TO THE MEMBERS OF
M/S KNITWORTH EXPORTS LIMITED Report on the Financial Statements
We have audited the accompanying financial statements of M/S KNITWORTH EXPORTS LIMITED
("the Company"), which comprise the Balance Sheet as at 31st March
2016, the Statement of Profit and Loss and Cash Flow Statement for the year ended on that
date, 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 stated in Section
134(5) of Companies Act, 2013 (" the Act") 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 (AccourftA
T?ttloc OfYil Thic rocrrm6i1iKr alsn includes maintenance of adeauate
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 the financial statements that give a 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 the companys management, 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.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, 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,
(a) In the case of Balance Sheet of the state of affairs of the Company as at 31st
March 2016;
(b) In the case of Statement of Profit and Loss, of the loss of the Company for the
year ended on that date; and
(c) In the case of Cash Flow Statement, of the cash flows of the Company for the year
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 subsection (11) of the section 143 of the Act,
we give in the Annexure a statement on the matters specified in the 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, the Statement of Profit and Loss and the 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 31st
March 2016, and taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March 2016, 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 B"; and
(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 on financial
position in its financial statements;
ii. The Company did not have any long-term contracts including derivatives contracts
for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred by the Company to the
Investor Education and Protection Fund.
|
For J B S & Company |
|
Chartered Accountants |
|
FRN: 323734E |
|
|
|
(Gouranga Paul) |
| Place: Kolkata |
Partner |
| Date: 30/05/2016 |
Membership Number: 063711 |
Annexure A to the Independent Auditors Report (referred to in our report of even date)
The Annexure referred to in Independent Auditors report to the members of the company
on financial statements for the year ended 31st March, 2016, we report that.
(i) The company does not have any fixed assets and accordingly the provisions of clause
(i) are not applicable to the company.
(ii) The company does not .hold any physical inventories. Hence, clause (ii) is not
applicable to the company.
(iii) The Company has not granted any loan, secured or unsecured, to companies, firms
or other parties covered in the register maintained under Section 189 of the Companies
Act, 2013. Thus, clause (iii) is not applicable.
(iv) In our opinion and according to the information and explanation given to us, the
Company has neither granted any loan nor made any investment under section 185 and 186 of
Companies act, 2013. Thus clause (iv) is not applicable to the Company.
(v) The Company has not accepted any deposits from the public and consequently, the
directives issued by Reserve Bank of India and provisions of Section 73 to 76 of the
Companies Act, 2013 and the rules framed there under are not applicable.
(vi) The Central Government has not prescribed the maintenance of the Cost records
under section 148(1) of the Companies Act, 2013. Hence, clause (vi) is not applicable.
(vii) (a) According to the information and explanations given to us and on the basis of
our
examinations of the records of the company, amounts deducted/accrued in the books of
account in respect of undisputed statutory dues including Income Tax and other material
statutory dues have been regularly deposited during the year by the company with the
appropriate authorities.
According to the information and explanation given to us, no undisputed amounts payable
inrespect of income tax and other material statutory dues were in arrears as at 31 March
2016 for a period of more than six months from the date they became payables and on the
basis.
(b) According to the information and explanations given to us, there are no dues of
Income Tax and other material statutory dues which have not been deposited as on 31st
March, 2016 with the appropriate authorities on account of any dispute.
(viii) The Company does not have any loans or borrowings from any financial
institution, banks, government or debentureholders during the year . Hence, Para 3 clause
(viii) of the order is not applicable
(ix) In our opinion and according to the information and explanation • riven to
us, there were no moneys raised by way of initial public offer or further p u ->lic
offer or term loans by the company.
(x) According to the information and explanations given to us, no fraud on or by the
Company has been noticed or reported during the course of our audit.
(xi) According to the information and explanation provided to us, managerial
remuneration has been not been paid or provided during the year by the company.
(xii) According to the information and explanations provided to us, the company is not
a Nidhi Company as defined under section 406 of Companies Act, 2013.
(xiii) In our opinion and according to the information and explanations given to us,
there were no transactions with the related parties as given in Section 177 and 188 of
Companies Act, 2013 . Accordingly, no details were required to be disclosed in the
Financial Statements as per the applicable accounting standards.
(xiv) The company has not made any preferential allotment/private placement of shares
or fully or partly convertible debentures during the year under review.
(xv) According to the information and explanation provided to us, the company has not
entered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanation provided to us, the company is not
required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
|
For J B S & Company |
|
Chartered Accountants |
|
FRN: 323734E |
|
(Gouranga Paul) |
| Place: Kolkata |
Partner |
| Date: 30/05/2016 |
Membership Number: 063711 |
Annexure - B to the Auditors Report
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 KNITWORTH
EXPORTS LIMITED ("the Company") as of 31 March 2016 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 (TCAT). 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
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 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 judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropr jte 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 thecompany; (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 31 March 2016, 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 J B S & Company |
|
Chartered Accountants |
|
FRN: 323734E |
| Place: Kolkata |
(Gouranga Paul) |
| Date: 30/05/2016 |
Membership Number: 063711 |
+91-9892691696
