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, 2015, the Profit & Loss Statement, Cash Flow Statement for the
year 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 are responsible for the matters stated
in section 134(5) of the Company''s Act, 2013 (The Act) with respect
to the preparation and presentation of these financial statements that
give a true and fair view of 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.
Auditor''s 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
there under.
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 the 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 disclosures in the financial statements. The procedures
selected depend upon the auditor''s judgments, including the assessment
of the risks of material misstatements 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 and adequate internal financial
controls system over financial reporting and the operating the
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
statement.
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:
(i) In the case of Balance Sheet, of state of affairs of the Company as
at 31st March, 2015.
(ii) In the case of Profit & Loss Account, of the profit for the year
ended on that date; and
(iii) In the case of Cash Flow Statement, of Cash Flows for the year
ended on that date.
Report on Other Legal and Regulatory Matters
1. As required by the Companies (Auditor''s Report) Order, 2015 (the
order) issued by Central Government of India in terms of sub-section
(11) of section 143 of the Act, we give in the Annexure, a statement on
the matters specified in the paragraph 3 and 4 of the Order, to the
extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which, to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) In our opinion proper books of accounts 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 Profit & Loss Statement and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
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 31 March, 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March, 2015 from being
appointed as a director in terms of Section 164(2) of the Act ; and
f) 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 did not have any long term contracts including
derivative contracts; as such question of commenting on any material
foreseeable losses thereon does not arise.
iii) There are no amounts, which are required to be transferred, to the
Investor Education and Protection Fund by the Company.
Annexure to Auditor''s Report
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 on the
basis of available information.
(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.
2. In respect of its Inventories:
(a) As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of Loans:
(a) As per the information furnished, the company has not granted any
loans, secured or unsecured, to the company, firms or other parties
covered in the register maintained under section 189 of the Companies
Act, 2013. Therefore, the provisions of clause 3(iii)(a) to 3(iii)(b)
of the Companies (Auditor''s Report) Order, 2015 are not applicable to
the company.
4. In our opinion and according to the information and explanations
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 inventory, fixed assets and also for the sale of goods.
During the course of audit, we have not observed any major weaknesses
in internal controls.
5. The company has not accepted any deposits from the public within
the meaning of Sections 73 to 76 of the Companies Act, 2013 and the
rules made there under.
6. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 148 (1) of the
Companies Act, 2013 and are of the opinion that prima facie the
prescribed cost records have been 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. In respect of Statutory Dues:
(a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education, and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other Statutory Dues have been
generally 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, 2015 for a period of more than six months
from the date of becoming payable.
(c) According to the information and explanations given to us and the
records of the company examined by us, there is no such amount which is
required to be transferred to Investor Education and Protection Fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and rules made there under.
8. The company has no accumulated business losses as on 31st March,
2015 and the company has not incurred any cash losses during the
financial year covered by our audit or in the immediately preceding
financial year.
9. Based on our audit procedure and according to the information and
explanation given to us, we are of the opinion that the company has not
defaulted in repayment of dues to financial institutions, banks or any
other organization.
10. The company has not given any guarantee for loan taken by others
from bank or financial institutions.
11. The Company has not taken any term loans during the year.
12. In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For Manish Jain & Associates.
Chartered Accountants
FCA Parveen Bansal
Partner
M.No. 097408
Firm Regd. No. 015680N
Panipat: April 30, 2015
