Mar 31, 2015
We have audited the accompanying standalone financial statements of
Dhanlaxmi Fabrics Ltd ("the Company"), which comprise the Balance Sheet
as at March 31, 2015, 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 Responsibility for the Financial Statements:-
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act. 2013 ('the Act') with respect
of the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under sub-section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the
assets of the Company and preventing and detecting frauds and other
irregularities, selection and application of appropriate accounting
policies, 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.
Auditors 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 disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances. but not for the purpose of financial controls system
over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by 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.
Opinion:-
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015 and its profit and its 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 (11) 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,
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) In our opinion, proper books of 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 the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified u/s. 133 of the Act, and read
with the Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31st March 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2015, from being
appointed as a director in terms of Section164 (2) of the Companies Act
and
f) With respect to the matters to be included in the Auditor's Report
in accordance with Rule 11 of the Companies (Audit and Auditor's)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us :
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements- Refer Note 28
"Contingent Liability" to the financial statements,
ii) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses,
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
THE ANNEXURE TO INDEPENDENT AUDITORS' REPORT.
(Referred to in paragraph 1 under the heading of " Report on other
Legal and Regulatory Requirements" of report of even date.)
(i) In respect of its Fixed assets:-
(a) The company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
(b) All the fixed assets were physically verified by the management
during the year. We are informed that no material discrepancies were
noticed on such verification.
(ii) In respect of its inventories:-
(a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on verification.
(iii) The Company has not granted any loans, secured or unsecured, to
Companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013. Consequently, requirement
of clauses (iii, a), and iii(b) of paragraph 3 of the order are not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business, with
regard to purchase of inventory, fixed assets and for the sale of goods
and services. We have not observed any major weaknesses in the internal
control system during the course of the audit.
(v) According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore, the
provisions of Clause (v) of paragraph 3 of the CARO 2015 are not
applicable to the Company.
(vi) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act.
(vii) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Duty of Customs, Duty of Excise, Value Added Tax,cess and other
statutory dues applicable to it. According to the information and
explanations given to us,no undisputed accounts payable in respect of
outstanding statutory dues were in arrears as at 31st March, 2015 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations give to us, there are
no material dues of Sales Tax, Wealth Tax, Service Tax, Duty of Customs,
Duty of Excise, Value Added Tax,cess which have not been deposited with
the appropriate authorities on account of any dispute. However,
according to information and explanation given to us, the following
dues of income Tax have not been deposited by the Company on account of
disputes.
Period to which the
Name of the Statute Nature of Dues Amount (Rs.)
amount relates (FY)
Income Tax
Assessment 190,54,500/- 2009-2010
Income Tax
Income Tax
Assessment 50,61,160/- 2010-2011
Act, 1961
Income Tax
Assessment 4,95,180/- 2011-2012
Name of the Statute Period to
which
the amount Forum where disputes is pending
relates(FY)
Income Tax Act,1961 2009-2010 Commissioner of Income Tax (Appeal)
2010-2011 Commissioner of Income Tax (Appeal)
2011-2012 Commissioner of Income Tax (Appeal)
(c) According to information & explanations given to us, the amount
required to be transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
to1956) and rules made thereunder has been transferred to such fund
within time.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(ix) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial
institutions, banks or debentures holders.
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from a banks or financial institutions.
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion the term loans
obtained during the year were, prima facie, applied by the Company for
the purpose for which they were obtained, other than temporary
deployment pending application.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For S.G.Kabra & Co.
Chartered Accountants
FR No. 104507 W
S. G. Kabra
Partner
M. No. 38867
Place : Mumbai
Date : 27th May, 2015
Mar 31, 2014
Report on Financial Statements:-
We have audited the accompanying financial statements of Dhanlaxmi
Fabrics Ltd ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, 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 Responsibility for the Financial Statements:-
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors Responsibility:-
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion:-
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 Statement of Profit and Loss 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, 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
sub-section (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.
THE ANNEXURE TO INDEPENDENT AUDITORS'' REPORT.
(Referred to in paragraph 1 under the heading of " Report on other
Legal and Regulatory Requirements" of report of even date.)
1. In respect of its Fixed assets:-
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information.
(b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner which is in
our opinion is reasonable having regard to the size of the Company and
nature of its assets .No material discrepancies were noticed on such
physical verification.
(c) In our opinion the Company has not disposed off a substantial part
of its fixed assets during the year therefore the going concern status
of the Company is not affected.
2. In respect of its inventories:-
(a) The inventories have been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The Company has maintained proper records of its inventories. As
explain to us, there were No material discrepancies noticed on physical
verification as compared to book records.
3. In respect of the Loans secured or unsecured, granted or taken by
the Company to / from Companies, firms or other parties covered in the
register maintain U/S. 301 of the Companies Act 1956"
(a) 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) In respect of Loan taken by the Company the Loan is interest free
and repayable on demand.
(c) There is no overdue amount in respect of Loan taken by 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 & 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. In Respect of contracts or arrangements referred to in Section 301
of the Companies Act 1956.
(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.
6. According to the information and explanation given to us the
Company has not accepted any deposits from the public therefore the
provision of Clause (VI) of paragraph 4 of the order are not applicable
to the Company.
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. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained. We have however not made a
detailed examination of the cost records with a view to determine
whether they are accurate or complete.
9. In respect of Statutory dues
(a) According to the records of the company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess and other statutory dues have
generally been regularly deposited with the appropriate authorities.
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 give to us and as per
books and records of the Company,there are no disputed dues which have
remained unpaid as on March 31,2014 on account of any pending dispute.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses 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 trading in Shares, Mutual funds & other Investments. Proper records
& timely entries have been maintained in this regard & further
investments specified are held in their own name.
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. In our opinion, the term loans that have been raised by the
Company have been applied for the purpose for which these were raised.
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 manage
ment, 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 S.G.Kabra & Co.
Chartered Accountants
FR No. 104507 W
S. G. Kabra
Place : Mumbai Partner
Date : 30th May, 2014 M. No. 38867
Mar 31, 2012
We have audited the attached Balance Sheet of Dhanlaxmi Fabrics Limited
as at 31st March 2012, and also the Statement of Profit and Loss and
the Cash Flow Statement of the Company for the year ended on that date,
annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion in these
financial statement based on our audit.
We have conducted our audit in accordance with Auditing Standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of section 227(4A) of the
Companies Act, 1956, and on the basis of such checks as we considered
appropriate and according to the information and explanations given to
us, we enclose in the Annexure a statement on the matters specified in
paragraphs 4&5 of the said order.
Further to our comments in the annexure referred to above, we report
that:
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 account as required by the law have
been kept by the Company so far as it appears from our examination of
books and records.
c. The Balance Sheet .Statement of Profit & 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 the Profit & Loss
and Cash Flow Statement, dealt with this report, 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 representations received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of
clause(g) of sub-section (1) of Section 274 of the Companies Act,1936.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
Accounting policies and Notes thereon given the information required by
the Companies Act 1956, in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India .
i) In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March 2012,
ii) In the case of the Statement of Profit & Loss of the Profit for the
year ended on that date, and
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets .
(b) The Company has phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. Management has physi
cally verified certain fixed assets during the year. Discrepancies
noticed on such physical verification as compared to book records,
which werenot material, have been properly adjusted in the books of
account.
(c) Fixed assets disposed off during the year were not substantial and,
therefore, do not affect the going concern assumption.
2. (a) The inventory, except material lying with third parties and in
transit, has been physically verified by the management during the
year. In our opinion, the frequency of such verification is reasonable.
(b) The procedure for the physical verification of inventory followed
by the management are in our opinion, reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventory. The discrepancies noticed on physi cal verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
3. In respect of loans secured or unsecured, granted or taken by the
Company to / from Companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956
(a) The Company has given unsecured loans to its two subsidiary
companies M/s. DFL Fabrics Pvt. Ltd and M/s. Dhanesh Fabrics Pvt Ltd.
In respect of the said loans, the maximum amount outstanding at any
time during the year was 152.50 lacs and at the end of the year balance
is Rs.25.00 lacs
(b) In respect of the loan taken and granted by the company, the loans
are interest free and repayable on demand
(c) There is no overdue amount in respect of loan granted and taken by
the company.
4. In our opinion and according to the information and explanations
given to us, during the course of audit, there are adequate internal
control procedures commensurate with size of the Company and nature of
its business with regard to purchase of inventory and fixed assets and
for the sale of goods. Further, on the basis of our examination of the
books and records of the Company, carried out in accordance with the
generally accepted auditing practices in India, we have neither come
across nor have we been informed of any instance of major weaknesses in
the aforesaid internal control procedures.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the transactions that need to be entered into the
register in pursuance of section 301 of the Act, have been so entered.
(b) In respect of transactions with parties with whom transactions
exceeding the value of five lacs ru-pees have been entered during the
financial year have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time except in
case of some transactions which we are unable to comment owing to the
specialized nature of the items involved and absence of any comparable
prices.
6. During the year, the Company has not accepted any deposits from the
public.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the Cost Accounting records, maintained by
the Company pursuant to the Rules prescribed by the Central Government
for the maintenance of cost records under clause (d) of sub-section
(1) of section 209 of the Act and are of the opinion that, prima facie,
the prescribed accounts and records have been made and maintained. We
are, however, not required to make a detailed examinatioin of such
books and records.
9. a) According to the records of the Company,undisputed statutory
dues including Provident Fund, Employees State Insurance,Income-Tax,
Sales Tax, Wealth -Tax, Excise - Duty, Cess and other statutory dues
have been regularly deposited with the appropriate authorities during
the year.
b) According to the information and explanations given to us and as per
the books and records examined by us, there are no dues of Income-Tax,
Sales Tax, Excise Duty and Cess which have not been deposited on
account of any dispute.
10. There are no accumulated losses of the Company at the end of the
financial year. There are no cash losses during the financial year.
11. According to the information and explanations given to us and as
per the books and records examined by us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders.
12. According to the information and explanations given to us, the
Company has not granted intercorporate ad- vances / Loans on the
security by way of pledge of share, debentures and other securities.
13. The Company does not fall with in the category of Chit Fund /
Nidhis / Mutual Benefit Fund / Society and hence the related reporting
requirements are not applicable.
14. In respect of the Company's dealing in shares and other
securities, proper records have been maintained of the transaction and
contracts and timely entries have been made there in.The shares,
debentures and other securities held by the Company have been held by
the Company in its own name except to the extent of the exemption
granted under section 49 of the Act.
15. The Company has not given any guarantees against loans taken by
others from banks and financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans raised during the year by the Company have
been applied for the purpose for which the said loans were obtained,
where such end use has been stipulated by the lenders.
17. According to information and explanation given to us and as per
the books and records examined by us, as on the date of Balance Sheet,
the funds raised by the Company on short term basis have not been
applied for Long Term Investments. Long Term Funds have not been
applied for Short Term Investments.
18. According to information and explanation given to us the company
has not made any preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Compa- nies Act, 1956 during the year.
19. The Company has not issued any debentures and accordingly no
securities were required to be created in respect of debentures.
20. The company has not raised any money by way of public issues
during the year.
21. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of fraud by the Company, noticed and reported during the year, nor have
we been informed of such case by the management.
For S.G.Kabra & Co.
Chartered Accountants
FR No.. 104507 W
S. G. Kabra
Place : Mumbai Partner
Date : 30th May, 2012 M. No. 38867
Mar 31, 2010
We have audited the attached Balance Sheet of Dhanlaxmi Fabrics Limited
as at 31st March, 2010, and also the Profit & Loss Account and Cash
Flow Statement of the Company for the year ended on that date, annexed
thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion in these
financial statements based on our audit.
We have conducted our audit in accordance with Auditing Standards
generally accepted in India.These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation.We believe that our audit provides a reasonable basis for
our opinion.
As required by The Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of section 227(4A) of the
Companies Act 1956, and on the basis of such checks as we considered
appropriate and according to the information and explanations given to
us, we enclose in the Annexure, a statement on the matters specified in
paragraphs 4 & 5 of the said order.
Further to our comments in the Annexure referred to above, 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 the law have
been kept by the Company so far as it appears from our examination of
books and records .
c) The Balance Sheet, Profit & Loss Accounts and Cash Flow Statement,
dealt with by this report, are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement, dealt with by this report, comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of The
Companies Act, 1956.
e) On the basis of written representations received from the Directors
as on 31st March,2010 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of clause(g) of sub
section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
Accounting policies and Notes thereon give the information required by
the Companies Act, 1956, in the manner so required and give a true and
fair view in confirmity with the accounting principles generally
accepted in India.
i. In the case of Balance Sheet of the State of affairs of the Company
as at 31 st March 2010, ii. In the case of Profit & Loss Account of
the Profit for the year ended on that date, and iii. In the case of
Cash Flow Statement of the cash flows for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Annexure reffered to in our report of
even date)
1. (a) The Company has maintained proper records show- ing full
particulars including quantitative details and situation of fixed
assets .
(b) The Company has phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Com- pany and the nature of its assets. Management has
physically verified certain fixed assets during the year. Discrepancies
noticed on such physical veri- fication as compared to book records,
which were not material, have been properly adjusted in the books of
account.
(c) Fixed assets disposed off during the year were not substantial and,
therefore, do not affect the going concern assumption.
2. (a) The inventory, except material lying with third par ties and in
transit, has been physically verified by the management during the
year. In our opinion, the frequency of such verification is reasonable.
(b) The procedure for the physical verification of in- ventory followed
by the management are in our opinion, reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
3. In respect of loans secured or unsecured, granted or taken by the
Company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956;
(a) The Company has granted an unsecured loan to its subsidairy
companiey M/s. DFL Fabrics Pvt. Ltd. aggregating Rs. 63.50 Lacs and
taken an unsecured loan from one party aggregating Rs. 33.40 Lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest, wher- ever applicable and other
terms and conditions are not prima facie prejudicial to the interest of
the Com- pany.
(c) In respect of loan granted and taken by company,no amount has been
repaid during the year and the loans are interest free and repayable on
demand.
(d) There is no overdue amount in respect of loan granted and taken by
the company.
4. In our opinion and according to the information and explanations
given to us, during the course of audit, there are adequate internal
control procedures commensurate with size of the Company and na- ture
of its business with regard to purchase of in- ventory and fixed assets
and for the sale of goods. Further, on the basis of our examination of
the books and records of the Company, carried out in accor- dance with
the generally accepted auditing prac- tices in India, we have neither
come across nor have we been informed of any instance of major weak-
nesses in the aforesaid internal control procedures.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations pro- vided by the management, we are
of the opinion that the transactions that need to be entered into the
register in pursuance of section 301 of the Act, have been so entered.
(b) In respect of transactions with parties with whom transactions
exceeding the value of five lacs ru- pees have been entered during the
financial year have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time except in
case of some trans- actions which we are unable to comment owing to the
specialized nature of the items involved and absence of any comparable
prices.
6. During the year, the Company has not accepted any deposits from the
public.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the Cost Accounting records, maintained by
the Company pursuant to the Rules prescribed by the Central Government
for the maintenance of cost records under clause (d) of sub-section (1)
of section 209 of the Act and are of the opinion that, prima facie, the
pre- scribed accounts and records have been made and maintained. We
are, however, not required to make a detailed examinatioin of such
books and records.
9. a) According to the records of the Company.undisputed statutory dues
including Provident Fund, Employees State Insurance,Income-Tax, Sales
Tax, Wealth -Tax, Excise - Duty, Cess and other statutory dues have
been regularly deposited with the appropriate auth- orities during the
year.
b) According to the information and explanations given to us and as per
the books and records examined by us, there are no dues of Income-Tax,
Sales Tax, Excise Duty and Cess which have not been depos- ited on
account of any dispute.
10. There are no accumulated losses of the Company at the end of the
financial year. There are no cash losses during the financial year.
11. According to the information and explanations given to us and as
per the books and records examined by us, the Company has not defaulted
in repayment of dues to any financial institution or bank or deben-
ture holders.
12. According to the information and explanations given to us, the
Company has not granted intercorporate ad- vances/Loans on the security
by way of pledge of share, debentures and other securities.
13. The Company does not fall with in the category of Chit Fund /
Nidhis / Mutual Benefit Fund / Society and hence the related reporting
requirements are not applicable.
14. In respect of the Companys dealing in shares and other
securities, proper records have been mainta- ined of the transaction
and contracts and timely entries have been made there in.The shares,
deben- tures and other securities held by the Company have been held by
the Company in its own name except to the extent of the exemption
granted under section 49 of the Act.
15. The Company has not given any guarantees against loans taken by
others from banks and financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans raised dur- ing the year by the Company
have been applied for the purpose for which the said loans were
obtained, where such end use has been stipulated by the lend- ers.
17. According to information and explanation given to us and as per the
books and records examined by us, as on the date of Balance Sheet, the
funds raised by the Company on short term basis have not been ap- plied
for Long Term Investments. Long Term Funds have not been applied for
Short Term Investments.
18. According to information and explanation given to us the company
has not made any preferential allot- ment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956 during the year.
19. The Company has not issued any debentures and accordingly no
securities were required to be created in respect of debentures.
20. The company has not raised any money by way of public issues during
the year.
21. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in In- dia, we have neither come across any instance
of fraud by the Company, noticed and reported during the year, nor have
we been informed of such case by the management.
For S.G.Kabra & Co.
Chartered Accountants
S. G. Kabra
Place : Mumbai Partner
Date : 13th August, 2010 M No. 38867
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