Mar 31, 2021
Ginni Filaments Limited
Report on the Audit of the Financial Statements Opinion
We have audited the accompanying financial statements of Ginni Filaments Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31,2021, the Statement of Profit and Loss, including the Statement of Other Comprehensive Income, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information.
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 (âthe Actâ) 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 31,2021, its profit including other comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the âCode of Ethics'' issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion on the financial statements.
Key Audit Matters
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.
Key audit matters |
How our audit addressed the key audit matter |
Insurance Claims Receivable (Refer note no.47 of the financial statements) |
|
Insurance claim receivable shown under the head âOther Current financial assetsâ includes insurance claim receivable against the loss of cotton stock/property at Kosi Plant occurred during the financial year 2018-19. The Company has partly received insurance claim from the Insurer company. Further the Company has filed arbitration against the Insurer Company and related arbitration proceedings are in process. As per the management''s assessment, the balance amount of insurance claim outstanding as on 31 March 2021 is considered to be recoverable. |
In view of the significance of the matter, our audit procedures in this area includes the review of the following: (i) Insurance policy and its coverage; (ii) Claim submitted with the insurance Company loss of stock and property; (iii) Response of external agencies and Insurance Company appointed Surveyor on preliminary/ final assessment; (iv) Management assessment of estimated loss based on the claim submission, discussion with the surveyor and other external agencies; (v) Reviewed Arbitration Petition filed by the Company and proceedings in the matter; (vi) Reviewed Accounting treatment and disclosure made in financial statements Based on the above procedures, we found that the Management''s assessment to be reasonable. |
Information Other than the Financial Statements and Auditorâs Report Thereon
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.
Our opinion on the financial statements does not cover the other information and we do 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 and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. 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 the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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 are responsible for overseeing the Company''s financial reporting process.
Auditorâs 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 the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
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 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 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, 2021 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2021 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 âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting;
g. With respect to other matters to be included in the auditor''s report in accordance with the requirements of Section 197(16) of the Act, as amended. In our opinion, the managerial remuneration for the year ended March 31,2021 has been paid / provided by the Company to its directors 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 37 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
For Doogar & Associates
Chartered Accountants Firm Registration No. 000561N Vardhman Doogar
Partner
Membership No. 517347 UDIN: 21517347AAAALI5368
Date: 14th May 2021 Place: Gurugram
Mar 31, 2018
INDEPENDENT AUDITORSâ REPORT
To The Members of Ginni Filaments Limited Report on the IndAS Financial Statements
We have audited the accompanying Ind AS financial statements of Ginni Filaments 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 IndAS Financial Statements
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 Ind-AS financial statements that 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 (IndAS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standard) Rules, 2015, as amended, and other accounting principles generally accepted in India.
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 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
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the Ind AS financial statements 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the 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 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 Ind AS 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 Ind AS financial statements. Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matter
The financial statements of the Company for the year ended March 31, 2017 were audited by predecessor auditor who vide their report dated May 12, 2017 expressed an unmodified opinion on those financial statements.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report, to the extent applicable 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 Statement of Cash Flow and the Statement of Changes in Equity dealt with by this report are in agreement with the relevant books of account.
d. In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e. On the basis of the written representations received from the directors as on March 31, 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 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 âAnnexure Aâ.
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 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 Ind AS financial statements - Refer note 37 to the Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
Annexure âAâ to the Independent Auditorâs Report
(Referred to in paragraph 1 (f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Ginni Filaments Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the 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 (the âGuidance Noteâ) 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(âthe Actâ). Auditorâs 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 of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (âthe Guidance 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. 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 judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 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 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 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, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Annexure âBâ to the Independent Auditorâs Report
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
i. In respect of the Companyâs property, plant & equipment: -
a. The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
b. The Company has a program of verification to cover all the items of property, plant and equipment in a phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain property, plant and equipment were physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. The inventories were physically verified during the year by the management at reasonable intervals, except for inventories lying with third parties where confirmations have been received by the management, and discrepancies noticed, if any during the physical verification were accounted for in the books of account.
iii. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
iv. As informed to us, the company has not given any loan, made investments, given guarantees and securities to any person or party covered under Section 185 and 186 of the Companies Act, 2013.
v. According to the information and explanations given to us, the Company has not accepted any deposit and hence reporting under paragraph 3(v) of the Order is not applicable.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. However, we have 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, employeesâ state insurance, income-tax, sales tax, service tax, customs duty, excise duty, value added tax, goods and service tax, cess and other material statutory dues applicable to it with the appropriate authorities and there are no undisputed statutory dues payable for a period of more than six months from the date they become payable as at March 31, 2018.
(b) According to the records and information & explanation given to us, the dues in respect of income tax, duty of custom, duty of excise, goods & service tax and value added tax that have not been deposited with the appropriate authorities on account of any dispute and the forum where the dispute is pending are given below -
(Rs, in Lakhs
Nature of Statute |
Nature of dues |
Forum where dispute is pending |
Period(s) to which the amount relates |
Amount involved |
Amount Paid |
The Central Excise Act, 1944 |
Excise duty |
CESTAT, New Delhi |
17.07.2015 to 20.072015 |
34.53 |
0.90 |
Income Tax Act, 1961 |
TDS |
Assessing Officer, Agra |
AY 2007-08 to AY 2009-10 |
1.34 |
Nil |
UP Tax on Entry of Goods into Local Areas Act, 2007 |
Entry Tax |
High Court, Allahabad |
FY 1999-2000 to 200001 and FY 2003-04 to 2004-05 |
47.39 |
36.02 |
Income Tax Act, 1961 |
Income Tax |
CIT (Appeal) |
AY 2015-2016 AY 2016-2017 AY 2017-2018 |
536.12 |
266.54 |
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institution, banks and government and dues to debenture holders.
ix. In our opinion and according to the information and explanations given to us, money raised by way of the term loans have been applied by the Company during the year for the purposes for which they were raised. The Company has not raised any money by way of initial public offer / further public offer (including debt instruments) during the current year.
x. According to the information and explanations given to us and to the best of our knowledge, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us, the Company has paid/ provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii. The Company is not a Nidhi Company and hence reporting under paragraph 3(xii) of the Order is not applicable.
xiii. In our opinion and according to the information and explanation and records made available by the company, the Company has complied with the provision of Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanation given to us, company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under paragraph 3(xiv) of the Order is not applicable to the Company.
xv. According to the information and explanations given to us, and based on the examination of the records of the company, the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence reporting under paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934.
For Doogar & Associates
Chartered Accountants
Firm Registration No. 000561N
Vardhman Doogar
Place: Noida Partner
Date: May 29, 2018 Membership No. 517347
Mar 31, 2017
TO THE MEMBERS OF GINNI FILAMENTS LIMITED Report on the Financial Statements
We have audited the accompanying financial statements of Ginni Filaments Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2017, 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
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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence on a test basis 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 financial control relevant to the Company''s preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the 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 financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India,
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2017,
(b) In the case of the Statement of Profit and Loss, of the profits for the year on that date, and
(c) In the case of Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order'') issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure-A, 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 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 it 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 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 written representations received from the directors as at 31st March, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as at 31st March, 2017, from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure-B".
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us :
i the Company has disclosed the impact of pending litigations on its financial position in its financial statements- Refer Note 31 (a) and 33 to the financial statements;
ii. the Company has long-term contracts as at 31st March,2017 for which there were no material foreseeable losses. The company has not entered in to long term derivative contracts during the year.
iii there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv The Company has provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. However, we are unable to state whether these are in accordance with books of account maintained by the company since the company did not maintain record of denomination of currency notes including of specified Bank Notes, in their books of account as produced to us by the Management- Refer Note 40 to the financial statements.
d i a.
ANNEXURE A TO THE INDEPENDENT AUDITORS'' REPORT OF EVEN DATE ON FINANCIAL STATEMENTS OF GINNI FILAMENTS
LIMITED
Referred to in Paragraph 1 under the heading " Report on Other Legal and Regulatory Requirements" of our report of even date.
(i) (a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verified during the year by the management in accordance with a program of verification,
which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to information and explanations given to us, no material discrepancies were noticed on such verification.
(c ) The title deeds of immovable properties are held in the name of Company.
(ii) The inventory (excluding stocks with third parties and materials in transit) has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. We are informed that the discrepancies identified on physical verification of inventories as compared to book records were not material and have been properly dealt with in the books of account.
(iii) As informed to us, 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 Act. Consequently, the requirements of clauses (iii) (a), (b) and (c) of paragraph 3 of the Order are not applicable for the current year.
(iv) As informed to us, the company has not given any loans, made investments, given guarantees and security to any person or party covered under section 185 and 186 of the Companies Act, 2013.
(v) The company has not accepted any deposit from the public within the meaning of Section 73 to Section 76 or any other provisions of the Act and the Rules framed there under.
(vi) Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under section 148(1) of the Companies Act,2013 in respect of the products of the Company. We have broadly reviewed the books of account and records maintained by the company in this connection and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and records of the company examined by us, undisputed statutory dues
including provident fund, employees'' state insurance, Income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues have generally been regularly deposited with the appropriate authorities and there were no undisputed amounts payable in respect of the aforesaid dues as at 31s1 March, 2017 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 records of the Company, the dues outstanding in respect of income tax, sales tax, service tax, duty of customs, duty of excise and value added tax on account of any dispute are as follows :
Name of the Statute |
Nature of dues |
Amount (Rs. in lacs) |
Period to which the amount relates |
Forum where dispute is Pending |
The Income Tax Act,1961 |
TDS |
1.34 |
AY-2007-08 to AY-2009-10 |
Assessing Officer, Agra |
UP Tax on Entry of Goods into Local Areas Act, 2007 |
Entry Tax |
47.39 |
FY 1999-2000 to 2000-01 and FY2003-04 to 2004-05 |
High Court, Allahabad |
Finance Act, 1994 (Service Tax Provisions) |
Service Tax |
1.39 |
April,2006 to May,2010 |
CESTAT, Ahmedabad |
The Central Excise Act,1944 |
Excise Duty |
63.69 |
March,1991 to January,1995 |
CESTAT, New Delhi |
(viii) According to the information and explanations given to us, the company has not defaulted in repayment of loans or borrowings to any financial institutions, banks, Government or dues to debenture holders
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year. The Company has raised moneys by way of term loan during the year and has applied for the purposes it was raised.
(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 by the Company or on the Company by its officers or employees, noticed or reported during the year. Nor have we been informed of any such case by the Management.
(xi) According to the information and explanations given to us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Act.
(xii) The Company is not Nidhi Company. Accordingly, the clause 3 (xii) of the Companies (Auditor''s Report ) Order 2016 is not applicable.
(xiii) According to the information and explanations given to us, all transactions with related parties are in compliance with section 177 and 188 of the Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us, the Company has not entered into any non cash transactions with directors or persons connected with them during the year.
(xvi) According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act,1934.
ANNEXURE B TO THE INDEPENDENT AUDITORS'' REPORT OF EVEN DATE ON FINANCIAL STATEMENTS OF GINNI FILAMENTS LIMITED
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act,2013 ("the Act")
We have audited the internal financial controls over financial reporting of Ginni Filaments Limited ("the Company") as at 31s1 March,2017 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s 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 "Guidance Note") and the Standards on Auditing, issued by Institute of Chartered Accountants of India (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 Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material, misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisitions, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, 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 the compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, and adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31s1 March, 2017, based on 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 P.L.Gupta & Co.,
Chartered Accountants
Firm Registration No.-011575C
YUVRAJ SINGH
Partner
Membership No.-071846
Place: Noida
Dated: 12lh May, 2017
Mar 31, 2016
To the Members of Ginni Filaments Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Ginni Filaments Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, 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.
Managementâs Responsibility for the Financial Statements
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 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs 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 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 profits and its cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the Annexure-A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 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 it 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 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 written representations received from the directors as at 31st March, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as at 31st March, 2016, from being appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in 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 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 31
(a) and 33 to the financial statements;
ii. the Company has long-term contracts as at 31st March,2016 for which there were no material foreseeable losses. The company has not entered in to long term derivative contracts during the year.
iii there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE A TO THE INDEPENDENT AUDITORSâ REPORT OF EVEN DATE ON FINANCIAL STATEMENTS OF GINNI FILAMENTS
LIMITED
Referred to in Paragraph 1 under the heading â Report on Other Legal and Regulatory Requirementsâ of our report of even date.
(i) (a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verified during the year by the management in accordance with a program of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to information and explanations given to us, no material discrepancies were noticed on such verification.
(c ) The title deeds of immovable properties are held in the name of Company.
(ii) The inventory excluding stocks with third parties has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. We are informed that the discrepancies identified on physical verification of inventories as compared to book records were not material and have been properly dealt with in the books of account.
(iii) As informed to us, 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 Act. Consequently, the requirements of clauses (iii) (a) and (b) of paragraph 3 of the Order are not applicable for the current year.
(iv) As informed to us, the company has not given any loans, made investments, given guarantees and security to any person or party covered under section 185 and 186 of the Companies Act, 2013.
(v) The company has not accepted any deposit from the public within the meaning of Section 73 or any other provisions of the Act and the Rules framed there under to the extent notified.
(vi) Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under section 148(1) of the Companies Act, 2013 in respect of the products of the Company. We have broadly reviewed the books of account and records maintained by the company in this connection and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and records of the company examined by us, undisputed statutory
dues including provident fund, employeesâ state insurance, Income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues have generally been regularly deposited with the appropriate authorities and there were no undisputed amounts payable in respect of the aforesaid dues as at 31st 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 records of the Company, the dues outstanding in respect of income tax, sales tax, service tax, duty of customs, duty of excise and value added tax on account of any dispute are as follows :
Name of the Statute |
Nature of dues |
Amount (Rs. in lacs) |
Period to which the amount relates |
Forum where dispute is Pending |
The Income Tax Act,1961 |
TDS |
1.34 |
AY-2007-08 to AY-2009-10 |
Assessing Officer, Agra |
UP Tax on Entry of Goods into Local Areas Act,2007 |
Entry Tax |
47.39 |
FY 1999-2000 to 2000-01 and FY 2003-04 to 2004-05 |
High Court, Allahabad |
Commercial Tax,Uttarakhand |
Central Sales Tax |
1.99 |
April,2012- March,2013 |
Joint Commissioner (Appeal) Commercial Tax, Dehradun |
Finance Act, 1994 (Service Tax Provisions) |
Service Tax |
1.39 |
April,2006 to May,2010 |
CESTAT, Ahmedabad |
Finance Act, 1994 (Service Tax Provisions) |
Service Tax |
4.23 |
October,2014 to March,2015 |
Commissioner (Appeals), Central Excise & Customs, Surat |
The Central Excise Act,1944 |
Excise Duty |
63.69 |
March,1991 to January,1995 |
CESTAT, New Delhi |
(viii) According to the information and explanations given to us, the company has not defaulted in repayment of loans or borrowings to any financial institutions, banks, Government or dues to debenture holders.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans during the year. Accordingly, the provisions of clause 3 (ix) of the Companies (Auditorâs Report) Order 2016 are not applicable.
(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 by the Company or on the Company by its officers or employees, noticed or reported during the year. Nor have we been informed of any such case by the Management.
(xi) According to the information and explanations given to us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Act.
(xii) The Company is not Nidhi Company. Accordingly, the clause 3 (xii) of the Companies (Auditorâs Report ) Order 2016 is not applicable.
(xiii) According to the information and explanations given to us, all transactions with related parties are in compliance with section 177 and 188 of the Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us, the Company has not entered into any non cash transactions with directors or persons connected with them during the year.
(xvi) According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act,1934.
ANNEXURE B TO THE INDEPENDENT AUDITORSâ REPORT OF EVEN DATE ON FINANCIAL STATEMENTS OF GINNI FILAMENTS LIMITED
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Ginni Filaments Limited (âthe Companyâ) as at 31st March, 2016 in conjunction with our audit of the 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 Institute of Chartered Accountants of India (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 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 judgment, including the assessment of the risks of material, misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 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 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 acquisitions, use, or disposition of the companyâs assets that could have a material effect on the financial statements. Inherent Limitations of Internal financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, 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 the compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, and adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2016, based on 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 P.L.Gupta & Co.,
Chartered Accountants
Firm Registration No.-011575C
YUVRAJ SINGH
Place : Noida Partner
Dated : 30th April, 2016 Membership No.-071846
Mar 31, 2015
Report on the Financial Statements
We have audited the accompanying financial statements of Ginni
Filaments Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, 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
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 and presentation of these financial statements that
give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
Accounting Standards 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made 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 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 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 and adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the 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 of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(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 it 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 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 written representations received from the directors
as on March 31, 2015 and 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;
and
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us :
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statement- Refer Note 31 (a) and 33
to the financial statements;
ii. the Company has long-term contracts as at 31st March, 2015 for
which there were no material foreseeable losses. The company has not
entered in to long term derivative contracts during the year.
iii. there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our report of even date on accounts for the
year ended 31st March, 2015 of Ginni Filaments Limited :
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The company has physically verified certain assets during the year
in accordance with a programme of verification which, in our opinion,
is reasonable having regard to the size of the company and the nature
of its assets. No material discrepancies were noticed on such
verification.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. We are
informed that the discrepancies identified on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) As informed to us, 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 Act. Consequently, the
requirements of clauses (iii) (a) and (b) of paragraph 3 of the Order
are not applicable for the current year.
(iv) 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, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
(v) The company has not accepted any deposit from the public.
(vi) The Central Government has prescribed maintenance of cost records
under section 148(1) of the Act in respect of the products of the
Company. We have broadly reviewed the books of account and records
maintained by the company in this connection and are of the opinion
that prima facie the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the
same.
(vii) (a) According to the records of the company, undisputed statutory
dues including provident fund, employees' state insurance, Income tax,
sales tax, wealth tax, service tax, custom duty, excise duty, value
added tax, cess and any other statutory dues have generally been
regularly deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2015 for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us, there
are no material dues of wealth tax, custom duty and cess which have not
been deposited with the appropriate authorities on account of any
dispute. However, according to information and explanations given to
us, the following dues of income tax, sales tax, service tax, excise
duty and value added tax have not been deposited on account of disputes
:
Name of the Statute Nature of dues Amount
(Rs. in lacs)
The Income Tax TDS 1.34
Act,1961
UP Tax on Entry of Entry Tax 47.39
Goods into Local
Areas Act, 2007
Finance Act, Service Tax 1.39
1994 (Service
Tax Provisions)
Finance Act, 1994 Service Tax 3.66
(Service Tax
Provisions)
The Central Excise Excise Duty 63.69
Act,1944
Name of the Statute Period to which Forum where dispute is Pending
the amount
relates
The Income Tax AY-2007-08 to Assessing Officer, Agra
Act,1961 AY-2009-10
UP Tax on Entry of FY 1999-2000 High Court, Allahabad
Goods into Local to 2000-01 and
Areas Act, 2007 FY 2003-04 to
2004-05
Finance Act, April, 2006 to Asstt. Commissioner, Central
1994 (Service May, 2010 Excise & Customs, Ankleshwar
Tax Provisions)
Finance Act, 1994 January, 2012 to CESTAT, Ahemdabad
(Service Tax May, 2012
Provisions)
The Central Excise March,1991 to CESTAT, New Delhi
Act,1944 January,1995
(c) According to the information and explanations given to us, the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act,1956 (1 of 1956) and rules made there under has been
transferred to such fund with in time.
(viii) The company's accumulated losses at the end of the financial
year are less than fifty per cent of its net worth. The Company has not
incurred cash losses during the financial year covered by the audit and
the immediately preceding financial year.
(ix) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) The Company has not raised any term loan during the year.
Accordingly, the provisions of clause 3 (xi) of the Companies
(Auditor's Report) Order 2015 are not applicable.
(xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For P.L.Gupta & Co.,
Chartered Accountants
Firm Registration No.-011575C
YUVRAJ SINGH
Place : Noida Partner
Dated : 4th May, 2015 Membership No.-071846
Mar 31, 2014
We have audited the accompanying financial statements of Ginni
Filaments Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, 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 and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. 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, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the 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, 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, 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 comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with the
General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT Referred to in paragraph 1 of our
report of even date on accounts for the year ended 31st March, 2014 of
Ginni Filaments Limited
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The company has physically verified certain assets during the year
in accordance with a programme of verification which, in our opinion,
is reasonable having regard to the size of the company and the nature
of its assets. No material discrepancies were noticed on such
verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern status of the company.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. We are
informed that the discrepancies identified on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) As informed to us, the company has not granted/taken any loans,
secured or unsecured to/from companies, firms or other parties covered
in the register maintained under section 301 of the companies Act,
1956. Consequently, the requirements of clauses (iii) (b), (c), (d),
(f) and (g) of paragraph 4 of the Order are not applicable for the
current year.
(iv) 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, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
(v) According to the information and explanation given to us, we are of
the opinion that there are no transactions that need to be entered in
register maintained u/s 301 of the Companies Act,1956
(vi) The company has not accepted any deposit from the public during
the year.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of such accounts and records with a
view to determine whether they are accurate or complete.
(ix) (a) According to the records of the company, undisputed statutory
dues including provident fund, investor education and protection fund,
Income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess and other material statutory dues applicable to it have
generally been regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2014 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us the
statutory dues that have not been deposited on account of matters
pending before appropriate authorities are as under:
Name of the Statute Nature of dues Amount Period to which
(Rs.in
lacs) the amount
relates
Income Tax Act Interest 2.02 AY-2001-02
Income Tax Act TDS 1.34 AY-2007-08 to
AY-2009-10
Sales Tax Act Entry Tax 30.52 FY 1998-99,
1999-2000,
2007-08 and
2008-09
Sales Tax Act Entry Tax 2.00 FY-2000-01 and
2003-04
Sales Tax Act Entry Tax 35.06 FY 2002-03 and
2003-04
Central Excise Act Excise Duty 5.05 August, 2007 to
December,
2008 and
January, 2012 to
May, 2012
Central Excise Act Excise Duty 63.69 March,1991 to
January,1995
Name of the statue Forum where dispute is Pending
Income Tax Act High Court, Allahabad
Income Tax Act Assessing Officer, Agra
Sales Tax Act High Court, Allahabad
Sales Tax Act Commercial Tax Appellate Tribunal, Agra
Sales Tax Act Commercial Tax Appellate Tribunal, Agra
Central Excise Act Commissioner (Appeal), Central Excise &
Customs, Surat
Central Excise Act Custom, Excise & Service tax Appellate
Tribunal, New Delhi
(x) The company''s accumulated losses at the end of the financial year
are less than fifty per cent of its net worth. The Company has not
incurred cash losses during the financial year covered by the audit and
the immediately preceding financial year.
(xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of share, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/ society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
(xv) According to the information and explanations given to us the
company has not given any guarantee for loans taken by others from Bank
or financial institutions.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, the term loans availed by the
company were, prima facie, applied by the Company during the year for
the purpose for which the loans were obtained other than temporary
deployment pending application.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment.
(xviii) The company has not made any preferential allotment of shares
during the year.
(xix) The Company has created security or charge in respect of
debentures issued.
(xx) The Company has not raised any money by a public issue during the
year. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditor''s Report) Order are not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For P.L.Gupta & Co.,
Chartered Accountants
Firm Registration No.-011575C
YUVRAJ SINGH
Place : Noida Partner
Dated : 2nd May 2014 Membership No.-071846
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Ginni
Filaments 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 and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 "the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the 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 give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the 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, 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, 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 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 31st March, 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,
prescrib- ing the manner in which such cess is to be paid, no cess is
due and payable by the Company.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph 1 of our report of even date on accounts for
the year ended 31st March, 2013 of Ginni Filaments Limited
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The company has physically verified certain assets during the year
in accordance with a programme of verification which, in our opinion,
is reasonable having regard to the size of the company and the nature
of its assets. No material discrepancies were noticed on such
verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern status of the company.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. We are
informed that the discrepancies identified on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) As informed to us, the company has not granted/taken any loans,
secured or unsecured to/from companies, firms or other parties covered
in the register maintained under section 301 of the companies Act,
1956. Consequently, the requirements of clauses
(iii) (b), (c), (d), (f) and (g) of paragraph 4 of the Order are not
applicable for the current year.
(iv) 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, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
(v) (a) In our opinion and according to the information and
explanations given to us, the transactions made in pursuance of
contracts or arrangements, that need to be entered in the Register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
(b) According to information and explanations given to us, there is no
transaction or arrangements exceeding the value of Rupees five lakhs in
respect of any party during the year and hence the question of
reasonable prices in respect of such transactions with regard to
prevailing market price does not arise.
(vi) The company has not accepted any deposit from the public during
the year.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of such accounts and records with a
view to determine whether they are accurate or complete.
(ix) (a) According to the records of the company, undisputed statutory
dues including provident fund, investor education and protection fund,
Income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess and other material statutory dues applicable to it have
generally been regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2013 for a period of more than six months
from the date they became payable.
(x) The company''s accumulated losses at the end of the financial year
are less than fifty per cent of its net worth. The Company has not
incurred cash losses during the financial year covered by the audit. It
has incurred cash losses in the immediately preceding financial year.
(xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of share, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/ society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the company.
(xv) According to the information and explanations given to us the
company has not given any guarantee for loans taken by others from Bank
or financial institutions.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, the term loans availed by the
company were, prima facie, applied by the Company during the year for
the purpose for which the loans were obtained other than temporary
deployment pending application.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment.
(xviii) The company has not made any preferential allotment of shares
during the year.
(xix) The Company has created security or charge in respect of
debentures issued.
(xx) The Company has not raised any money by a public issue during the
year. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditor''s Report) Order are not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For P.L.Gupta & Co.,
Chartered Accountants
Firm Registration No.-011575C
YUVRAJ SINGH
Place : Noida Partner
Dated : 16th May 2013 Membership No.-071846
Mar 31, 2012
1. We have audited the attached Balance Sheet of Ginni Filaments
Limited as at 31st March, 2012, the Statement of Profit and Loss and
also the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with 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. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, subject to our comments hereinafter, 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
sub-Section (3C) of Section 211 of the Companies Act, 1956.
(v) On the basis of written representations received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of 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 financial statements read
together with Significant Accounting Policies and Notes thereon and
attached thereto give, the information required by the companies Act,
1956 in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India.
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012,
b. in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
ANNEXURE TO THE AUDITORS'REPORT
Referred to in paragraph 3 of our report of even date on accounts for
the year ended 31st March, 2012 of Ginni Filaments Limited
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The company has physically verified certain assets during the year
in accordance with a programme of verification which, in our opinion,
is reasonable having regard to the size of the company and the nature
of its assets. No material discrepancies were noticed on such
verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern status of the company.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. We are
informed that the discrepancies identified on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) As informed to us, the company has not granted/taken any loans,
secured or unsecured to/from companies, firms or other parties covered
in the register maintained under section 301 of the companies Act,
1956. Consequently, the requirements of clauses (iii) (b), (c), (d),
(f) and (g) of paragraph 4 of the Order are not applicable for the
current year.
(iv) 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, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
(v) (a) In our opinion and according to the information and
explanations given to us, the transactions made in pursuance of
contracts or arrangements, that need to be entered in the Register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
(b) According to information and explanations given to us, there is no
transaction or arrangements exceeding the value of Rupees five lakhs in
respect of any party during the year and hence the question of
reasonable prices in respect of such transactions with regard to
prevailing market price does not arise.
(vi) The company has not accepted any deposit from the public during
the year.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of such accounts and records with a
view to determine whether they are accurate or complete.
(ix) (a) According to the records of the company, undisputed statutory
dues including provident fund, investor education and protection fund,
Income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess and other material statutory dues applicable to it have
generally been regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2012 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us the
statutory dues that have not been deposited on account of matters
pending before appropriate authorities are as under:
Name of the Nature of Amount Period to which Forum where
Statute dues (Rs in the amount dispute is
lacs) relates pending
Income Tax Interest 2.02 AY - 2001-02 High Court,
Act Allahabad
Income Tax TDS 1.34 AY-2007-08 to Assessing Officer,
Act AY-2009-10 Agra
Income Tax TDS and 0.27 AY-2009-10 CIT (Appeal),
Act Interest Ghaziabad
Income Tax TDS and 2.30 AY-2010-11 to Assessing Officer
Act Interest AY-2011-12 Noida & Mathura
Sales Tax Entry Tax 30.52 FY 1998-99, High Court,
Act 1999-2000 Allahabad
2007-08 and
2008-09
Sales Tax Entry Tax 2.00 FY-2000-01 and Commercial Tax
Act 2003-04 Appellate Tribunal
Agra
Sales Tax Entry Tax 35.06 FY 2002-03 and Commercial Tax
Act 2003-04 Appellate Tribunal
Agra
Service Tax Service Tax 4.71 FY-2002-03 and Asstt.Commissioner,
Act /Penalty 2003-04 Aligarh
Central Excise Excise Duty 99.01 November, 2006 Commissioner
Act to January, (Appeal), Surat
2009
Central Excise Excise Duty 63.69 March, 1991 to Commissioner
Act January, 1995 (Appeal), Lucknow
(x) The company's accumulated losses at the end of the financial year
are less than fifty per cent of its net worth. The Company has incurred
cash losses during the financial year covered by the audit. It has not
incurred cash losses in the immediately preceding financial year.
(xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of share, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/ society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
(xv) According to the information and explanations given to us the
company has not given any guarantee for loans taken by others from Bank
or financial institutions.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, no term loans are availed by
the company during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment.
(xviii) The company has not made any preferential allotment of shares
during the year.
(xix) The Company has created security or charge in respect of
debentures issued.
(xx) The Company has not raised any money by a public issue during the
year. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditor's Report) Order are not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For P.L.Gupta & Co.,
Chartered Accountants
Firm Registration No.-011575C
YUVRAJ SINGH
Place : Noida Partner
Dated : 29th May 2012 Membership No.-071846
Mar 31, 2011
1. We have audited the attached Balance Sheet of Ginni Filaments
Limited as at 31st March, 2011, the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
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 & 5 of the said
order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(iv) In our opinion, subject to our comments hereinafter, the Balance
Sheet, Profit and Loss Account and 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) On thebasis of written representations received from the Directors,
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2011 from being appointed as a Director in terms of 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
Significant Accounting Policies and Notes on Accounts, in Schedule 21
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011,
b. in the case of the Profit & Loss Account, of the Profit for the
year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 3 of our report of even date on accounts for
the year ended 31st March, 2011of Ginni Filaments Limited
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The company has physically verified certain assets during the year
in accordance with a programme of verification which, in our opinion,
is reasonable having regard to the size of the company and the nature
of its assets. No material discrepancies were noticed on such
verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern status of the company.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. We are
informed that the discrepancies identified on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) As informed to us, the company has not granted any loans,
secured or unsecured to companies, firms or other parties covered in
the register maintained under section 301 of the Companies Act, 1956.
Consequently, the requirements of clauses (iii) (b), (c) and (d) of
paragraph 4 of the Order are not applicable.
(b) The company has taken unsecured loan of Rs. 91 lacs during the year
from one party covered in the register maintained under section 301 of
the Companies Act, 1956. The maximum amount due during the year was Rs
465 lacs
(c) The rate of interest and other terms and conditions of the loan
were prima-facie not prejudicial to the interest of the company.
(d) The payment of interest on the aforesaid is regular. There is no
stipulation as to repayment of principal.
(iv) 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, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
(v) (a) In our opinion and according to the information and
explanations given to us, the transactions made in pursuance of
contracts or arrangements, that need to be entered in the Register
maintained under section 301 of the Companies Act, 1956 have been so
entered. (b) According to information and explanations given to us,
there is no transaction (excluding unsecured loan reported in para iii
(b) above) in respect of any party and hence the question of reasonable
prices in respect of such transactions with regard to prevailing market
price does not arise.
(vi) The company has not accepted any deposit from the public during
the year.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of such accounts and records.
(ix) (a) According to the records of the company, undisputed statutory
dues including provident fund, investor education and protection fund,
Income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess and other material statutory dues applicable to it have
generally been regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2011 for a period of more than six months
from the date they became payable. (b) According to the information
and explanations given to us the statutory dues that have not been
deposited on account of matters pending before appropriate authorities
are as under:
Name of the Statute Nature of dues Amount Forum where dispute is
Pending
(Rs. in lacs)
Income Tax Act Interest 2.02 Allahabad High Court
Income Tax Act Interest 1.96 CIT (Appeal) Agra
Income Tax Act Interest 1.34 Asessing Officer, Agra
Income Tax Act Income Tax and
Interest 0.27 CIT (Appeal), Ghaziabad
Sales Tax Act Entry Tax 30.52 High Court, Allahabad
Sales Tax Act Entry Tax 2.00 Commercial Tax Tribunal
Agra
Sales Tax Act Entry Tax 35.06 Jt. Commissioner
(Appeal), Mathura
Service Tax Act Service Tax/
Penalty 4.71 Asstt. Commissioner,
Aligarh
Service Tax Act Service Tax/
Interest 1.41 Commissioner (Appeal),
Lucknow
(x) The companys accumulated losses at the end of the financial year
are less than fifty per cent of its net worth. The Company has not
incurred cash losses during the financial year covered by the audit. It
has not incurred cash losses in the immediately preceding financial
year.
(xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of share, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xv) According to the information and explanations given to us the
company has not given any guarantee for loans taken by others from Bank
or financial institutions.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, no term loans are availed by
the company during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment.
(xviii) The Company has not made any preferential allotment of shares
during the year.
(xix) The Company has created security or charge in respect of
debentures issued.
(xx) The Company has not raised any money by a public issue during the
year. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditors Report) Order are not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For P.L.Gupta & Co.,
Chartered Accountants
Firm Registration No.-011575C
YUVRAJ SINGH
Place : Noida Partner
Dated:27th May 2011 Membership No.-071846
Mar 31, 2010
1. We have audited the attached Balance Sheet of Ginni Filaments
Limited as at 31st March, 2010, the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with 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 & 5 of the said
order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(iv) In our opinion, subject to our comments hereinafter, the Balance
Sheet, Profit and Loss Account and 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) On the basis of written representations received from the
Directors, as on 31sl March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as a Director in terms of 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
Significant Accounting Policies and Notes on Accounts, in Schedule 21
particularly Note No. 14 (d) in the aforesaid Schedule regarding amount
of share premium on amalgamation as per Honble High Court Order and
read together with other notes thereon give the information required by
the companies Act, 1956 in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India.
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010,
b. in the case of the Profit & Loss Account, of the Profit for the
year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT
Referred to in paragraph 3 of our report of even date,
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The company has physically verified certain assets during the year
in accordance with a programme of verification which, in our opinion,
is reasonable having regard to the size of the company and the nature
of its assets. No material discrepancies were noticed on such
verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern status of the company.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. We are
informed that the discrepancies identified on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) As informed to us, the company has not granted any loans,
secured or unsecured to companies, firms or other parties covered in
the register maintained under section 301 of the companies Act, 1956.
Consequently, the requirements of clauses (iii) (b), (c) and (d) of
paragraph 4 of the Order are not applicable. (b) The company has not
taken any loans, secured or unsecured from companies, firms or other
parties covered in the register maintained under section 301 of the
companies Act, 1956. Consequently, the requirements of clauses (iii)
(f) and (g) of paragraph 4 of the Order are not applicable. (iv) 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, fixed assets and for the sale of goods and services. During
the course of our audit, we have not observed any continuing failure to
correct major weakness in internal control system. (v) (a) In our
opinion and according to the information and explanations given to us,
the transactions made in pursuance of contracts or arrangements, that
need to be entered in the Register maintained under section 301 of the
Companies Act, 1956 have been so entered. (b) In our opinion and
according to the information and explanations given to us, the
transactions made in pursuance of contracts/arrangements entered in the
Register maintained under section 301 of the Companies Act, 1956 and
exceeding value of Rs.5,00,000 in respect of each party during the year
have been made at price which appear reasonable as per information
available with the Company. (vi) The company has not accepted any
deposit from the public during the year.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business. (viii) We have
broadly reviewed the books of account maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of such accounts and records. (ix) (a)
According to the records of the company, undisputed statutory dues
including provident fund, investor education and protection fund,
Income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess and other material statutory dues applicable to it have
generally been regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31sl March, 2010 for a period of more than six months
from the date they became payable. (b) According to the information
and explanations given to us the statutory dues that have not been
deposited on account of matters pending before appropriate authorities
are as under:
Name of the Statute Nature of dues Amount Forum where dispute is
Pending
(Rs. in lacs)
Income Tax Act Interest 2.02 Allahabad High Court
Income Tax Act Interest 1.96 CIT (Appeal) Agra
Sales Tax Act Entry Tax 34.63 High Court, Allahabad
Sales Tax Act Entry Tax 2.00 Jt.Commissioner (Appeal),
Mathura
Sales Tax Act Entry Tax 35.06 Jt.Commissioner (Appeal),
Mathura
Service Tax Act Service Tax
/ Penalty 4.71 Commissioner Appeal, Lucknow
(x) The companys accumulated losses at the end of the financial year
are less than fifty per cent of its net worth. The Company has not
incurred cash losses during the financial year covered by the audit. It
has incurred cash losses in the immediately preceding financial year.
(xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of share, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4
(xiv) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
(xv) According to the information and explanations given to us the
company has not given any guarantee for loans taken by others from Bank
or financial institutions.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, no term loans are availed by
the company during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment other than temporary deployment pending application.
(xviii) The company has allotted during the year preference shares on
preferential basis to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956. The price at
which these preference shares have been issued has been determined by
the Board of Directors, which in our opinion are not prima facie
prejudicial to the interest of the Company.
(xix) The Company has created security or charge in respect of
debentures issued.
(xx) The Company has not raised any money by a public issue during the
year. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditors Report) Order are not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For P.L.Gupta & Co.,
Chartered Accountants
Firm Registration No.-011575C
Place : Noida (U.P.) YUVRAJ SINGH
Dated: 6th May 2010 Partner
Membership No. 71846