Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of FIBERWEB (INDIA) LIMITED (''the Company''), which comprise the Balance Sheet as at 31st March, 2018, and the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as ''Standalone Financial Statement'').
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in sub-section 5 of section 134 of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flow and the Statement of Changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and 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 the 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone 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 of the Standalone Financial Statements in accordance with the Standards on Auditing specified under sub-section 10 of Section 143 of the Act and other applicable authoritative pronouncements issued by the institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone 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 standalone 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 Board of Directors, as well as evaluating the overall presentation of the standalone 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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, and subject to Notes, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit including other comprehensive income, its cash flows and the statement of changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2016 (''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'' a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by sub section 3 of Section 143 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 including other comprehensive income, the Cash Flow Statement dealt and the statement of changes in equity with by this Report, are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of sub-section 2 of Section 164 of the Act.
f) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in ''Annexure B''; and
g) 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 does not have any pending litigations which would impact its financial position.
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
The Annexure A referred to in Para 1 - Report on Other Legal Regulatory Requirements of our Independent Auditor''s Report to the members of the Company on the standalone financial statements for the year ended 31 March 2018, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) As explained to us, the fixed assets have been physically verified by the management at reasonable intervals during the year, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such verification;
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the company;
ii) In our opinion the inventories have been physically verified during the year by the Management at reasaonable intervals and as explained to us, no material discrepancies were noticed on physical verification;
iii) 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 189 of the companies Act 2013;
iv) The Company has not given loans, or made investments, or given guarantees and provided security in terms of provisions of section 185 and 186 of The Companies Act, 2013;
v) The Company has not accepted deposits and hence the directive issued by the Reserve Bank of India and the provisions of the sections 73 to 76 of the Act and the Companies (acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable to the Company;
vi) We have been informed that the Company is not required to maintain cost record under sub-section (1) of section 148 of the Companies Act,2013.
vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, employee''s state insurance, income tax, sales tax, custom Duty, service tax, value added tax, cess and any other statutory dues have been regularly deposited during the year by the Company with the appropriate authorities and no undisputed amounts payable were in arrears as at 31 March, 2018 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 are no disputed amounts of income tax, sales tax, custom duty, service tax or value added tax which have not been deposited with the concerned authorities;
(c) During the year Central Excise Department has levied an anti dumping duty on the company of Rs. 1,37,77,776/- for the period August 2009 to March 2015 and also penalty of Rs 1,37,77,776/- and Interest thereon and of Rs 15,00,000/- on one of its Directors. The company has filed an appeal against the said order before CESTAT, Ahmedabad. The company has paid an amount of Rs. 10,33,333/- and Rs 1,12,500/against the said demand, as deposit for filing the appeal.
viii) In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to a bank. The Company has not obtained any borrowing from any financial institutions, Government or by way of debentures;
ix) On the basis of records examined by us and the information and explanations given to us, the Company has not raised money by way of initial public offer or further public offer during the year;
x) In our opinion and according to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year;
xi) In our opinion and according to the information and explanations given to us, and based on our examination of the records of the Company, the Company has paid managerial remuneration as per Section 197 read with Schedule V to the Companies Act, 2013;
xii) In our opinion and according to the information and explanations given to us, the company is not a Nidhi company. Accordingly paragraph 3(xii) is not applicable;
xiii) In our opinion and according to the information and explanations given to us, and based on our examination of the records of the Company, all transactions with the related parties are in compliance with sections 177 and 188 of the Act, where applicable and the details of the same have been disclosed in the financial statements as required by the applicable accounting standards;
xiv) According to the information and explanations given to us, and based on our examination of the records of the Company, the monies raised during current year and last year, through private placement of 18,00,000 convertible equity warrants comprising face value of Rs.10/- each at a premium of Rs.171/- per share to be converted into 18,00,000 equity shares. Out of this, 7,00,000 equity warrants were converted into equity shares of Rs. 10/- each, at a premium of Rs.171/- each, in last year and the balance, 11,00,000 equity warrants were converted into equity shares of Rs.10/- each, at a premium of Rs.171/- per share, in current year, are in compliance with Section 42 of the Companies Act, 2013 and said funds has been utilized for the purposes for which they were raised;
xv) According to the information and explanations given to us, and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with them. Accordingly paragraph 3(15) of the order is not applicable;
xvi) The Company is not required to be registered under section 45-1A of the Reserve Bank of India, 1934.
The Annexure B referred to in Para 2(f) - Report on other Regulatory requirements of our Independent Auditor''s Report to the Members of the Company on the Internal Financial Controls under clause (i) of subsection 3 of section 143 of the Companies Act, 2013 (âthe actâ) for the year ended 31st March, 2018
We have audited the internal financial controls over financial reporting of FIBERWEB (INDIA) LIMITED (âthe companyâ) as of 31st March, 2018 in conjunction with our audit of the standalone financial statements of the company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of internal financial controls over financial Reporting issued by the institute of Chartered Accountants of India.â These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors. The accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the company''s internal financial controls over financial reporting based on our audit in accordance with the Guidance Note on Audit of internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s internal financial Control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, materials misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedure may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
FOR A. V. Jobanputra & Co.
CHARTERED ACCOUNTANTS
Firm Registration No.: 104314W
A. V. Jobanputra
PROPRIETOR
(MEMBERSHIP NO: 016352)
Place:- Mumbai
Date :- 09/08/2018
Mar 31, 2016
To
The Members
FIBERWEB (INDIA) LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of FIBERWEB (INDIA) LIMITED (''the Company''), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year on that date, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in sub-section 5 of section 134 of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone 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 sub-section 10 of Section 143 of the Act and other applicable authoritative pronouncements issued by the institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and 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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, and subject to Note nos. 26, 27 and 28 the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2016 (''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 Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by sub section 3 of Section 143 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 the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified 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 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of sub-section 2 of Section 164 of the Act.
f) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in ''Annexure B''; and
g) 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 does not have any pending litigations which would impact its financial position.
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
The Annexure A referred to in Para 1 - Report on Other Legal Regulatory Requirements of our Independent Auditor''s Report to the members of the Company on the standalone financial statements for the year ended 31 March 2016, we report that:
(i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
b) As explained to us, the fixed assets have been physically verified by the management at reasonable intervals during the year, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such verification;
c) In our opinion and according to the information and explanations given to us, substantial part of the fixed assets has not been disposed off by the company, during the year;
d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the company;
(ii) a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable;
b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to size of the company and nature of its business;
c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material;
(iii) 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 but received unsecured loan of Rs 11,11,700/- from Mr. Pravin V Sheth, covered in the register maintained under section 189 of the companies Act 2013. The terms and conditions are not prejudicial to the interest of the Company
(iv) The Company has not given loans, or made investments, or given guarantees and provided security in terms of provisions of section 185 and 186 of The Companies Act, 2013.
(v) The Company has not accepted deposits and hence the directives issued by the Reserve Bank of India and the provisions of the sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under are not required to be complied with by the Company.
(vi) We have been informed that the Company is not required to maintain cost record under sub-section (1) of section 148 of the Companies Act,2013.
(vii) a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, employee''s state insurance, income tax, sales tax, custom Duty, service tax, value added tax, cess and any other statutory dues have been regularly deposited during the year by the Company with the appropriate authorities and no undisputed amounts payable were in arrears as at 31 March 2016 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 are no disputed amounts of income tax, sales tax, custom duty, service tax or value added tax which have not been deposited with the concerned authorities;
c) During the year Central Excise Department has levied an anti dumping duty on the company of Rs. 1,37,77,776/- for the period August 2009 to March 2015 and also penalty of Rs 1,37,77,776/- and Interest thereon and of Rs 15,00,000/- on one of its Directors. The company has filed an appeal against the said order before CESTAT, Ahmedabad. The company has paid an amount of Rs. 10,33,333/- and Rs 1,12,500/against the said demand, as deposit for filing the appeal.
(viii) In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to a bank. The Company has not obtained any borrowing from any financial institutions, Government or by way of debentures;
(ix) On the basis of records examined by us and the information and explanations given to us, the Company has not raised money by way of initial public offer or further public offer during the year
(x) In our opinion and according to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, and based on our examination of the records of the Company, the Company has paid managerial remuneration as per Section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion and according to the information and explanations given to us, the company is not a Nidhi company. Accordingly paragraph 3(12) is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, and based on our examination of the records of the Company, all transactions with the related parties are in compliance with sections 177 and 188 of the Act, where applicable and the details of the same have been disclosed in the financial statements as required by the applicable accounting standards;
(xiv) According to the information and explanations given to us, and based on our examination of the records of the Company, the monies raised during the year through private placement of 60,00,000 equity shares amounting to Rs 6,00,00,000/- are in compliance with Section 42 of the Companies Act, 2013 and said funds has been utilized for the purposes for which they were raised as directed by the BIFR order dt.20/10/2015.
(xv) According to the information and explanations given to us, and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with them. Accordingly paragraph 3(15) of the order is not applicable.
(xvi) The Company is not required to be registered under section 45-1A of the Reserve Bank of India, 1934.
The Annexure B referred to in Para 2(f) - Report on other Regulatory requirements of our Independent Auditor''s Report to the Members of the Company on the Internal Financial Controls under clause (i) of subsection 3 of section 143 of the Companies Act, 2013 (âthe actâ) for the year ended 31st March, 2016
We have audited the internal financial controls over financial reporting of FIBERWEB (INDIA) LIMITED (âthe companyâ) as of 31st March, 2016 in conjunction with our audit of the financial statements of the company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of internal financial controls over financial Reporting issued by the institute of Chartered Accountants of India.â These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors. The accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the company''s internal financial controls over financial reporting based on our audit in accordance with the Guidance Note on Audit of internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s internal financial Control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles. And that receipts and expenditures of the company are being made only in accordance with authorities of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management overrides of controls, materials misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedure may deteriorate.
Opinion
In our opinion, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
FOR A. V. Jobanputra & Co.
CHARTERED ACCOUNTANTS
Firm Registration No.: 104314W
A. V. Jobanputra
PROPRIETOR
(MEMBERSHIP NO: 016352)
Place:- Mumbai
Date:- 04/08/2016
Mar 31, 2015
We have audited the accompanying financial statements of FIBERWEB
(INDIA) LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss, 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 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, financial performance and cash
flows 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 theodolite'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 tot he
explanations given to us and subject to Note no. 29(IV)(C), (VIII)(C),
30(I), (II), (IV), (V) 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 31st March, 2015, and its Loss and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
I. As required by 'the Companies (Auditor's Report) Order, 2015',
issued by the Central Government of India in terms of sub-section (11)
of section 143 of the Act (hereinafter referred to as the "Order"), 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
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
II. 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 the Cash
Flow Statement 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) In our opinion, the company, based on the facts of its case and its
background is a going concern.
(f) On the basis of the written representations received from the
Directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2015
from being appointed as a Director in terms of Section 164(2) of the
Act.
(g) Since the central Government has not issued any notification as to
the rate at which the cess is to be paid under Section 441 of the Act,
nor has it issued any rules under the said section, prescribing the
manner in which such cess is to be paid, no cess is due and payable by
the company.
ANNEXURE REFERRED TO IN PARAGRAPH I OF OUR REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS OUR AUDITORS' REPORT OF EVEN DATE ON THE
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2015 OF FIBERWEB
(INDIA) LIMITED
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that: -
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of the fixed
assets;
(b) The fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of three years which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
According to the information and explanation given to us, no material
discrepancies were noticed on such verification;
(c) In our opinion and according to the information and explanations
given to us, substantial part of the fixed assets has not been disposed
off by the Company, during the year;
(ii) (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable;
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business;
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material;
(iii) According to the information and explanations given to us, the
Company has not granted any secured or unsecured loans to / from
Companies, firms or other parties but received an unsecured loans of
Rs. 8,00,000/- from one party, Shri Pravin Sheth, covered in the
register maintained under Section 189 of the Companies Act, 2013 during
the year;
(iv) The company has an internal audit system commensurate with the
size of the company and nature of its business
(v) The Company has not accepted any deposits from the public during
the year, Therefore the provisions of clause 3 (v) of the Companies
(Auditors Report) Order, 2015 are not applicable to the Company;
(vi) We are unable to offer any comment on the clause no. (vi)
pertaining to maintenance of cost records as the cost auditor has not
completed cost audit till date;
(vii) (a) According to the records of the Company, it has been
generally regular in depositing, wherever applicable, undisputed
statutory dues including Investor Education and Protection Fund, Wealth
Tax, Custom Duty, Cess and other statutory dues with the appropriate
authorities.
(b) No Un-disputed amounts payable in respect of Income Tax, Wealth
Tax, Sales Tax, Custom Duty, Excise Duty and Cess were in arrears, as
at 31st March, 2015, for a period of more than six months from the date
they became payable;
(c) There are no dues of sales tax , income tax, custom tax , wealth
tax, excise duty and Cess which have not been deposited on account of
any dispute;
(viii) The accumulated losses of the company are more than 50% (Fifty
Percent) of its Net Worth and hence the company has filed a reference
with the BIFR, New Delhi Under the SICA 1985 which has been registered
by the BIFR. The Company registered under the Sick Unit vide BIFR's
order dated 18.01.2007. The Company has earned Cash Profit of Rs.
2,14,82,875/- in the current financial year and of Rs. 1,21,55,744/- in
the immediate preceding financial year. In arriving at the accumulated
loss and net worth, we have considered the qualifications which are
quantifiable in the Audit Report of the year to which these losses
pertain;
(ix) On the basis of records examined by us and the information and
explanations given to us, the Company has not accepted any loans from
any financial institution or banks or issued debentures. Therefore the
provisions of clause 3 (ix) of the Companies (Auditors Report) Order,
2015 are not applicable to the Company;
(x) According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from banks or financial
institutions;
(xi) On the basis of the records examined by us, we have to state that,
the Company has not obtained any term loans during the year;
(xii) According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the Company during the year;
For P.M.Turakhia & Associates For A.V. Jobanputra & Co.
Chartered Accountants Chartered Accountants
Firm Registration No: 111086W Firm Registration No: 104314W
M.D.Turakhia A.V.Jobanputra
Partner Proprietor
Membership No. 017399 Membership No. 016352
Place : Mumbai
Date : 30.05.2015
Mar 31, 2014
We have audited the accompanying financial statements of FIBERWEB
(INDIA) LIMITED, ("the Company") (Formerly Known as PVD Plast Mould
Industries Limited), which comprise 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 the 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 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. 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.
In our opinion and to the best of our information and according to the
explanations given to us and subject to Note 29(VIII)(C), 30(I), (II),
(IV), (V), 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 company doesnot have any Branch office and accordingly this
clause is not applicable to the company;
(d) 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;
(e) 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.
(f) On the basis of the written representations received from the
directors as on 31 st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
(g) Since the central Government has not issued any notification as to
the rate at which the cess is to be paid under Section 441 of the Act,
nor has it issued any rules under the said section, prescribing the
manner in which such cess is to be paid, no cess is due and payable by
the company.
The Annexure referred to in our report to the members of FIBERWEB
(INDIA) LIMITED for the year ended 31 March, 2014. We report that: -
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details & situation of fixed
assets;
(b) All the Assets have not been physically verified by the Management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its Fixed Assets. No material discrepancies were
noticed on such verification;
(c) During the year, the Company has not disposed off a major or
substantial part of fixed assets so as to affect the going concern
status of the Company;
ii) (a) The Inventory has been physically verified during the year by
the Management. The frequency of verification is reasonable;
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business;
(c) The Company has maintained proper records of inventory. The
material discrepancies noticed on physical verification have been
properly dealt with in the books of accounts;
iii) The Company had neither taken nor granted any loans, secured or
unsecured from / to Companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act 1956. Hence,
the question of reporting whether the rate of interest and other terms
and conditions of such loans are prima facie prejudicial to the
interest of the company, whether reasonable step for recovery / payment
of the overdues of such loans are taken does not arise;
iv) There is adequate inventory control procedure commensurate with the
size of the company and nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
There is no continuing failure to correct major weaknesses in internal
control;
v) Based on the audit procedures applied by us and the information and
explanations provided by the management, we are of the opinion that
there were no transactions during the year that need to be entered in
the register maintained under section 301 of the Companies Act, 1956;
vi) Based on our scrutiny of the company''s records and according to the
information and explanations provided by the management, in our
opinion, the company has not accepted any public deposits so far upto
31st March, 2014;
vii) The company has an internal audit system commensurate with the
size of the company and nature of its business;
viii) We are unable to offer any comment on the clause no. (viii)
pertaining to maintenance of cost records as the cost auditor has not
completed cost audit till date;
ix) (a) The company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax Wealth Tax, Custom
Duty, Excise Duty, and Cess any other material statutory dues
applicable to it; However, company has not made any provision for
Service Tax liability under Reverse Charge mechanism in terms of
notification no. 33/2012 - Service Tax dated 20th june, 2012. The
Service tax amounts to Rs. 1,18,378/- (excluding interest). To the
extent of service tax liability, the liabilities is understated.
(b) No Un-disputed amounts payable in respect of Income Tax, Wealth
Tax, Sales Tax, Custom Duty, Excise Duty and Cess were in arrears, as
at 31st March, 2014, for a period of more than six months from the date
they became payable;
(c) There are no dues of sales tax , income tax, custom tax , wealth
tax, excise duty and Cess which have not been deposited on account of
any dispute;
x) The accumulated losses of the company are more than 50% (Fifty
Percent) of its Net Worth and hence the company has filed a reference
with the BIFR, New Delhi Under the SICA 1985 which has been registered
by the BIFR.the company registered under the Sick Unit vide BIFR''s
order dated 18.01.2007. The company has earned Cash Profit of Rs.
1,21,55,744/- in the current financial year and of Rs. 2,40,25,642/- in
the immediate preceding financial year. In arriving at the accumulated
loss and net worth, we have considered the qualifications which are
quantifiable in the Audit Report of the year to which these losses
pertain;
xi) The Company has not granted any Loans & Advances on the basis of
Security by way Pledge of Shares, Debentures and other securities.
Hence, the provisions as to whether the adequate documents and records
are maintained and to point out the deficiencies, if any in this regard
are not applicable;
xii) The Company is not a Chit Fund or Nidhi / Mutual Benefit
Fund/Society. Hence, the provisions of clause 4(xiii) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company;
xiii) The Company is not dealing in or trading in Shares, Securities,
Debentures and other investments. Hence, the provisions of Clause 4
(xiv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company;
xiv) The company has not given any guarantee for loans taken by others
from Bank or Financial Institution. Accordingly, the provisions as to
whether the terms & conditions in respect thereof are prejudicial to
the interest of the Company are not applicable to the company;
xv) The company has not recorded, obtained any terms loans. Hence,
comments under the clause are not called for the provisions as to
whether the price at which shares have been issued is prejudicial to
the interest of the company are not applicable;
xvi) No funds raised on short term basis have been used for the long
term investment by the company;
xvii) 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. Hence the provisions as to whether the
price at which shares have been issued is prejudicial to the interest
of the company are not applicable;
xviii) According to the records of the company, the company has not
issued any Debentures;
xix) The company has not raised any money by public issue. Hence the
provisions as to whether the management has disclosed on the end use of
money raised by public issue and the same has been verified are not
applicable;
xx) No fraud on or by the company has been noticed or reported during
the course of our Audit.
For P.M. Turakhia & Associates
Chartered Accountants
Firm Registration No: 111086W
M.D.Turakhia
Partner
Membership No: 017399
Place: Mumbai
Date: 30.05.2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of FIBERWEB
(INDIA) LIMITED, (Formerly Known as PVD Plast Mould Industries Limited)
which comprise the Balance Sheet as at 31st March , 2013, 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"). This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
fnancial 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. 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 and subject to Note B1,2,4,5,6 & 7, 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, 2013;
(b) in the case of the Statement of Proof 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.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
ANNEXURE TO THE AUDITOR''S REPORT
The Annexure referred to in our report to the members of FIBERWEB
(INDIA) LIMITED for the year ended 31 March 2013. We report that: -
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details & situation of fixed assets.
(b) All the Assets have not been physically verified by the Management
during the year but there is a regular programmer of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its Fixed Assets. No material discrepancies were
noticed on such verification.
(c) During the year, the Company has not disposed off a major or
substantial part of fixed assets so as to affect the going concern
status of the Company.
ii) (a) The Inventory has been physically verified during the year by
the Management. The frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
material discrepancies noticed on physical verification have been
properly dealt with in the books of accounts.
iii) The Company had neither taken for granted any loans, secured or
unsecured from / to Companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act 1956.Hence,
the question of reporting whether the rate of interest and other terms
and conditions of such loans are prima facie prejudicial to the
interest of the company, whether reasonable step for recovery / payment
of the over dues of such loans are taken does not arise
iv) There is adequate inventory control procedure commensurate with the
size of the company and nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services. There
is no continuing failure to correct major weaknesses in internal
control.
v) Based on the audit procedures applied by us and the information and
explanations provided by the management, we are of the opinion that
there were no transactions during the year that need to be entered in
the register maintained under section 301 of the Companies Act, 1956.
vi) Based on our scrutiny of the company''s records and according to the
information and explanations provided by the management, in our
opinion, the company has not accepted any public deposits so far upto
31st March,2013.
vii) The company has an internal audit system commensurate with the
size of the company and nature of its business.
viii) We are unable to offer any comment on the clause no. (viii)
pertaining to maintenance of cost records as the cost auditor has not
completed cost audit till date.
ix) (a) The company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax Wealth Tax, Custom
Duty, Excise Duty, and Cess any other material statutory dues
applicable to it.
(b) No Un-disputed amounts 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''2013, for a period of more than six months
from the date they became payable.
(c) There are no dues of sales tax , income tax, custom tax , wealth
tax, service tax , excise duty and Cess which have not been deposited
on account of any dispute.
x) The accumulated losses of the company are more than 50% (Fifty
Percent) of its Net Worth and hence the company has fled a reference
with the BIFR, New Delhi Under the SICA 1985 which has been registered
by the BIFR. the company registered under the Sick Unit vide BIFR''s
order dated 18.01.2007.The company has earned Cash Profit of
Rs.2,40,25,642/- in the current financial year and of Rs.2,35,31,510/-
in the immediate preceding financial year. In arriving at the
accumulated loss and net worth, we have considered the qualifications
which are quantifiable in the Audit Report of the year to which these
losses pertain.
xi) The company has defaulted in repayment of dues to the following
financial institution/s and / or Banks and / or Debenture holders in
respect of the following amount and the period mentioned there against:
Since the company is declared as Sick Company by BIFR and
rehabilitation scheme is submitted, the interest has not been provided
since then and the dues stays suspended and therefore company cannot be
considered as defaulter.
xii) The Company has not granted any Loans & Advances on the basis of
Security by way Pledge of Shares, Debentures and other securities.
Hence, the provisions as to whether the adequate documents and records
are maintained and to point out the deficiencies, if any in this regard
are not applicable.
xiii) The Company is not a Chit Fund or Nidhi / Mutual Benefit
Fund/Society. Hence, the provisions of clause 4(xiii) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
xiv) The Company is not dealing in or trading in Shares, Securities,
Debentures and other investments. Hence, the provisions of Clause 4
(xiv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
xv) The company has not given any guarantee for loans taken by others
from Bank or Financial Institution. Accordingly, the provisions as to
whether the terms & conditions in respect thereof are prejudicial to
the interest of the Company are not applicable to the company.
xvi) The company has no recorded, obtained any terms loans. Hence,
comments under the clause are not called for the provisions as to
whether the price at which shares have been issued is prejudicial to
the interest of the company are not applicable.
xvii) No funds raised on short term basis have been used for the long
term investment by the company
xviii) 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. Hence the provisions as to whether the
price at which shares have been issued is prejudicial to the interest
of the company are not applicable.
xix) According to the records of the company, the company has not
issued any Debentures.
xx) The company has not raised any money by public issue. Hence the
provisions as to whether the management has disclosed on the end use of
money raised by public issue and the same has been verified are not
applicable.
xxi) No fraud on or by the company has been noticed or reported during
the course of our Audit.
FOR P. M. TURAKHIA & ASSOCIATES
CHARTERED ACCOUNTANTS
(M. D. TURAKHIA)
PARTNER
PLACE : MUMBAI
DATE : 30.05.2013
Mar 31, 2012
1) We have audited the attached Balance Sheet of FIBERWEB (INDIA)
LIMITED, (Formerly known as PVD Plast Mould Industries Limited) as at
31st March 2012 the Profit and Loss Account and also the Cash Flow
Statement 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 the Auditing Standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
Financial Statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the Financial Statements. An audit includes
assessing the Accounting Principles used and significant estimates made
by management, as well as evaluating the overall Financial Statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3) As required by the companies (Auditors'' Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) 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 above, we
report that :
(i) 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;
(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 Profit & Loss Account dealt with by this
Report are in agreement with the Books of Account;
(iv) In our opinion, the Balance Sheet and 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 the written representations received from the
directors , as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of 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 said Accounts give the information
required by the Companies Act, 1956 in the manner so required and
subject to notes on accounts in general and in particular Note B.2,
B.3, B.4, B.5, B.6 & B.7 of Notes forming part of the accounts for the
year ended 31.3.2012, give a True and Fair view in conformity with the
generally accepted Accounting Principles in India;
a) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March''2012;
b) In the case of the Profit and Loss Account, of the profit/loss for
the year ended on that date; and
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS'' REPORT OF EVEN DATE
TO THE MEMBERS OF "M/S FIBERWEB (INDIA) LIMITED." ON THE ACCOUNTS
FOR THE YEAR ENDED 31ST MARCH''2012.
On the basis of the presentations received from the management and
according to the explanation given, information furnished to us and on
the basis of scrutiny of books & records, we are of the opinion that: -
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details & situation of fixed
assets.
(b) All the Assets have not been physically verified by the Management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its Fixed Assets. No material discrepancies were
noticed on such verification.
(c) During the year, the Company has not disposed off a major or
substantial part of fixed assets so as to affect the going concern
status of the Company.
ii) (a) The Inventory has been physically verified during the year by
the Management.
The frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
material discrepancies noticed on physical verification have been
properly dealt with in the books of accounts.
iii) The Company had neither taken for granted any loans, secured or
unsecured from / to Companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act 1956.Hence,
the question of reporting whether the rate of interest and other terms
and conditions of such loans are prima facie prejudicial to the
interest of the company, whether reasonable step for recovery / payment
of the overdues of such loans are taken does not arise
iv) There is adequate inventory control procedure commensurate with the
size of the company and nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
There is no continuing failure to correct major weaknesses in internal
control.
v) Based on the audit procedures applied by us and the information and
explanations provided by the management, we are of the opinion that
there were no transactions during the year that need to be entered in
the register maintained under section 301 of the Companies Act, 1956.
vi) Based on our scrutiny of the company''s records and according to
the information and explanations provided by the management, in our
opinion, the company has not accepted any public deposits so far upto
31st March,2012.
vii) The company has an internal audit system commensurate with the
size of the company and nature of its business.
viii) We are unable to offer any comment on the clause no. (viii)
pertaining to maintenance of cost records as the cost auditor has not
completed cost audit till date.
ix) (a) The company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax Wealth Tax, Custom
Duty, Excise Duty, and Cess any other material statutory dues
applicable to it.
(b) No Un-disputed amounts 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''2012, for a period of more than six months
from the date they became payable.
(c) There are no dues of sales tax , income tax, custom tax , wealth
tax, service tax, excise duty and Cess which have not been deposited on
account of any dispute.
x) The accumulated losses of the company are more than 50% (Fifty
Percent) of its Net Worth and hence the company has filed a reference
with the BIFR, New Delhi Under the SICA 1985 which has been registered
by the BIFR the company registered under the Sick Unit vide BIFR''s
order dated 18.01.2007.The company has earned Cash Profit of
Rs.3,06,93,828/- in the current financial year and of Rs.2,40,25,642/-
in the immediate preceding financial year. In arriving at the
accumulated loss and net worth, we have considered the qualifications
which are quantifiable in the Audit Report of the year to which these
losses pertain.
xi) The company has defaulted in repayment of dues to the following
financial institution/s and / or Banks and / or Debenture holders in
respect of the following amount and the period mentioned there against:-
Sr. Name of the Financial Principal Interest Period
No. Institution / Banks Amount Amount
1 Canara Bank - Lease
Rentals 1,73,07,490 - 14 years
Since the company is declared as Sick Company by BIFR and
rehabilitation scheme is submitted, the interest has not been provided
since then and the dues stays suspended and therefore company cannot be
considered as defaulter.
xii) The Company has not granted any Loans & Advances on the basis of
Security by way Pledge of Shares, Debentures and other securities.
Hence, the provisions as to whether the adequate documents and records
are maintained and to point out the deficiencies, if any in this regard
are not applicable.
xiii) The Company is not a Chit Fund or Nidhi / Mutual Benefit
Fund/Society. Hence, the provisions of clause 4(xiii) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
xiv) The Company is not dealing in or trading in Shares, Securities,
Debentures and other investments. Hence, the provisions of Clause 4
(xiv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
xv) The company has not given any guarantee for loans taken by others
from Bank or Financial Institution. Accordingly, the provisions as to
whether the terms & conditions in respect thereof are prejudicial to
the interest of the Company are not applicable to the company.
xvi) The company has no recorded, obtained any terms loans. Hence,
comments under the clause are not called for the provisions as to
whether the price at which shares have been issued is prejudicial to
the interest of the company are not applicable.
xvii) No funds raised on short term basis have been used for the long
term investment by the company
xviii) 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. Hence the provisions as to whether the
price at which shares have been issued is prejudicial to the interest
of the company are not applicable.
xix) According to the records of the company, the company has not
issued any Debentures.
xx) The company has not raised any money by public issue. Hence the
provisions as to whether the management has disclosed on the end use of
money raised by public issue and the same has been verified are not
applicable.
xxi) No fraud on or by the company has been noticed or reported during
the course of our Audit.
FOR P. M. TURAKHIA & ASSOCIATES
CHARTERED ACCOUNTANTS
(M. D. TURAKHIA)
PARTNER
PLACE: MUMBAI
DATE: 30.07.2012
Mar 31, 2011
1) We have audited the attached Balance Sheet of FIBERWEB (INDIA)
LIMITED, (Formerly known as PVD Plast Mould Industries Limited) as at
31st March 2011, the Profit and Loss Account and also the Cash Flow
Statement 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 the Auditing Standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
Financial Statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the Financial Statements. An audit includes
assessing the Accounting Principles used and significant estimates made
by management, as well as evaluating the overall Financial Statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3) As required by the companies (Auditors' Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) 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 above, we
report that :
(i) 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;
(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 Profit & Loss Account dealt with by this
Report are in agreement with the Books of Account;
(iv) In our opinion, the Balance Sheet and 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 the written representations received from the
directors, as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2011 from being appointed as a 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 said Accounts give the information
required by the Companies Act, 1956 in the manner so required and
subject to notes forming of Accounts in Schedule 21 in general and note
"A" point no.2 and note "C" point no. 4,5,6 & 10 in particular, give a
True and Fair view in conformity with the generally accepted Accounting
Principles in India;
a) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March'2011;
b) In the case of the Profit and Loss Account, of the Profit/loss for
the year ended on that date; and
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS' REPORT OF EVEN DATE TO
THE MEMBERS OF "M/S FIBERWEB (INDIA) LIMITED." ON THE ACCOUNTS FOR THE
YEAR ENDED 31ST MARCH'2011.
On the basis of the presentations received from the management and
according to the explanation given, information furnished to us and on
the basis of scrutiny of books & records, we are of the opinion that: -
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details & situation of fixed
assets.
(b) All the Assets have not been physically verified by the Management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its Fixed Assets. No material discrepancies were
noticed on such verification.
(c) During the year, the Company has not disposed off a major or
substantial part of fixed assets so as to affect the going concern
status of the Company.
ii) (a) The Inventory has been physically verified during the year by
the Management. The frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
material discrepancies noticed on physical verification have been
properly dealt with in the books of accounts.
iii) (a) The Company had not granted any loans, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act 1956.
(b) Hence the provisions as to whether the rate of interest and other
terms and conditions of loans by the company, secured or unsecured, are
prima facie prejudicial to the interest of the company are not
applicable.
(c) So also the provisions as to whether the payment of principal and
interest are Also regular are not applicable.
(d) Similarly the provisions as to whether reasonable step have been
taken by the Company for recovery of the principal and interest, if the
overdue amount is more than one lakh are not applicable.
(e) The Company had not taken any loans, secured or unsecured from
Companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act 1956.
(f) Hence the provisions as to whether the rate of interest and other
terms and conditions of loans taken by the company, secured or
unsecured, are prima facie prejudicial to the interest of the company
are not applicable.
(g) So also the provisions as to whether the payment of principal and
interest are Also regular are not applicable.
iv) There is adequate inventory control procedure commensurate with the
size of the company and nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
There is no continuing failure to correct major weaknesses in internal
control.
v) (a) there are no contracts or arrangements the particular of which
are required to be entered into the register in pursuance of section
301 Of the Companies act 1956.
(b) Hence the provisions as to whether the transactions made in
pursuance of such Contracts or Arrangements have been made at which are
reasonable, having regard to the prevailing market prices at the
relevant time are not applicable.
vi) As the Company has not accepted deposits from the public, hence the
question of complying with the directions issued by the Reserve Bank of
India and the provision of section 58A & 58AA or any other relevant
provisions of the Act and the rules framed there under ,where
applicable, have been complied with and in case of non compliance,
stating of nature of contraventions and whether the company has
complied with the order of the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any court or any other
tribunal are not applicable.
vii) The company has an internal audit system commensurate with the
size of the company and nature of its business.
viii) Maintenance of Cost Records has not been prescribed by the
Central Government under section 209 (1) (d) of the Companies Act 1956.
ix) (a) The company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax Wealth Tax, Custom
Duty, Excise Duty, and Cess any other material statutory dues
applicable to it.
(b) No Un-disputed amounts 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 a period of more than six months
from the date they became payable.
(c) There are no dues of sales tax , income tax, custom tax , wealth
tax, service tax , excise duty and Cess which have not been deposited
on account of any dispute.
x) The accumulated losses of the company are not more than 50%(fifty
percent) of its Net Worth and hence the company has fled a reference
with the BIFR, New Delhi Under the SICA 1985 which has been registered
by the BIFR. the company registered under the Sick Unit vide BIFR's
order dated 18.01.2007.The company has incurred Cash Profit of Rs.
24,025,642/- in the current financial year and a cash Profit of Rs.
21,657,698/- in the immediate preceding financial year. In arriving at
the accumulated loss and net worth, we have considered the
qualifications which are quantifiable in the Audit Report of the year
to which these losses pertain.
xi) The company has defaulted in repayment of dues to the following
financial institution/s and / or Banks and / or Debenture holders in
respect of the following amounts and the period mentioned there
against: -
Sr. Name of the
Financial principal Interest period no.
Institution /
Banks Amount Amount
1. Canara Bank à Lease Rentals 1,73,07,490 - 13 years
Since the company is declared as Sick Company by BIFR and
rehabilitation scheme is submitted, the interest has not been provided
since then and the dues stays suspended and therefore company cannot be
considered as defaulter.
xii) The Company has not granted any Loans & Advances on the basis of
Security by way Pledge of Shares, Debentures and other securities.
Hence, the provisions as to whether the adequate documents and records
are maintained and to point out the deficiencies, if any in this regard
are not applicable.
xiii) The Company is not a Chit Fund or Nidhi / Mutual Benefit
Fund/Society. Hence, the provisions of clause 4(xiii) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
xiv) The Company is not dealing in or trading in Shares, Securities,
Debentures and other investments. Hence, the provisions of Clause 4
(xiv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
xv) The company has not given any guarantee for loans taken by others
from Bank or Financial Institution. Accordingly, the provisions as to
whether the terms & conditions in respect thereof are prejudicial to
the interest of the Company are not applicable to the company.
xvi) The company has no recorded, obtained any terms loans. Hence,
comments under the clause are not called for the provisions as to
whether the price at which shares have been issued is prejudicial to
the interest of the company are not applicable.
xvii) No funds raised on short term basis have been used for the long
term investment by the company
xviii) 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. Hence the provisions as to whether the
price at which shares have been issued is prejudicial to the interest
of the company are not applicable.
xix) According to the records of the company, the company has not
issued any Debentures.
xx) The company has not raised any money by public issue. Hence the
provisions as to whether the management has disclosed on the end use of
money raised by public issue and the same has been verified are not
applicable.
xxi) No fraud on or by the company has been noticed or reported during
the course of our Audit.
For P.M. TURAKHIA & ASSOCIATES
Chartered Accountants
M.D. TURAKHIA
Partner
Place: DAMAN
Date : 28.07.2011
Mar 31, 2010
1) We have audited the attached Balance Sheet of FIBERWEB (INDIA)
LIMITED, (Formerly known as PVD Plast Mould Industries Limited) as at
31st March 2010, the Profit and Loss Account and also the Cash Flow
Statement 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 the Auditing Standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
Financial Statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the Financial Statements. An audit includes
assessing the Accounting Principles used and significant estimates made
by management, as well as evaluating the overall Financial Statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3) As required by the companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) 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 above, we
report that:
(i) 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;
(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 Profit & Loss Account dealt with by this
Report are in agreement with the Books of Account;
(iv) In our opinion, the Balance Sheet and 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 the written representations received from the
directors , as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2010 from being appointed as a director in terms of 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 said Accounts give the information
required by the Companies Act, 1956 in the manner so required and
subject to notes forming of Accounts in Schedule 21 in general and note
"A" point no.2 and note "C" point no. 4,5,6 & 10 in particular, give a
True and Fair view in conformity with the generally accepted Accounting
Principles in India;
a) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March2010;
b) In the case of the Profit and Loss Account, of the profit/loss for
the year ended on that date; and
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS REPORT OF EVEN DATE TO
THE MEMBERS OF "M/S FIBERWEB (INDIA) LIMITED." ON THE ACCOUNTS FOR THE
YEAR ENDED 31 ST MARCH2010.
On the basis of the presentations received from the management and
according to the explanation given, information furnished to us and on
the basis of scrutiny of books & records, we are of the opinion that: -
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details & situation of fixed
assets.
(b) All the Assets have not been physically verified by the Management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its Fixed Assets. No material discrepancies were
noticed on such verification.
(c) During the year, the Company has not disposed off a major or
substantial part of fixed assets so as to affect the going concern
status of the Company.
ii) (a) The Inventory has been physically verified during the year by
the Management. The frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
material discrepancies noticed on physical verification have been
properly dealt with in the books of accounts.
iii) (a) The Company had not granted any loans, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act 1956.
(b) Hence the provisions as to whether the rate of interest and other
terms and conditions of loans by the company, secured or unsecured, are
prima facie prejudicial to the interest of the company are not
applicable.
(c) So also the provisions as to whether the payment of principal and
interest are Also regular are not applicable.
(d) Similarly the provisions as to whether reasonable step have been
taken by the Company for recovery of the principal and interest, if the
overdue amount is more than one lakh are not applicable.
(e) The Company had not taken any loans, secured or unsecured from
Companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act 1956.
(f) Hence the provisions as to whether the rate of interest and other
terms and conditions of loans taken by the company, secured or
unsecured, are prima facie prejudicial to the interest of the company
are not applicable.
(g) So also the provisions as to whether the payment of principal and
interest are Also regular are not applicable.
iv) There is adequate inventory control procedure commensurate with the
size of the company and nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
There is no continuing failure to correct major weaknesses in internal
control.
v) (a) there are no contracts or arrangements the particular of which
are required to be entered into the register in pursuance of section
301 Of the Companies act 1956.
(b) Hence the provisions as to whether the transactions made in
pursuance of such Contracts or Arrangements have been made at which are
reasonable, having regard to the prevailing market prices at the
relevant time are not applicable.
vi) As the Company has not accepted deposits from the public, hence the
question of complying with the directions issued by the Reserve Bank of
India and the provision of section 58A & 58AA or any other relevant
provisions of the Act and the rules framed there under .where
applicable, have been complied with and in case of non compliance,
stating of nature of contraventions and whether the company has
complied with the order of the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any court or any other
tribunal are not applicable.
vii) The company has an internal audit system commensurate with the
size of the company and nature of its business.
viii) Maintenance of Cost Records has not been prescribed by the
Central Government under section 209 (1) (d) of the Companies Act 1956.
ix) (a) The company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax Wealth Tax, Custom
Duty, Excise Duty, and Cess any other material statutory dues
applicable to it.
(b) No Un-disputed amounts payable in respect of Income Tax, Wealth
Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty and Cess were in
arrears, asat31stMarch2010, for a period of more than six months from
the date they became payable.
(c) There are no dues of sales tax , income tax, custom tax , wealth
tax, service tax , excise duty and Cess which have not been deposited
on account of any dispute.
x) The accumulated losses of the company are not more than 50%(fifty
percent) of its Net Worth and hence the company has filed a reference
with the BIFR, New Delhi Under the SICA 1985 which has been registered
by the BIFR.the company registered under the Sick Unit vide BIFRs
order dated 18.01.2007.The company has incurred Cash Profit of Rs.21,
657,698/- in the current financial year and a cash loss of Rs.7,
972,090/- in the immediate preceding financial year. In arriving at the
accumulated loss and net worth, we have considered the qualifications
which are quantifiable in the Audit Report of the year to which these
losses pertain.
xi) The company has defaulted in repayment of dues to the following
financial institution/s and / or Banks and / or Debenture holders in
respect of the following amounts and the period mentioned there
against: -
Sr. Name of the Financial Principal Interest Period
No. Institution / Banks Amount Amount
1. * BHF Bank - Term Loan 34,89,56,639 38,63,24,163 14 Years
2. Unit Trust of India -
Term Loan 1,00,00,000 72,28,492 13 Years
3. Canara Bank - Lease
Rentals 1,73,07,490 - 13 years
4. Unit Trust Of India -
Debentures 2,00,00,000 1,67,39,560 Since
19.02.1998
5. Unit Trust Of India -
Debentures 3,00,00,000 2,46,25,068 Since
28.09.1998
* Since, The BHF Banks loan along with the interest was covered by
Insurance; they had received their full claim from Hermes Insurance
Company. However, the Company has not written off the above dues as the
matter is sub-judice.
Since the company is declared as Sick Company by BIFR and
rehabilitation scheme is submitted, the interest has not been provided
since then and the dues stays suspended and therefore company cannot be
considered as defaulter.
xii) The Company has not granted any Loans & Advances on the basis of
Security by way Pledge of Shares, Debentures and other securities.
Hence, the provisions as to whether the adequate documents and records
are maintained and to point out the deficiencies, if any in this regard
are not applicable.
xiii) The Company is not a Chit Fund or Nidhi / Mutual Benefit
Fund/Society. Hence, the provisions of clause 4(xiii) of the Companies
(Auditors Report) Order, 2003 are not applicable to the Company.
xiv) The Company is not dealing in or trading in Shares, Securities,
Debentures and other investments. Hence, the provisions of Clause 4
(xiv) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
xv) The company has not given any guarantee for loans taken by others
from Bank or Financial Institution. Accordingly, the provisions as to
whether the terms & conditions in respect thereof are prejudicial to
the interest of the Company are not applicable to the company.
xvi) The company has no recorded, obtained any terms loans. Hence,
comments under the clause are not called for the provisions as to
whether the price at which shares have been issued is prejudicial to
the interest of the company are not applicable.
xvii) No funds raised on short term basis have been used for the long
term investment by the company
xviii) 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. Hence the provisions as to whether the
price at which shares have been issued is prejudicial to the interest
of the company are not applicable.
xix) According to the records of the company, the company has not
issued any Debentures.
xx) The company has not raised any money by public issue. Hence the
provisions as to whether the management has disclosed on the end use of
money raised by public issue and the same has been verified are not
applicable.
xxi) No fraud on or by the company has been noticed or reported during
the course of our Audit.
For P.M. TURAKHIA & COMPANY
Chartered Accountants
M.D. TURAKHIA
PROPRIETOR
Place: DAMAN
Date: 30.07.2010
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