To,
The Members of
FAIRDEAL FILAMENTS LIMITED,
Surat.
Report on the Financial Statements
We have audited the accompanying financial statements of Fairdeal Filaments Ltd., which
comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss
(including Other Comprehensive Income), the Cash Flow Statement and the Statement of
Changes in Equity for the year then ended, and a summary of significant accounting
policies and other explanatory information for the year then ended.
Managements Responsibility for the Ind AS Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these Ind AS financial statements that give a true and fair view of the financial
position, financial performance including other comprehensive income, cash flows and
changes in equity of the Company in accordance with the accounting principles generally
accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under
section 133 of the Act read with relevant rules thereunder. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding the assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the Ind AS financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based
on our audit. We have taken into account the provisions of the Act, the accounting and
auditing standards and matters which are required to be included in the audit report under
the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the Ind AS financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
Ind AS financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant to the Companys
preparation of the Ind AS financial statements that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on whether the Company has in place an adequate internal
financial control system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by the Companys Directors,
as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the Ind AS financial statements give the information required by the Act in
the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India of the state of affairs of the Company as at 31st
March, 2018, and its profit, total comprehensive income, its cash flows and the changes in
equity for the year then ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the Annexure a statement on the matters specified in
paragraphs 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 explanations which to the best
of 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 the
Company so far as it appears from our examination of those books.
c. The Balance Sheet, Statement of Profit and Loss including Other Comprehensive
Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this
Report are in agreement with the books of account.
d. In our opinion, the aforesaid Ind AS financial statements comply with the Indian
Accounting Standards specified under Section 133 of the Act, read with relevant rules
issued thereunder.
e. On the basis of written representations received from the directors as on March 31,
2018, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2018, from being appointed as a director in terms of Section 164 (2) of
the Act.
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure A".
g. With respect to the other matters to be included in the Auditors 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 the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial
position.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
For, RANGOONWALA ASSOCIATES
Chartered Accountants
FRN : 108632W
Sd/-
Gajendra T. Rangoonwala
(Proprietor)
Membership No. 035377
Place : Surat
Date : 28th May, 2018
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to Paragraph 1 under the heading "Report on Other Legal and
Regulatory Requirements" of our
Independent Auditors Report of even date,
(i) (a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) We are informed that all the fixed assets have been physically verified by the
management at reasonable intervals and no material discrepancies were noticed on such
physical verification.
(c) The title deeds of immovable properties other than self-constructed immovable
property (buildings), as disclosed in fixed assets to the financial statements, are
held in the name of the company.
(ii) As explained to us, the physical verification of inventories has been
conducted at reasonable intervals by the management.
No discrepancies were noticed on physical verification.
(iii) The Company has not granted any loan, secured or unsecured, to companies,
firms or other parties listed in the Register maintained under Section 189 of the
Companies Act, 2013 and therefore paragraph 3 (iii) of the order is not applicable.
(iv) In our opinion and according to the information and explanations given to us,
the company has not advanced any loan or given any guarantee or provided any security or
made any investment covered under section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanations given to us,
the company has not accepted any deposits from public within the meaning of Sections 73 to
76 or any other relevant provisions of the Companies Act, 2013 and the rules framed
thereunder. No order has been passed by Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any court or any other Tribunal.
(vi) We have broadly reviewed the books of account and records maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of Cost Records under Section 148(1) of the Companies Act, 2013, and are of
the opinion that prima facie the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the records with a
view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and the records
examined by us, the Company has generally been regular in depositing with appropriate
authorities, undisputed statutory dues including provident fund, employees state
insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise,
value-added tax, cess and any other statutory dues, wherever applicable. According to the
information and explanations given to us, no undisputed amounts payable in respect of
outstanding statutory dues were in arrears as at March 31st, 2018 for a period of more
than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of
Income Tax or Sales Tax or Wealth Tax or Service Tax or duty of Customs or duty of excise
or value added tax or cess wherever applicable on account of any dispute.
(viii) On the basis of the records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of dues to banks,
financial institutions or Government. The Company has not issued debentures during the
year.
(ix) To the best of our knowledge and belief and according to the information and
explanations given to us, the Company has not raised moneys by way of initial public offer
or further public offer. The term loans/working capital loans obtained during the year
have been applied for the purpose for which they were raised.
(x) To the best of our knowledge and belief and according to the information and
explanations given to us, no fraud by the company or on the Company by its officers or
employees has been noticed or reported during the year.
(xi) To the best of our knowledge and belief and according to the information and
explanations given to us, managerial remuneration has been paid or provided in accordance
with the requisite approvals mandated by the provisions of section 197 read with Schedule
V to the Companies Act.
(xii) The Company is not a Nidhi Company. Consequently, requirements of clause
(xii) of paragraph 3 of the order are not applicable.
(xiii) To the best of our knowledge and belief and according to the information and
explanations given to us, all transactions with the related parties are in compliance with
section177 and 188 of Companies Act, 2013 where applicable and the details have been
disclosed in the Financial Statements etc., as required by the applicable Accounting
Standards.
(xiv) To the best of our knowledge and belief and according to the information and
explanations given to us, the company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during the year under
review. Consequently, requirements of clause (xiv) of paragraph 3 of the order are not
applicable.
(xv) To the best of our knowledge and belief and according to the information and
explanations given to us, the company has not entered into any non-cash transactions with
directors or persons connected with him.
(xvi) According to the nature of business, the company is not required to be
registered under section 45-IA of the Reserve Bank of India Act, 1934.
For, RANGOONWALA ASSOCIATES
Chartered Accountants
FRN : 108632W
Sd/-
Gajendra T. Rangoonwala
(Proprietor)
Membership No. 035377
Place : Surat
Date : 28th May, 2018
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS
OF FAIRDEAL FILAMENTS LIMITED.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Fairdeal
Filaments Limited ("the Company") as of March 31, 2018 in conjunction with our
audit of the Ind AS financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on "the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India". These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys 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 financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2018, based on
"the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India".
For, RANGOONWALA ASSOCIATES
Chartered Accountants
FRN : 108632W
Sd/-
Gajendra T. Rangoonwala
(Proprietor)
Membership No. 035377
Place : Surat
Date : 28th May, 2018
+91-9892691696
