Mar 31, 2015
Report on the Financial Statements
We have audited the accompanying financial statements of Effingo
Textile & Trading Limited ("the Company"), which comprise the Balance
Sheet as at 31/03/2015, the Statement of Profit and Loss, for the year
then ended, and a summary of the significant accounting policies and
other explanatory information.
Management's 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
to the preparation of these financial statements that give a true and
fair view of the financial position and financial performance of the
Company in accordance with the accounting principles generally accepted
in India, including the Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,
2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding 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 there under.
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 statements 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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31/03/2015, and its profit and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
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 paragraph 3and 4 of the order, to
the extent applicable.
As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and dealt with
by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31/03/2015 taken on record by the Board of Directors,
none of the directors is disqualified as 31/03/2015 from being
appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company did not have any pending litigations on its financial
position in its financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. The Company does not required to be transferred fund to the
Investor Education and Protection Fund.
Annexure to the Independent Auditors' Report
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
(1) In Respect of Fixed Assets
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management at
reasonable intervals; No material discrepancies were noticed on such
verification.
(2) In Respect of Inventory
(a) As explained to us, at the end of the year there is no physical
inventories. The 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) Loans and advances to parties covered under section 189
In our opinion and according to the information and explanations given
to us, the Company has neither granted nor taken any loans, secured or
unsecured to/ from the companies, firms or other parties covered in the
register maintained under Section 189 of the Companies Act, 2013;
(a) The loans granted are re-payable on demand. As informed, the
company has not demanded repayment of any such loan during the year,
thus there has been no default on the part of the parties to whom the
money has been lent. The payment of interest has been regular .
(b) There is no overdue amount of any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act
(4) Internal Control in reference to Purchase of Inventory and Fixed
Assets and whether there is continue failure of Internal control
In our opinion and according to the information and explanations given
to us there are adequate internal control system commensurate with the
size of the company and the nature of its business for the purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of audit We have not observed continuing failure to
correct major weaknesses in internal control system.
(5) Rules followed while accepting Deposits
No deposits within the meaning of Sections 73 to 76 or any other
relevant provision of the Act and rules farmed thereunder have been
accepted by the Company.
(6) Maintenance of cost records
The Company is not required to maintain cost records pursuant to the
Rules made by the Central Government for the maintenance of cost
records under sub-section (l) of section 148 of the Companies Act.
(7) According to the information and explanations given to us in
respect of statutory dues
(a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident fund, Employees' state
insurance, Income tax, Service tax, and other material statutory dues
applicable to it.
(b) According to the records of the Company, there are no dues of
provident fund, employees'state insurance, income-tax, sales-tax,
wealth tax, service tax, duty of customs, duty of excise, value added
tax or cess and any other statutory dues with the appropriate
authorities that have been not been deposited on amount of any dispute.
(c) The Company does not required to transfer fund to the Investor
Education and Protection Fund.
(8) Company which has been registered for a period less than five years
and accumulated losses are more than 50% of Net worth, Reporting of
cash Losses
The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit & immediately
preceding financial year .
(9) Default in Repayment of Loans taken from Bank or Financial
Institutions
The company has not taken any loans from Bank or Financial Institutions
(10) Terms for Loans and Advances from Banks or Financial Institutions
prejudicial to the interest of the company
The company has not taken any loans from Bank or Financial
Institutions, thus this clauses is not applicable.
(11) Application versus purpose of Term Loan.
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.
(12) Reporting of Fraud During the Year Nature and Amount
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 B JAJOO & CO.
chartered accountants
FRN: 125915W
Sd/-
Santosh B Jajoo
Proprietor
Membership No: 118622
Place: Mumbai
Date: 30.05.2015
Mar 31, 2014
We have audited the accompanying financial statements of Effingo
Textile & Trading Limited (Formerly known as Malti Textile Mills
Limited), which comprises of the Balance Sheet as at 31st March, 2014,
the Statement of Profit and Loss and the Cash Flow Statement for the
year then ended, and a summary of the significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act") read with
the General Circular 15/2013 dated 13th September, 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013 and in accordance with the accounting principles generally
accepted in India. 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 the
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 the internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the 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 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company 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 purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, 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 Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
(e) On the basis of the written representations received from the
directors as on 31st March,
2014 taken on record by the Board of Directors, none of the directors
is disqualified as on 31st March, 2014 from being appointed as a
director in terms of clause (g) of sub- section (1) of section 274 of
the Act.
Annexure to Independent Auditor''s Report (Referred to in paragraph 7
under "Report on Other Legal and Regulatory Requirements" section of
our report of even date)
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 no fixed assets and hence Para 4 (i) of Company
(Audit Report) Order,2003 is not applicable.
2. (a) As explained to us, at the end of the year there is no physical
inventories. The 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 and hence Para 4 (iii) (b), (c) & (d) of
Company (Audit Report) Order, 2003 are not applicable.
(e) 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 taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956 and
hence Para 4 (iii) (f) & (g) of Company (Audit Report) Order,2003 are
not applicable.
4. In our opinion and according to the information and explanations
given to us, there is 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 are not required to have been entered in the register required
to be maintained under that section and hence Para 4 (v) (b) Company
(Audit Report) Order, 2003 are not applicable.
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 did not have any 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 not prescribed maintenance of cost
record under clause (d) of sub-section (1) of section 209 of the Act,
1956. In respect of products dealt with by the company for the year
under review.
9. (a) According to the records of the company, undisputed statutory
dues including Income-tax and any 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 March 31, 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 and any other statutory
dues which have not been deposited on account of any disputes.
10. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit & 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. 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 March 31,
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 to companies or firms
or parties covered in the register maintained under section 301 of the
Companies Act, 1956.
19. The Company has no outstanding debentures during the period under
audit.
20. During the year the Company has not issued shares on preferential
basis
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 B Jajoo & Co.
Chartered Accountants
Firm Reg. No.: 125915W
Sd/-
Santosh B Jajoo Proprietor
Membership No: 118622
Place: Mumbai
Date : 30.05.2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. MALTI TEXTILE
MILLS LIMITED as at 31st March, 2012 and also Profit & Loss Account for
the year ended on that date annexed thereto and the Cash Flow Statement
for the year ended on that date. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express on 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 a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation we believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 and
Companies (Auditor's Report) Amendment Order, 2004 issued by the
Central Government of India in terms of sub-Section (4A) of Section 227
of the Companies Act, 1956 we enclose in the Annexure a statement on
the matters specified in paragraph 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i) 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.
ii) In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books.
iii) The Balance Sheet and the Profit & Loss Account dealt with by this
report are in agreement with the books of account.
iv) In our opinion, the Balance Sheet and the Profit & Loss Account
dealt with by this report comply with the accounting standards referred
to in Section 211 (3C) of the Companies Act, 1956.
v) On the basis of written representation received from the Directors
as on 31.03.2012 and taken on record by the Board of Directors, we
report that none of the Directors are disqualified as on 31st March,
2012 from being appointed as Director in terms of Section 274 (1)(g) of
the Companies Act, 1956.
vi) Subject to above, our opinion and to the best of our information
and according to the explanations given to us, the said accounts give
the information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March, 2012.
b) In the case of the Profit & Loss Account, of the Loss for the year
ended on that date.
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
(i) The Company has no fixed assets and hence para 4 (i) of Companies
(Audit Report) Order, 2003 is not applicable.
(ii) The Company has no stock and neither has purchased nor sold any
raw material, stores, spares and finished goods and hence para 4 (ii)
of Companies (Audit Report) Order, 2003 is not applicable.
(iii) (a) The company has not granted any loan during the year to the
parties covered in the register maintained under section 301 of the
Companies Act, 1956. However there are interest free unsecured loan
given in earlier year outstanding as on 31.3.2012 of Rs.52,14,000 in
case of one party covered in register maintained U/s 301. The maximum
amount due during the year was Rs.52,14,000 and outstanding balance as
on 31.3.2012 is of Rs.52,14,000.
(b) No interest has been charged on above unsecured loans. In our
Opinion interest and other terms and condition on which above loans
have been given, are prejudicial to the interest of the company with
regard to non-charging of interest.
(c) The outstanding loans have been reschedule in earlier year. The
management is of the opinion that the same will be recovered within the
rescheduled/extended period.
(d) As mentioned in clause iii (c) above as the overdue amount of
outstanding loans have been rescheduled by the lenders in earlier years
there was no overdue amount outstanding for payment of principal as at
31st March, 2012 and as such clause (iii)(d) of the said order is not
applicable.
(e) The company has not taken any loans during the year from parties
listed in the register maintained under section 301 of the Companies
Act, 1956. However, there are interest free unsecured loan of
Rs.1,78,84,500 outstanding as on 31.03.2012 in case of 4 parties
covered in the register maintained u/s 301 of the Companies Act, 1956.
The maximum amount due during the year was Rs.1,78,84,500.
(f) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from Companies, firms or other parties
listed in the register maintained u/s 301 are prima facie not
prejudicial to the interest of the company.
(g) Parties from whom loans have been taken were rescheduled in earlier
years and accordingly no principal was due for payment during the year
as per revised stipulation.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion & according to the information & explanations given
to us, no transactions were made during the year in pursuance of such
contracts or arrangement which exceeded the value of five lacs rupees
in respect of any party at prices which were unreasonable having regard
to prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits from Public &
consequently the provisions of sections 58A and 58AA of the Companies
Act, 1956 and the rules framed there under are not applicable.
(vii) In our opinion, the company has an adequate internal audit system
commensurate with the size of the company and the nature of its
business.
(viii) As explained to us the Central Government has not prescribed
maintenance of cost records under clause (d) of sub section (i) of
section 209 of the Companies Act, 1956 in respect of products dealt
with by the company for the year under review.
(ix) According to the records of the company, the company is regular is
depositing with the appropriate authorities undisputed statutory dues
including Income Tax, Wealth Tax, Sales Tax, Custom Duty and any other
statutory dues applicable to it.
(x) The accumulated losses at the end of the Financial year are more
than 50% of companies net worth. Company has incurred cash loss during
the year under review and in the immediately preceding financial year.
(xi) Company has not taken any loans from Banks/Financial Institutions
or debenture holders and therefore provision of para (xi) of Companies
(Audit Report), Order 2003 as amended are not applicable to the
Company.
(xii) Based on our examination of documents and records maintained by
the company, we are of the opinion that since the company has not
granted any loan and advance on the basis security by way of pledge of
shares, debenture and other securities, it is not required to maintain
records in respect thereof.
(xiii) The company is neither a chit fund nidhi/mutual benefit
fund/society and hence clause 4
(xiii) of the Companies (Auditor's Report) Order, 2003 is not
applicable.
(xiv) Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transaction and contracts and timely
entries have been made in those records in respect of dealing or
trading in shares, securities, debentures and other securities in its
own name except to the extent of the exemption granted under section 49
of the Companies Act, 1956.
(xv) Based on our examination of the records, we are of the opinion
that the company has not given guarantee for loans taken by others from
bank or financial institutions.
(xvi) The company has not taken any term loans and accordingly para
(xvi) of the Companies (Audit Report) Order, 2003 as amended are not
applicable.
(xvii) Based on our examination of the Balance Sheet of the company as
at 31.03.2012 we report that no funds were raised during the year and
hence clause (xvii) of Companies (Auditors Report) Order, 2003 as
amended are not applicable.
(xviii) During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of Companies Act, 1956.
(xix) During the year the company had not issued any debentures.
(xx) During the year under review no money was raised by public issue.
(xxi) According to the information & explanations given to us, we
report no fraud on or by the company has been noticed or reported
during the course of our audit.
For Suresh Kumar Mittal & Co.,
Chartered Accountants
Firm Registration No.500063N
Sandeep Mittal
Partner
M.No.501404
House No.60, 1st Floor
Pocket H-3, Sector 18
Rohini, Delhi - 110 085.
Dated: 04.09.2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s. MALTI TEXTILE
MILLS LIMITED as at 31st March, 2011 and also Profit & Loss Account for
the year ended on that date annexed thereto and the Cash Flow Statement
for the year ended on that date. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express on 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 a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation we believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 and
Companies (Auditor's Report) Amendment Order, 2004 issued by the
Central Government of India in terms of sub-Section (4A) of Section 227
of the Companies Act, 1956 we enclose in the Annexure a statement on
the matters specified in paragraph 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i) 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.
ii) In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books.
iii) The Balance Sheet and the Profit & Loss Account dealt with by this
report are in agreement with the books of account.
iv) In our opinion, the Balance Sheet and the Profit & Loss Account
dealt with by this report comply with the accounting standards referred
to in Section 211 (3C) of the Companies Act, 1956.
v) On the basis of written representation received from the Directors
as on 31.03.2011 and taken on record by the Board of Directors, we
report that none of the Directors are disqualified as on 31st March,
2011 from being appointed as Director in terms of Section 274 (1)(g) of
the Companies Act, 1956.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the accounts subject to and read together
with notes appearing in schedule 7 give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view:
a) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March, 2011.
b) In the case of the Profit & Loss Account, of the Loss for the year
ended on that date.
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
(i) The Company has no fixed assets and hence Para 4 (i) of Companies
(Audit Report) Order, 2003 is not applicable.
(ii) The Company has no stock and neither has purchased nor sold any
raw material, stores, spares and finished goods and hence Para 4 (ii)
of Companies (Audit Report) Order, 2003 is not applicable.
(a) The company has not granted any loan during the year to the parties
covered in the register maintained under section 301 of the Companies
Act, 1956. However there are interest free unsecured loan given in
earlier year outstanding as on 31.3.2011 of Rs.52,14 000 in case of one
party covered in register maintained U/s 301. The maximum amount due
during the year was Rs.52,14,000 and outstanding balance as on
31.3.2011 is of Rs.52,14,000.
(b) No interest has been charged on above unsecured loans. In our
Opinion interest and other terms and condition on which above loans
have been given, are prejudicial to the interest of the company with
regard to non-charging of interest.
(c) The outstanding loans have been reschedule in earlier year. The
management is of the opinion that the same will be recovered within the
rescheduled/extended period.
(d) As mentioned in clause iii (c) above as the overdue amount of
outstanding loans have been rescheduled by the lenders in earlier years
there was no overdue amount outstanding for payment of principal as at
31st March, 2011 and as such clause (iii)(d) of the said order is not
applicable.
(e) The company has not taken any loans during the year from parties
listed in the register maintained under section 301 of the Companies
Act, 1956. However, {here are interest free unsecured loan of Rs.
1,86,01,931 outstanding as on 31.03.2011 in case of 4 parties covered
in the register maintained u/s 301 of the Companies Act, 1956. The
maximum amount due during the year was Rs.1,86,01,931.
(f) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from Companies, firms or other parties
listed in the register maintained u/s 301 are prima facie not
prejudicial to the interest of the company.
(g) Parties from whom loans have been taken were rescheduled in earlier
years and accordingly no principal was due for payment during the year
as per revised stipulation.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods.
(a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion & according to the information & explanations given
to us, no transactions were made during the year in pursuance of such
contracts or arrangement which exceeded the value of five lacs rupees
in respect of any party at prices which were unreasonable having regard
to prevailing market prices at the relevant time.
(Vi) The company has not accepted any deposits from Public &
consequently the provisions of sections 58A and 58AA of the Companies
Act, 1956 and the rules framed there under are not applicable.
(Vii) in our opinion, the company has an adequate internal audit system
commensurate with the size of the company and the nature of its
business.
(viii) As explained to us the Central Government has not prescribed
maintenance of cost records under clause (d) of sub section (i) of
section 209 of the Companies Act, 1956 in respect of products dealt
with by the company for the year under review.
(ix) According to the records of the company, the company is regular is
depositing with the appropriate authorities undisputed statutory dues
including Income Tax, Wealth Tax, Sales Tax, Custom Duty and any other
statutory dues applicable to it.
x) The accumulated losses at the end of the Financial year are more
than 50% of companies net worth. Company has incurred cash loss during
the year under review and in the immediately preceding financial year.
Xi) Company has not taken any loans from Banks/Financial Institutions
or debenture holders and therefore provision of Para (xi) of Companies
(Audit Report), Order 2003 as amended are not applicable to the
Company.
(xii) Based on our examination of documents and records maintained by
the company, we are of the opinion that since the company has not
granted any loan and advance on the basis security by way of pledge of
shares, debenture and other securities, it is not required to maintain
records in respect thereof.
(xiii) The company is neither a chit fund nidhi/mutual benefit
fund/society and hence clause 4 (xiii) of the Companies (Auditor's
Report) Order, 2003 is not applicable.
(xiv) Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transaction and contracts and timely
entries have been made in those records in respect of dealing or
trading in shares, securities, debentures and other securities in its
own name except to the extent of the exemption granted under section 49
of the Companies Act, 1956.
(xv) Based on our examination of the records, we are of the opinion
that the company has not given guarantee for loans taken by others from
bank or financial institutions.
(XVi) The company has not taken any term loans and accordingly para
(xvi) of the Companies (Audit Report) Order, 2003 as amended are not
applicable.
(xvii) Based on our examination of the Balance Sheet of the company as
at 31.03.2011 we report that no funds were raised during the year and
hence clause (xvii) of Companies (Auditors Report) Order 2003 as
amended are not applicable.
(xviii) During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of Companies Act, 1956
(xix) During the year the company had not issued any debentures.
(xx) During the year under review no money was raised by public issue.
(xxi) According to the information & explanations given to us, we
report no fraud on or by the company has been noticed or reported
during the course of our audit.
For Suresh Kumar Mittal & Co.,
Chartered Accountants
Partner
House No.60, 1st Floor
Pocket H-3, Sector 18
Rohini, Delhi - 110 085.
Dated: 03.09.2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s. MALTI TEXTILE
MILLS LIMITED as at 31st March, 2010 and also Profit & Loss Account for
the year ended on that date annexed thereto and the Cash Flow Statement
for the year ended on that date. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express on 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 a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation we believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 and
Companies (Auditors Report) Amendment Order, 2004 issued by the
Central Government of India in terms of sub-Section (4A) of Section 227
of the Companies Act, 1956 we enclose in the Annexure a statement on
the matters specified in paragraph 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i) 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.
ii) In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books.
iii) The Balance Sheet and the Profit & Loss Account dealt with by this
report. are in agreement with the books of account.
iv) In our opinion, the Balance Sheet and the Profit & Loss Account
dealt with by this report comply with the accounting standards referred
to in Section 211 (3C) of the Companies Act, 1956.
v) On the basis of written representation received from the Directors
as on 31.03.2010 and taken on record by the Board of Directors, we
report that one of the Directors are disqualified as on 31st March,
2010 from being appointed as Director in terms of Section 274 (1)(g) of
the Companies Act, 1956.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the accounts subject to and read together
with notes appearing in schedule 7 give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view:
a) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March, 2010.
b) In the case of the Profit & Loss Account, of the Loss for the year
ended on that date.
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
(i) The Company has no fixed assets and hence para 4 (i) of
Companies (Audit Report) Order, 2003 is not applicable.
(ii) The Company has no stock and neither has purchased nor sold
any raw material, stores, spares and finished goods and hence para 4
(ii) of Companies (Audit Report) Order, 2003 is not applicable.
(iii) (a) The company has not granted any loan during the year to the
parties covered in the register maintained under section 301 of the
Companies Act, 1956. However there are interest free unsecured loan
given in earlier year outstanding as on 31.3.2010 of Rs.52,14,000 in
case of one party covered in register maintained U/s 301. The maximum
amount due during the year was Rs.52,14,000 and outstanding balance as
on 31.3.2010 is of Rs.52,14,000.
(b) No interest has been charged on above unsecured loans. In our
Opinion interest and other terms and condition on which above loans
have been given, are prejudicial to the interest of the company with
regard to non-charging of interest.
(c) The outstanding loans have been reschedule in earlier year. The
management is of the opinion that the same will be recovered within the
rescheduled/extended period.
(d) As mentioned in clause iii (c) above as the overdue amount of
outstanding loans have been rescheduled by the lenders in earlier years
there was no overdue amount outstanding for payment of principal as at
31st March, 2009 and as such clause (iii)(d) of the said order is not
applicable.
(e) The company has not taken any loans during the year from parties
listed in the register maintained under section 301 of the Companies
Act, 1956. However, there are interest free unsecured loan of Rs.
1,86,01,931 outstanding as on 31.03.2010 in case of 4 parties covered
in the register maintained u/s 301 of the Companies Act, 1956. The
maximum amount due during the year was Rs.1,86,01,931.
(f) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from Companies, firms or other parties
listed in the register maintained u/s 301 are prima facie not
prejudicial to the interest of the company.
(g) Parties from whom loans have been taken were rescheduled in earlier
years and accordingly no principal was due for payment during the year
as per revised stipulation.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion & according to the information & explanations given
to us, no transactions were made during the year in pursuance of such
contracts or arrangement which exceeded the value of five lacs rupees
in respect of any party at prices which were unreasonable having regard
to prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits from Public &
consequently the provisions of sections 58A and 58AA of the Companies
Act, 1956 and the rules framed there under are not applicable.
(vii) In our opinion, the company has an adequate internal audit system
commensurate with the size of the company and the nature of its
business.
(viii) As explained to us the Central Government has not prescribed
maintenance of cost records under clause (d) of sub section (i) of
section 209 of the Companies Act, 1956 in respect of products dealt
with by the company for the year under review.
(ix) According to the records of the company, the company is regular is
depositing with the appropriate authorities undisputed statutory dues
including Income Tax, Wealth Tax, Sales Tax, Custom Duty and any other
statutory dues applicable to it.
(x) The accumulated losses at the end of the Financial year are more
than 50% of companies net worth. Company has incurred cash loss during
the year under review and in the immediately preceding financial year.
(xi) Company has not taken any loans from Banks/Financial Institutions
or debenture holders and therefore provision of para (xi) of Companies
(Audit Report), Order 2003 as amended are not applicable to the
Company.
(xii) Based on our examination of documents and records maintained by
the company, we are of the opinion that since the company has not
granted any loan and advance on the basis security by way of pledge of
shares, debenture and other securities, it is not required to maintain
records in respect thereof.
(xiii) The company is neither a chit fund nidhi/mutual benefit
fund/society and hence clause 4 (xiii) of the Companies (Auditors
Report) Order, 2003 is not applicable.
(xiv) Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transaction and contracts and timely
entries have been made in those records in respect of dealing or
trading in shares, securities, debentures and other securities in its
own name except to the extent of the exemption granted under section 49
of the Companies Act, 1956.
(xv) Based on our examination of the records, we are of the opinion
that the company has not given guarantee for loans taken by others from
bank or financial institutions.
(xvi) The company has not taken any term loans and accordingly para
(xvi) of the Companies (Audit Report) Order, 2003 as amended are not
applicable.
(xvii) Based on our examination of the Balance Sheet of the company as
at 31.03.2010 we report that no funds were raised during the year and
hence clause (xvii) of Companies (Auditors Report) Order, 2003 as
amended are not applicable.
(xviii) During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of Companies Act, 1956.
(xix) During the year the company had not issued any debentures.
(xx) During the year under review no money was raised by public issue.
(xxi) According to the information & explanations given to us, we
report no fraud on or by the company has been noticed or reported
during the course of our audit.
For Suresh Kumar Mittal & Co.,
Chartered Accountants
Partner
House No.60, 1st Floor
Pocket H-3, Sector 18
Rohini, Delhi - 110 085.
Dated: 18.08.2010
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