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