To,
The Members of
Momai Apparels Limited
We have audited the accompanying financial statements of M/s Momai Apparels Limited,
which comprise the Balance Sheet as at March 31, 2016, Statement of Profit and Loss, Cash
Flow Statement for the year then ended, and a 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 section
134(5) of the 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 (Accounts) Rules, 2014. 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 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
the disclosures in the financial statements. The procedures selected depend on the
auditor’s 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 Company’s
preparation of the 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
controls system over financial reporting and the operating effectiveness of such controls.
An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Company’s 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.
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, of the state of affairs of the Company as at March
31, 2016, its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
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 of the Act, we give in the "Annexure A" a statement on the matters
specified in paragraphs 3 and 4 of the said Order.
1. As required by section 143(3) of the Act, we report that:
a) We have sought & 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 March 31,
2016, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 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".
g) With respect to the other matters to be included in the Auditor’s 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 does not have any long term contracts including derivative contracts
for which there were any material foreseeable losses; and
(iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
For Bagaria & Co. LLP
Chartered Accountants
Firm Registration No – 113447W/W-100019
sd/-
Vinay Somani
Partner
Membership No.: 143503
Mumbai, May 28th, 2016
"Annexure A" to the Independent Auditors Report - 31.03.2016
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that:
1. (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management at
reasonable intervals; no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the Company.
2. According to the information & explanations given to us, the inventories have
been physically verified by the management during the year and no material discrepancies
were observed.
3. According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company has not granted any loans, secured or
unsecured, to companies, firms or other parties listed in the register maintained under
Section 189 of the Companies Act. Consequently, the provisions of clauses 3(iii) (a) ,
3(iii) (b) and 3(iii) (c) of the order are not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013
in respect of loans, investments, guarantees, and security.
5. According to the information and explanations given to us, the Company has not
accepted any deposits from the public. Therefore, the provisions of sections 73 to 76 or
any other relevant provisions of the Companies Act and the rules framed there under are
not applicable to the Company.
6. As informed to us, the Central Government has not prescribed maintenance of cost
records under section 148(1) of the Companies Act, 2013 for the services provided by the
Company.
7. (a) According to the information and explanations given to us and on the basis of
our examination of the books of account, and records, the Company has generally been
regular in depositing undisputed statutory dues including Provident Fund, Employees’
State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, duty of customs, duty of
excise, value added tax, cess to the extent applicable and any other statutory dues with
the appropriate authorities. According to the information and explanations given to us, no
undisputed amounts payable in respect of the above were outstanding as at March 31, 2016
for a period of more than six months from the date they became payable.
| Name of the Statute |
Income Tax Act, 1961 |
| Nature of Dues |
TDS |
| Amount (Rs.) |
2,55,592 |
| Period to which amount relates |
April 2015 to August 2015 |
| Due Date |
7th of subsequent months |
| Date of Payment |
30th April, 2016 |
(b) According to the information and explanations given to us, there are no dues of
income tax, wealth tax, service tax, sales tax, duty of customs, duty of excise, value
added tax, cess which have not been deposited on account of any dispute.
8. In our opinion and according to the information and explanations given to us, the
Company has not defaulted in the repayment of dues to banks and financial institutions.
The Company has not issued any debentures.
9. The Company has not raised any moneys by way of initial public offer during the
year. Based on our audit procedures and the information & explanations given by the
management, we report that the Company has applied the moneys raised from term loans for
the purpose for which they were raised.
10. Based upon the audit procedures performed and the information and explanations
given by the Management, we report that no fraud by the Company or on the Company by its
officers or employees has been noticed or reported during the year.
11. The Company has paid / provided the managerial remuneration in accordance with the
requisite approvals mandated by the provisions of section 197 read with Schedule V to the
Companies Act.
12.In our opinion, the company is not Nidhi Company. Therefore the provisions of clause
4 (xii) of the order are not applicable to the company.
13. Based on the audit procedures performed and the information and explanations given
to us all transactions with the related parties are in compliance with section 177 and 188
of the Companies Act, 2013 and the details have been disclosed in the Financial Statements
as required by the applicable accounting standards.
14. Based upon the audit procedures performed and the information and explanations
given by the management, the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during the year under
review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to
the Company and hence not commented upon.
15. Based upon the audit procedures performed and the information and explanations
given by the management, the company has not entered into any non-cash transactions with
directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of
the Order are not applicable to the Company and hence not commented upon.
16. In our opinion, the Company is not required to be registered under section 45IA of
the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of
the Order are not applicable to the Company and hence not commented upon.
For Bagaria & Co. LLP
Chartered Accountants
Firm Registration No – 113447W/W-100019
sd/-
Vinay Somani
Partner
M.No.143503
Mumbai, May 28th, 2016
"Annexure B" to the Independent Auditor’s Report – 31.03.2016
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 M/s. Momai
Apparels Limited ("the Company") as of March 31, 2016 in conjunction with our
audit of the financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s 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 company’s 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 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 auditor’s 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 Company’s 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, 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 Bagaria & Co. LLP
Chartered Accountants
Firm Registration No – 113447W/W-100019
sd/-
Vinay Somani
Partner
M.No.143503
Mumbai, May 28th, 2016
+91-9892691696
