Mar 31, 2023
Independent Auditorâs Report
OPINION
We have audited the accompanying financial Statements of
Filatex India Limited (''the Company''), which comprise the
Balance Sheet as at March 31, 2023, the Statement of Profit
and Loss (including 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 the financial statements).
In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements
give the information required by the Companies Act, 2013 ("the
Act") in the manner so required and give a true and fair view in
conformity with the Companies (Indian Accounting Standards)
Rules, 2015, as amended, ("Ind AS") and other accounting
principles generally accepted in India, of the state of affairs
of the Company as at March 31, 2023, the profit and total
comprehensive Income, changes in equity and its cash flows for
the year ended on that date.
We conducted our audit in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Companies
Act, 2013. Our responsibilities under those Standards are further
described in the Auditor''s Responsibilities for the Audit of the
Financial Statements section of our report. We are independent
of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI) together
with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act,
2013 and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements
and the ICAI''s Code of Ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis
for our opinion on the financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements
of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to
be the key audit matters to be communicated in our report.
The Company''s Board of Directors is responsible for the other
information. The other information comprises the information
included in the Management Discussion and Analysis, Board''s
Report including Annexures to Board''s Report, Business
Responsibility Report, Corporate Governance and Shareholder''s
Information, but does not include the financial statements and
our auditor''s report thereon. The above-mentioned report
is expected to be made available to us after the date of this
auditor''s report.
Our opinion on the financial statements does not cover the
other information and we will not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether
the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a
material misstatement therein, we are required to communicate
the matter to those charged with governance.
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
to give a true and fair view of the financial position, financial
performance (including other comprehensive income), cash flows
and changes in equity of the Company in accordance with the
accounting principles generally accepted in India, including the
Indian Accounting Standards specified in the Companies (Indian
Accounting Standards) Rules, 2015 (as amended) under Section
133 of the Act. 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.
In preparing the financial statements, management is
responsible for assessing the Company''s ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the
Company''s financial reporting process.
AUDITOR''S RESPONSIBILITY FOR THE AUDIT
OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor''s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal control.
⢠Obtain an understanding of internal financial controls
relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial
controls system in place and the operating effectiveness of
such controls.
⢠Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management.
⢠Conclude on the appropriateness of management''s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the Company''s ability to continue as a
going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor''s
report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up
to the date of our auditor''s report. However, future events or
conditions may cause the Company to cease to continue as
a going concern.
⢠Evaluate the overall presentation, structure, and content
of the financial statements, including the disclosures, and
whether the financial statements represent the underlying
transactions and events in a manner that achieves
fair presentation.
Materiality is the magnitude of misstatements in the financial
statements that, individually or in aggregate, makes it probable
that the economic decisions of a reasonably knowledgeable
user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the
scope of our audit work and in evaluating the results of our work;
and (ii) to evaluate the effect of any identified misstatements in
the financial statements.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them
all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these
matters in our auditor''s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
1. As required by Section 143(3) of the Act, based on our audit
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, Statement of
Changes in Equity and the Statement of Cash Flow dealt
with by this Report are in agreement with the relevant
books of account.
d) In our opinion, the aforesaid financial statements
comply with the Ind AS specified under Section 133 of
the Act.
e) On the basis of the written representations received
from the directors as on March 31, 2023 and taken on
record by the Board of Directors, none of the directors is
disqualified as on March 31, 2023 from being appointed
as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial
controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to our
separate Report in "Annexure A". Our report expresses
an unmodified opinion on the adequacy and operating
effectiveness of the Company''s internal financial
controls over financial reporting.
g) In our opinion and to the best of our information and
according to the explanations given to us, the managerial
remuneration for the year ended March 31, 2023 has
been paid/provided by the Company to its directors is in
accordance with the provisions of section 197 read with
Schedule V to the Act.
h) 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,
as amended in our opinion and to the best of our
information and according to the explanations given
to us:
i. The Company has disclosed the impact of
pending litigations on its financial position in its
financial statements- Refer Note-41A & D to the
financial statements.
ii. The Company has made provision, as required
under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term
contracts including derivative contracts.
iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
and Protection Fund by the Company.
iv. (a) The Management has represented that, to
the best of its knowledge and belief, no funds
(which are material either individually or in the
aggregate) have been advanced or loaned or
invested (either from borrowed funds or share
premium or any other sources or kind of funds)
by the Company to or in any other person or
entity, including foreign entity ("Intermediaries"),
with the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or
invest in other persons or entities identified in
any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf of
the Ultimate Beneficiaries;
(b) The Management has represented, that, to
the best of its knowledge and belief, no funds
(which are material either individually or in the
aggregate) have been received by the Company
from any person or entity, including foreign entity
("Funding Parties"), with the understanding,
whether recorded in writing or otherwise, that
the Company shall, whether, directly or indirectly,
lend or invest in other persons or entities
identified in any manner whatsoever by or on
behalf of the Company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been
considered reasonable and appropriate in
the circumstances, nothing has come to our
notice that has caused us to believe that the
representations under sub-clause (i) and (ii) of
Rule 11(e), as provided under (a) and (b) above,
contain any material misstatement.
v. (a) The dividend proposed in the previous year,
declared and paid by the Company during the
year is in accordance with Section 123 of the
Act, as applicable.
(b) The Board of Directors of the Company have
proposed dividend for the year which is subject
to the approval of the members at the ensuing
Annual General Meeting. The amount of dividend
proposed is in accordance with section 123 of
the Act, as applicable.
vi. Proviso to Rule 3(1) of the Companies (Accounts)
Rules, 2014 for maintaining books of account
using accounting software which has a feature of
recording audit trail (edit log) facility is applicable to
the Company with effect from April 01, 2023, and
accordingly, reporting under Rule 11(g) of Companies
(Audit and Auditors) Rules, 2014 is Not Applicable
for the financial year ended March 31, 2023.
2. As required by the Companies (Auditor''s Report) Order, 2020
("the Order") issued by the Central Government in terms
of Section 143(11) of the Act, we give in "Annexure B" a
statement on the matters specified in paragraphs 3 and 4 of
the Order.
For R N MARWAH & Co LLP For ARUN K GUPTA & ASSOCIATES
Chartered Accountants Chartered Accountants
Firm Registration No.: 001211N/N500019 Firm Registration No.: 000605N
SUNIL NARWAL SACHIN KUMAR
Partner Partner
Membership No.: 511190 Membership No.: 503204
UDIN: 23511190BGX1LA80501 UDIN: 23503204BGVGME5028
Place: New Delhi Place: New Delhi
Date: May 04, 2023 Date: May 04, 2023
Mar 31, 2018
Report on the Standalone indian Accounting Standards
(âind ASâ) Financial Statements
1. We have audited the accompanying standalone Ind AS Financial Statements of Filatex India Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the standalone ind As Financial Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made thereunder including the accounting & auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules thereunder.
5. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
7 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 March 31, 2018, total comprehensiveincome (comprising of profit and other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
other matters
9. The previously issued standalone financial information of the company for the year ended 31 March 2017 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 and audited by the predecessor statutory auditors
of the company (vide their unmodified audit report dated 9 May 2017) have been restated to comply with the Indian Accounting Standards (âInd ASâ) and included in this statement as corresponding financial information. Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. As required by âthe Companies (Auditorâs Report) Order, 2016â, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the âOrderâ), 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, a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. 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 (including other comprehensive income), the Cash Flow Statement and the Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on April 1, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i) The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018, on its financial position in its standalone Ind AS financial statements - Refer Note 41 to the standalone Ind AS financial statements;
ii) The Company has made provision as at March 31, 2018, as required under the applicable law or Indian Accounting Standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
iv) The reporting on disclosure relating to specified Bank Notes is not applicable to the company for the year ended March 31, 2018.
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets have been physically verified by the management during the year in a phased manner and no material discrepancy has been noticed on such verification. In our opinion, the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and the nature of its assets.
(c) The title deeds of free hold immovable properties are held in the name of the Company.
ii. The management has conducted physical verification of inventory at reasonable intervalsand no material discrepancies in inventory were noticed on physical verification.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b)&(iii)(c) of the said Order are not applicable to the Company.
iv In our opinion and according to the information and explanations given to us, provisions of section 186 of the Companies Act,2013 in respect of investments made, have been complied by the Company. There are no other loans, guarantees and securities granted in respect of which provisions of section 185 and 186 of the Companies Act,2013 are applicable.
v. The Company has not accepted any deposit from the public.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Govt. for the maintenance of Cost Records under sub section 1 of section 148 of the Companies Act, 2013 and are of the opinion that prima facie the prescribed accounts and records have been maintained. We have however, not made a detailed examination of these records.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, goods & service tax, cess and other material statutory dues, as applicable, with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income tax sales tax, duty of customs, duty of excise, service tax, value added tax, goods & service tax, cess and other material statutory dues 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 and the records of the Company examined by us, the dues outstanding of income-tax, sales tax, service-tax, duty of customs, duty of excise, value added tax, goods & service tax and cess which have not been deposited on account of any dispute as at March 31, 2018 are stated below:-
Sl.No |
Name of the Statute |
Nature of Dues |
Amt (Rs./lacs) |
Period to Which it relates |
Forum where dispute is pending |
1 |
Central Excise Act, 1944. |
NCCD on Deemed Exports. |
2.77 |
From July 2004 to Nov. 2004 |
Commissioner of Central Excise (Appeals), Vapi |
2 |
Central Excise Act, 1944. |
Service Tax Credit before starting of production |
51.08 |
F.Y 2011-12 |
CESTAT, Ahmedabad |
3 |
Central Excise Act, 1944. |
Service Tax Credit on Hotel Bill & outward courier |
1.08 |
March 2012 to Jan. 2016. |
The Commissioner (Appeals) Bharuch |
4 |
Central Excise Act, 1944. |
Credit of Service Tax availed on courier service. |
0.21 |
F.Yâs 2005-06 & 2006-07 |
The Asst. Commissioner of Central Excise, Silvassa. |
5 |
Central Excise Act, 1944. |
Demand for sale of Grey Knitted fabrics from the premises of various job workers |
472.52 |
FY 2008-09 |
CESTAT, WZB, Ahmedabad |
6 |
Central Excise Act, 1944. |
Excess credit availed on goods supplied to 100% EOUs |
35.99 |
FY 2007-08 & FY 2008-09 |
Commissioner (Appeals) C.E., Vapi |
7 |
Central Excise Act, 1944. |
Credit of Service tax availed on the invoices issued in the name of Branch offices for the year 2010-11, 2011-12 & 2012-13 |
3.17 |
F.Yâs 2010-11 to 2012-13 |
CESTAT, WZB, Ahmedabad |
8 |
Central Excise Act, 1944. |
Demand of Service Tax credit availed on Sales Commission for the years 2009-10 & 2010-11 |
15.31 |
F.Yâs 2009-10 & 2010-11 |
The Addl. Commissioner, Central Excise, Customs & Service Tax, Vapi |
9 |
Central Excise Act, 1944. |
Cenvat credit of service tax availed on invoices issued in the name of branch office for the period from Nov.-2012 to March.-2013 |
0.69 |
From Nov. 2012 to Mar. 2013 |
Commissioner (Appeals) C.E., Vapi |
10 |
Central Excise Act, 1944. |
Demand of Ex. duty on Polyester FDY Yarn transferred to NWF on transaction value instead of CAS-04 for the period from April-2009 to April-2012 |
32.99 |
From Apr.-2009 to Apr -2012 |
The Jt. Commissioner, Central Excise, Customs & Service Tax, Vapi |
11 |
Customs Act, 1962. |
Differential duty on import of chips |
14.54 |
December, 2007 |
Asst. Commissioner of Customs, Group II, E&B, JNCH, Navi Mumbai. |
12 |
Customs Act, 1962. |
Co-Party made with a customer for discrepancies in compliance of export obligation by customer. |
15.00 |
April, 2007 |
CESTAT, Western Zone, Ahmedabad. |
13 |
Customs Act, 1962. |
Fraudulentavailment of DEPB credit by M/s Shivam Overseas, Ludhiana by resorting to overvaluation of their exported goods |
8.64 |
March 2005 |
The Commissioner of Customs (EP), New Custom House, Ballard Estate, Mumbai |
14 |
Central Excise Act, 1944 |
Demand of service tax credit availed on sales commission for the period April 2011 to December 2014 |
20.10 |
April 2011 to December 2014 |
The Additional Commissioner, Central excise ,Custom & Service Tax, Div I Vapi. |
15 |
Central Excise Act, 1944 |
Demand of service tax credit availed on sales commission for the period January 2015 to November 2015 |
3.58 |
January 2015 to November 2015 |
The Assistant Commissioner, Central excise ,Custom & Service Ta , Div I Silvassa. |
16 |
Central Excise Act, 1944 |
Demand of service tax credit availed on sales commission for the period April 2010 to February 2016 |
44.10 |
April 2010 to February 2016 |
The Superinendent, Central Ex & Custom, Range-III, Division - V, Bharuch |
17 |
Central Excise Act, 1944 |
Excise Rebate claim sale Invoice no. 2039ARE no.8/2014-15 |
3.09 |
For the period 2014-15 |
The Joint Commissioner, Central Excise, Raigarh |
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution or banks. The company does not have any outstanding debenture.
ix. Based on the audit procedures applied by us & according to the information & explanations provided by the management, the Company has not raised any moneys by initial public offer or further public offer(including debt instruments) during the year. Term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. According to the records of the Company examined by us and the information and explanation given to us, the Company has paid and provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Companies Act 2013.
xii. The company is not a Nidhi Company, this clause is not applicable to the company.
xiii. According to the records of the Company examined by us and the information and explanation given to us, the company has complied with section 177 and 188 of the Companies Act 2013 in relation to transaction with related parties and the details have been disclosed in the standalone Ind AS Financial Statements as required by applicable Indian Accounting Standards.
xiv. According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the company and not commented upon.
xv. As per the information & explanations given to us the company has not entered into any non-cash transactions with directors or persons connected with them as referred to in section 192 of the Companies Act,2013.
xvi. According to the information and explanations given to us, the provisions of section 45 IA of the Reserve Bank of India Act, 1934 are not applicable to the company.
We have audited the internal financial controls over financial reporting of Filatex India Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
managementâs Responsibility for Internal financial controls
The Companyâs 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. 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 companyâs 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted 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 auditorâs judgement, including the assessment of the risks of material misstatement of the standalone Ind AS 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal financial controls over financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs 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 of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations 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 companyâs assets that could have a material effect on the standalone Ind AS 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, material 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 procedures 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, 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 Arun K Gupta & Associates
Chartered Accountants
Firm Registration No.000605N
Place: New Delhi
Dated: 07-05-2018 GIREESH KUMAR GOENKA
Partner
Membership No.-096655
Mar 31, 2016
TO THE MEMBERS OF
FILATEX INDIA LIMITED
Report on the Financial Statements
1. We have audited the accompanying financial statements of Filatex India Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2016, 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
2. 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 to 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
3. Our responsibility is to express an opinion on these financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made there under including the accounting standards and matters which are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.
6. 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.
7. 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
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and, give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by ''the Companies (Auditor''s Report) Order, 2016'', 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, a statement on the matters specified in paragraphs 3 and 4 of the Order.
10. 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) On the basis of the written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure B''''.
(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 knowledge and belief and according to the information and explanations given to us:
i) The Company has disclosed the impact, if any, of pending litigations as at March 31, 2016, on its financial position in its financial statements - Refer note 30 to the financial statements;
ii) The Company has made provision as at March 31,2016, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31 2016
Referred to in paragraph 9 of the Independent Auditors'' Report of even date to the members of Filatex India Limited on the financial statements as of and for the year ended March 31, 2016
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets have been physically verified by the management during the year in a phased manner and no material discrepancies have been noticed on such verification. In our opinion, the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and the nature of its assets.
(c) The title deeds of free hold immovable properties are held in the name of the Company.
ii. The management has conducted physical verification of inventory at reasonable intervals and no material discrepancies in inventory were noticed on physical verification.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Therefore, the provisions of Clause 3(iii), (iii) (a), (iii)(b) & (iii)(c) of the said Order are not applicable to the Company.
iv. According to the information and explanations given to us and the records of the Company examined by us, in our opinion In respect of loans, investments, guarantees & security the provisions of section 185 and 186 of the Companies Act,2013 have been complied with.
v. The Company has not accepted any deposits from the public.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Govt. for the maintenance of Cost Records under sub section 1 of section 148 of the Companies Act, 2013 and are of the opinion that prima facie the prescribed accounts and records have been maintained. We have however, not made a detailed examination of these records.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax sales tax, duty of customs, service tax, cess and other material statutory dues 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 and the records of the Company examined by us, the dues outstanding of income-tax, wealth-tax, sales tax, service-tax, duty of customs, duty of excise, value added tax and cess which have not been deposited on account of any dispute as at March 31, 2016 are stated below:-
Sl. No |
Name of the Statute |
Nature of Dues |
Amt (Rs/lacs) |
Period to Which it relates |
Forum where Dispute is pending |
1 |
Central Excise Act, 1944. |
NCCD on Deemed Exports. |
2.77 |
From July 2004 to Nov. 2004 |
Commissioner of Central Excise (Appeals), Vapi |
2 |
Central Excise Act, 1944. |
NCCD against CENVAT of basic excise duty |
453.12 |
From March 2006 to February 2008. |
The Commissioner, Central Excise & Customs, Vapi |
3 |
Central Excise Act, 1944. |
Demand towards adjustments of NCCD against CENVAT credit of Basic Excise Duty. |
21.68 |
February, 2008 |
The Jt. Commissioner, Central Excise & Customs, Vapi |
4 |
Central Excise Act, 1944. |
Credit of Service Tax availed on courier service. |
0.21 |
F.Y''s 2005-06 & 206-07 |
The Asst. Commissioner of Central Excise, Silvassa. |
5 |
Central Excise Act, 1944. |
Credit of Service Tax availed on Courier Services, GPA, Group Mediclaim and Vehicle insurance |
1.68 |
F.Y''s 2007-08 to 2011-12 |
The Deputy Commissioner of Central Excies, Silvassa |
6 |
Central Excise Act, 1944. |
Demand for sale of Grey Knitted fabrics from the premises of various job workers. |
472.52 |
FY 2008-09 |
CESTAT, WZB, Ahmedabad |
7 |
Central Excise Act, 1944. |
Cenvat Credit of capital goods |
5.19 |
F.Y''s 2007-08 & 2008-09 |
CESTAT, WZB, Ahmedabad |
8 |
Central Excise Act, 1944. |
Excess credit availed on goods supplied to 100% EOUs |
35.99 |
FY 2007-08 & FY 2008-09 |
Commissioner (Appeals) C.E., Vapi |
9 |
Central Excise Act, 1944. |
Credit of Capital goods availed on Channels, Angles etc. for the year 2009-10 and 2010-11 |
4.83 |
F.Y''s 2009-10 & 2010-11 |
CESTAT, WZB, Ahmedabad |
10 |
Central Excise Act, 1944. |
Credit of Service tax availed on the invoices issued in the name of Branch offices for the year 2010-11, 2011-12 & 2012-13 |
3.17 |
F.Y''s 2010-11 to 2012-13 |
CESTAT, WZB, Ahmedabad |
11 |
Central Excise Act, 1944. |
Demand of Service Tax credit availed on Sales Commission for the years 2009-10 & 2010-11 |
15.31 |
F.Y''s 2009-10 & 2010-11 |
The Addl. Commissioner, Central Excise, Customs & Service Tax, Vapi |
12 |
Central Excise Act, 1944. |
Cenvat credit of service tax availed on invoices issued in the name of branch office for the period from Nov.-2012 to March.-2013 |
0.69 |
From Nov. 2012 To Mar. 2013 |
Commissioner (Appeals) C.E., Vapi |
13 |
Central Excise Act, 1944. |
Cenvat credit of service tax availed on courier service for the period from Dec 2012 to Sept 2013 |
0.11 |
From Dec.-2012 to Sep.-2013 |
The Superintendent, Central Excise, Customs & Service Tax, Range-IV, Div.-I, Silvassa |
Sl. No |
Name of the Statute |
Nature of Dues |
Amt (Rs/lacs) |
Period to Which it relates |
Forum where Dispute is pending |
14 |
Central Excise Act, 1944. |
Demand of Ex. duty on Polyester FDY Yarn transferred to NWF on transaction value instead of CAS-04 for the period from April-2009 to April-2012 |
33.24 |
From Apr.-2009 to Apr -2012 |
The Jt. Commissioner, Central Excise, Customs & Service Tax, Vapi |
15 |
Central Excise Act, 1944. |
Cenvat credit of service tax availed on courier service for the period from Oct.-2013 to oct.-2014. |
0.17 |
From Oct.-2013 to Oct.-2014 |
The Superintendent, Central Excise, Customs & Service Tax, Range-IV, Div.-I, Silvassa |
16 |
Customs Act, 1962. |
Differential duty on import of chips |
14.54 |
December, 2007 |
Asst. Commissioner of Customs, Group II, E&B, JNCH, Navi Mumbai. |
17 |
Customs Act, 1962. |
Co-Party made with a customer for discrepancies in compliance of export obligation by customer. |
15.00 |
April, 2007 |
CESTAT, Western Zone, Ahmedabad. |
18 |
Customs Act, 1962. |
Fraudulent availment of DEPB credit by M/s Shivam Overseas, Ludhiana by resorting to overvaluation of their exported goods |
8.64 |
March,2005 |
The Commissioner of Customs (EP), New Custom House, Ballard Estate, Mumbai |
19 |
Central Excise Act, 1944 |
Demand of service tax credit availed on sales commission for the period April 2011 to December 2014. |
20.10 |
April 2011 to December 2014. |
The Additional Commissioner, Central excise ,Custom & Service Tax , Div I Vapi. |
20 |
Central Excise Act, 1944 |
Demand of service tax credit availed on sales commission for the period January 2015 to November 2015. |
3.58 |
January 2015 to November 2015. |
The Assistant Commissioner, Central excise ,Custom & Service Tax , Div I Silvassa. |
21 |
Central Excise Act, 1944 |
Demand of service tax credit availed on sales commission for the period April 2010 to February 2016 |
42.78 |
April 2010 to February 2016 |
The Superinendent, Central Ex & Custom, Range-III,Division - V , Bharuch |
22 |
Central Excise Act, 1944 |
Demand of Cenvat credit on inputs used during the year 201112, 2013-14 & 2014-15 |
11.02 |
For the period 2011-12 ,2013-14 & 2014-15 |
The Addl. Commissioner, Central Excise, Customs & Service Tax, Vapi |
23 |
Income tax Act 1961. |
Penalty on Income Tax |
24.67 |
AY 2001-02 To 2004-05 |
Commissioner of Income Tax (Appeals) |
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the balance sheet date.
ix. Based on the audit procedures applied by us & according to the information & explanations provided by the management, the Company has not raised any moneys by further public offer(including debt instruments) during the year. Term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. According to the records of the Company examined by us and the information and explanation given to us, the Company has paid and provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Companies Act 2013.
xii. The company is not a Nidhi Company, this clause is not applicable to the company.
xiii. According to the records of the Company examined by us and the information and explanation given to us, the company has complied with section 177 and 188 0f the Companies Act 2013 in relation to transaction with related parties and the details have been disclosed in the Financial Statements.
xiv. The company has made preferential allotment of share warrants during the year under review and the requirement of Section 42 of the Companies Act, 2013 have been complied and the amount raised have been used for the purposes for which the funds were raised.
xv. As per the information & explanations given to us the company has not entered into any non cash transactions with directors or persons connected with him.
xvi. The company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934.
For AMOD AGRAWAL & ASSOCIATES
Chartered Accountants
Firm Registration No.005780N
(VIRENDRA KUMAR)
Place : New Delhi Partner
Dated : 22/04/2016 M.NO- 85380
Mar 31, 2015
Report on the Financial Statements
1. We have audited the accompanying financial statements of Filatex
India Limited ("the Company"), which comprise the Balance Sheet as at
March 31,2015, 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
2. 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 to 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
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules
made thereunder including the accounting standards and matters which
are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements 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.
6. 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. 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.
7. 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
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Act in the manner so required and
subject to:- In terms of the Notification No.G.S.R. 225(E) dated March
31, 2009 as amended till date by the Ministry of Corporate Affairs
(MCA) on Accounting Standard (AS-11), the Company had exercised option
to adjust the foreign exchange difference on long term foreign currency
loans ( foreign currency loans obtained under buyers credit with
maturity of less than one year and considered as long term liabilities,
as the same are to be rolled over for a period of three years from the
date of origination) to the cost of qualifying capital assets.
Accordingly, the company has added Rs. 17.82 lacs for the year ended
March 31, 2015 on account of foreign exchange difference to the cost of
qualifying assets and charged depreciation of Rs 0.81 lacs for the year
ended March 31,2015, consequently profit for the year would have been
lower by Rs 17.01 lac. Further the company has received letter dated
26th December, 2014 from National Stock Exchange (NSE) advising the
company to restate its Financial Statements for the financial year
2012-13 subsequent to our qualification relating to treatment of
foreign exchange difference during FY 2012-13. The company has taken
up the matter with NSE/SEBI to explain and substantiate the accounting
treatment by the company. Pending personal hearing allowed by SEBl, the
company has not given any effect of the qualification in the financial
statements. Impact will be accounted for on receipt of final decision
in the matter, 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 March 31, 2015, and its profit and its
cash flows for the year ended on that date. Report on Other Legal and
Regulatory Requirements
9. 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.
10. 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) On the basis of the written representations received from the
directors as on March 31, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) 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 knowledge and belief
and according to the information and explanations given to us:
i) The Company has disclosed the impact, if any, of pending litigations
as at March 31, 2015, on its financial position in its financial
statements - Refer note 30;
ii) The Company has made provision as at March 31,2015, as required
under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative
contracts.
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended March 31, 2015
Annexure to Independent Auditor's Report
Referred to in paragraph 9 of the Independent Auditors' Report of even
date to the members of Filatex India Limited on the financial
statements as of and for the year ended March 31, 2015
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets. (b) The fixed assets have been physically verified by the
management during the year in a phased manner and no material
discrepancies have been noticed on such verification. In our opinion,
the frequency of physical verification of fixed assets is reasonable
having regard to the size of the Company and the nature of its assets.
2. (a) The management has conducted physical verification of inventory
at reasonable intervals.
(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 is maintaining proper records of inventory and no
material discrepancies in inventory were noticed on physical
verification.
3. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013. Therefore, the provisions
of Clause 3(iii), (iii)(a) and (iii)(b) of the said Order are not
applicable to the Company.
4. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. The Company has not accepted any deposits from the public within
the directives issued by the Reserve Bank of India and the provisions
of section 73 to 76 or any other relevant provisions of the Companies
Act, 2013 and the rules framed there under.
6. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Govt, for the
maintenance of Cost Records under sub section 1 of section 148 of the
Companies Act, 2013 and are of the opinion that prima facie the
prescribed accounts and records have been maintained. We have however,
not made a detailed examination of these records.
7. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is regular in depositing the undisputed statutory dues, including
provident fund, employees' state insurance, income tax, sales tax,
wealth tax, service tax, duty of customs, duty of excise, value added
tax, cess and other material statutory dues, as applicable, with the
appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the dues outstanding of
income-tax, wealth-tax, sales tax, service-tax, duty of customs, duty
of excise, value added tax and cess which have not been deposited on
account of any dispute as at March 31, 2015 are stated below:-
Sl. Name of the Statute Nature of Dues Amt
No (Rs/lacs)
1 Central Excise Act, 1944. NCCD on Deemed Exports. 2.76
2 Central Excise Act, 1944. NCCD against CENVAT of 453.12
basic excise duty
3 Central Excise Act, 1944. Demand towards adjustments 21.68
of NCCD against CENVAT
credit of Basic Excise Duty.
4 Central Excise Act, 1944. Credit of Service Tax
availed 0.21
on courier service.
5 Central Excise Act, 1944. Credit of Service Tax
availed 1.68
on Courier Services, GPA,
Group Mediclaim and
Vehicle insurance
6 Central Excise Act, 1944. Demand for sale of Grey 603.52
Knitted fabrics from the
premises of various job
workers.
7 Central Excise Act, 1944. Cenvat Credit of capital
goods 5.19
8 Central Excise Act, 1944. Excess credit availed on
goods 35.99
supplied to 100% EOUs
9 Central Excise Act, 1944. Credit of Capital goods 4.83
availed on Channels,
Angles etc. for the year
2009-10 and 2010-11
10 Central Excise Act, 1944. Credit of Service tax
availed 2.77
on the invoices issued
in the name of Branch
offices for the year
2010-11, 2011-12 & 2012-13
11 Central Excise Act, 1944. Demand of Service Tax credit 15.31
availed on Sales Commission
for the years 2009-10 &
2010-11
12 Central Excise Act, 1944. Cenvat credit of service tax 0.69
availed on invoices issued
in the name of banch office
for the period from
Nov.-2012 to March.-2013
13 Central Excise Act, 1944. Demand for Cenvat credit 0.10
of service tax availed on
invoices issued in the
name of branch office for
the period from Nov-2012
to March.-2013
14 Central Excise Act, 1944. Demand of Ex. duty 13.99
on Polyester FDY Yarn
transferred to NWF on
transaction value instead
of CAS-04 for the period
from April-2009 to
April-2012
15 Central Excise Act, 1944. Cenvat credit of service tax 0.17
availed on courier service
for the period from Oct.
-2013 to oct.-2014
16 Customs Act, 1962. Differential duty on
import of 14.54
chips
17 Customs Act, 1962. Co-Party made with a 15.00
customer for discrepancies
in compliance of export
obligation by customer.
18 Customs Act, 1962. Demand due to non receipt of 4.81
Warehouse Certificate
19 Customs Act, 1962. Fraudulent availment of 8.64
DEPB credit by M/s Shivam
Overseas, Ludhiana by
resorting to overvaluation
of their exported goods
20 Income tax Act 1961. Penalty on Income Tax 33.37
Name of the Statute Period to Forum where
Which it relates Dispute is pending
Central Excise Act, 1944 From July to Nov.
2004 Commissioner of Central
Excise (Appeals), Vapi
Central Excise Act, 1944 From March 2006 to The Commissioner.
February 2008. Central Excise &
Customs, Vapi
Central Excise Act, 1944 February, 2008 The Jt. Commissioner.
Central Excise &
Customs, Vapi
Central Excise Act, 1944 FY's 2005-06 &
2006-07 The Asst. Commissioner
of Central Excise,
Silvassa.
Central Excise Act, 1944 FY's 2007-08 to
2011-12 The Deputy Commissioner
of Central Excies,
Silvassa
Central Excise Act, 1944 FY 2008-09 CESTAT, WZB. Ahmedabad
Central Excise Act, 1944 FY's 2007-08 &
2008-09 CESTAT WZB, Ahmedabad
Central Excise Act, 1944 FY 2007-08 Commissioner (Appeals)
C.E., Vapi
Central Excise Act, 1944 FY's 2009-10 &
2010-11 CESTAT, WZB, Ahmedabad
Central Excise Act, 1944 FY's 2010-11 to
2012-13 CESTAT, WZB, Ahmedabad
Central Excise Act, 1944 FY's 2009-10 &
2010-11 The Addl. Commissioner,
Central Excise, Customs
& Service Tax, Vapi
Central Excise Act, 1944 From Nov. 2012 To Commissioner (Appeals)
Mar. 2013 C.E., Vapi
Central Excise Act, 1944 From Nov-2012 to The Superintendent,
March 2013 Central Excise, Customs
& Service Tax,Range-IV,
Div.-I, Silvassa
Central Excise Act, 1944 From Apr.-2009 to
Apr-2012 The Jt. Commissioner,
Central Excise, Customs
& Service Tax, Vapi
Central Excise Act, 1944 From Oct.-2013 to The Superintendent,
Oct.-2014 Central Excise, Customs
& Service Tax,Range-IV,
Div.-I, Silvassa
Customs Act, 1962 December, 2007 Asst. Commissioner of
Customs, Group II, E&B,
JNCH, Navi Mumbai.
Customs Act, 1962 April, 2007 CESTAT, Western
Zone, Ahmedabad.
Customs Act, 1962 June, 2005 CESTAT, Western Zone,
Ahmedabad.
Customs Act, 1962 March 2005 The Commissioner of
Customs (EP), New
Custom House, Ballard
Estate, Mumbai
Income tax Act, 1961 AY 2001-02 To
2005-06 Commissioner of Income
Tax (Appeals)
(c) The amount required to be transferred to Investor Education and
Protection Fund has been transferred within the stipulated time in
accordance with the provisions of the Companies Act, 1956 and the rules
made thereunder.
8. The Company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
9. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
10. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
11. Based on the audit procedures applied by us & according to the
information & explanations provided by the management, the term loans
taken by the company during the year have been applied for the purpose
for which the loans were obtained.
12. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For AMOD AGRAWAL & ASSOCIATES
Firm Registration No.005780N
Chartered Accountants
Place : New Delhi AMOD AGRAWAL
Date : May 4, 2015 PARTNER
Membership No. 084175
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Filatex India
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the Accounting
Standards referred to in Sub-Section (3C) of Section 211 of the
Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error. Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and subject to:- In terms
of the Notification No.G.S.R. 225(E) dated March 31, 2009 as amended
till date by the Ministry of Corporate Affairs (MCA) on Accounting
Standard (AS-11), the Company had exercised option to adjust the
foreign exchange difference on long term foreign currency loans
(including foreign currency loans obtained under buyers credit with
maturity of less than one year and considered as long term liabilities,
as the same are to be rolled over for a period of three years from the
date of origination) to the cost of qualifying capital assets.
Accordingly, the company has added Rs.852.02 lacs for the year ended
March 31,2013 on account of foreign exchange difference to the cost of
qualifying assets and charged depreciation of Rs 43.47 lacs for the
year ended March 31,2013, consequently profit for the year would have
been lower by Rs 808.55 lacs, give a true and fair view in conformity
with the accounting principles generally accepted in India:
a) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March,2013
b) In the case of the Profit & Loss Account, of the profit for the year
ended on that date
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended as that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, and Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account
d) in our opinion, the Balance Sheet, and Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure Independent Auditor''s Report
Referred to in paragraph (1) under the heading of "Report on Other
Legal and Regulatory Requirements" our report of even date- Filatex
India Limited
1. a) The Company has maintained proper records to show full
particulars, including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the management
during the year in a phased manner and no material discrepancies have
been noticed on such verification. In our opinion, the frequency of
physical verification of fixed assets is reasonable having regard to
the size of the Company and the nature of its assets.
c) The company has not disposed off substantial part of fixed assets
during the year and going concern status of the company is not
affected.
2. a) The management has conducted physical verification of inventory
at reasonable intervals.
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 is maintaining proper records of inventory and no
material discrepancies in inventory were noticed on physical
verification.
3. a) According to the information & explanations given to us the
company has taken unsecured loan from one party covered under section
301 of the Companies Act 1956. The amount outstanding as on 31.03.2013
was nil & the maximum amount outstanding during the year was Rs. 103.00
lac.
b) According to information and explanations given to us, the Company
has not granted any loans, secured or unsecured to parties covered in
the register maintained under section 301 of the Companies Act, 1956.
Hence our comments on para (iii)(a) to (iii)(d) are not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. There are no transactions in respect of sale of services
during the year. Accordingly the issue of continuing failure to correct
major weakness in internal control in these areas does not apply.
5. According to the information and explanations provided by the
management, there are no transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public within
the meaning of section 58A & 58AA of the Companies Act, 1956 and the
rules made thereunder.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Govt. for the
maintenance of Cost Records under section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been maintained. We have however, not made a
detailed examination of these records.
9. a) According to the records of the Company, the Company is
generally 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, Service Tax, Cess and other statutory dues applicable to it with
the appropriate authorities.
b) According to the information and explanations given to us there are
no undisputed amounts payable in respect of Income Tax, Wealth Tax,
Sales Tax, Service Tax, Custom duty and Excise duty outstanding as at
31st March, 2013 for a period of more than six months from the date
they became payable.
c) According to the records of the company, there are no dues of wealth
tax and cess, which have not been deposited on account of any dispute.
Dues towards excise & customs duties, sales tax, VAT, service tax and
income tax that have not been deposited on account of dispute are
stated below:
Sl. Nature of Dues Amt Period to Forum where
No (Rs/lacs) which it relates dispute is pending
1 NCCD on Deemed
Exports 98.24 July, 2003 to Central Excise &
Service Tax Appellate
Tribunal,
& Job Work. June, 2004 Western Zone,
Ahmedabad.
2 NCCD on Deemed
Exports. 2.76 July to Nov.
2004 Commissioner of
Central Excise
(Appeals), Vapi
3 Differential
duty on import
of chips 14.54 December, 2007 Asst. Commissioner
of Customs, Group
II, E&B, JNCH,
Navi Mumbai.
4 Co-Party made
with a customer 15.00 April, 2007 CESTAT, Western
Zone, Ahmedabad.
for discrepancies
in compliance
of export
obligation by
customer.
5 Estimation of
sales value of
Yarn 174.11 FY 2002-03 Supreme Court.
10. The Company has no accumulated losses at the end of the financial
year. It has not incurred cash losses during the year under report and
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to Financial
institutions or banks.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund, nidhi / mutual benefit
fund and societies.
14. The company has not dealt/traded in shares, securities and
debentures during the year.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. Based on the audit procedures applied by us & according to the
information & explanations provided by the management, the term loans
taken by the company during the year have been applied for the purpose
for which the loans were obtained.
17. According to the information and explanation given to us and on
the basis of overall examination of the Balance Sheet of the company,
we report that the funds amounting to Rs.2811.92 lacs raised on short
term have been used for long term investment.
18. The company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act 1956.
19. During the period covered under our audit report, the Company has
not issued any debentures. Therefore the provisions of clause 4(xix) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
20. The Company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed by us for expressing our
opinion on these financial statements and information & explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit that causes
the financial statement to be materially misstated.
For AMOD AGRAWAL & ASSOCIATES
Firm Registration No.005780N
Chartered Accountants
Place : New Delhi AMOD AGRAWAL
Date : May 29, 2013 PARTNER
Membership No. 84175
Mar 31, 2012
1. We have audited the attached Balance Sheet of Filatex India Limited
as at March 31, 2012 and also the Statement of Profit and Loss and 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 auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. The company has adjusted the exchange loss of Rs. 7.58 lacs on
foreign currency loans for less than 12 months and considered as long
term foreign currency loans, relating to acquisition of capital assets,
as the management intends to roll over the same for a period of up to
three years, to the cost of qualifying depreciable assets. Had the
exchange loss been charged to statement of Profit & Loss, the profit
for the year would have been lower by Rs.7.57 lacs, fixed assets would
have been lower by Rs. 7.58 lacs and reserve & surplus would have been
lower by Rs. 7.57 lacs.
5. Further to our comments in the Annexure referred to in para 3
above, we report that: -
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 appears from our examination of
those books;
(c) The Balance sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Section 211 (3C) of the Companies
Act, 1956.
(e) On the basis of written representations received from the
directors, as on March 31, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of section
274(1) (g) of Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and other notes to financial
statements, subject to qualification in para 4 above, give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i) In the case of Balance Sheet, of the state of the affairs of the
Company, as at March 31, 2012.
ii) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure referred to in paragraph (3) of our report of even date
1. a) The Company has maintained proper records to show full
particulars, including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the management
during the year in a phased manner and no material discrepancies have
been noticed on such verification. In our opinion, the frequency of
physical verification of fixed assets is reasonable having regard to
the size of the Company and the nature of its assets.
c) The company has not disposed off substantial part of fixed assets
during the year and going concern status of the company is not
affected.
2. a) The management has conducted physical verification of inventory
at reasonable intervals.
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 is maintaining proper records of inventory and no
material discrepancies in inventory were noticed on physical
verification.
3. According to information and explanations given to us, the Company
has not granted or taken any loan, secured or unsecured to / from any
party covered in the register maintained Under section 301 of the
Companies Act, 1956. Hence our comments on para (iii)(a) to (iii)(d)
are not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. There are no transactions in respect of sale of services
during the year. Accordingly the issue of continuing failure to correct
major weakness in internal control in these areas does not apply.
5. According to the information and explanations provided by the
management, there are no transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public within
the meaning of section 58A & 58AA of the Companies Act, 1956 and the
rules made thereunder.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Govt. for the
maintenance of Cost Records under section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been maintained. We have however, not made a
detailed examination of these records.
9. a) According to the records of the Company, the Company is
generally 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, Service Tax, Cess and other statutory dues applicable to it with
the appropriate authorities.
b) According to the information and explanations given to us there are
no undisputed amounts payable in respect of Income Tax, Wealth Tax,
Sales Tax, Service Tax, Custom duty and Excise duty outstanding as at
31st March, 2012 for a period of more than six months from the date
they became payable.
c) According to the records of the company, there are no dues of wealth
tax and cess, which have not been deposited on account of any dispute.
Dues towards excise & customs duties, sales tax, VAT, service tax and
income tax that have not been deposited on account of dispute are
stated below:
Sl. Nature of Dues Amt Period to Forum where
No (Rs/
lacs) which it relates dispute is
pending
1 NCCD on Deemed
Exports 98.24 July, 2003 to Central Excise
& Service Tax
Appellate
Tribunal,
& Job Work. June, 2004 Western Zone,
Ahmedabad.
2 NCCD on Deemed
Exports. 2.76 July to
Nov. 2004 Commissioner of
Central Excise
(Appeals), Vapi
3 Sales Tax 18.16 FY 2002-03 Appallete
Tribunal,
Noida(UP)
4 Differential duty
on import of chips 14.54 December, 2007 Asst.
Commissioner
of Customs,
Group II, E&B,
JNCH, Navi Mumbai.
5 Co-Party made with
a customer 15.00 April, 2007 CESTAT, Western
Zone, Ahmedabad.
for discrepancies
in compliance
of export obligation
by customer.
6 Estimation of sales
value of Yarn 174.22 FY 2002-03 Supreme Court.
7 Demand on non
receipt of 4.81 June, 2005 Jt. Commissioner,
Central Excise &
Customs, Vapi.
Warehouse
Certificate
8 Sales Tax 0.32 FY 2003-04 Jt. Commissioner
(Appeals),
Sales Tax
9 NCCD against
CENVAT of 453.12 March 2006 to The Commissioner,
Central Excise
& Customs, Vapi
basic excise duty February 2008.
10 Penalty under
Rule 209A of the 0.50 FY 2005-06 The Asst.
Commissioner,
Customs, Group
II, C&D,
CE Rules 1994. JNCH, Navi Mumbai.
11 Demand towards
adjustments of 21.68 February, 2008 The Jt.
Commissioner,
Central Excise &
Customs,
NCCD against
CENVAT credit of
Vapi
Basic Excise Duty.
12 Credit of Service
Tax availed on 0.21 2005-06 &
2006-07 The Asst.
Commissioner of
Central Excise,
Silvassa.
courier service.
13 Cenvat availed
on photocopy of 0.47 FY 2008-09 The Asst.
Commissioner of
Central Excise,
Noida.
Bill of Entry
14 Remittance of
Excise Duty on fire 3.36 FY 2008-09 The Asst.
Commissioner of
Central Excise,
Noida.
15 Income Tax
demand on account 33.37 AYs 2001-02 Income Tax
Appellate
Tribunal,
Delhi.
of additions To 2005-06
16 Penalty on
Income Tax demand 33.37 AYs 2001-02 Commissioner of
Income Tax
(Appeals)
To 2005-06
17 Income Tax
demand on account 2.20 AY 2008-09 Commissioner of
Income Tax
(Appeals)
of additions
18 Demand for sale
of Grey Knitted 623.52 FY 2008-09 CESTAT, WZB,
Ahmedabad
fabrics from the
premises of various
job workers.
19. Cenvat credit of
capital goods 2.84 2007-08 & The Asst.
Commissioner of
Central Excise,
Silvassa.
2008-09
20. Excess credit
availed on goods 14.80 FY 2007-08 & The Addl.
Commissioner of
Central Excise,
Silvassa.
supplied to
100% EOUs 2008-09
10. The Company has no accumulated losses at the end of the financial
year. It has not incurred cash losses during the year under report and
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to financial
institutions or banks.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of the company does not attract
any special statute applicable to chit fund, nidhi / mutual benefit
fund and societies.
14. The company has not dealt/traded in shares, securities and
debentures during the year.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. Based on the audit procedures applied by us & according to the
information & explanations provided by the management, the term loans
taken by the company during the year have been applied for the purpose
for which the loans were obtained.
17. According to the information and explanation given to us and on
the basis of overall examination of the Balance Sheet of the company,
in our opinion, no short term funds have been used for long term uses,
during the year under our report.
18. During the year the company has made preferential allotment of
shares to the parties covered in the register maintained under section
301 of the Companies Act, 1956 upon conversion of convertible warrants
issued in earlier years. In our opinion the price at which shares are
allotted against warrants is not prejudicial to the interest of the
company.
19. During the period covered under our audit report, the company has
not issued any debentures.
Therefore the provisions of clause 4(xix) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the Company.
20. The Company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed by us for expressing our
opinion on these financial statements and information & explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit that causes
the financial statement to be materially misstated.
For AMOD AGRAWAL & ASSOCIATES
Firm Registration No.005780N
Chartered Accountants
Place : New Delhi VIRENDRA KUMAR
Date : 29.05.2012 PARTNER
Membership No. 85380
Mar 31, 2011
1. We have audited the attached Balance Sheet of Filatex India Limited
as at March 31, 2011 and also the Profit and Loss Account and 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 auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to in para 3
above, we report that: -
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 appears from our examination of
those books;
(c) The Balance sheet, Profit and Loss account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956,
(e) On the basis of written representations received from the
directors, as on March 31, 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2011 from being appointed as a director in terms of section
274(1) (g) of Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and other notes thereon in Schedule
No.22, give the information required by the Companies Act, 1956, in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i) In the case of Balance Sheet, of the state of the affairs of the
Company, as at March 31, 2011.
ii) In the case of the Profit and Loss account, of the Profit of the
Company for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure referred to in paragraph (3) of our report of even date
1. a) The Company has maintained proper records to show full
particulars, including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the management
during the year in a phased manner and no material discrepancies have
been noticed on such verification. In our opinion, the frequency of
physical verification of fixed assets is reasonable having regard to
the size of the Company and the nature of its assets.
c) The company has not disposed off substantial part of fixed assets
during the year and going concern status of the company is not
affected.
2. a) The management has conducted physical verification of inventory
at reasonable intervals.
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 is maintaining proper records of inventory and no
material discrepancies in inventory were noticed on physical
verification.
3. a) As informed to us, the Company has not granted any loan, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
b) As informed to us, the company has not taken secured or unsecured
loan from the companies, firm or other parties covered in the register
maintained u/s 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. There are no transactions in respect of sale of services
during the year. Accordingly the issue of continuing failure to correct
major weakness in internal control in these areas does not apply.
5. According to the information and explanations provided by the
management, there are no transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public within
the meaning of section 58A & 58AA of the Companies Act, 1956 and the
rules made thereunder.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Govt. for the
maintenance of Cost Records under section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been maintained. We have however, not made a
detailed examination of these records.
9. a) According to the records of the Company, the Company is
generally 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, Service Tax, Cess and other statutory dues applicable to it with
the appropriate authorities.
b) According to the information and explanations given to us there are
no undisputed amounts payable in respect of Income Tax, Wealth Tax,
Sales Tax, Service Tax, Custom duty and Excise duty outstanding as at
31st March, 2011 for a period of more than six months from the date
they became payable.
c) According to the records of the company, there are no dues of wealth
tax and cess, which have not been deposited on account of any dispute.
Dues towards excise & customs duties, sales tax, VAT, service tax and
income tax that have not been deposited on account of dispute are
stated below:
Sl. Nature of Dues Amt Period to
No. (Rs./Lacs) Which it relates
1 NCCD on Deemed Exports 98.24 July, 2003 to
& Job Work. June, 2004
2 NCCD on Deemed Exports. 2.76 July to Nov.2004
3 Sales Tax 18.16 FY 2002-03
4 Differential duty on 14.54 December, 2007
import of chips
5 Co-Party made with a
customer 15.00 April, 2007
for discrepancies in
compliance
of export obligation
by customer.
6 Estimation of Sales
value of Yarn 174.22 FY 2002-03
7 Demand on Non Receipt of 4.81 June, 2005
Warehouse Certificate
8 Sales Tax 0.32 FY 2003-04
9 NCCD against CENVAT of 453.12 March 2006 to
basic excise duty February 2008.
10 Penalty under Rule 209A
of the 0.50 FY 2005-06
CE Rules 1994.
11 Demand towards
adjustments of 21.68 February, 2008
NCCD against CENVAT
credit of Basic
Excise Duty.
12 Credit of Service Tax
availed on 0.21 2005-06 & 2006-07
courier service.
13 Cenvat availed on
photocopy of 0.47 FY 2008-09
Bill of Entry
14 Remittance of Excise
Duty on Fire 3.36 FY 2008-09
15 Income Tax Demand on
account 33.37 AYs 2001-02
of additions To 2005-06
16 Penalty on Income Tax
Demand 33.37 AYs 2001-02
To 2005-06
17 Income Tax Demand on
account 2.20 AY 2008-09
of additions
Sl. Forum where
No. Dispute is pending
1 Central Excise & Service Tax Appellate Tribunal,
Western Zone, Ahmedabad.
2 Commissioner of Central Excise (Appeals), Vapi
3 Appallete Tribunal,Noida(UP)
4 Asst. Commissioner of Customs, Group II, E&B,
JNCH, Navi Mumbai.
5 CESTAT, Western Zone, Ahmedabad.
6 Supreme Court.
7 Jt. Commissioner, Central Excise & Customs, Vapi.
8 Jt. Commissioner (Appeals), Sales Tax
9 The Commissioner, Central Excise & Customs, Vapi
10 The Asst. Commissioner, Customs, Group II, C&D,
JNCH, Navi Mumbai.
11 The Jt. Commissioner, Central Excise & Customs,Vapi
12 The Asst. Commissioner of Central Excise, Silvassa.
13 The Asst. Commissioner of Central Excise, Noida.
14 The Asst. Commissioner of Central Excise, Noida.
15 Income Tax Appellate Tribunal, Delhi.
16 Commissioner of Income Tax (Appeals)
17 Commissioner of Income Tax (Appeals)
10. The Company has no accumulated losses at the end of the financial
year. It has not incurred cash losses during the year under report and
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to financial
institutions or banks.
12. According to the information and explanations given to us and based
on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund, nidhi / mutual benefit
fund and societies.
14. The company has not dealt/traded in shares, securities and
debentures during the year.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. Based on the audit procedures applied by us and according to the
information & explanations provided by the management, the term loans
taken by the company during the year have been applied for the purpose
for which the loans were obtained.
17. According to the information and explanation given to us and on the
basis of overall examination of the Balance Sheet of the company, in
our opinion, no short term funds have been used for long term uses,
during the year under our report.
18. During the year, the company has not made any preferential
allotment of shares. However, the company has made preferential
allotment of convertible warrants to the parties covered in the
register maintained under section 301 of the Companies Act, 1956. In
our opinion, the price at which shares are to be issued against
warrants is not prejudicial to the interest of the company
19. During the period covered under our audit report, the Company has
not issued any debentures.
Therefore, the provisions of clause 4(xix) of the Companies (Auditors
Report) Order, 2003 are not applicable to the Company.
20. The Company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed by us for expressing our
opinion on these financial statements and information & explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit that causes
the financial statement to be materially misstated.
For AMOD AGRAWAL & ASSOCIATES
Chartered Accountants
AMOD AGRAWAL
Partner
Membership No. 84175
FR No.005780N
Place : New Delhi
Date : 30.04.2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Filatex India Limited
as at March 31, 2010 and also the Profit and Loss Account and 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 auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to in para 3
above, we report that: -
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 appears from our examination of
those books;
(c) The Balance sheet, Profit and Loss account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956,
(e) On the basis of written representations received from the
directors, as on March 31, 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2010 from being appointed as a director in terms of section
274(1) (g) of Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and other notes thereon in Schedule
No.22, give the information required by the Companies Act, 1956, in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i) In the case of Balance Sheet, of the state of the affairs of the
Company, as at March 31, 2010.
ii) In the case of the Profit and Loss account, of the Profit of the
Company for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure referred to in paragraph (3) of our report of even date
1. a) The Company has maintained proper records to show full
particulars, including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the management
during the year in a phased manner and no material discrepancies have
been noticed on such verification. In our opinion, the frequency of
physical verification of fixed assets is reasonable having regard to
the size of the Company and the nature of its assets.
c) The company has not disposed off substantial part of fixed assets
during the year and going concern status of the company is not
affected.
2. a) The management has conducted physical verification of inventory
at reasonable intervals.
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 is maintaining proper records of inventory and no
material discrepancies in inventory were noticed on physical
verification.
3. a) As informed to us, the Company has not granted any loan, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
b) According to the information and explanations given to us, the
company has taken unsecured loan from a party covered in the register
maintained u/s 301 of the Companies Act, 1956. The maximum amount
involved during the year was Rs.535.00 lacs and the year end balance of
the loan taken from such party was Rs.Nil. In our opinion, the rate of
interest and other terms & conditions are not prima facie prejudicial
to the interest of the company. There is no overdue amount as the loan
was payable on demand.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. There are no transactions in respect of sale of services
during the year. Accordingly the issue of continuing failure to correct
major weakness in internal control in these areas does not apply.
5. According to the information and explanations provided by the
management, there are no transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public within
the meaning of section 58A & 58AA of the Companies Act, 1956 and the
rules made thereunder.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Govt. for the
maintenance of Cost Records under section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been maintained. We have however, not made a
detailed examination of these records.
9. a) According to the records of the Company, the Company is
generally 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, Service Tax, Cess and other statutory dues applicable to it with
the appropriate authorities.
b) According to the information and explanations given to us there are
no undisputed amounts payable in respect of Income Tax, Wealth Tax,
Sales Tax, Service Tax, Custom duty and Excise duty outstanding as at
31st March, 2010 for a period of more than six months from the date
they became payable.
c) According to the records of the company, there are no dues of wealth
tax and cess, which have not been deposited on account of any dispute.
Dues towards excise & customs duties, sales tax, service tax and income
tax that have not been deposited on account of dispute are stated
below:
Sl. Nature of Dues Amount Period to
No. (Rs/lacs) which it relates
1 NCCD on Deemed Exports & Job 98.24 July, 2003 to
Work. June, 2004
2 NCCD on Deemed Exports. 2.76 July to
Nov. 2004
3 Sales Tax FY 2002-03
18.16
4 Differential duty on import of
chips December, 2007
14.54
5 Co-Party made with a customer for April, 2007
15.00
discrepancies in compliance of
export obligation by customer.
174.22
6 Estimation of Sales value of Yarn FY 2002-03
7 Demand on Non Receipt of 4.81 June, 2005
Warehouse Certificate
8 Sales Tax 0.32 FY 2003-04
9 NCCD against CENVAT of basic 500.87 March 2006
to excise duty
February 2008.
10 Penalty under Rule 209A of the CE FY 2005-06
0.50
Rules 1994.
11 Demand towards adjustments of February, 2008
21.68
NCCD against CENVAT credit of
Basic Excise Duty.
12 Credit of Service Tax availed on 2005-06 & 206-07
0.21
courier service.
13 Undue availment of DEPB Credit FY 2009-10
26.14
Nature of Dues Forum where Dispute is pending
NCCD on Deemed
Exports & Job
Work. Central Excise & Service Tax Appellate Tribunal,
Western Zone, Ahmedabad.
NCCD on Deemed
Exports. Commissioner of Central Excise (Appeals), Vapi
Sales Tax Appallete Tribunal, Noida(UP)
Differential duty
on import of chips Asst. Commissioner of Customs, Group II, E&B, JNCH,
Navi Mumbai.
Co-Party made with
a customer for
discrepancies in
compliance of
export obligation
by customer. CESTAT, Western Zone, Ahmedabad.
Estimation of
Sales value of Yarn Supreme Court.
Demand on Non
Receipt of
Warehouse
Certificate Jt. Commissioner, Central Excise & Customs, Vapi.
Sales Tax Jt. Commissioner (Appeals), Sales Tax
NCCD against
CENVAT of
basic
excise duty The Commissioner, Central Excise & Customs, Vapi
Penalty under
Rule 209A of
the CE
Rules 1994. The Asst. Commissioner, Customs, Group II, C&D, JNCH
Navi Mumbai.
Demand towards
adjustments of
NCCD against
CENVAT credit
of Basic
Excise
Duty. The Jt. Commissioner, Central Excise & Customs, Vapi
redit of Ser
vice Tax ava
iled on cour
ier service. The Asst. Commissioner of Central Excise, Silvassa.
Undue avail
ment of DEPB
Credit Commissioner of Customs (Exports), Nhava Sheva
10. The Company has no accumulated losses at the end of the financial
year. It has not incurred cash losses during the year under report and
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to financial
institutions or banks.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund, nidhi / mutual benefit
fund and societies.
14. The company has not dealt/traded in shares, securities and
debentures. However in respect of investments made in mutual funds, in
our opinion and according to the information and explanations given to
us, proper records have been maintained for the transactions and
contracts and timely entries have been made therein. The investments
have been held by the company in its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. Based on the audit procedures applied by us & according to the
information & explanations provided by the management, the term loans
taken by the company during the year have been applied for the purpose
for which the loans were obtained.
17. According to the information and explanation given to us and on
the basis of overall examination of the Balance Sheet of the company,
in our opinion, no short term funds have been used for long term uses,
during the year under our report.
18. During the year the company has not made any preferential
allotment of shares. However the company has made preferential
allotment of convertible warrants to the parties covered in the
register maintained under section 301 of the Companies Act, 1956. In
our opinion the price at which shares are to be issued against warrants
is not prejudicial to the interest of the company
19. During the period covered under our audit report, the Company has
not issued any debentures. Therefore the provisions of clause 4(xix)
of the Companies (Auditors Report) Order, 2003 are not applicable to
the Company.
20. The Company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed by us for expressing our
opinion on these financial statements and information & explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit that causes
the financial statement to be materially misstated.
For AMOD AGRAWAL & ASSOCIATES
Chartered Accountants
Place : New Delhi AMOD AGRAWAL
Date : 5th May 2010 Partner
Membership No. 84175 FR No.005780N