To
The Members
GOLDWON TEXTILES LIMITED Report on the financial statements
We have audited the accompanying financial statements of GOLDWON TEXTILES LIMITEDwhich
comprises the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss and
Cash Flow Statement for the year ended on 31st March 2018, and a summary of significant
accounting policies and other explanatory information.
Managements responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters in section 134(5) of
the Companies Act, 2013 with respect to the preparation of these financial statements that
give a true and fair view of the financial position, financial performance and cash flows
of the Company in accordance with the accounting principles generally accepted in India,
including the Accounting Standards specified under Section 133 of the Act, read with Rule
7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the
maintenance of adequate accounting records in accordance with the provision of the Act for
safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, that were operating effectively for ensuring
the accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the 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 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 thereunder. 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 financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the 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 financial statements that give true and
fair view in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by Companys Directors, as well as
evaluating the overall presentation of the 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 financial statements.
Basis for Qualified Opinion
The Company has not complied with Ind AS, as notified by MCA in Rule 3&4 of The
Companies (Indian Accounting Standards) Rules, 2015.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations
given to us, except for the possible effects of the matters described in the Basis for
Qualified Opinion paragraph above, the aforesaid 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 loss, its cash flows and the changes in equity for
the year ended on that date.
Emphasis of Matter
Since there are no operations during the current year the going concern assumption is
being affected. Our opinion is not qualified in this matter.
Report on Other Legal and Regulatory Requirements
1. 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 appears from our examination of those books
c) the Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt
with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on 31
March2018, taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March2018, 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". Our report expresses an Qualified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
g) With respect to the other matters included in the Auditors Report and to our 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. There is no such amount required to be transferred, to the Investor Education and
Protection Fund by the Company.
iii. There is no requirement for any provision as required by any act or Accounting
standards for material foreseeable losses, if any on long term contracts including
derivative contacts.
2. As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the
Order.
For LAKSHMI AND ASSOCIATES
Chartered Accountants FRN:0012482S
Sd/-
MOHAN REDDY.T Partner
Membership No. 239635
Place : Hyderabad
Date: 24-08-2018.
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1(f) under Report on Other Legal and Regulatory
Requirements section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting 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 Goldwon
Textiles Limited ("the Company") as of March 31, 2018 in conjunction with our
audit of the standalone 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 of the Company 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") issued by the Institute of Chartered
Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial controls.
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 a 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 Judgement, including the assessment of the risks of material misstatement of the
standalone 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 a 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.
In our opinion, to the best of our information and according to the explanations given
to us, the Company doesnt have any internal financial controls system over financial
reporting.
For LAKSHMI AND ASSOCIATES
Chartered Accountants FRN:0012482S
Sd/-
MOHAN REDDY.T
Partner
Membership No. 239635
Place : Hyderabad Date: 24-08-2018.
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
(Referred to In paragraph 2 under Report on Other Legal and Regulatory Requirements
section of our report of even date)
i. There are no fixed assets in the company.
ii. No inventory since the company has no operations.
iii. The Company has not granted any loans, secured or unsecured to companies, firms or
other parties covered in the register-maintained U/s.189 of the Companies Act, 2013.
iv. In our opinion and according to the information and explanations given to us,
company does not have any loans and investments.
v. The Company has not accepted any deposits from the public within the meaning of
Section 73 or any other relevant provision of the Companies Act 2013 and the rules framed
there under.
vi. We are informed that the central government has not prescribed the maintenance of
cost records under section 148(1) of the Act, for any of the services rendered by the
company. Hence clause (vi) of Companies (Auditors Report) Order, 2016 is not applicable
vii. a. There are no statutory dues pending during the year.
b. There are no dues in respect 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.
viii. The company doesnt have any barrowings from the banks or financial institutions,
and there are no debentures in the company.
ix. The company has not given any guarantee for loans taken by others from bank or
financial institutions, the terms and conditions whereof are prejudicial to the interest
of the company;
x. During the year, no material fraud by the company or on the company by its officers
or employees has been noticed.
xi. The Company has not paid Managerial remuneration, so clause xi of the Order is not
applicable.
xii. The Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is
not applicable for the company.
xiii. In our opinion and according to information and explanations given to us, all
transactions with the related parties are in compliance with Sections 177 and 188 of
Companies Act, 2013 and the details of such transactions have been disclosed in the
Financial statements of the company as required by applicable Accounting Standards.
xiv. During the year, the Company has not made any preferential allotment or private
placement of shares or fully or partly paid convertible debentures and hence reporting
under clause 3 (xiv) of the Order is not applicable to the Company.
xv. According to information and explanation given to us, the company has not entered
into non-cash transactions with directors or any persons connected with him. Thus,
paragraph 3(xv) of the Order is not applicable to the company.
xvi. The company is not required to be registered under section 45-IA of Reserve Bank
of India Act 1934.
| For LAKSHMI AND ASSOCIATES |
|
| Chartered Accountants |
|
| FRN:0012482S |
Place: Hyderabad |
|
Date: 24.08.2018 |
| Sd/- |
|
| MOHAN REDDY.T |
|
| Partner |
|
| Membership No. 239635 |
|
+91-9892691696
