Mar 31, 2015
1. We have audited the accompanying financial statements of Ashnoor
Textile Mills Limited("the Company"), which comprise the Balance Sheet
as at March 31, 2015, 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.
Management's Responsibility for the Financial Statements
2. 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.
Auditor's Responsibility
3. 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.
4. 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.
5. 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 the 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
6. 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, 2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, based on the comments in
the auditors' reports of the company incorporated in India, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
8. 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
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 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 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
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 has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
5.2 and Note 13.1 to the financial statements.
II. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
III. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITORS' REPORT
REFERRED TO IN PARAGRAPH 1 UNDER 'REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS' OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF ASHNOOR
TEXTILE MILLS LIMITED ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED
MARCH 31, 2015
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of the fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management during the year in accordance with the phased programme
of verification adopted by the management which, in our opinion,
provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
(ii) (a) As explained to us, the inventories of finished goods,
semi-finished goods, stores, spare parts and raw materials were
physically verified at the end of the year by the Management. In case of
inventories lying with third parties, certificates of stocks holding
have been received.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification of stocks as compared to book records.
(iii) According to the information and explanations given to us, the
Company has not granted any loans to companies, firms or other parties
covered in the Register maintained under Section 189 of the Companies
Act, 2013; and therefore paragraph 3(iii) of the Order is not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods. During the course of our Audit, we have not observed any
continuing failure to correct major weaknesses in internal control.
(v) The Company has not received any public deposits during the year.
(vi) As informed to us, the Central Government has not prescribed
maintenance of cost records under sub- section (1) of Section 148 of
the Act, in respect of the activities carried on by the Company.
(vii) In respect of statutory dues:
(a) According to the records of the Company and information and
explanations given to us, the Company has generally been regular in
depositing undisputed statutory dues, including Provident Fund,
Employees State Insurance (ESI), Investor Education and Protection
Fund, Income Tax, Tax Deducted at Sources, Tax Collected at Source,
Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it,
with the appropriate authorities.
Name of the Nature of Amount Period to Forum where
Statute the Dues which the dispute is
amount relates pending
Central Excise Excise Duty 50,000,000 Various years CESTAT
Act, 1944 from 1998-1999
(b) According to the information and explanation given to us, following
demand of Excise Duty of Rs. 5 Crores for various years is disputed.
Appeal has been filed against this demand in the Court and provision of
Rs. 1 Cores out of this liability has been created in the accounts.
(c) According to the information and explanations given to us, there
were no amounts which required to be transferred by the Company to the
Investor Education and Protection Fund.
(viii) The Company does not have the accumulated losses at the end of
financial year. The Company has not incurred any cash losses during the
financial covered by our Audit and the immediately preceding financial
year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
(x) In our opinion, and according to the information and the explanation
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
For KSA & Co.
Chartered Accountants
(Registration No. 003822C)
Sd/-
KAMAL PIYUSH
Partner
Membership Number: 083399
Place: New Delhi
Date: May 30, 2015
Mar 31, 2014
1. We have audited the accompanying financial statements of Ashnoor
Textile Mills 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 ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Company''s 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'' of India (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
3. 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 and other applicable authoritative
pronouncements 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.
4. An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' 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 auditors consider 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
5. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying 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 loss for
the year ended on that date;
(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
6. As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Repor (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
7. 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 dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Act;
(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 Act.
ANNEXTURE TO THE AUDITOR''S REPORT OF THE MEMBERS OF ASHNOOR TEXTILE
MILLS LIMITED ON ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2014
Referred to in paragraph 3 of our report of even date,
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) According to the information and explanation given, the company has
adopted a phased program of physical verification of fixed assets.
Under this program all the assets would be verified in phased manner
the frequency of which, in our opinion, is reasonable having regard to
the size of the company and nature of its assets. As explained to us no
material discrepancies were noticed in respect of assets verified
during the year.
(c) In our opinion, the Company has disposed off a substantial part of
fixed assets during the year. On the basis of our examination of the
books and records of the Company, and according to the information and
explanations given to us, in our opinion, the disposal of the said part
of fixed assets has not affected the going concern status of the
Company.
(ii) (a) The inventory has been physically verified during the year by
the management, In our opinion, the
frequency of verification is reasonable.
(b) 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) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The company has not granted or taken any loan, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956. As no
loans is granted or taken, clauses (b), (c), (d), (e), (f) and (g) of
paragraph (iii) of this order are not applicable.
(iv) 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 with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
controls.
(v) (a) According to the information and explanations given to us,
there have been no contracts or arrangements that need to be entered
in the register maintained under Section 301 of the Act.
(b) In our opinion, and according to the information and explanations
given to us, there are no transactions made in pursuance of such
contracts or arrangements exceeding the value of Rupees Five Lakhs in
respect of any party during the year.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any fixed deposits from the
public within the meaning of section 58A, 58AA or any other relevant
provisions of the of the Companies Act, 1956 and the rules framed there
under. The Company Law Board, National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal has not passed any
order.
(vii) In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has prescribed for the maintenance of
cost records by the company under Section 209(1)(d) of the Companies
Act, 1956 for Cotton Textile Industry. The company has not maintained
prescribed cost records.
(ix) (a) The Company has generally been regular in depositing
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 any other statutory dues with the
appropriate authorities. There is no outstanding statutory liability as
at March 31, 2012, which is due for a period of more than six months
from the date they became payable.
(b) According to the information and explanation given to us, Excise
duty demand of Rs. 5 Crores for various years has been disputed and
case is under Apex court and Interest on late payment of Rs.
2,205,076/- (2012-2013 - Rs. 2,205,076/-) has been levied under the
Employees Provident Funds and Miscellaneous Provisions Act, 1952 and
Employees State Insurance Act, 1948 respectively by the authorities for
the years 2000-2005. Appeal has been filed against this demand in the
Court and provision has been considered in books of accounts.
Name of the Nature of Amount Period to Forum where
Statute the Dues which the dispute is
amout relates pending
Central Excise Excise Duty 50,000,000 Various years CESTAT
Act, 1944 from 1998-1999
Employees
Provident Funds
and Miscellaneous Interest on 2,205,076 2000-2005 District
Provisions Act, Late Payment Court
1952 and
Employees State
Insurance
Act,1948
(x) The company does not have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not taken loans from the financial
institutions and has not issued any debentures. Accordingly, there is
no defaulted in repayment of dues to financial institution, bank or
debenture holders.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund of a nidhi /
mutual benefit fund / society. Therefore, the provision of clause
4(xiii) of the companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xv) In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
Accordingly, the provisions of Clause 4(xv) of the Order are not
applicable to the Company
(xvi) The Company has not raised any term loans. Accordingly, the
provisions of Clause 4(xvi) of the Order are not applicable to the
Company.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised in short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
(xviii) According to the information and explanations given to us, the
company has made preferential allotment of 45,849 equity shares to non
promoters (45,849 equity shares) covered in the register maintained
under section 301 of the Companies Act, 1956 at Rs. 10/- per share In
our opinion, and according to the information and explanations given to
us, the price at which such shares have been issued is not prejudicial
to the interest of the Company.
(xix) The Company has not issued any debentures during the year and
does not have any debentures outstanding as at the beginning of the
year and at the year end. Accordingly, the provisions of Clause 4(xix)
of the Order are not applicable to the Company
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of Clause 4(xx) of the Order are not
applicable to the Company.
(xxi) 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
explanations given to us, we have neither come across any 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 KSA & Co.
Chartered Accountants
Registration No. 003822C)
KAMAL PIYUSH
Partner
Membership Number: 083399
Place: New Delhi
Date: May 12, 2014
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of Ashnoor
Textile Mills Limited (the "Company"), which comprise the Balance
Sheet as at March 31, 2013, and the Statement of Profit and Loss and
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
2. The Company''s 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'' of India (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
3. 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 and other applicable authoritative
pronouncements 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.
4. An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' 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 auditors consider 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.
5. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying 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 loss for
the year ended on that date;
(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
6. As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as the "Order"),
and on the basis of such checks of the books and records of the Company
as we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
7. 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 dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Act;
(e) On the basis of written representations received from the directors
as on March 31, 2013, and 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 clause (g) of sub-section (1) of
section 274 of the Act.
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) According to the information and explanation given, the company has
adopted a phased program of physical verification of fixed assets.
Under this program all the assets would be verified in phased manner
the frequency of which, in our opinion, is reasonable having regard to
the size of the company and nature of its assets. As explained to us no
material discrepancies were noticed in respect of assets verified
during the year.
(c) During the year, the company has not disposed off any major part of
the plant and machinery.
(ii) (a) The inventory has been physically verified during the year by
the management, In our opinion, the
frequency of verification is reasonable.
(b) 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 is maintain proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The company has not granted or taken any loan, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956. As no
loans is granted or taken, clauses (b), (c), (d), (e), (f)and (g) of
paragraph (iii) of this order are not applicable.
(iv) 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 with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 have been entered in the register required
to be maintained under that section; and
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regards to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any fixed deposits from the
public within the meaning of section 58A, 58AA or any other relevant
provisions of the of the Companies Act, 1956 and the rules framed there
under. The Company Law Board, National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal has not passed any
order.
(vii) In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has prescribed for the maintenance of
cost records by the company under Section 209(l)(d) of the Companies
Act, 1956 for Cotton Textile Industry. The company has not maintained
prescribed cost records.
(ix) (a) The Company has generally been regular in depositing
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
any other statutory dues with the appropriate authorities. There is no
outstanding statutory liability as at March 31, 2012, which is due for
a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, Excise
duty demand of Rs. 5 Crores for various years has been disputed and
case is under Apex court.
Name of the Nature of Amount Period to Forum where
Statute the Dues which the dispute is
amout
relates pending
Central Excise Excise Duty 50,000,000 Various
years CESTAT
Act, 1944 from
1998-1999
onwards
(x) The company does not have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not taken loans from the financial
institutions and has not issued any debentures. Accordingly, there is
no defaulted in repayment of dues to financial institution, bank or
debenture holders.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund of a nidhi/mutual
benefit fund/society. Therefore, the provision of clause 4(xiii) of the
companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xv) The company has not given guarantees for loans taken by others
from banks or financial institutions.
(xvi) The company has not availed any loan from any bank and financial
institutions.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised in short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
(xviii) According to the information and explanations given to us, the
company has made preferential allotment of 2,335,562 equity shares to
promoters (1,892,239 equity shares) covered in the register maintained
under section 301 of the Companies Act, 1956 and non-promoters (443,323
equity shares) at Rs. 10/- per share
(xix) According to the information and explanations given to us, during
the year covered by out audit report, the company had not issued any
debentures and has not created any security in respect of debentures.
(xx) According to the information and explanations given to us, the
company has not raised any money from the public issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For KSA & Co.
Chartered Accountants
(Registration No. 003822C)
KAMAL PIYUSH
Partner
Membership Number: 83399
Place: New Delhi
Date: May 24, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Ashnoor Textile Mills
Limited as at March 31, 2012, the Profit and Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that;
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) 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;
iii) The Balance Sheet, the Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow Statement dealt from this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
v) On the basis of written representations received from the directors,
as on March 31, 2012 and taken on records by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2012
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
vi) (a) Speculative loss of Rs.129,11,943.28 (Rs. 8,541,620.63) on
Trading of Foreign Currency treated as Current Assets in Balance Sheet.
Due to none charging of speculative loss in the Profit and Loss
Account, profit has been overstated by Rs. 21,453,563.91. Refer
paragraph 17.1 of Notes on accounts.
(b) Subject to above, in our opinion and to the best of our information
and according to the explanations given to us, the said accounts give
the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view conformity with the accounting
principles generally accepted in India:
i) In the cases of the Balance Sheet, of the state of affairs of the
company as at March 31, 2012; and
ii) In the case of the Profit and Loss Account, of the profits for the
year ended on that date.
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXTURE TO THE AUDITOR''S REPORT OF THE MEMBERS OF ASHNOOR TEXTILE
MILLS LIMITED ON ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2012 (Referred
to in paragraph 3 of our report of even date)
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) According to the information and explanation given, the company has
adopted a phased program of physical verification of fixed assets.
Under this program all the assets would be verified in phased manner
the frequency of which, in our opinion, is reasonable, having regard to
the size of the company and nature of its assets. As explained to us no
material discrepancies were noticed in respect of assets verified
during the year.
(c) During the year, the company has disposed off old Dryer Machine,
Hydro Machine and Stenter Machine.
(ii) (a) The inventory has been physically verified during the year by
the management, In our opinion, the frequency of verification is
reasonable.
(b) 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 is maintaing proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The company has not granted or taken any loan, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956. As no
loans is granted or taken, clauses (b), (c), (d), (e), (fa) and (g) of
paragraph (iii) of this order are not applicable.
(iv) 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 with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 have been entered in the register required
to be maintained under that section; and
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regards to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any fixed deposits from the
public within the meaning of section 58A, 58AA or any other relevant
provisions of the of the Companies Act, 1956 and the rules framed there
under. The Company Law Board, National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal has not passed any
order.
(vii) In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has prescribed for the maintenance of
cost records by the company under Section 209(l)(d) of the Companies
Act, 1956 for Cotton Textile Industry. The company has not maintained
prescribed cost records.
(ix) (a) The Company has generally been regular in depositing
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 any other
statutory dues with the appropriate authorities. There is no
outstanding statutory liability as at March 31, 2012, which is due for
a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us,
Development Tax of Rs. 7,105,146/- levied by the State Government has
been disputed and the local association on behalf of all the industries
in the region has filed an appeal with Supreme Court of India.
Name of the Nature of Amount Period to Forum where
Statute the Dues which the dispute is
amout
relates pending
918,034 2002-2003
Local Area Haryana 2,110,645 2003-2004
Development Tax Development 1,966,381 2004-2005 Court
Act, 2000
Tax 1,660,354 2005-2006
449,732 2006-2007
Central Excise Excise Duty 50,000,000 Various
years CESTAT
Act, 1944 from
1998-1999
onwards
(x) The company does not have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not taken loans from the financial
institutions and has not issued any debentures. Accordingly, there is
no defaulted in repayment of dues to financial institution, bank or
debenture holders.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund of a nidhi/mutual
benefit fund/society. Therefore, the provision of clause 4(xiii) of the
companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xv) The company has not given guarantees for loans taken by others
from banks or financial institutions.
(xvi) The company has availed term loan from its Bank and according to
the information and explanation given to us the loan has been applied
for the purpose for which the same was obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised in short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Act.
(xix) According to the information and explanations given to us, during
the year covered by out audit report, the company had not issued any
debentures and has not created any security in respect of debentures.
(xx) According to the information and explanations given to us, the
company has not raised any money from the public issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For KSA& Co.
Chartered Accountants
(Registration No. 003822C)
KAMAL PIYUSH
Partner
Membership Number: 83399
Place: New Delhi
Date : August 07, 2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of Ashnoor Textile Mills
Limited as at March 31, 2010, the Profit and Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that;
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) 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;
iii) The Balance Sheet, the Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow Statement dealt from à this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
v) On the basis of written representations received from the directors,
as on March 31, 2010 and taken on records by the Board of Directors, we
report that none of the directors in disqualified as on March 31, 2010
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
vi) Subject to foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts give the information required by the Companies Act, 1956, 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 cases of the Balance Sheet, of the state of affairs of the
company as at March 31, 2010;
(ii) In the case of the Profit and Loss Account, of the profits for the
year ended on that date; and
(iii) In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXTURE TO THE AUDITORS REPORT OF THE MEMBERS OF ASHNOOR TEXTILE
MILLS LIMITED ON ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2010
Referred to in paragraph 3 of our report of even date,
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) According to the information and explanation given, the company has
adopted a phased program of physical verification of fixed assets.
Under this program all the assets would be verified in phased manner
the frequency of which, in our opinion, is reasonable, having regard to
the size of the company and nature of its assets. As explained to us no
material discrepancies were - noticed in respect of assets verified
during the year.
(c) During the year, the company has disposed off Hydro Extractor, Old
Shutter Looms and Diesel Generating Set.
(ii) (a) The inventory has been physically verified during the year by
the management, In our opinion, the frequency of verification is
reasonable.
(b) 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 is maintaing proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The company has not granted or taken any loan, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956. As no
loans is granted or taken, clauses (b), (c), (d), (e), (f) and (g) of
paragraph (iii) of this order are not applicable.
(iv) 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 with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 have been entered in the register required
to be maintained under that section; and
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regards to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any fixed deposits from the
public within the meaning of section 58A, 58AA or any other relevant
provisions of the of the Companies Act, 1956 and the rules framed there
under. The Company Law Board, National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal has not passed any
order.
(vii) In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has prescribed for the maintenance of
cost records by the company under Section 209(l)(d) of the Companies
Act, 1956 for Cotton Textile Industry. The company has not maintained
prescribed cost records.
(ix) (a) The Company has generally been regular in depositing
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 any other
statutory dues with the appropriate authorities. There is no
outstanding statutory liability as at March 31, 2010, which is due for
a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, out of
the arrears of Employees State Insurance dues on contract labour of
Rs. 2,705,536/- pertaining to the years 1997 to 2001 levied by Regional
Office of Employees State Insurance Corporation, Gurgaon, only Rs.
563,706/- has been paid under protest and the remaining amount of Rs.
2,141,830/- have not been paid and the appeal is pending with Civil
Court, Gurgaon. Haryana Development Tax of Rs. 7,105,146/- levied by
the State Government has been disputed and the local association on
behalf of all the industries in the region has filed an appeal with
Supreme Court of India.
Name of the Nature of the Amount
Statue Dues (Rs.)
Employees Interest on the
Provident Funds late payment 2,186,351
& Miscellaneous
Provisions Act, 1952
Employees Interest on the
State Insurance late payment 18,725
Act, 1948
Employees Arrears of ESI
State Insurance dues on Contract 2,141,830
Act, 1948 Labour
918,034
Local Area Haryana 2,110,645
Development Development 1,966,381
Tax Act, 2000 Tax 1,660,354
449,732
Central Excise Excise Duty 50,000,000
Act, 1944
Name of the Period From where
dispute is pending
Employees 2005-2006 Court
Peovident Funds
& Miscellaneous
Provisions Act, 1952
Employees 2005-2006 Court
State Insurance
Act, 1948
Employees 1997 to 2001 Civil Court
State Insurance Gurgaon
2002-2003
Local Area 2003-2004
Development 2004-2005 Court
Tax Act,2000 2005-2006
2006-2007
Central Excise Various years
Act,1944 from 1998-99 CESTAT
onward
(x) The company does not have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not taken loans from the financial
institutions and has not issued any debentures. Accordingly, there is
no defaulted in repayment of dues to financial institution, bank or
debenture holders.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund of a nidhi/mutual
benefit fund/society. Therefore, the provision of clause 4(xiii) of the
companies (Auditors Report) Order, 2003 are not applicable to the
company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xv) The company has not given guarantees for loans taken by others
from banks or financial institutions.
(xvi) The company has availed term loan from its Bank and according to
the information and explanation given to us the loan has been applied
for the purpose for which the same was obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised in short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Act.
(xix) According to the information and explanations given to us, during
the year covered by out audit report, the company had not issued any
debentures and has not created any security in respect of debentures.
(xx) According to the information and explanations given to us, the
company has not raised any money from the public issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For KSA&Co.
Chartered Accountants
(Registration No. 003822C)
KAMALPIYUSH
Partner
Membership Number: 83399
Place: New Delhi
Date: June 8, 2010