To,
The Members,
Rosekamal Textiles Limited
I have audited the accompanying standalone financial statements of ROSEKAMAL
TEXTILES LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year
ended, and a summary of the significant accounting policies and other explanatory
information.
Managements Responsibility for the Standalone 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 stand alone 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 133of 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 Ire 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 :
My responsibility is to express an opinion on these standalone financial statements
based on my audit. I have taken in to 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.
I conducted my audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that I 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
auditors judgment, including the assessment of the risks of material mis-statement 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, 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 the accounting policies used and the
reasonableness of the accounting estimates made by the Companys Directors, as Ill as
evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to
provide a basis for my audit opinion on the standalone financial statements.
Opinion :
In my opinion and to the best of my information and according to the explanations given
to me, the aforesaid standalone financial statements give the information required by the
Act in the manner so required and give a true and fair view inconformity with the
accounting principles generally accepted in India,
(i) in the case of the Balance sheet, of the state of affairs of the company as at
March 31, 2017;
(ii) in the case of the Statement of Profit and Loss, of the profit for the year ended
on that date; and
(iii) 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 Requirements :
1. 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, I give in the
Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, I report that:
a) I have sought and obtained all the information and explanations which to the best of
my Knowledge and belief were necessary for the purposes of my audit;
b) In my opinion, proper books of account as required by law have been kept by the
Company so far as it appears from my 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 my opinion, the afore said standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule7 of the
Companies (Accounts) Rules, 2014;
e) On the basis of the written representations received from the directors as on 31st
March, 2017 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2017 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 Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in my opinion
and to the best of my information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial
position in its standalone financial statements.
ii) The company did not have any long-term contracts including derivatives contracts as
at 31st March, 2017, hence the question of commenting on any material foreseeable losses
thereon does not arise.
iii) There has been no delay in transferring amounts as required to be transferred, to
the Investor Education and Protection Fund by the Company.
iv) The Company has provided requisite disclosures in its standalone financial
statements as to holdings as well as dealings in Specified Bank Notes during the period
from 08.11.2016 to 30.12.2016. Based on audit procedures an relying on the management
representation that the disclosures are in accordance with Books of accounts maintained by
the Company and as produced to me. (Refer note 10(11) of the standalone financial
statements)
|
For A. M. Modi & Associates |
|
FRN : 106476W |
|
Chartered Accountants |
|
(CA. Ashok M. Modi) |
|
Properietor |
| Surat, dated: May 29, 2017 |
Membership No. 034904 |
Annexure A referred to in Point 1 of Report on Other Legal and Regulatory Requirements
of my report of even date on the accounts of Rosekamal Textiles Limited for the year ended
31st March, 2017
i. The Company has no fixed assets, hence paragraphs (i)(a), (b) and (c) of the Order
are not applicable
ii. As per the information and explanations given to me, the inventories have been
physically verified by the management at reasonable intervals during the year and In my
opinion, no discrepancies noticed on physical verification of inventory.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms,
Limited Liability Partnership or other parties covered in the register maintained under
Section 189 of the Companies Act, 2013, Accordingly paragraphs (iii)(a) and (b) of the
Order are not applicable.
iv. In my opinion, and according to the information and explanations given to me, the
Company has neither granted any loans nor provided any guarantees or security to the party
covered under section 185 of the Act nor made any investment covered under section 186 of
the Act.
v. The Company has not accepted any deposits from public.
vi. The Central Government has not prescribed maintenance of cost records under section
148(1) of the Companies Act, 2013 for any of the products of the Company.
vii. a) According to information and explanations given to me, the Company is generally
been regular in depositing undisputed statutory dues as applicable with the appropriate
authorities during the year. b) According to information and explanation given to me,
there are no statutory dues as applicable which have not been deposited on account of any
dispute.
viii. The Company has not taken any loans or borrowings from any financial institutions
or banks or governments or debenture holders. Accordingly paragraph 3(viii) of the order
is not applicable.
ix. The Company did not raise any money by way of initial public offer or further
public offer (including debt instruments) and term loans during the year. Accordingly
paragraph 3(ix) of the order is not applicable.
x. According to information and explanations given to me, no fraud by the Company or
any fraud on the company by its officers or employees has been noticed or reported during
the year.
xi. According to information and explanations given to me and based on the examinations
of the records of the Company, No managerial remunerations has been paid or provided by
the Company during the year.
xii. In my opinion and according to information and explanations given to me, the
Company is not a nidhi company. Accordingly paragraph 3(xii) of the order is not
applicable.
xiii. According to information and explanations given to me and based on the
examinations of the records of the Company, transactions with the related party are in
compliance with section 177 and 188 of the Companies Act, 2013 and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
xiv. According to information and explanations given to me and based on the
examinations of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year.
xv. According to information and explanations given to me and based on the examinations
of the records of the Company, the Company has not entered into any non-cash transactions
with any directors or persons connected with him. Accordingly paragraph 3(xv) of the order
is not applicable.
xvi. In my opinion, the Company is not required to be registered under section 45-IA of
the Reserve Bank of India Act, 1934.
|
For A.M. Modi & Associates |
|
FRN : 106476W |
|
Chartered Accountants |
|
(CA. Ashok M. Modi) |
|
Proprietor |
| Surat, dated: May 29, 2017 |
Membership No. 034904 |
Annexure B to the Independent Auditors Report of even date on the Standalone Financial
Statements of Rosekamal Textiles Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
I have audited the internal financial controls over financial reporting of Rosekamal
Textiles Limited mited ("the Company") as of March 31, 2017 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 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 auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
I 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 authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised 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.
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, 2017, 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 A.M. Modi & Associates |
|
FRN : 106476W |
|
Chartered Accountants |
|
(CA. Ashok M. Modi) |
|
Proprietor |
| Surat, dated: May 29, 2017 |
Membership No. 034904 |
+91-9892691696
