Mar 31, 2015
We have audited the accompanying financial statements of FLORA TEXTILES
LIMITED ("the Company"), which comprise the Balance Sheet as at 31
March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its loss and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
1. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements
2. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
3. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(ii) In respect of its inventories:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
Register maintained under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(v) According to the information and explanations given to us, the
Company has not accepted any deposit during the year.
(vi) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records and Rules)
Rules, 2014 prescribed by the Central Government under Section 148[1 ]
of the Companies Act, 2013 and are of the opinion that, prima facie,
the prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has been regular in depositing undisputed statutory
dues, including Provident Fund, Employees' State Insurance, Income-tax,
Sales Tax, Cess and other material statutory dues applicable to it with
the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income-tax, Sales Tax, Cess and other material statutory
dues in arrears as at 31 March, 2015 for a period of more than six
months from the date they became payable.
(viii) The accumulated losses of the Company at the end of the
financial year is Rs.1634.04 lakhs (Previous year Rs. 1524.84 lakhs).
The Company has incurred a cash loss of Rs. 104.73 lakhs (Previous year
Rs.63.76 lakhs) during the financial year covered by our audit.
(ix) According to the information and explanations given to us, the
Company has not raised any loans from financial institutions, banks and
debenture holders. Hence the provisions of default does notarise.
(x) In our opinion and according to the information and explanations
given to us, no guarantees has been given by the company for loan taken
by others.
(xi) In our opinion and according to the information and explanations
given to us, no term loans were obtained by the company during the
financial year.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
Place: Coimbatore FOR ANJANA & CO
Date: 30.05.2015 (FRN No 006724S)
CHARTERED ACCOUNTANTS
PRAVIN KUMAR MAHESHWARI
PARTNER
(Membership no 26866)
Mar 31, 2013
We have audited the attached Balance Sheet of Flora Textiles Limited as
at 31st March 2013, the Profit and Loss Account for the year ended and
Cash flow statement 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.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Stan- dards require that we plan and
perform the Audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003, issued
by the 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 paras 4 & 5 of the said order.
3. We further report that:
(a) We have obtained all the informa''tion and explanations which is to
the best of our knowledge and belief were necessary for the purpose of
our audit.
(b) In our opinion. Proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of such
books.
(c) The Balance Sheet, Profit & Loss Account and Cash flow statement
dealt with by this report are in agreement with the books of accounts
of the company.
(d) In our opinion, the Profit & Loss account .Balance Sheet and Cash
flow statement dealt with by this report comply with Accounting
Standards specified by The Institute of Chartered Accountants of India
referred to in sub-section 3 ( C ) of Section 211 of the Companies Act,
1956.
(e) Based on the epresentations made by the Directors as on March 31,
2013 and taken on record by the Board of Directors of the company and
information and explanation given to us , 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) 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
accounting policies and other notes, thereon gives the information
required by Companies Act, 1956, in the manner so required and present
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet of the state of affairs of the
company as at 31st March 2013
(b) In the case of the Profit and Loss Account of the Profit for the
year ended on that date.
(c) In the case of the Cash flow statement for the year ended on that
date.
ANNEXURE REFERRED TO IN PARAGRAPH (2) OF OUR AUDIT REPORT OF EVEN DATE
OF FLORA TEXTILES LIMITED
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and the situation of fixed
assets.
(b) As explained to us, according to the practice of the company fixed
assets are physically verified by the management at reasonable
intervals in a phased verification programme, which in our opinion, is
reasonable looking at the size of the company and the nature of its
business. During the year, as informed to us no material discrepancies
have been notified on such verification.
® During the year, the company has not disposed off substantial part of
its fixed assets so as to affect its going concern.
II a) As explained to us the inventories have been physically verified
during the year, by the Management.
b) The procedures, as explained to us which are followed by the
management for physical verification of inventories are in our opinion
adequate in relation to the size of the company and the nature of the
business.
c) The company is maintaining proper records of inventory and it is
told to us that the discrepancies that were noticed in the course of
physical verification have been properly dealt with in the book of
accounts
III The Company has not granted/taken any loan secured or unsecured
to/from companies Firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956 and hence
matters regarding rate of interest, terms and conditions of loans,
repayments and overdue amounts more than one lakh of rupees are not
applicable.
IV In our opinion and according to the information given to us there
are adequate internal control procedures commensurate with the size of
the company and the nature of its business, with regard to the purchase
of inventory and fixed assets and for the sale of goods. During the
course of audit no major weakness has been noticed in the Internal
Controls.
V As explained to us, during the year there has not been any
transactions required to be entered in the register maintained under
Section 301 of the Companies Act,1956, and aggregating during the year
to Rs.5,00,000/- or more in respect of each such party.
VI The company has not accepted deposits from the public and hence the
provisions of Section 58 A of the Companies Act, 1956 and the rules
framed there under are not applicable. In the company case, the Company
Law Board has passed no order.
VII In our opinion the company has an internal audit system
commensurate with the size and the nature of its business.
VIII In our opinion, and according to the information given to us the
provisional of Section 209 (1) (d) of the Companies Act 1956, are not
applicable to the company.
IX According to the records, the Company is generally regular in
depositing with the appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education & Protection Fund,
Employes state Insurance, Income tax, Sales tax, Wealth tax, Customs
Duty, Excise Duty, Cess and other statutory dues applicable to it.
There are no undisputed statutory dues that are outstanding at the end
of the Financial year which have been due by more than 6 months.
X As the Accumulated Losses exceed the Net Worth of the Company, the
Company remains a Sick Industrial Company within the meaning of Sick
Industrial Company (Special Provisions) Act, 1985. It has incurred Cash
Losses in the Current Financial year.
XI On the basis of the records examined by us and the information and
explanations given to us, the company has not defaulted in repayment of
dues to Financial institutions, Banks or Debenture Holders.
XII As explained to us, the company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities and hence maintenance of documents
and records relating to such items are not applicable.
XIII The provisions of any special status applicable to chit funds are
not applicable as the company is not a nidhi/ has a mutual benefit
fund/ society.
XIV In respect of investments dealt or traded by the company, proper
records are maintained in respect of transactions and contracts and
timely entries have been made therein. All investments are held by the
company in its own name.
XV The company has not given any guarantee for loans taken by others
from banks or financial institutions.
XVI The company has not taken any term loan during the year covered by
our audit.
XVII Based on our examination of the books of accounts and Balance
Sheet of the company we are of the opinion that funds raised on short
term basis have not been used for long term investment.
XVIII The company has not made any preferential allotments of shares
during the year.
XIX The company has not issued any debenture during the year.
XX The company has not raised any money by public issues during the
year.
XXI Based upon the audit procedures performed and information and
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.
Place: Coimbatore
Date: 31.05.2013
For ANJANA & CO
(FRNNO.006724S)
Chartered Accountants
PRAVIN KUMAR MAHESHWARI
Partner
(Membership No. 026866)
Mar 31, 2012
We have audited the attached Balance Sheet of Flora Textiles Limited as
at 31st March 2012, the Profit and Loss Account for the year ended and
Cash flow statement 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.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the Audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003, issued
by the 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 paras 4 & 5 of the said order.
3. We further report that
(a) We have obtained all the information and explanations which is to
the best of our knowledge and belief were necessary for the purpose of
our audit.
(b) In our opinion. Proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of such
books.
(c) The Balance Sheet, Profit & Loss Account and Cash flow statement
dealt with by this report are in agreement with the books of accounts
of the company.
(d) In our opinion, the Profit & Loss account .Balance Sheet and Cash
flow statement dealt with by this report comply with Accounting
Standards specified by The Institute of Chartered Accountants of India
referred to in sub-section 3 ( C ) of Section 211 of the Companies Act,
1956.
(e) Based on the representations made by the Directors as on March 31,
2012 and taken on record by the Board of Directors of the company and
information and explanation given to us , none of the Directors is
disqualified as on March 31, 2012 from being appointed as a Director in
terms of clause (g) of sub-section (1) of Section 274 of the Companies
Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
accounting policies and other notes, thereon gives the information
required by Companies Act, 1956, in the manner so required and present
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet of the state of affairs of the
company as at 31st March 2012
(b) In the case of the Profit and Loss Account of the Loss for the year
ended on that date.
(c) In the case of the Cash flow statement for the year ended on that
date.
ANNEXURE REFERRED TO IN PARAGRAPH (2) OF OUR AUDIT REPORT OF EVEN DATE
OF FLORA TEXTILES LIMITED
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and the situation of fixed
assets.
(b) As explained to us, according to the practice of the company fixed
assets are physically verified by the management at reasonable
intervals in a phased verification programme, which in our opinion, is
reasonable looking at the size of the company and the nature of its
business. During the year, as informed to us no material discrepancies
have been notified on such verification.
(c) During the year, the company has not disposed off substantial part
of its fixed assets so as to affect its going concern;
II a) As explained to us the inventories have been physically verified
during the year, by the Management.
b) The procedures, as explained to us which are followed by the
management for physical verification of inventories are in our opinion
adequate in relation to the size of the company and the nature of the
business.
c) The company is maintaining proper records of inventory and it is
told to us that the discrepancies that were noticed in the course of
physical verification have been properly dealt with in the book of
accounts
III The Company has not granted/taken any loan secured or unsecured
to/from companies Firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956 and hence
matters regarding rate of interest, terms and conditions of loans,
repayments and overdue amounts more than one lakh of rupees are not
applicable.
IV In our opinion and according to the information given to us there
are adequate internal control procedures commensurate with the size of
the company and the nature of its business, with regard to the purchase
of inventory and fixed assets and for the sale of goods. During the
course of audit no major weakness has been noticed in the Internal
Controls.
V As explained to us, during the year there has not been any
transactions required to be entered in the register maintained under
Section 301 of the Companies Act,1956, and aggregating during the year
to Rs.5,00,000/- or more in respect of each such party.
VI The company has not accepted deposits from the public and hence the
provisions of Section 58 A of the Companies Act, 1956 and the rules
framed there under are not applicable. In the company case, the Company
Law Board has passed no order.
VII In our opinion the company has an internal audit system
commensurate with the size and the nature of its business.
VIII In our opinion, and according to the information given to us the
provisional of Section 209 (1) (d) of the Companies Act 1956, are not
applicable to the company.
IX (a) According to the records, the Company is generally regular in
depositing with the appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education 8 Protection Fund,
Employees state Insurance, Income tax, Sales tax, Wealth tax, Customs
Duty, Excise Duty, Cess and other statutory dues applicable to it.
There are no undisputed statutory dues that are outstanding at the end
of the Financial year which have been due by more than 6 months.
(b) On the basis of our examination of the documents and records, the
disputed statutory dues that have not been deposited with the
appropriate authorities are as under:
Nature of the Dues Amount in Rs. Forum where Dispute is pending
1. Customs Duty 7120395 CEGAT
X As the Accumulated Losses exceed the Net Worth of the Company, the
Company remains a Sick Industrial Company within the meaning of Sick
Industrial Company (Special Provisions) Act, 1985. It has incurred Cash
Losses in the Current Financial year.
XI On the basis of the records examined by us and the information and
explanations given to us, the company has not defaulted in repayment of
dues to Financial institutions, Banks or Debenture Holders.
XII As explained to us, the company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities and hence maintenance of documents
and records relating to such items are not applicable.
XIII The provisions of any special status applicable to chit funds are
not applicable as the company is not a nidhi/ has a mutual benefit
fund/ society.
XIV In respect of investments dealt or traded by the company, proper
records are maintained in respect of transactions and contracts and
timely entries have been made therein. All investments are held by the
company in its own name.
XV The company has not given any guarantee for loans taken by others
from banks or financial institutions.
XVI The company has not taken any term loan during the year covered by
our audit.
XVII Based on our examination of the books of accounts and Balance
Sheet of the company we are of the opinion that funds raised on short
term basis have not been used for long term investment.
XVIII The company has not made any preferential allotments of shares
during the year.
XIX The company has not Issued any debenture during the year.
XX The company has not raised any money by public issues during the
year.
XXI Based upon the audit procedures performed and information and
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.
Place: Coimbatore
Date: 31.05.2012 For ANJANA & CO
(FRN No. 006724S)
Chartered Accountants
PRAVIN KUMAR MAHESHWARI
Partner
(Membership No. 26866)
Mar 31, 2010
We have audited the attached Balance Sheet of FLORA TEXTILES LIMITED,
as at 31 March, 2010, the Profits Loss Account and also the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion in these
financial statements based in our audit.
1. We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial-statements are free from any material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statement. As audit also includes,
assessing the overall presentation of the financial statement. We
believe that our audit provides a reasonable basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003, issued
by the Government on 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 paras 4 & 5 of the said order.
3. We further report that:
(i) 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;
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of the
books of the Company;
(iii) The Balance Sheet, Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with books of
account of the Company
(iV) In our opinion, Balance Sheet, Profit & Loss Account and the Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956
(V) Based on the representations made by the Directors as on 31 March,
2010 and taken on record by the Board of Directors of the Company and
the information and explanations given to us, none of the Directors is,
as at 31 March, 2010, prima facie disqualified from being appointed as
a director in terms of clause (g) of sub-section (1) of Section 274 of
the Companies Act, 1956;
(Vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
accounting policies and other notes thereon, give the information
required by the Companies Act, 1956, in the manner so required and
present a true and fair view in conformity with the accounting
principles generally accepted in India;
(a) in case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2010
(b) in case of the Profit and Loss Account, of the loss for the year
ended on that date.
(c) in case of the Cash Flow Statement, of the Cash Flows for the year
as on that date.
ANNEXURE REFERRED TO IN PARAGRAPH (2) OF OUR AUDIT REPORT OF EVEN DATE
OF FLORA TEXTILES LIMITED
(I) (a) The company has maintained proper records showing full
particulars including Quantitative datails and situation of fixed
assets.
(b) As explained to us, according to the practice of the company Fixed
Assets are physically verified by the management at reasonable
intervals in a phased verification programme, which in our opinion, is
reasonable looking at the size of the company and the nature of its
business. During the year, as informed to us no material discrepancies
have been noticed on such verification.
(c) During the year, the company has not disposed off substantial part
of its fixed assets so as to affect its going concan;
(ii) (a) As explained to us the inventories have been physically
verified during the year, by the management.
(b) The procedures, as explained to us, which are followed by the
management for physical verification of inventories are in our opinion
adequate in relation to the size of the company and the nature of the
business.
(c) The company is maintaining proper records of inventory and it is
told to us that the discrepancies that were noticed in the course of
physical verification have been properly dealt with in the books of
accounts.
(iii) The company has not granted / taken any loan secured or unsecured
to / from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956, and hence
matters regarding rate of interest, terms and conditions of loans,
repayments and overdue amounts more than one lakh of rupees are not
applicable.
(iv) In our opinion and according to the information given to us there
are adequate internal control procedures commensurate with the size of
the company and the nature of its business, with regard to the purchase
of inventory of inventory and fixed assets and for the sale of goods.
During the course of audit no major weakness has been noticed in the
Internal Controls.
(V) As explained to us, during the year there not been any transactions
required to be entered in the register maintained under Section 301 of
the Companies Act, 1956, and aggregating during the year to Rs.
5,00,000/-or more in respect of each such party.
(Vi) The company has not accepted deposits from the public and hence
the provisions of Section 58 A of the Companies Act, 1956 and the rules
framed there under are not applicable. In the companys case, the
Company Law Board has passed no order
(vli) In our opinion, the company has an internal auditsystem
commensurate with the size and the nature of its business.
(Viii) In our opinion and according to the information given to us the
provisions of Section 209 (1 )(d) of the Companies Act, 1956 are not
applicable to the company.
(iX) (a) According to the records of the company the company is
generally regular in depositing with the appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
& Protection Fund, Employees state Insurance, Income tax, Sales tax,
Wealth tax. Customs Duty, Excise Duty, Cess and other statutory dues
applicable to it. There are no statutory dues that are outstanding at
the end of the Financial year which have been due by more than 6
months.
(b) On the basis of our examination of the documents and records, the
disputed statutory dues that have not been deposited with the
appropriate authorities are as under:
Nature of the Dues Amount Forum where Dispute is pending
In Rs.
1. Customs Duty 71,20,395.00 CEGAT
(x) As the Accumulated Losses exceed the Net Worth of the Company, the
Company remains a Sick Industrial Company within the meaning of Sick
Industrial Company (Special Provisions) Act, 1985. However it has not
incurred Cash Losses in both the Current Financial year and also the
Financial Year immediately preceding the current Financial Year.
(xi) On the basis of the records examined by us and the information and
explanations given to us, the company has not defaulted in repayment of
dues to Financial Institution, banks or Debenture Holders.
(xii) As explained to us, the company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities, and hence maintenance of documents
and records relating to such items are not applicable.
(xiii) The provisions of any special statute applicable to chit fund
are not applicable as the company is not a nidhi / has a mutual benefit
fund/society.
(xiv) In respect of investments dealt or traded by the company, proper
records are maintained in respect of transactions and contracts and
timely entries have been made therein. All investments are held by the
company in its own name.
(xv) The company has not given any guarantee for loans taken by others
from banks or financial institutions
(xvi) The company has not taken any term loans during the year covered
by our audit.
(xvii) Based on our examination of the Books of Accounts and Balance
Sheet ot the Company, we are of the opinion that funds raised on short
term basis have not been used for long term investment.
(xviii) The company has not made any preferential allotment of shares
during the year. (xix) The company has not raised any debentures
during the year (::x) The company has not raised any money by public
issues during the year.
(xxi) Based upon the audit procedures performed and information and
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.
For and on behalf of
ANJANA & CO
Chartered Accounts
Pravin Kumar Maheshwari
Partner
(Membership No: 26866)
Mar 31, 2003
1. We have audited the attached Balance Sheet of Flora Textiles
Limited as at 31st March 2003 and the Profit and Loss Account 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
perfom the Audit to obtain reasonable assurance about whether financial
statements are free of material misstatement. An Audit includes
examining on test basis, evidence supporting the amount and disclousers
in the financial statements. An audit also includes assesing the
accounting principles used and significant estimates made by the
management, as wellas evaluating the overall financial statement
presentation. We believe that our Audit provides a reasonable basis for
our opinion.
3. As required by the Manufacturing and Other Companies (Auditors
Report) Order, 1988 issued by the Company Law Board in terms of Section
227 (4A) of the Companies Act, 1956 we enclose in the annexure, a
statement on the matters specified in paragraph 4 and 5 of the said
order:
4. Further to our comments in the Annexure referred to in paragraph 3
above:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) Proper books of accounts as required by law have been kept by the
company so far as appears from our examination of such books.
c) The Balance Sheet and the Profit & Loss Account referred to in this
report are in agreement with the Books of Accounts of the Company.
d) In our opinion, the Profit & Loss Account and the Balance Sheet
comply with the requirements of the Accounting Standards specified by
The Institute of Chartered Accountants of India referred to in
Sub-section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis of written representation received from the Directors
as on March 31,2003 and taken on record by the Board of Directors we
report that none of the Director is disqualified as on March 31, 2003
from being appointed as a Director in terms of clause (g) of
Sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read with the notes
thereon gives the information required by Companies Act, 1956 in the
manner so required and give a true and fair view in confirmity with the
accounting principles generally accepted in India:
(a) In the case of the Balance Sheet of the state of affairs of the
company as at 31st March 2003 and
(b) In the case of the Profit and Loss Account of Loss for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH 3 OF OUR
REPORT
OF EVEN DATE
1) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. As
informed to us, fixed assets have been physically verified by the
Management during the year and no serious discrepancies have been
noticed on such verification,
2) None of the Fixed Assets has been revalued during the year.
3) The Management conducted physical verification of Stocks of finished
goods, spare parts and raw materials at reasonable intervals.
4) The procedures for physical verification of stocks followed by the
Management were reasonable and adequate to the size of the Company and
nature of business.
5) No material discrepancies were noticed on physical verification of
stocks as compared to the book records.
6) On the basis of examination of the stocks, in our opinion, the
valuation of stocks of raw materials, finished and semi finished goods,
stores and spares, were fair and proper and is in accordance with the
normally accepted accounting principles and is on the same basis as in
the earlier year.
7) The Company has taken unsecured loans from Companies, firms and
other parties listed in the register maintained U/s 301 of the
Companies Act, 1956 and also from Companies under the same Management
as defined under sub section 1 (B) of section 370 of the Companies Act,
1956. The rate of interest and other terms and conditions on such loans
are not prima facie prejudicial to the interest of company.
8) The Company has not granted any loans secured or unsecured to
Companies, firms or other parties listed in the registers maintained
U/s 301 of the Companies Act, 1956. In terms of sub section (6) of
section 370 of the Companies Act 1956 the provision of the section are
not applicable to a company on or after 31 st October 1998
9) No loans or advances in the nature of loans granted by the company
to any party except advances to staff which are being repaid in
stipulated installments without interest.
10) The Company has adequate internal control procedures commensurate
with the size of the Company and nature of its business for purchase of
stores, raw materials including components, plant and machinery
equipment and other assets and for the sale of goods.
11) According to the information and explanations given to us there
were no transactions for purchase of goods and materials and sale of
goods, material and services, made in pursuance of contracts or
arrangements entered in the registers maintained U/s 301 of the
Companies Act, 1956, aggregating during the year to Rs. 50,000/-
(Rupees Fifty Thousand only) or more in respect of each party.
12) There were no unserviceable or damaged stores, raw materials of
finished goods requiring provision in the account for loss.
13) The Company has accepted deposits from Directors, their Relatives
and Associates, without extending any invitation to the public.
14) The Company is maintaining reasonable records for the sale and
disposal of realisable By-Products and for sale of scraps.
15) The Company has an internal Audit System which in our opinion is
commensurate with the size and nature of Business.
16) The company claims that it has maintained the books of accounts
pursuant to the rules made by the Central Government for the
maintenance of cost records U/s 209(1 )(d) of the Companies Act, 1956.
However, we have not made examination of such records.
17) According to the books of Company, the Provident Fund dues and
Employees State Insurance dues have been deposited regularly with the
appropriate authorities.
18) Undisputed amount relating to income tax payable, for which is
outstanding, for more than 6 months is Rs. 1,24,332/- Other than the
above, no undisputed amounts payable in respect of sales tax, customs
duty and excise duty, which were outstanding as at the close of the
year for a period of more than 6 months from the date on which it
became payable.
19) In our opinion and as explained to us, none of the personal
expenses of the employees or Directors has been charged to the revenue
of the Company, other than those paid under contractual obligations or
in accordance with generally accepted business practice.
20) The Company is a Sick Industrial Company within the meaning of
Clause (0) of Sub-section 3 of the Sick Industrial Companies (Special
Provisions) Act, 1985.
For ANJANA & CO
Chartered Acccountants
PRAVIN KUMAR MAHESWARI
PARTNER
Place : Coimbatore
Date : 31.05.2003
Mar 31, 2002
1. We have audited the attached Balance Sheet of Flora Textiles Limited
as at 31st March 2002 and the Profit and Loss Account for the year
ended on that date annexed thereto. These Financial statesment 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
perfom the Audit to obtain reasonable assurance about whether financial
statements are free of material misstatement. An Audit includes
examining on test basis, evidence supporting the amount and disclousers
in the financial statements. An audit also includes assesing the
accounting principles used and significant estimates made by the
management, as wellas evaluating the overall financial statement
presentation. We believe that our Audit provides a reasonable basis for
our opinion.
3. As required by the Manufacturing and Other Companies (Auditors
Report) Order, 1988 issued by the Company Law Board in terms of Section
227 (4A) of the Companies Act, 1956 we enclose in the annexture, a
statement on the matters specified in paragraph 4 and 5 of the said
order:
4. Further to our comments in the Annexure referred to in paragraph 3
above :
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) Proper books of accounts as required by law have been kept by the
company so far as appears from our examination of such books.
c) The Balance Sheet and the Profit & Loss Account referred to in this
report are in agreement with the Books of Accounts of the Company.
d) In our opinion, the Profit & Loss Account and the Balance Sheet
comply with the requirements of the Accounting Standards specified by
The Institute of Chartered Accountants of India referred to in
Sub-section (3C) of Section 211 of the Companies Act, 1956 to the
extent possible.
e) On the basis of written representation received from the Directors
as on March 31,2002 and taken on record by the Board of Directors we
report that none of the Director is disqualified as on March 31, 2002
from being appointed as a Director in terms of clause (g) of
Sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read with the notes
thereon gives the information required by Companies Act, 1956 in the
maanner so required and give a true and fair view in confirmity with
the accounting principles generally accepted in India:
(a) In the case of the Balance Sheet of the state of affairs of the
company as at 31 st March 2002 and
(b) In the case of the Profit and Loss Account of Loss for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH 3 OF OUR
REPORT OF EVEN DATE
1) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. As
informed to us, fixed assets have been physically verified by the
Management during the year and no serious discrepancies have been
noticed on such verification.
ii) None of the Fixed Assets has been revalued during the year.
3) The Management conducted physical verification of Stocks of finished
goods, spare parts and raw materials at reasonable intervals.
4) The procedures for physical verification of stocks followed by the
Management were reasonable and adequate to the size of the Company and
nature of business.
5) No material discrepancies were noticed on physical verification of
stocks as compared to the book records.
6) On the basis of examination of the stocks, in our opinion, the
valuation of stocks of raw materials, finished and
semi finished goods, stores and spares, were fair and proper and is in
accordance with the normally accepted accounting principles and is on
the same basis as in the earlier year.
7) The Company has taken unsecured loans from Companies, firms and
other parties listed in the register maintained U/s 301 of the
Companies Act,1956 and also from Companies under the same Management as
defined under sub section 1 (B) of section 370 of the Companies Act,
1956. The rate of interest and other terms and conditions on such loans
are not prima facie prejudicial to the interest of company.
8) The Company has not granted any loans secured or unsecured to
Companies, firms or other parties listed in the registers maintained
U/s 301 of the Companies Act, 1956 or to companies under the same
management as defined under section 371 (B) of the Companies Act, 1956.
9) No loans or advances in the nature of loans granted by the company
to any party except advances to staff which are being repaid in
stipulated installments without interest.
10) The Company has adequate internal control procedures commensurate
with the size of the Company and nature of its business for purchase of
stores, raw materials including components, plant and machinery
equipment and other assets and for the sale of goods.
11) According to the information and explanations given to us there
were no transactions for purchase of goods and materials and sale of
goods, material and services, made in pursuance of contracts or
arrangements entered in the registers maintained U/s 301 of the
Companies Act, 1956, aggregating during the year to Rs. 50,000/-
(Rupees Fifty Thousand only) or more in respect of each party.
12) There were no unserviceable or damaged stores, raw materials of
finished goods requiring provision in the account for loss.
13) The Company has accepted deposits from Directors, their Relatives
and Associates, without extending any invitation to the public.
14) The Company is maintaining reasonable records for the sale and
disposal of realisable By-Products and for sale of scraps.
15) The Company has an internal Audit System which in our opinion is
commensurate with the size and nature of Business.
16) The company claims that it has maintained the books of accounts
pursuant to the rules made by the Centra! Government for the
maintenance of cost records U/s 209(1)(d) of the Companies Act, 1956.
However, we have not made examination of such records.
17) According to the books of Company, the Provident Fund dues and
Employees State Insurance dues have been deposited regularly with the
appropriate authorities.
18) Undisputed amount relating to income tax payable, for which is
outstanding, for more than 6 months is Rs. 1,24,332/- Other than the
above, no undisputed amounts payable in respect of sales tax, customs
duty and excise duty, which were outstanding as at the dose of the year
for a period of more than 6 months from the date on which it became
payable.
19) In our opinion and as explained to us, none of the personal
expenses of the exployees or Directors has been charged to the revenue
of the Company, other than those paid under contractual obligations or
in accordance with generally accepted business practice.
20) The Company is a Sick Industrial Company within the meaning of
Clause (0) of Sub-section 3 of the Sick Industrial Companies (Special
Provisions)
For ANJANA & CO
Chartered Acccountants
PRAVIN KUMAR MAHESWARI
PARTNER
Place : Coimbatore
Date : 31.07.2002
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