equipments are held in the name ofthe company except one property where legal proceedings for transfer in the name of thecompany is in progress.

(ii) In respect of its inventories:

(a) As explained and information provided to us the company hasmaintained proper records of inventory. Inventory defined in categories of finished goodsand raw materials in the company's custody have been physically verified by the managementas at the end of the financial year or after the year end. There is a perpetual inventorysystem and a substantial portion of the stock has been verified during the year. In ouropinion the frequency of verification is reasonable the procedure of physicalverification of stocks followed by the management is adequate in relation to size of thecompany and the nature of its business.

(iii) The Company has granted unsecured loans to parties covered in theRegister maintained under section 189 of the

Companies Act 2013.

(a) The terms and conditions of the grant of such loans are notprejudicial to the Company's interest

(b) The repayments or receipts are regular and repayment of principaland payment of interest has been stipulated and repayment and receipts are regular. (c)There is no overdue of amount.

(iv) In our opinion and according to the information and explanationsgiven to us provisions of section 186 of the Companies Act 2013 in respect ofinvestments made have been complied with by the company and the company has also compliedwith provisions of the section 185 of the Companies Act 2013. (v) The Company has notaccepted any deposits from public within the meaning of Sections 73 and 74 of the Act andthe rules framed there under to the extent notified. (vi) We have broadly reviewed thebooks of account maintained by the Company pursuant to the rules made by the CentralGovernment for the maintenance of cost records under section 148(1) of the Companies Act2013 related to the manufacture of the company's products and are of the opinion thatprima facie the specified accounts and records have been made and maintained. We havenot however made a detailed examination of the same. (vii) According to the informationand explanation given to us the company is generally regular in depositing withappropriate authorities undisputed statutory dues including provident fund investoreducation and protection fund employees' state insurance income tax wealth tax customsduty excise duty cess and other material dues applicable to it. (a) According to theinformation and explanation given to us no undisputed amount payable in respect of incometax sales tax customs duty cess excise duty were in arrears as at 31st March 2018 fora period of more than six month from the date they become payable. (b) According to theinformation and explanations given to us there are no dues of income tax or sales tax orduty of customs or duty of excise or value added tax which have not been deposited withthe appropriate authorities on account of any dispute. (viii) According to the records ofthe Company examined by us and explanation given to us the Company has not defaulted inrepayment of dues to any financial institution and banks. (ix) (Based on our auditprocedures performed for the purpose of reporting the true and fair view of the financialstatements and according to the information and explanations given by the management thecompany has raised Rs. 3.52 crores through initial public offer by offering 1176000shares @ Rs. 30 per share for the purpose of funding of working capital requirements ofthe company general corporate expenses and issue expenses and issue expenses. The companyhas fully utilized the said full amount till 19th October 2017 for the said statedpurpose. (x) During the course of our examination of the books and records of the Companycarried out in accordance with generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither come across anyinstance of material fraud on or by the Company noticed or reported during the year norwe have been informed of any such case by the Management. (xi) Based on our auditprocedures performed for the purpose of reporting the true and fair view of the financialstatements and according to the information and explanation given by the management wereport that the managerial remuneration provision specified in section 197 of theCompanies Act 2013 is not applicable to the Company hence reporting under clause (xi) isnot applicable hence not commented upon. (xii) In our opinion the Company is not a nidhicompany. Therefore the provisions of clause (xii) of the order are not applicable to theCompany and hence not commented upon. (xiii) Based on our audit procedures performed forthe purpose of reporting the true and fair view of the financial statements and accordingto the information and explanation given by the management transactions with the relatedparties are in compliance with section 177 and 188 of Companies Act 2013 whereverapplicable and wherever applicable and the details have been disclosed in the notes tothe financial statements as required in the notes to the financial statements asrequired by the applicable accounting standards. (xiv) According to the information andexplanation given to us and on an overall examination of the balance sheet the companyhas not made any preferential allotment or private placement of share or partlyconvertible debentures during the year under review and hence not commented upon. (xv)Based on our audit procedures performed for the purpose of reporting the true and fairview of the financial statements and according to the information and explanation given bythe management the Company has not entered into any no-cash transaction with directors orpersons connected with them. (xvi) According to the information and explanations given tous the provisions of section 45-IA of the Reserve Bank of India Act 1934 are notapplicable to the Company.

For Bipinchandra J Modi & Co. Chartered Accountants FirmRegistration No.:101521W

Sd/- Bipinchandra J Modi Partner Membership No: 31687

Place: Surat

Date: 28th May 2018

ANNEXURE 2

TO THE INDEPENDENT AUDITORS' REPORT OF

EVEN DATE ON THE FINANCIAL STATEMENTS OF

TRIDENT TEXOFAB LIMITED

Report on the Internal Financial Controls under Clause (i) ofSub-Section 3 of Section 143 of the Companies Act 2013

(‘the Act")

To the Members of Trident Texofab Limited

We have audited the financial controls over financial reporting ofTRIDENT TEXOFAB LIMITED ("the Company") as of March

31 2018 in conjunction with our audit of the financial statements ofthe Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial controls over FinancialReporting (the "Guidance Note") and the standards on Auditing issued by lCAIand 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:

1. Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

2. Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

3. Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2018 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the

Institute of Chartered Accountants of India.

For Bipinchandra J Modi & Co. Chartered Accountants FirmRegistration No.:101521W

Sd/- Bipinchandra J Modi Partner Membership No: 31687

Place: Surat

Date: 28th May 2018