Mar 31, 2014
We have audited the accompanying financial statements of NYLOFILS INDIA LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and 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 Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 15th September 2013 of the Ministry of Corporate Affairs in respect of section 133 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.
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 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 but not for the purpose of expressing an opinion on the effectiveness of the company''s 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.
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, 2014;
b) in the case of the Profit and Loss Statement, of the loss 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 sub- section (4A) of section 227 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 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, 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 referred to in subsection (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.
e) on the basis of written representations received from the Directors as on March 31, 2014, and 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 clause (g) of sub-section (1) of section 274 of the Companies Act,1956.
f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.
As required by the Companies'' (Auditor''s Report) Order, 2003 and according to the information and explanations given to us during the course of the audit and on the basis of such checks as were considered appropriate we report that:
1. a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) The fixed assets have been physically verified by the management during the year. We are informed that no material discrepancies were noticed by the management upon such verification
The Company has sold substantial part of its Factory Building and Machinery in the Financial Year 2003-04, with
c) an intention to discontinue its Manufacturing Activity. It is stated by the Management that the trading activity will be continued.
2. The Company does not hold any inventories. Hence, the Clause (ii) of the order is not applicable.
3. a) The Company has taken loans from 1 party being companies, firms or other parties covered in the Register, maintained under Section 301 of the Companies Act, 1956. The balance outstanding during the year being 2.25 lakhs. The company has not granted any loans to companies, firms or other parties covered in the register, maintained under Section 301 of the Companies Act, 1956.
b) The rate of interest and other terms and conditions of loans taken/given by the company are prima facie not prejudicial to the interest of the company.
c) The payment of principal amount and interest, if applicable are also regular.
d) There are no overdue amounts of more than one lakh.
4 There are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets and sale of goods. In our opinion, there is no continuing failure to correct major weaknesses in internal control.
5 a) The Company has not entered into any transactions with any party, that needs to be entered in the register maintained under Section 301 of the Companies Act, 1956. We are informed that the said registers are appropriately maintained.
6 The company had not accepted any deposits from public within the meaning of Section 58A and Section 58AA of the Companies Act 1956
7 Neither the company''s paid-up capital and Free Reserves nor does its turnover warrant any internal audit system.
8 The company is not required to maintain cost records as prescribed in Sec 209(1)(d) of the companies act,1956
9 a) According to the information and explanations given to us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees'' state insurance, income-tax, sale tax, wealth tax, customs duty, excise duty, cess and other material statutory dues applicable to it.
b) According to the information and explanations given to us, no undisputed amounts payable in respect of income- tax, wealth-tax, sales-tax, customs duty, excise duty and cess are in arrears as at 31st March, 2014 for a period of more than six months from the date they became payable.
10 The Company has accumulated losses amounting to Rs.5,28,11,181.66 as at the end of the Financial Year which is more than its net worth and has incurred cash losses in the current financial year and in the immediately preceding financial year.
11 The company has not defaulted in repayment of its dues to banks and financial institutions. The Company has not issued any debentures.
12 The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities.
The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund / Societies are not
13 applicable to the Company.
14 The Company is not dealing or trading in shares, securities and debentures.
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 The Company has not taken any term loan during the year.
17 The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956 during the year.
18 The funds raised on short-term basis have not been used for long-term investment and vice-versa.
19 As the Company had not issued any debentures the issue of creation of securities does not arise.
20 The Company has not raised any money by way of public issues during the year.
21 On the basis of our examination 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.
For R A O & K U M A R, Chartered Accountants, FRN 03089S
(CA Anirban Pal) Partner. M.No. 214919 Place : Visakhapatnam Date: 26.05.2014
Mar 31, 2012