Mar 31, 2017
We have audited the accompanying merged financial statements of ASHAPURA INTIMATES FASHION LIMITED (hereinafter referred to as âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information, in which have been incorporated in the financial information of erstwhile MOMAI APPARELS LIMITED, now a part of the Company (hereinafter referred to as âerstwhile Momaiâ or âamalgamating companyâ) for the year ended on that date, consequent to its amalgamation into the Company , with the appointed date of 1st April, 2016, audited by other auditors, referred in the âOther Matterâ section below.
Managementâs Responsibility for the Financial Statements
The Companyâs Management is responsible for the preparation of these financial statements that give a true and fair view of the Merged financial position, Merged financial performance and Merged cash flows of the Group in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these Merged 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. The 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 misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs preparation and fair presentation of the financial statements 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 management, as well as evaluating the overall presentation of the financial statements
We believe that the audit evidences we have obtained are 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 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 the Merged Balance Sheet, of the state of affairs of the Company as at March 31, 2017;
(b) In the case of the Merged Statement of Profit and Loss, of the profit of the Company for the year ended on that date; and
(c) In the case of the Merged Cash Flow Statement, of the cash flows of the Company for the year ended on that date.
Other Matter
The merged financial statements include the financial information of erstwhile Momai Apparels Limited consequent to its amalgamation into the Company, with the appointed date of 1st April 2016. We did not audit the financial information of erstwhile Momai Apparels Limited, included in the merged financial statements of the Company, for the year ended on that date, as considered in the standalone financial statements. This financial information of erstwhile Momai Apparels Limited has been audited by other auditors whose report has been furnished to us and our opinion, in so far as it relates to the amounts and disclosures included in respect of erstwhile Momai Apparels Limited and our report in terms of sub-sections (3) and (11) of Section 143 of the Act, insofar as it relates to erstwhile Momai Apparels Limited is based solely on the report of such other auditors.
Our opinion on the standalone financial statements, and our report on the Other Legal and Regulatory Requirements below, is not modified in respect of the above matter with respect to our reliance on the work done and the report of the other auditors.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central Government of India in terms of sub section (11) of section 143 of the Act, we give in the âAnnexure Aâ.
As required by section 143 (3) of the Act, we report to the extent possible 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 of the aforesaid Merged financial statements
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 and the reports of the other auditors
c) The Merged Balance Sheet, the Merged Statement of Profit and Loss and the Merged Cash Flow Statement dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of the Merged financial statements
d) In our opinion, the aforesaid Merged financial statements comply with the Accounting Standards specified under section 133 of the Act
e) On the basis of written representations received from the directors of the Company as on March 31, 2017 taken on record by the Board of Directors of the company and the reports of the statutory auditors of its other/amalgamting company, none of the directors is disqualified as on March 31, 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 âAnnexure Bâ. which is based on the auditors reports of the amalgamated company and the amalgamating company.
g) With respect to the other matters to be included in the Auditorâs 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: the Company and its amalgamating company does not have any pending litigations which would impact its financial position.
As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government in terms of Section 143(11) of the Act, based on our comments and in terms of the comments in the report of the other auditors (amalgamating company auditors) in respect of the amalgamating Company referred in the âOther Matterâ section above, we give in the âAnnexure Aâ statement
1. (a) The Company has maintained proper records showing full , including quantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of the company.
2. (a) The management has conducted the physical verification of inventory at reasonable intervals.
b) The discrepancies noticed on physical verification of the inventory as compared to books records which has been properly dealt with in the books of account were not material.
3. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act.
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. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76. or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies ( Cost Records and Audit) Rules, 2014 as amended and prescribed by the Central Government under subsection (1) of Section 148 of the Companies Act, 2013 and are of the opinion that prima fade the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess 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 in arrears as at March 31, 2017 for a period of more than six months from the date on when they become payable.
(b) According to the information and explanation given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax outstanding on account of any dispute, except given below:
Rs. in Lakhs
Name |
Nature of |
Amount |
Period |
Forum where |
of the |
Dues |
Covered |
dispute is |
|
Statute |
pending |
|||
Income |
Tax |
Rs. |
FY 2012- |
The |
Tax Act, |
Deducted |
11.12 |
13 |
Commissioner |
1961 |
at Source |
AY 201314 |
of Income Tax (TDS) |
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.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments).
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. Based upon the audit procedures performed and the information and explanations given by the management, 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. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13. In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. According to the information and explanations give to us and based on our examination 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.
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 45 IA 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 JDNG & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 104315W
Place: MUMBAI CA JAYESH S. RAWAL
Date : 29th May, 2017 PARTNER
Membership No: 104738
Mar 31, 2015
We have audited the accompanying financial statements of MIS. ASHAPURA
INTIMATES FASHION LIMITED (formerly known as ASHAPURA APPARELS PRIVATE
LIMITED) as on 31st March, 2015 (the Company), which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss
and 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
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 principles generally accepted in India including
Accounting Standards referred to in Section 133 of the Companies Act,
2013 (the Act). 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 control relevant to the Company's preparation and
fair presentation of the financial statements 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 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 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 the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(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.
d. In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement dealt with by this report comply with
the Accounting Standards referred to in section 133 of the Act;
On the basis of the written representations received from the directors
as on March 31, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(1) & 164(2) of the Act.
according to the information and explanation given to us, we give in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the Order.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of Section 143(3) of the
Act, and on the basis of such checks of the books and records of the
company as we considered appropriate and
2. As required by Section 143(3) of the Act, we report that:
a. We have 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
Annexure To The Independent Auditors' Report
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date
1. a) The company is maintaining proper records showing full
particulars, including Quantitative details and situation of fixed
assets.
b) The fixed assets are physically verified by the management at
reasonable intervals; no material discrepancies were noticed on such
verification.
2. a) The inventories have been physically verified by the management
during the Year at reasonable intervals, except materials lying with
third parties, where Confirmations are obtained.
b) The procedure of physical verification of the inventories followed
by the Management are reasonable and adequate in the relation to the
size of the Company and nature of its business;
c) The Company has maintained proper records of inventories and
discrepancies Noticed on physical verification of inventories as
compared to books records were not material.
3. The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act.
4. In our opinion, and according to the Information and Explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the company, we have neither come across, nor have been
informed of, any continuing failure to correct major weakness in the
aforesaid internal control system.
5. The company has not accepted deposits, in respect of 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 and the
rules framed there under is not applicable.
6. We have broadly reviewed the books of accounts maintained by the
company in respect of products where, pursuant to the rules made by the
central government of India, the Maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of section 209 of the
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We have not, however made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
7. According to the information and explanation given to us and the
records of the company examined by us, in our opinion, the company is
regular in depositing undisputed statutory dues including provident
fund, employees' state insurance, income-tax, sales-tax, wealth tax,
duty of customs, duty of excise, value added tax, cess and any other
statutory dues with the appropriate authorities except the following:
Name of the Statue
Nature of Dues Nature of Dues Amount (Rs.)
Service tax under, Service tax 2,59,704
Finance Act, 1994 1,99,460
4,59,164
Name of the Statue Period to which Reason for non payment of dues
the amount relates
Sercive tax under 2013 - 2014 The Company has applied for the
Service tax number to the
Finance Act 2014 - 2015 Service tax authorities but
the same is pending to be
allotted and hence the same
is unpaid and will be paid
on receipt ofthe said
registration.
b) According to the information and explanation given to us, there is
no Disputed Income tax, Sales tax, Wealth tax, Service tax, Customs
Duty and Excise Duty.
8. The company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the financial year
ended on that date or in the immediately preceding financial year;
9. According to the records of the company examined by us and the
Information and explanation given to us, the company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date.
10. According to the Information and explanation given to us, The
company has given guarantee for loans taken by others from bank or
financial institutions, the terms and conditions whereof are not
prejudicial to the interest of the company.
11. According to the Information and explanation given to us and the
records of the company examined by us, the term loans taken by the
company were applied for the purpose for which the loans were obtained;
12. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the Information and
explanation given to us, we have neither come across any instance of
material fraud on or by the company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For JDNG & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 104315W
Sd/-
CA JAYESH S.RAWAL
PARTNER
Membership No: 104738
Place : MUMBAI
Date : 12th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of M/S. ASHAPURA
INTIMATES FASHION LIMITED (formerly known as ASHAPURA APPARELS PRIVATE
LIMITED) as on 31st March, 2014 (the Company), which comprise the
Balance Sheet as at March 31, 2013, the Statement of Profit and Loss
and 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
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 principles generally accepted in India including
Accounting Standards referred to in Section 133 of the Companies Act,
2013 (the Act). 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 control relevant to the Company''s preparation and
fair presentation of the financial statements 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 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 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 the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(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 Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. We have 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, 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 Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in section 133 of the Act;
e. On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date
1. In respect of its fixed assets:
(a) The Company had maintained proper records showing full particulars
including quantitative details and situation of fixed assets;
(b) As explained to us, the assets have been physically verified by the
management in accordance with a phased programme of verification,
considering the size and the nature of its business. The frequency of
verification is reasonable and no material discrepancies have been
noticed on such physical verification.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
(a) The inventories have been physically verified by the management
during the year at reasonable intervals, except materials lying with
third parties, where confirmations are obtained.
(b) The procedure of physical verification of the inventories followed
by the management is reasonable and adequate in the relation to the
size of the Company and nature of its business;
(c) The Company has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to books records were not material.
3. In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
(a) The Company has not given any loans to its subsidiaries.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the Company, are not prima facie prejudicial to the
interest of the Company.
(c) In respect of loans taken by the Company, payments of principal
amount and interest are regular as per terms
(d) There is no stipulation for repayments so the there is no overdue
amount hence, the steps for recovery of principal and interest does not
arise.
(e) The Company has taken loan from parties covered in the Register,
maintained under Section 301 of the Companies Act, 1956 the maximum
outstanding being Rs.2,14,60,598/- during the year 2013-2014, and the
outstanding balance as on 31/03/2014 being NIL .
4. In our opinion, and according to explanation given to us, there are
adequate internal control systems commensurate with the size of the
Company and the nature of its business, for the purchase of
inventories, fixed assets and for the sale of goods. There is no
continuing failure to correct the major weakness in the internal
control system.
5. In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered;
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts /
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5,00,000 in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the Company.
6. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. The company does not have a formal Internal Audit department as
such, however the control procedures enables reasonable internal
checking of its financial and other records which is commensurate with
the size of the business.
8. We have been informed that Central Government has not prescribed
maintenance of Cost records under Section 209(1) (d) of the Companies
Act, 1956.
9. In respect of statutory dues
(a) According to the record of the Company, the Company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Funds, Employees State Insurance, Income Tax,
Sales Tax, Wealth- Tax, Service Tax, Customs Duty, Excise Duty, Cess
and other statutory dues with appropriates authorities. According to
the information and explanation given to us, there are no undisputed
amounts payable in respect of such statutory dues which have remained
outstanding as at 31st.March, 2014 for the period more than six month
from the date they became payable.
(b) Accordingly information given to us, there is no Disputed Income
tax, Sales tax, Wealth tax, Service tax, Customs Duty and Excise Duty.
10. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
11. Based on our audit procedure and according to the information and
the explanation given by the management, we are of the opinion that the
Company has not defaulted in repayment of its dues to financial
institution and banks.
12. Based on examination of records and the information and the
explanation given by the management the Company has not granted any
loans or advance on the basis of security by way of pledge of shares,
debenture or other securities.
13. In our opinion, the Company is not a chit fund / nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. The Company is not dealing or trading in shares, securities,
debenture or other investments. The company has maintained proper
records of the transactions and timely entries made therein. The
shares, securities and other investments are held in the name of
company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. According to the information and explanations given to us, the
Company has raised new Term Loans during the year. The term loans
outstanding at the beginning of the year and those raised during the
year have been applied for the purposes for which they were raised.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that there are no funds raised on short-term basis that have
been used for long-term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of share to parties and
companies covered in the register maintained under Section 189 of the
year.
19. According to the information and explanations given to us, during
the period covered by our audit report, no debentures have been issued.
20. The Company has initiated an IPO issue from March 28, 2013 to April
4, 2013 on the Small & Medium Enterprises platform of the Bombay Stock
Exchange.
21. In our opinion and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For JDNG & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 104315W
CA JAYESH S.RAWAL
PARTNER
Membership No: 104738
PLACE: MUMBAI
DATE: 12th May, 2014
Mar 31, 2013
We have audited the accompanying financial statements of M/S. ASHAPURA
INTIMATES FASHION LIMITED (formerly known as ASHAPURA APPARELS PRIVATE
LIMITED) as on 31st March, 2013 (the Company), which comprise the
Balance Sheet as at March 31, 2013, the Statement of Profit and Loss
and 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
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 principles generally accepted in India including
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956 (the Act). 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 control relevant to the Company''s
preparation and fair presentation of the financial statements 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 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 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 the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(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 Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 ol''the Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report arc in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in section 211(3C) of the Act; .
e. On the basis of the written representations received from the
directors as on March 31, 2013, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2013,
from being appointed as a director in terms of Section 274(1 )(g) of
the Act.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
Referred to in Paragraph 1 under the heading of "Report on other
Legal and Regulatory Requirements" of our report of even date
1. In respect of its fixed assets:
(a) The Company had maintained proper records showing full particulars
including quantitative details and situation of fixed assets;
(b) As explained to us, the assets have been physically verified by the
management in accordance with a phased programme of verification,
considering the size and the nature of its business. The frequency of
verification is reasonable and no material discrepancies have been
noticed on such physical verification.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
(a) The inventories have been physically verified by the management
during the year at reasonable intervals, except materials lying with
third parties, where confirmations are obtained.
(b) The procedure of physical verification of the inventories followed
by the management is reasonable and adequate in the relation to the
size of the Company and nature of its business;
(c) The Company has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to books records were not material.
3. In respect of ihe loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
(a) The Company has not given any loans to its subsidiaries.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the Company, are not prima facie prejudicial to the
interest of the Company.
(c) In respect of loans taken by the Company, payments of principal
amount and interest are regular as per terms
(d) There is no stipulation for repayments so the there is no overdue
amount hence, the steps for recovery of principal and interest does not
arise.
(e) The Company has taken loan from parties covered in the Register,
maintained under Section 301 of the Companies Act, 1956, the maximum
outstanding being Rs. 43,319,346/- during the year 2012-2013, and the
outstanding balance as on 31/03/2013 being Rs. 2,14,60,598/-.
4. In our opinion, and according to explanation given to us, there are
adequate internal control systems commensurate with the size of the
Company and the nature of its business, for the purchase of
inventories, fixed assets and for the sale of goods. There is no
continuing failure to correct the major weakness in the internal
control system.
5. In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered;
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts /
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5,00,000 in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the Company.
6. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. The company does not have a formal Internal Audit department as
such, however the control procedures enables reasonable internal
checking of its financial and other records which is commensurate with
the size of the business.
8. We have been informed that Central Government has not prescribed
maintenance of Cost records under Section 209(1) (d) of the Companies
Act, 1956.
9. In respect of statutory dues
(a) According to the record of the Company, the Company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Funds, Employees State Insurance, Income Tax,
Sales Tax, Wealth-Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other statutory dues with appropriates authorities. According to the
information and explanation given to us, there are no undisputed
amounts payable in respect of such statutory dues which have remained
outstanding as at 31st.March, 2013 for the period more than six month
from the date they became payable.
(b) Accordingly information given to us, there is no Disputed Income
tax, Sales tax, Wealth tax, Service tax, Customs Duty and Excise Duty.
10. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
11. Based on our audit procedure and according to the information and
the explanation given by the management, we are of the opinion that the
Company has not defaulted in repayment of its dues to financial
institution and banks.
12. Based on examination of records and the information and the
explanation given by the management the Company has not granted any
loans or advance on the basis of security by way of pledge of shares,
debenture or other securities.
13. In our opinion, the Company is not a chit fund / nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. The Company is not dealing or trading in shares, securities,
debenture or other investments. The company has maintained proper
records of the transactions and timely entries made therein. The
shares, securities and other investments are held in the name of
company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. According to the information and explanations given to us, the
Company has raised new Term I.oans during the year. The term loans
outstanding at the beginning of the year and those raised during the
year have been applied for the purposes for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of share to parties and
companies covered in the register maintained under Section 301 of the
year.
19. According to the information and explanations given to us, during
the period covered by our audit report, no debentures have been issued.
20. The Company has initiated an IPO issue from March 28, 2013 to
April 4, 2013 on the Small & Medium enterprises platform of the Bombay
Stock Exchange.
21. In our opinion and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For JDNG & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 104315W
CA JAYESOH S.RAWAL
PARTNER
Membership No: 104738
PLACE: MUMBAI
DATE: 18 June, 2013
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