Mar 31, 2014
We have audited the accompanying financial statements of EVERGREEN
TEXTILES LIMITED (the Company), which comprise the Balance Sheet as at
31st March, 2014, the Statement of Profit & 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 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
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 mis-statement, 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 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 mis-statement.
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 judgement, including the
assessment of the risks of material mis-statement 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 Entity''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 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 2014;
(ii) in the case of the Statement of Profit and Loss, of the Loss of
the Company for the year ended on that date, and
(iii) 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
As required by the Companies (Auditor''s Report) Order, 2003 (''The
Order") (as amended), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956, 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:
b) Since the company does not have any branches, the report on the
accounts of the branch offices audited by the other auditor under
section 228(3)(c) of the Companies Act, 1956 is not applicable.
c) The Balance Sheet, Statement of Profit & 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 & Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
Sub Section (3C) of Section 211 of Companies Act. 1956 read with the
General Circular 15/2013 dated 13 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, and taken on record by the Board of
Directors, none of the Directors are 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 Companies Act, 1956;
ANNEXURE REFERRED IN AUDITOR''S REPORT TO THE MEMBERS OF EVERGREEN
TEXTILES LIMITED IN PARAGRAPH 1 IN THE REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS FOR THE YEAR ENDED 31ST MARCH 2014.
I. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
b) As explained to us, all the fixed assets have been physically
verified by the management during the year. Which in our opinion is
reasonable, having regard to the size of the company and the nature of
its assets. No material discrepancies were noticed on such physical
verification.
c) In our Opinion, the Company has not disposed a substantial part of
its fixed assets during the year and the going concern status of the
Company is not affected.
2. As informed, the Company does not have any inventory and hence,
clause 4(ii) (a) (b) & (c) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable.
3. a) The Company has not given any loans during the year to the
Companies, Firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956, hence clause 4(iii)(a) to
(c ) of the Companies (Auditor''s Report) Order,2003 (as amended) are
not applicable.
b) The Company has not taken any loans during the year from the
Companies, Firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956, hence clause 4(iii)(e) to
(g) of the Companies (Auditor''s Report) Order,2003 (as amended) are not
applicable.
4. 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 the purchase of inventory, and fixed assets and for the sale of
goods & services, if any. During the course of our audit, we have not
observed any major weaknesses in the internal control systems of the
company.
5. a) According to the information and explanations given to us, and
based on the audit procedures applied by us, we have not found any
transactions that needed to be entered in the register maintained Under
Section 301 of the Companies Act, 1956.
b) There are no transactions made for purchase or sale of goods and
services exceeding the value of five lakh rupees in respect of any
party listed in the register maintained under section 301 of the
Companies Act, 1956.
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the Public within the
meaning of Section 58A and 58AA of the Companies Act, 1956, hence
clause 4(vi) of the Companies (Auditor''s Report) Order, 2003 (as
amended) are not applicable.
7. While the Company has no formal internal audit system during the
year under review the Directors of the company have always kept
adequate vigilance over the day to day transactions of the company and
over the proper maintenance of the basic records and Books of Accounts
of the company.
8. According to the information and explanations given to us, The
Central Government has not prescribed the maintenance of cost records
under clause (d) of sub section (1) of section 209 of the Act for any
of the products of the company.
9. a) According to the information and explanations given to us and
according to the records examined by us, in our opinion the Company is
regular in depositing all its undisputed statutory dues relating to
Provident fund, Investor Education & Protection fund, Employees State
Insurance, Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom duty,
Excise duty, and Other material Statutory dues as applicable with
appropriate authorities except Excise duty of Rs.5,35,24,282
b) The details of disputed dues of Sales Tax, Service Tax, Income Tax,
Wealth Tax, custom Duty, Excise duty and Cess, which have not been
deposited, are as under :
Name of the Statute Forum where As at As at
dispute is 31.03.14 31.03.13
pending (Rs in Lacs) (Rs in Lacs)
1 Central Excise Appellate Tribunal 428.26 428.26
2 Sales Tax Sales Tax Tribunal 18.45 18.45
10. The Company''s accumulated losses at the end of the financial year
31.03.2014, are more than fifty percent of its net worth. The company
has incurred cash losses in the current year and has also incurred cash
losses in the immediately preceeding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, since the Company has no
borrowings from financial institutions / banks I or debenture holders,
hence clause 4(xi) of the Companies (Auditor''s Report) Order,2003 (as
amended) are not applicable.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities:
hence clause 4(xii) of the Companies (Auditor''s Report) Order, 2003 (as
amended) are not applicable.
13. In our opinion and according to the explanation available the
Company is not a chit fund/ nidhi/ mutual benefit fund / society, hence
clause 4(xiii) of the Companies (Auditors Report) Order, 2003 (as
amended) are not applicable.
14. In our opinion the Company has maintained proper records of
transactions and contracts relating to dealing or trading in shares,
securities, debentures and other investments during the year and timely
entries have been made therein. Further such securities have been held
by the Company in its own name or in the process of transfer in its
name.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions, during the year. Hence
clause 4(xv) of the Companies (Auditor''s Report) Order, 2003 (as
amended) are not applicable.
16. The Company has not obtained any term loans during the year, hence
clause 4(xvi) of the Companies (Auditor''s Report) Order, 2003 (as
amended) are not applicable.
17. According to the information and explanations given to us and on an
overall examination of the Financial Statement of the company, there
are no funds raised on short term basis which have been used for long
term Investment, hence clause 4(xvii) of the Companies (Auditor''s
Report) Order,2003 (as amended) are not applicable.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year, hence clause 4(xviii) of the Companies
(Auditors Report) Order, 2003 (as amended) are not applicable.
19. The company has not issued any debentures during the year, and does
not have any debentures outstanding as at the year end, hence clause
4(xix) of the Companies (Auditor''s Report) Order, 2003 (as amended) are
not applicable.
20. The company has not raised any money by public issues during the
year, hence clause 4(xx) of the Companies (Auditor''s Report) Order,
2003 (as amended) are not applicable.
21. During the course of our examinations of the books and records of
the company, carried out in accordance with generally accepted auditing
practices in India; and according to the information and explanations
given to us by the management, we have neither come across any instance
of fraud on or by the company, noticed or reported during the year nor
have been informed of any such case by the management.
For S.K.BHAGERIA & ASSOCIATES
Chartered Accountants
(Firm Registration No: 112882W)
(S.K.BHAGERIA)
PARTNER
Membership No 41404
PLACE: MUMBAI
DATE: 30.05.2014
Mar 31, 2012
1) We have audited the attached Balance Sheet of EVERGREEN TEXTILES
LIMITED ("The Company") as at 31 st March, 2012 and also the Profit &
Loss Account and Cash flow statement of the company for the year ended
on that date annexed thereto (together referred to as financial
statements'). These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2) We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement; An audit
includes examining on 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, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together to the order), Issued by the Central Government of India in
terms of sub- section (4A) of Section 227 of the Companies Act, 1956 of
India (the 'Act") and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanation given to us, we give in the annexure a
Statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4) Further to the above
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary forthe purpose of oc*
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 such
books of the company.
c) The Balance Sheet, Profit & Loss Account and the Cash Flow statement
dealt with by this report are in agreement with the Books of Accountof
the company.
d) In our opinion, the Balance Sheet and the Profit & Loss Account
comply with the Accounting Standards referred to in Sub Section (3C) of
Section 211 of CompaniesAct, 1956.
e) On the basis of the written representations received from
the Directors 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 a Director in terms of clause (g) of Sub Section (1)
of Section 274 of the CompaniesAct, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with significant accounting policies & notes thereon, give the
Information required by the Companies Act, 1956 in the manner so
required and present a true and fair view In conformity with the
accounting principles generally accepted In India :-
(1) tn the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March 2012.
(il) In the case of statement of the Profit and Loss Account, of the
Loss forthe year ended on that date; and
(iii) In the case of Cash flow Statement, of the Cash flowfor the year
ended on that date.
ANNEXURE REFERRED IN PARAGRAPH 3 OF AUDITOR'S REPORT TO THE MEMBERS OF
EVERGREEN TEXTILES LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR
ENDED 31ST MARCH 1012.
1. a) The Company has maintained proper records showing full
particulars including quamitaive details and situation of Fixed AueU.
b) All the fixed asset* have teen physically verified by the management
during Ihc year. In our opinion the frequency of verification is
reasonable having regard to Ihe tile of the company and the nature of
its assets. No material diicrepancies were noticed on such
verification,
c) Since there is no disposal of Fixed Assets during the year, para 4
(i) ( c) of the Companies (Auditor's Report) order, 2003 (the order) it
not applicable.
2. Since there are no Inventories, para A (it) (a),
3 a) According to the information and explanations given to us the
company has not granted any secured or unsecured loans to Companies,
Firms or other panics covered in the register maintained under section
301 of the Companies Act, 1956, accordingly para 4 (iii) (a) to ( c) of
the order is not applicable.
bi) The company has taken unsecured loan from one Company, listed in
the register maintained under section 301 of the Companies Act, 1956,
wherein the balance payable as at the year end is Rs. 21,50,0007-
(Maximum balance outstanding during the year is Rs. 21,30.000/-),
bii) The loan taken is interest free, the same in our opinion is not
prima facie, prejudicial to the interest of the company.
biii) The Loan is Repayable on demand & there is no outstanding in
respect thereof In our opinion and according to the information and
explanations given to us, there are adequate internal control system
commensurate with the siie of the Company and the nature of its
business with regard to the purchase of inventory, and fixed assets and
for the sale of goods & services, if any. During the course of our
audit, we have not observed any major weaknesses in the internal
control systems of the company..
J. a) According to the information and explanations given to us, and
based on the audit procedures applied by us, the transactions that
needed to be entered in the register maintained Under Section 301 or
the Act have been so entered.
There are no transactions made for purchase or sale of goods and
services exceeding the value of five lakh rupees in respect of any
party listed in the register maintained under section 301 of the Act.
6 The company has not accepted any deposits from the Public Within the
meaning of Section 5SA and SSAA of the Act and the rules framed there
under.
While the Company has no formal internal audit system during the year
under review, the Directors of the company have always kept adequate
vigilance over the day to day transactions of the company and over the
proper maintainanec of the basic records and Books of Accounts of the
Company.
8. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cast records
under section 209 (1) (d) of the Act for any of the products of the
company.
9. a) According to the information and explanations given to us and
according to the records examined by us, in our opinion the Company is
regular in depositing all its undisputed statutory dues relating to
Providend fund, Investor Education & Protection fund. Employees Stale
Insurance. Income Tax. Wealth Tax, Sales Tax, Service Tax, Custom
duty, Excise duty, and Other material Statutory dues as applicable,with
appropriate authorities except Excise duty of Rs.5,35,24,282/-
b) The details of disputed dues of Sales Tax, Service Tax, Income Tax,
Wealth Tax. custom Duty, Excise duty and Cess, which have not been
deposited, are as under :
As at As at
Forum where. 31.03.12 31.03.11
dispute is (Rs in Lacs) (Rs in Lacs)
1 Central Excise Appellate
Tribunal 428.26 428.26
2 Sales Tax Sales Tax
Tribunal 18.25 18.25
10. The accumulated losses of the Company at the end of the financial
year 31.03.2012, are more than fifty percent of its net worth, at the
end of the financial year. The company has incurred cash losses during
the financial year and also in the immediately preceding financial
year.
11. According to the records of the Company examined by us and the
information and explanations given to us, since the Company has no
bosrowings from Financial institutions / Banks / Debenture Holders para
4 (xi) of the Order is not applicable to the Company.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The. provisions of any Special Statue applicable to chit fund /
nidlii / mutual benefit fund / societies, are are not applicable to the
company.
14. In our opinion the Company has maintained proper records of
transactions and contracts relating to dealing or trading in shares,
securities, debentures and other investments during the year and timely
entries have been made therein. Further such securities have been held
by the Company in its own name or in the process of transfer in its
name.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions, during the year.
16. The Company has not obtained any term loans during the year.
17> According to the information and explanations given to us and on an
overall examination of the Financial Statement of the company, there
are no funds raised on short term basis which have been used for long
term Investment.
18. The company hat not made any preferential allotment of shares to
parties and companies covered in Ihe register maintained under section
301 of the Act during the year.
19. The company has not issued any debentures during the year; and
does not have any debentures outstanding as at the year end.
20. The company has not raised any monej' by public issues during the
year.
During the course of our examinations of the books and records of the
company, carried out in accordance with generally accepted auditing
practices in India and according to the information and explanations
given to us by the management, we have neither come across any instance
of fraud on or by the company, noticed or reported during the year nor
have been informed of any such case by the management.
For S.K.BHAGERIA & ASSOCIATES
Chartered Accountants
(Firm Registration No : 112882W)
(S.K.BHAGERIA)
PLACE: MUMBAI PARTNER
DATE : 24/0871012 Membership No 41404
Mar 31, 2011
1) We have audited the attached Balance Sheet of EVERGREEN TEXTILES
LIMITED as at 31st March, 2011 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 Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2) We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on 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, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we annex hereto a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
4) Further to the above
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 such
books of the company.
c) The Balance Sheet, Profit & Loss Account and the Cash Flow statement
dealt with by this report are in agreement with the Books of Account of
the company.
d) In our opinion, the Balance Sheet and the Profit & Loss Account
comply with the Accounting Standards referred to in Sub Section (3C) of
Section 211 of Companies Act, 1956.
e) On the basis of the written representations received from the
Directors 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 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 financial statements together
with significant accounting policies & notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and present 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 2011.
(ii) In the case of the Profit and Loss Account, of the Loss for the
year ended on that date. (iii) In the case of Cash flow Statement, of
the Cash flow for the year ended on that date.
ANNEXURE REFERRED IN PARAGRAPH 3 OF AUDITOR'S REPORT TO THE MEMBERS OF
EVERGREEN TEXTILES LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST
MARCH 2011.
i) a) The Company has maintained proper records showing full
particulars including quantitaive details and situation of Fixed
Assets.
b) All the fixed assets have been physically verified by the management
during the year. In our opinion the frequency of verification is
reasonable having regard to the size of the company and the nature of
its assets. No material discrepancies were noticed on such
verification.
c) Since there is no disposal of Fixed Assets during the year, para 4
(i) ( c) of the Companies (Auditor's Report) order, 2003 (the order) is
not applicable.
ii) Since there are no Inventories, para 4 (ii) (a), (b) & (c) of the
Order is not applicable.
iii) a) According to the information and explanations given to us the
company has not granted any secured or unsecured loans to Companies,
Firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956, accordingly para 4 (iii) (a) to ( c) of
the order is not applicable.
b)i The company has taken unsecured loan from one Company, listed in
the register maintained under section 301 of the Companies Act, 1956,
wherein the balance payable as at the year end is Rs. 11,53,500/-
(Maximum balance outstanding during the year is Rs. 17,68,500/-).
ii The loan taken is interest free, the same in our opinion is not
prima facie, prejudicial to the interest of the company.
iii No Terms and Conditions have been stipulated for repayment of the
loan hence we are unable to express our opinion on the same.
iv) 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 with regard
to the purchase of inventory, and fixed assets and for the sale of
goods & services, if any. During the course of our audit, we have not
observed any major weaknesses in the internal control systems of the
company..
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 and according to the information and explanations
given to us, Since the company has not entered into any transactions of
contracts or arrangements exceeding Rs five lakh in respect of any
party during the financial year that needs to be entered in the
register maintained under section 301 of the Companies Act, 1956, Para
4 of (v)(b) of the order is not applicable.
vi) The company has not accepted any deposits from the Public and
consequently, the provisions of Section 58A and 58AA or any other
relevant provisions of the Companies Act, 1956 are not attracted.
vii) While the Company has no formal internal audit system during the
year under review. the Directors of the company have always kept
adequate vigilance over the day to day transactions of the company and
over the proper maintainance of the basic records and Books of Accounts
of the company.
viii) We are informed that the Central Government has not prescribed
the maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956 for any of the products of the company.
ix) a) According to the information and explanations given to us the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Providend fund, Investor Education
& Protection fund, Employees state Insurance, Income Tax, Wealth Tax,
Sales Tax, Service Tax, Custom duty, Excise duty, Cess and Other
Statutory dues applicable to it. further to this there are no
undisputed dues payable in respect of Income Tax, Wealth Tax, Sales
Tax, Service Tax, Custom duty, Excise duty, and Cess were in arrears,
as at 31st March, 2011 for more than six months from the date they
become payable except Excise duty of Rs.5,35,24,282/-
b) The details of disputed dues of Sales Tax, Service Tax, Income Tax,
Wealth Tax, custom Duty, Excise duty and Cess, which have not been
deposited, are as under :
As at As at
31.03.11 31.03.10
Name of the Statute Forum where dispute
is pending (Rs in Lacs) (Rs in Lacs)
1 Central Excise Appellate Tribunal 428.26 428.26
2 Sales Tax Sales Tax Tribunal 18.25 18.25
x) The accumulated losses of the Company at the end of the financial
year 31.03.2011. are more than fifty percent of its net worth, the
company has incurred cash losses during the financial year and also in
the immediately preceeding financial year.
xi) According to the information and explanations given to us, there
are no dues of Financial institutions / Banks / Debenture Holders at
the year end, hence provisions of clause 4 (xi) of the Order is not
applicable to the Company.
xii) Based on our examinations of the records & of the information and
explanations given to us, the Company has not granted any loans and /or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause 4
(xiii) of the Order are not applicable to the company.
xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4 (xiv) of the Order are not applicable to the
company.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions. Therefore, the provisions
of clause 4 (xv) of the Order does not apply to the company.
xvi) According to the information and explanations given to us, the
Company has not taken any term loans during the year, hence the
provisions of clause 4 (xvi) of the Order is not applicable to the
Company.
xvii) According to the information and explanations given to us and on
a overall examination of balance sheet of the company, Since the
company has not raised any short term fund or long term fund, para 4
(xvii) of the Order is not applicable to the Company.
xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956, during the year. Hence para 4 (xviii) of the
Order is not applicable to the Company.
xix) According to the information and explanations given to us the
company has not issued any debentures during the year, hence para 4
(xix) of the Order is not applicable to the Company.
xx) According to the information and explanations given to us the
company has not raised any money by way of public issues during the
year, hence para 4 (xx) of the Order is not applicable to the Company.
xxi) According to information and explanations given to us no fraud on
or by the company has been noticed or reported during the year, in the
course of our audit.
For S.K. BHAGERIA & ASSOCIATES
Chartered Accountants
(Registration No : 112882W)
sd/-
(S.K.BHAGERIA)
PARTNER
Membership No 41404
PLACE : MUMBAI
DATE : 22nd August, 2011.
Mar 31, 2010
1) We have audited the attached Balance Sheet of EVERGREEN TEXTILES
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
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, as
amended by the 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 annex hereto a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
4) Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) Note No. 6 (a) & (b): Relating to certain records of the company
taken by the Central Excise Authorities and their reconstruction
thereupon.
(b) Note No. 7 : Relating to accounting of Cash Compensatory Support
(CCS) of Rs. 3.15 Lacs for the year ended 31/03/1992 with interest @ 6%
p.a. as mentioned in the note, to be accounted as and when received.
5) Subject to the above
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 such books of the company.
c) The Balance Sheet, Profit & Loss Account and the Cash Flow statement
dealt with by this report are in agreement with the Books of Account of
the company.
d) In our opinion, the Balance Sheet and the Profit & Loss Account
comply with the Accounting Standards referred to in Sub Section (3C) of
Section 211 of Companies Act, 1956.
e) On the basis of the written representations received from the
Directors and taken on record by the Board of Directors, we report that
none of the Directors are 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, subject to what is stated in para 4(b)
(without taking into account para 4 (a) as the extent of loss, at
present in respect of which is unascertainable / not ascertained),
aggregate effect of which has resulted in the loss for the year being
higher by Rs. 3.15 Lacs and accumulated losses carried in the balance
sheet would be of Rs 1547.81 Lacs as against the reported accumulated
losses of Rs. 1550.96 Lacs and subject to what is stated in paragraph
1,2,3 & 4 above. The Balance sheet, Profit & Loss Account and Cash Flow
Statement give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:-
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010.
(ii) In the case of the Profit and Loss Account, of the Loss for the
year ended on that date.
(iii) In the case of Cash flow Statement, of the Cash flow for the year
ended on that date.
ANNEXURE REFERRED IN PARAGRAPH 3 OF AUDITORS REPORT TO THE MEMBERS OF
EVERGREEN TEXTILES LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST
MARCH 2010.
i) a) The Company has maintained proper records showing full
particulars including quantitaive details and situation of Fixed
Assets.
b) All the fixed assets have been physically verified by the management
during the year. In our opinion the frequency of verification is
reasonable having regard to the size of the company and the nature of
its assets. The discrepancies noticed on physical verification were not
material and properly dealt within the books of accounts.
c) Since there is no disposal of Fixed Assets during the year, para 4
(i) ( c) of the Companies (Auditors Report) order, 2003 (the order) is
not applicable.
ii) Since there are no Inventories, para 4 (ii) (a), (b) & (c) of the
Order is not applicable.
iii) a) According to the information and explanations given to us the
company has not granted any secured or unsecured loans to Companies,
Firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956, accordingly para 4 (iii) (a) to ( c) of
the order is not applicable.
b) The company has taken unsecured loan from one Company, listed in the
register maintained under section 301 of the Companies Act. 1956,
wherein the balance payable as at the year end is Rs. 11,29,728/-
(Maximum balance outstanding during the year is Rs. 11,29,728/-).
Though the loan taken is interest free, the same in our opinion is not
prima fade, prejudicial to the interest of the company however no Terms
and Conditions have been stipulated for repayment of the loan hence we
are unable to express our opinion on the same.
iv) 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 with regard
to the purchase of inventory, and fixed assets and for the sale of
goods & services, if any. During the course of our audit, we have not
observed any major weaknesses in the internal control systems of the
company.
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 and according to the information and explanations
given to us, Since the company has not entered into any transactions of
contracts or arrangements exceeding Rs five lakh in respect of any
party during the financial year that needs to be entered in the
register maintained under section 301 of the Companies Act, 1956, Para
4 of (v)(b) of the order is not applicable.
vi) The company has not accepted any deposits from the Public and
consequently, the provisions of Section 58A and 58AA or any other
relevant provisions of the Companies Act, 1956 are not attracted.
vii) While the Company has no formal internal audit system during the
year under review, the Directors of the company have always kept
adequate vigilance over the day to day transactions of the company and
over the proper maintainance of the basic records and Books of Accounts
of the company.
viii) We are informed that the Central Government has not prescribed
the maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956 for any of the products of the company.
ix) a) According to the information and explanations given to us the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Providend fund, Investor Education
& Protection fund, Employees state Insurance, Income Tax, Wealth Tax,
Sales Tax, Service Tax, Custom duty, Excise duty, Cess and Other
Statutory dues applicable to it further to this there are no undisputed
dues payable in respect of Income Tax, Wealth Tax, Sales Tax. Service
Tax. Custom duty. Excise duty, and Cess were in arrears, as at
31st March, 2010 for more than six months from the date they become
payable except Excise duty of Rs.5.35,24.282/-
b) The details of disputed dues of Sales Tax, Service Tax, Income Tax,
Wealth Tax, custom Duty. Excise duty and Cess, which have not been
deposited, are as under:
As at As at
Name of the Forum where 31.03.10 31.03.09
Statute dispute is pending (Rs in Lacs) (Rs in Lacs)
1 Central Excise Appellate Tribunal 428.26 428.26
2 Sales Tax Sales Tax Tribunal 18.25 18.25
x) The accumulated losses of the Company at the end of the financial
year 31.03.2010. are more than fifty percent of its net worth, the
company has incurred cash losses during the financial year and also in
the immediately proceeding financial year.
xi) According to the information and explanations given to us, there
are no dues of Financial institutions / Banks / Debenture Holders at
the year end, hence provisions of clause 4 (xi) of the Order is not
applicable to the Company.
xii) Based on our examinations of the records & of the information and
explanations given to us, the Company has not granted any loans and /or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause 4
(xiii) of the Order are not applicable to the company.
xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4 (xiv) of the Order are not applicable to the
company.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions. Therefore, the provisions
of clause 4 (xv) of the Order does not apply to the company.
xvi) According to the information and explanations given to us, the
Company has not taken any term loans during the year, hence the
provisions of clause 4 (xvi) of the Order is not applicable to the
Company.
xvii) According to the information and explanations given to us and on
a overall examination of balance sheet of the company, Since the
company has not raised any short term fund or long term fund, para 4
(xvii) of the Order is not applicable to the Company.
xviii) According to the information and explanations given to us, tfw
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act. 1956, during the year. Hence para 4 (xviii) of the
Order is not applicable to the Company.
xix) According to the information and explanations given to us the
company. has not issued any debentures during the year, hence para 4
(xix) of the Order is not applicable to the Company.
xx) According to the information and explanations given to us the
company has not raised any money by way of public issues during the
year. hence para 4 (xx) of the Order is not applicable to the
Company..
xxi) According to information and explanations given to us no fraud on
or by the company has been noticed or reported during the year, in the
course of our audit.
For S.K.BHAGERIA & ASSOCIATES
Chartered Accountants
(Registration No: 112882W)
PLACE :MUMBAI (S.K. BHAGERIA)
DATE : 20TH AUGUST, 2010. PARTNER
Membership No 41404