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Winsome Textile Industries Ltd.

BSE: 514470 Sector: Industrials
NSE: N.A. ISIN Code: INE837B01031
BSE 00:00 | 23 Apr 25.40 0
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NSE 05:30 | 01 Jan Winsome Textile Industries Ltd
OPEN 24.75
PREVIOUS CLOSE 25.40
VOLUME 228
52-Week high 52.00
52-Week low 23.05
P/E 15.58
Mkt Cap.(Rs cr) 50
Buy Price 25.25
Buy Qty 55.00
Sell Price 26.00
Sell Qty 8.00
OPEN 24.75
CLOSE 25.40
VOLUME 228
52-Week high 52.00
52-Week low 23.05
P/E 15.58
Mkt Cap.(Rs cr) 50
Buy Price 25.25
Buy Qty 55.00
Sell Price 26.00
Sell Qty 8.00

Winsome Textile Industries Ltd. (WINSOMETEXTILE) - Auditors Report

Company auditors report

TO THE MEMBERS OF WINSOME TEXTILE INDUSTRIES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Winsome Textile IndustriesLimited (‘the Company') which comprise the Balance Sheet as at 31st March 2018the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda summary of significant accounting policies and other explanatory information.

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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; 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 e_ectively 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 financial statements based on ouraudit.

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 there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 we have obtained is su_cient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

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 a_airs of the Company as at 31stMarch 2018 and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

Without qualifying our opinion we draw attention to note 25 regarding remunerationpaid/provided to Managing Director during the year ended 31st March 2018 which hasexceeded the limit prescribed under section 197 read with schedule V to the Companies Act2013 by Rs. 28.29 Lakhs. As informed to us the Company is in the process of filingwaiver application with the Central Government for the above excess remuneration andpending application and receipt of the approval no adjustments to financial statementshave been made to show this amount as recoverable.

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 sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 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 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 the cash flow statementdealt with by this Report are in agreement with the books of account subject to noteno.31in the notes to the accounts;

(d) in our opinion the aforesaid financial statements comply with the IndianAccounting Standards 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 on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act;

(f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating e_ectiveness of such controls refer to ourseparate report in "Annexure B"; and

(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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. the Company has to the extent ascertainable disclosed the impact of pendinglitigations on its financial position in its financial statements – Refer clause (i)of Note 14 and Note 17 to the financial statements;

ii. the Company does not have any material foreseeable losses on long term contractsincluding derivative contracts which would impact its financial position;

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For B. CHHAWCHARIA & CO.

Chartered Accountants Firm Registration No: 305123E

Abhishek Gupta Partner Membership No. 529082

Place: New Delhi

Date: 25th May 2018

ANNEXURE - A TO THE AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year ended 31st March 2018 we report that: (i) (a)The Company is maintaining proper records showing full particulars including quantitativedetails and situation of fixed assets. (b) According to the information and explanationsgiven to us all the assets have been physically verified by the management according tothe programme of periodical verification in phased manner which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on 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 title deeds of immovable properties areheld in the name of the Company.

(ii) According to the information and explanations given to us the management hasconducted physical verification of inventory at reasonable intervals during the yearwhich in our opinion is reasonable having regard to the size of the company and natureof its business. No material discrepancies were noticed on such verification.

(iii) According to the information and explanations given to us the Company has notgranted secured/ unsecured loans to companies firms Limited Liability Partnerships orother parties covered in the register maintained under section 189 of the Companies Act2013 (‘the Act'). (iv) In our opinion and according to the information andexplanations given to us the Company has complied with the provisions of section 185 and186 of the Companies Act 2013 in respect of loans investments guarantees and securitiesmade by the company.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits within the meaning of Sections 73 to 76 of theCompanies Act 2013 Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended).

(vi) As certified by a Cost Accountant the company has maintained cost records for theyear under review as prescribed under sub-section (1) of Section 148 to the extentapplicable to the company. We have however not made a detailed examination of suchrecords.

(vii) (a) According to the records of the company the company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income-tax Goods and Service Tax duty of customs Cessand other material statutory dues as applicable and no such statutory dues wereoutstanding as at the last day of the financial year under review for a period of morethan six months from the date they became payable. (b) According to the information andexplanations given to us there are no dues of income-tax Goods and Service Tax duty ofcustoms and cess as applicable which have not been deposited on account of any disputeexcept the following:

Name of Statute Nature of Dues Period Amount uppaid (In Lacs Rs.) Forum
Central Excise Act Excise Duty 1996-97 to 1997-98 1.44 Assistant Commissioner
Central Excise Act Excise Duty 2008-09 to 2009-10 1.19 CESTAT
Customs Custom Duty 2015-16 1.20 Commissioner (Appeal)
HP Sales Tax Act Entry Tax 2010-11 to 2017-18 452.02 The High Court of Shimla

(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government. The company does not have any outstanding debentures duringthe year. (ix) In our opinion and according to the information and explanation given tous the Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) during the year under review. Further term loans havebeen applied for the purposes for which those were raised.

(x) According to the information and explanations given to us no fraud by the Companyand no material fraud on the Company by its o_cers or employees has been noticed orreported during the course of the audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act subject to note no.25 in the notes to theaccounts.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. (xiii) According to the information and explanations givento us and based on our examination of the records of the Company transactions with therelated parties are in compliance with sections 177 and 188 of the Act and the details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. (xvi) In our opinion theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For B. CHHAWCHARIA & CO.

Chartered Accountants Firm Registration No: 305123E

Abhishek Gupta Partner Membership No. 529082 Place: New Delhi Date:25th May 2018

ANNEXURE - B TO THE AUDITORS' REPORT

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 WinsomeTextile Industries Limited ("the Company") as of 31st March 2018 inconjunction with our audit of the financial statements of the Company for the year endedon 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating e_ectively for ensuring the orderly and e_cientconduct 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 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 e_ectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating e_ectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatinge_ectiveness of internal control based on the assessed risk. 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. We believe thatthe audit evidence we have obtained is su_cient and appropriate to provide a basis for ouraudit opinion on the Company's internal financial controls system over financialreporting.

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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material e_ect 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 e_ectively as at 31st March 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 issued by the Institute of CharteredAccountants of India.

For B. CHHAWCHARIA & CO.

Chartered Accountants Firm Registration No: 305123E

Abhishek Gupta

Partner Membership No. 529082

Place: New Delhi

Date: 25th May 2018