To
The Shareholders Indo Cotspin Limited Panipat
Report on Financial Statements
We have audited the accompanying financial statements of Indo Cotspin Limited
("the company") which comprise of the Balance Sheet as at 31 March, 2023, the
Profit & Loss Statement, Cash Flow Statement for the year ended and a summary of
significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for 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 Standards notified under section 133 of the
Companies Act 2013 and the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS
Rules) and its amendments, of the Companies Act, 2013. This responsibility includes the
design, implementation and maintenance of internal control 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 conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. 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, on a test basis,
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 control relevant to the Companys
preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entitys internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by 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.
Opinion
in our opinion and to the best of our information and according to the explanations
given to us, the 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 the Balance Sheet, of the state of affairs of the Company as at
March 31, 2023
(b) in the case of the Statement of Profit and Loss, of the profit for the year ended
on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Matters
1. As required by the Companies (Auditors Report) Order, 2020 ("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" a statement on the
matters specified in paragraphs 3 and 4 of the Order
2. We have inquired into the matters specified under section 143(1) and based on the
information and explanations given to us, there is no matter to be reported under this
section.
3. 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 purpose 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, 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 Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement comply with the Accounting Standards notified under section 133 of the Companies
Act 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) In our opinion and based on the information and explanations given to us, there are
no financial transactions or matters which have any adverse effect on the functioning of
the company.
f) On the basis of written representations received from the directors as on March 31,
2023, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023, from being appointed as a director in terms of subsection (2) of
Section 164 of the Companies Act, 2013.
g) There is no qualification, reservation or adverse remark relating to the maintenance
of accounts and other matters connected therewith,
h) With regards to the adequacy and operating effectiveness of the internal financial
controls over financial reporting system in place and their operating effectiveness, a
report as "Annexure B" giving our responsibilities and opinion has been
annexed herewith.
i) Such other matters as are prescribed by the Companies (Audit and Auditors) Rules,
2014 namely:-
i) The company has disclosed the impact, if any, of pending litigations on its
financial position in its financial statements.
ii) The company has made provision, as required under any law or accounting standards,
for material foreseeable losses, if any, on long term contracts including derivative
contracts.
iii) There has been no any delay in transferring amounts, required to be transferred,
to the Investor Education and Protection Fund by the company.
UDIN : 23500485BGXSDE8978
For Dinesh Kumar Goel &Co.
Chartered Accountants
Manoj Digitally signed by Manoj Goel
: Date: 2023.05.19 (Goel53:40+05*30
FCA Manoj Kumar
Partner
M.No.500485
Firm Regd. No. 011027N
Panipat: 15.05.2023
"Annexure A" to Auditors Report
(Referred to in above the Auditors Report of even date for M/s Indo cotspin Limited on
the Financial Statements for the year ended 31st March 2022
1. a) The Company is maintaining proper records showing full particulars including
quantitative details and situation of fixed assets.
b) As explained to us, the fixed assets have been physically verified by the management
during the year, in a phased periodical manner, which in our opinion is reasonable, having
regard to the size of the company and nature of its fixed assets. No material
discrepancies were noticed on such physical verification.
c) According to the information and explanation given to us and on verification, the
title deeds of immovable properties are held in the name of the company.
2. in respect of its Inventories:
As per the information provided to us. Inventory has been physically verified by the
management during the year and no material discrepancies were noticed.
3. a) According to information and explanation given to us, the Company has not granted
any secured or unsecured loans to companies, firms, Limited Liability Partnerships or
other parties covered in the register maintained under Section 189 of the Act.
In view of the above, provisions of clause 3(iii) (b) and (c) are not applicable to the
company.
4. In our opinion and according to information and explanation given to us, the company
has, in respect of loans, investments, guarantees, and security provisions, complied with
section 185 and 186 of the Companies Act, 2013.
5. According to the information and explanation given to us, the company has not
accepted any deposits, whether the directives issued by the Reserve Bank of India, and the
provisions of sections 73 to 76 or any other relevant provisions of the Companies Act,
2013. Hence the provisions of clause 3(v) are not applicable to the company.
6. Pursuant to the rules made by the Central Government, the maintenance of Cost
Records have been prescribed u/s 148(1) of the Companies Act, 2013. We are of the view
that prima facie the prescribed accounts and records have been maintained. We have not,
however, made a detailed examination of the records with a view to determine whether they
are accurate or complete.
7. In respect of Statutory Dues:
a) According to the books and records as produced and examined by us in accordance with
generally accepted auditing practices in India and also management representations,
undisputed statutory dues in respect of Provident fund, employees state insurance, Income
Tax, Sales Tax, Service tax, Custom duty, Excise duty, Value added tax, Cess and other
statutory dues, if any, applicable to it, has been regularly deposited with the
appropriate authorities.
b) According to the information and explanations given to us, no disputed amounts
payable in respect of the aforesaid dues were outstanding as at 31st March,
2023 for a period of more than six months from the date of becoming payable.
8. In our opinion and according to the information and explanation given to us and the
books of accounts verified by us, the company has not defaulted in repayment of dues to a
financial institution, bank. Government or dues to debenture holders.
9. The Company has neither raised moneys by way of public issue/ follow-on offer
(including debt instruments) nor taken any term loans during the year. Accordingly, the
provisions of clause 3(ix) are not applicable to the Company.
10. During the course of our examination of the books of account carried in accordance
with the generally accepted auditing standards in India, we have neither come across any
instance of fraud on or by the Company, either noticed or reported during the year, nor
have we been informed of such case by the Management.
11. According to the information and explanation given to and the books of accounts
verified by us, the 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.
12. The Company is not a Nidhi Company, hence the provision of clause 3(xii) are not
applicable to the company.
13. According to the information and explanation given to us and the record produced
before us, all transactions with the related parties are in compliance with sections 177
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.
14. According to information and explanation given to us, the Company during the year,
has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures, hence the provision of clause 3(xiv) are not applicable to the
company.
15. According to the information and explanation given to us and the books of accounts
verified by us, the company has not entered into any non-cash transactions with directors
or persons connected with him.
16. The company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934.
17. The company has not incurred any cash losses during the current year as well as in
the immediately preceding financial year
18. There has been no resignation of the Statutory Auditors of the Company during the
year.
19. On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payments of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention which causes us to believe that any material uncertainty exists as the the
date of Audit Report indicating that company is not capable of meeting Its liabilities
existing at the balance sheet
date.
20. CSR is not applicable to the company. Accordingly the provisions of clause 3(xx) of
the Order are not applicable to the company.
For Dinesh Kumar Goel & Co.
Chartered Accountants
K/l^nni Digitally signed
Manoj by Manoj Goel
Date: 2023.05.19
Goel 15:54:46 +0530
FCA Manoj Kumar
Partner
M.No.500485
Firm Regd. No, 011027N
Panipat: 15.05.2023
"Annexure B" to Auditors Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013.
To
The Shareholders Indo Cotspin Limited Panipat
We have audited the internal financial controls over financial reporting of Indo
Cotspin Limited ("the Company") as of March 31, 2023 in conjunction with our
audit of the 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 financial reporting criteria established by the Company
considering the essential components of internal 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 materia! 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 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.
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, 2023, based on
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 Dinesh Kumar Goel & Co.
Chartered Accountants
Manoj Digitally signed by Manoj Goel
Date: 2023.05 19
15:55:11 +0530
FCA Manoj Kumar
Partner
M.No.500485
Firm Regd. No. 011027N
Panipat: 15.05.2023
Dinesh Kumar Goel & Co, Chartered Accountants
Room No7,Leela Chartbhuj Trust Building Geeta Mandir Road, Panipat-132103 Ph No. 0180 -
4068347
REPORT OF AUDITORS ON CORPORATE GOVERNANCE
To
The Shareholders Indo Cotspin Limited Panipat
We have examined the compliance of the conditions of Corporate Governance by Indo
Cotspin Limited for the year ended 31st March,2023, as stipulated in Regulation
15(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
The compliance of conditions of Corporate Governance is the responsibility of the
management. Our examination was limited to procedures and implementation thereof, adopted
by the Company for ensuring the compliance of the conditions of Corporate Governance. It
is neither an audit nor an expression of opinion on the financial statements of the
Company.
In our opinion and to the best of our information and explanations given to us, we
certify that the Company has complied with the conditions of Corporate Governance as
stipulated in the above mentioned Listing Regulations, as applicable
We further state that such compliance is neither an assurance as to the future
viability of the Company nor as to the efficiency or effectiveness with which the
management has conducted the affairs of the Company.
For Dinesh Kumar Goel & Co. Chartered Accountants
Manoj
Goel
Digitally signed by Manoj Goel Date: 2023.05.19 15:55:25+05 30
FCA Manoj Kumar
Partner
M.No.500485
Firm Regd. No. 011027N
Panipat: 15.05.2023
67
+91-9892691696
