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Auditor Report of Bharat Textiles & Proofing Industries Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Bharat Textiles and Proofing Industries Limited, which comprise the Balance Sheet as at March 31, 2015, 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

The Company's Board of Directors are responsible for the matters stated n section 134(5) of the Companies Act, 2013 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 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 of 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 thereunder.

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

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 statement? that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. 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

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, 201S;

b) in the case of the Profit and Loss Account, 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, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (II) of section 143 of the Act, we give in the Annexure a statement on the matters Specified in paragraphs 3 and 4 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, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement 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 March 31, 2015, and 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(2) of the Act

f) In our opinion the company has adequate internal financial control system in place and also the operating effectiveness of such controls exists.

g) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule I I of the Companies (Audit and Auditors) Rules,20l4:

i. The Company does not have any pending litigations which would impact its financial position;

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts

iii. The company was not required to transfer any sum to the Investor Education and Protection Fund during the year under report

The Annexure referred to in paragraph I of the Our Report of even date to the members of M/s Bharat Textiles and Proofing Industries Limited on the accounts of the company for the year ended 31" March, 2015.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

2. (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

(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) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of inventories by the management as compared to records.

3. According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, 2013. Consequently, the provisions of clauses iii (a) and iii (b) of the order are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories and fixed assets and for the sale of goods and services. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. The Company has not accepted any deposits hence the directives issued by Reserve bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 are not applicable to the company.

6. The Central government has not specified maintenance of cost records for the Company under sub - section (I) of section 148 of the Companies act 2013.

7. (a) The company is 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 to the extent applicable and any other statutory dues with the appropriate authorities except on few occasions where minor irregularities were noticed. According to the information and explanations given to us there were no outstanding statutory dues as on 31 " of March, 2015 for a period of more than six months from the date they became payable.

(b) The Company has no dues of income tax, wealth tax, service tax, customs duty, excise duty; value added tax or cess which has not been deposited on account of any disputes.

(c) The Company has no amount which is required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act 1956.

8. The accumulated losses at the end of the financial year are more than fifty percent of its net worth.The Company has not incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year.

9. The Company has not defaulted in repayments of dues to a financial institution, bank or debenture holders.

10. According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or financial institution.

11. The Term loan raised by Company was applied for the purpose for which it has been raised.

12. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For Sakaria & Associates Chartered Accountants FRN: 6219 S

Ashok Kumar S Place : Chennai Proprietor Date : 30th May, 2015 Membership No. :202048


Mar 31, 2014

We have audited the accompanying financial statements of Bharat Textiles and Proofing Industries Limited, 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 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 CompaniesAct,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.

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 ofmaterial 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.

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 Account, 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.

1. As required by the Companies (Auditor''s Report) Order,2003 ("theOrder") 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 ofaccount.

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;

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.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of M/s Bharat Textiles and Proofing Industries Limited. on the accounts of the company for the year ended 31st March, 2014.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.

2. (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

(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) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of the order are not applicable to the Company.

(b) The Company has taken loans, secured and unsecured from related parties , as covered in the register maintained under Section 301 of the CompaniesAct,1956,amounting to Rs 3,74,04,138/-from 4 parties PY(3,96,35,410/-) during the year

(c) The rate of interest and other terms and conditions of loans taken by the company ,secured or unsecured, are prima facie not prejudicial to the interest of the Company ; and

(d) The payment of the principal amount and interest are regular wherever applicable.

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

b) There are transaction of Sales of goods & services made in pursuance of contracts and arrangements with the parties required to entered in the register maintained u/s 301 of the Companies Act 1956, amounting to Rs 86,70,205/-PY (57,79,561/-). In our opinion, and according to the information & explanations given to us, the transactions have been made at the price which is reasonable having regard to the prevailing market price at the relevant time.

6. The Company has not accepted any deposits from the public covered under section 58A and 58AA of the Companies Act, 1956.

7. As per information & explanations given by the management, the Company has an internal audit system commensurate with its size and the nature of its business.

8. We have broadly reviewed the books of accounts maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act 1956,related to the manufacture of cotton cloth and processed canvas, the prescribed accounts and records have been maintained,We have not, however, made a detailed examination of the same.

9. (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 to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities except on few occasion where minor irregularities were noticed. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2014 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there is no amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty and excise duty which have not been deposited on account of any disputes.

10. The accumulated losses at the end of the financial year are more than fifty percent of its net worth. The Company has not incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year.

11. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi /mutual benefit fund/society.Therefore,the provision of this clause of the Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable to the Company.

14. According to information and explanations given to us, the Company is not trading in Shares, Mutual funds & other Investments. Accordingly, the provisions of clause 4(xiii) of the companies (Auditor''s Report) order, 2003 (as amended) are not applicable to the company.

15. According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or financial institution.

16. Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the year.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2014, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares during the year.

19. The Company has no outstanding debentures during the period under audit.

20. The Company has not raised any money by public issue during the year.

21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For Sakaria & Associates Chartered Accountants FRN: 6219S

Ashok Kumar S. Proprietor Membership No. :202048

Place : Chennai Date : 30th May, 2014


Mar 31, 2013

We have audited the accompanying financial statements of Bharat Textiles and Proofing Industries Limited , which comprise the Balance Sheet as at March 31, 2013, 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 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 21 1 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.

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 ofmaterial 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.

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, 2013;

b) in the case of the Profit and Loss Account, 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.

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;

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 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 44IA 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.

The Annexure referred to in paragraph 1 of our Report of even date to the members of Bharat Textiles and Proofing Industries Limited. on the accounts of the company for the year ended 3 1st March, 2013.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1.(a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.

2.(a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

(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) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3.(a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of the order are not applicable to the Company.

(e) The Company has taken loans, secured and unsecured from related parties , as covered in the register maintained under Section 301 of the Companies Act, 1956, amounting to INR 39,635,410/- from 4 parties PY (INR 37,273,033/-) during the year

(f) The rate of interest and other terms and conditions of loans taken by the company ,secured or unsecured, are prima facie not prejudicial to the interest of the Company ; and

(g) The payment of the principal amount and interest are regular wherever applicable.

4.In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5.a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

b) There are transaction of Sales of goods made in pursuance of contracts and arrangements with the parties required to entered in the register maintained u/s 301 of the Companies Act 1956, amounting to INR 5,779,561/-PY (INR 4,200,000/-). In our opinion, and according to the information & explanations given to us, the transactions have been made at the price which is reasonable having regard to the prevailing market price at the relevant time.

6.The Company has not accepted any deposits from the public covered under section 58A and 58AA of the Companies Act, 1956.

7. As per information & explanations given by the management, the Company has an internal audit system commensurate with its size and the nature of its business.

8. We have broadly reviewed the books of accounts maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act 1956,related to the manufacture of cotton cloth and processed canvas, the prescribed accounts and records have been maintained, We have not, however, made a detailed examination of the same.

9. (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 to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities except on few occasion where minor irregularities were noticed. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2013 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there is no amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty and excise duty which have not been deposited on account of any disputes.

10. The accumulated losses at the end of the financial year are more than fifty percent of its net worth. The Company has not incurred cash loss during the financial year covered by our audit and in the immediately preceding financial yea .

11. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable to the Company.

14. According to information and explanations given to us, the Company is not trading in Shares, Mutual funds & other Investments. Accordingly, the provisions of clause 4(xiii) of the companies (Auditor''s Report) order, 2003 (as amended) are not applicable to the company.

15. According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or financial institution.

16. Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the year.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2012, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares during the year.

19. The Company has no outstanding debentures during the period under audit.

20. The Company has not raised any money by public issue during the year.

21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For Sakaria & Associates Chartered Accountants FRN: 6219 S

Sd/- Ashok Kumar S Proprietor Membership No. :202048

Place : Chennai Date : 29.05.2013


Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s. BHARAT TEXTILES & PROOFING INDUSTRIES LIMITED as at 31st March 2012 and Profit and Loss Account for the year ended on the 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 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 test basis, evidence supporting the amounts and disclosures in financial statement. An audit also includes assessing the accounting principles used and significant estimates made by the 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 in terms of subsection (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 in paragraph 3 above:

a) We have obtained all the information and explanation 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 the law have been kept by the company so far as appears from our examination of the books.

c) The Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of accounts.

d) In our opinion, the Profit & Loss Account & Balance Sheet comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

e) On the basis of written representation received from the directors, and taken on record by the Board of Directors, none of the director stand disqualified as on 31s March 2012 from being appointed as director in terms of clause (g) of section 274(1) of the Companies Act, 1956.

In our opinion and to the best of our information and according to the explanations given to us, the accounts read along with the notes thereon set out in Schedule 15 , give the information required by the Companies Act, 1956, in the manner so required and gives a true and fair view in conformity with the accounting principles generally accepted in India:

i) in case of the Balance Sheet, of the State of affairs of the Company as March 31st, 2012 and

ii) in case of Profit and Loss Account, of the Profit for the year ended on March 31st, 2012.

iii) In case of cash flow statement of the cash flow for the year ended on the date.

ANNEXURE TO THE AUDITORS REPORT

With reference to the Annexure referred to in Paragraph 3 of the Report of the Auditors to the Members of M/s Bharat Textiles & Proofing Industries Limited for the year ended 31st March 2012:

1. The Company has maintained proper records to show full particulars including quantitative details and situation of its Fixed Assets.

2. The Fixed Assets of the Company are physically verified by the management at reasonable intervals and that no material discrepancies between physical inventories and book records were noticed.

3. In our opinion, and according to the information and explanations given to us, no substantial part of Fixed Assets has been disposed off by the Company during the year.

4. The management during the year has physically verified the Inventory. In our opinion the frequency of such verification is reasonable.

5. The procedures for the physical verification of inventory followed by management are generally reasonable and adequate in relation to the size of the Company and the nature of its business.

6. In our opinion the Company has maintained proper records of inventory, no material discrepancies were noticed on physical verification inventory.

7. According to the information and explanation given to us, the company has not granted any loans, Secured and unsecured to/from Companies, firms, or other related parties, as covered in the Register maintained under section 301 of the Companies Act 1956.

8. The company has taken loans, Secured and Unsecured from related parties, as covered in the Register maintained under section 301 of the Companies Act 1956, amounting to Rs 3,72,73,033 from 5 parties py (4,58,73,058/-) during the year. The rate of interest and other terms and condition of loans taken secured, unsecured are not prejudicial to the interest of the Company.

9. In our opinion and according to the information and explanation given to us by the management, there are adequate internal control procedure laid down in the Company to commensurate with the size and nature of its business for the purchase of inventory, Fixed Assets and with regard to the sale of goods. In our opinion there is no continuous failure to correct the weakness in internal control system.

10. According to the information and explanation given to us, we are of the opinion, that the transactions that need to be entered in the register maintained under section 301 of the Companies Act, 1956, have been so entered.

11. There are transaction of Sales of goods made in pursuance of contracts and arrangements with the parties required to entered in the registers maintained u/s 301of the Companies Act 1956, amounting to Rs 42,00,000 PY (1,31,14,263).In our opinion, and according to the information and explanations given to us, the transactions have been made at the price which are reasonable having regard to the prevailing market price at the relevant time.

12. As far as we have been able to ascertain, the Company has not accepted any deposits during the year from the public and therefore directives issued by the Reserve Bank of India and the provisions of Section 58A & 58AA of the companies act, 1956 and the Rules framed there under are not applicable.

13. In our opinion, the Company has an Internal audit system commensurate with the size and nature of its business.

14. According to information and explanation given to us the Central Government has not prescribed maintenance of cost records under section 209(l)(d) of the Companies Act, 1956.

15. According to the records of the company, the company is regular in depositing undisputed statutory dues with appropriated authorities which are outstanding for a period of more than six months from the date they become payable except in few cases where minor irregularities were noticed.

16. According to the information furnished to us, the following amount of custom duty has been disputed by the company and hence was not remitted to the concerned authorities at the date of Balance Sheet under report._ _

Nature of Dues Amount (Rs) Period to which relates Forum Where Dispute is pending

Custom Duty 16,53,890/- 2001-2002 High Court of Madras, Chennai

17. The Accumulated losses at the end of financial year are more than fifty percent of its net worth. The Company has not incurred tosses during the financial year and in the financial year immediately proceeding such financial year.

18. In our opinion and according to the information and explanation given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

19. The Company is not a Chit fund or nidhi /mutual benefit fund/society. Therefore, the provisions of clause (xiii) of Paragraph 4 of the Companies (Auditors Report) order, 2003 are not applicable to the Company.

20. The Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause (xiv) of Paragraph 4 of the Companies (Auditors Report) order, 2003 is not applicable to the Company.

21. According to information and explanations given to us, the Company has not given any guarantee for loans taken by others, from bank of financial institutions.

22. According to the information given to us, the Company term loan have been applied for the purpose for which they were raised.

23. According to information and explanations given to us, the funds raised on short term basis have not been used for long term investment and vice versa.

24. According to the information and explanation given to us during the year under audit, the Company has not made preferential allotment of shares.

25. The Company has not issued debentures, accordingly the provision of clause (xix) of paragraph 4 of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

26. The Company has not raised monies by public issues. Accordingly the provision of clause (xx) of paragraph 4 of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

27. To the best of our knowledge and belief, and according to the information and explanations given to us, no fraud on or by the company was noticed or reported during the year.



For Sakaria & Associates Chartered Accountants

Sd/-

Ashok Kumar.S

Place: Chennai Proprietor

Date: 05-06-2012 M.No: 202048 Firm Regn. No. 6219S


Mar 31, 2011

1. We have audited the attached Balance Sheet of M/s. BHARAT TEXTILES & PROOFING INDUSTRIES LIMITED as at 31st March 2011 and Profit and Loss Account for the year ended on the 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 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 test basis, evidence supporting the amounts and disclosures in financial statement. An audit also includes assessing the accounting principles used and significant estimates made by the 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 in terms of subsection (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 in paragraph 3 above:

a) We have obtained all the information and explanation 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 the law have been kept by the company so far as appears from our examination of the books.

c) The Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of accounts.

d) In our opinion, the Profit & Loss Account & Balance Sheet comply with the Accounting Standards referred to in sub- section (3C) of section 211 of the Companies Act, 1956.

e) On the basis of written representation received from the directors, and taken on record by the Board of Directors, none of the director stand disqualified as on 31st March 2011 from being appointed as director in terms of clause (g) of section 274(1) of the Companies Act, 1956.

In our opinion and to the best of our information and according to the explanations given to us, the accounts read along with the notes thereon set out in Schedule 15 , give the information required by the Companies Act, 1956, in the manner so required and gives a true and fair view in conformity with the accounting principles generally accepted in India:

i) in case of the Balance Sheet, of the State of affairs of the Company as March 31st, 2011 and

ii) in case of Profit and Loss Account, of the Profit for the year ended on March 31st, 2011.

iii) In case of cash flow statement of the cash flow for the year ended on the date.

ANNEXURE TO THE AUDITORS' REPORT

With reference to the Annexure referred to in Paragraph 3 of the Report of the Auditors to the Members of M/s Bharat Textiles & Proofing Industries Limited for the year ended 31st March 2011 :

1.The Company has maintained proper records to show full particulars including quantitative details and situation of its Fixed Assets.

2.The Fixed Assets of the Company are physically verified by the management at reasonable intervals and that no material discrepancies between physical inventories and book records were noticed.

3. In our opinion, and according to the information and explanations given to us, no substantial part of Fixed Assets has been disposed off by the Company during the year.

4.The management during the year has physically verified the Inventory. In our opinion the frequency of such verification is reasonable.

5.The procedures for the physical verification of inventory followed by management are generally reasonable and adequate in relation to the size of the Company and the nature of its business.

6.In our opinion the Company has maintained proper records of inventory, no material discrepancies were noticed on physical verification inventory.

7.According to the information and explanation given to us, the company has not granted any loans, Secured and unsecured to/from Companies, firms, or other related parties, as covered in the Register maintained under section 301 of the Companies Act 1956.

8.The company has taken loans, Secured and unsecured from related parties, as covered in the Register maintained under section 301 of the Companies Act 1956, amounting to Rs.4,58,73,058 from 4 parties py (5,89,94,996/-) during the year. The rate of interest and other terms and condition of loans taken secured, unsecured are not prejudicial to the interest of the Company.

9.In our opinion and according to the information and explanation given to us by the management, there are adequate internal control procedure laid down in the Company to commensurate with the size and nature of its business for the purchase of inventory, Fixed Assets and with regard to the sale of goods. In our opinion there is no continuous failure to correct the weakness in internal control system.

10. According to the information and explanation given to us, we are of the opinion, that the transactions that need to be entered in the register maintained under section 301 of the Companies Act, 1956, have been so entered.

11. There are transaction of Sales of goods made in pursuance of contracts and arrangements with the parties required to entered in the registers maintained u/s 301of the Companies Act 1956, amounting to Rs 1,31,14,263, PY (92,50,837).In our opinion, and according to the information and explanations given to us, the transactions have been made at the price which are reasonable having regard to the prevailing market price at the relevant time.

12.As far as we have been able to ascertain, the Company has not accepted any deposits during the year from the public and therefore directives issued by the Reserve Bank of India and the provisions of Section 58A & 58AA of the companies act, 1956 and the Rules framed there under are not applicable.

13.In our opinion, the Company has an Internal audit system commensurate with the size and nature of its business.

14.The Central Government has prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956, and as per information and explanation given to us the same have been maintained.

15.According to the records of the company, the company is regular in depositing undisputed statutory dues with appropriated authorities which are outstanding for a period of more than six months from the date they become payable except in few cases where minor irregularities were noticed.

16. According to the information furnished to us, the following amount of custom duty has been disputed by the company and hence were not remitted to the concerned authorities at the date of Balance Sheet under report.

Nature of Dues Amount (Rs) Period to which Forum Where Dispute relates Is pending

Custom Duty 16,53,890/- 2001-2002 High Court of Madras, Chennai

17.The Accumulated losses at the end of financial year are more than fifty percent of its net worth. The Company has not incurred losses during the financial year and in the financial year immediately preceding such financial year.

18.In our opinion and according to the information and explanation given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

19.The Company is not a Chit fund or nidhi /mutual benefit fund/society. Therefore, the provisions of clause (xiii) of Paragraph 4 of the Companies (Auditor's Report) order, 2003 are not applicable to the Company.

20.The Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause (xiv) of Paragraph 4 of the Companies (Auditor's Report) order, 2003 is not applicable to the Company.

21.According to information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank of financial institutions.

22.According to the information given to us, the Company term loan have been applied for the purpose for which they were raised.

23.According to information and explanations given to us, the funds raised on short term basis have not been used for long term investment and vice versa.

24.According to the information and explanation given to us during the year under audit, the Company has not made preferential allotment of shares.

25.The Company has not issued debentures, accordingly the provision of clause (xix) of paragraph 4 of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

26.The Company has not raised monies by public issues. Accordingly the provision of clause (xx) of paragraph 4 of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

27.To the best of our knowledge and belief, and according to the information and explanations given to us, no fraud on or by the company was noticed or reported during the year.

PLACE : Chennai For Sakaria & Associates

DATE : 29th June 2011 Chartered Accountants

Ashok Kumar S

Proprietor

M.no: 202048

Firm Regn No. 6219 S

 
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