Mar 31, 2015
We have audited the accompanying standalone financial statements of H P
COTTON TEXTILE MILLS LIMITED ("the Company"), which comprise the
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss
and the Cash Flow Statement for the year then ended, and a summary of
the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone 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 standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgements 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 standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls.. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Emphasis of Matters
We draw attention to the Note 27 to the financial statements as under:-
The Company has received the intimation from Insurer that it has
approved the insurance claim; relating to free incident during the
financial year 2010-11, for Rs.17160 thousand. For this claim the
company had made provision of Rs. 33362 thousand. The company; not
being satisfied with the claim approved by the insurer, has referred
such matter to the appellate forum and the first appellate forum is
arbitration. Company has received Interim Payment of Rs.12870 thousand
during the financial year 2014-15,which has been credited to Insurance
Claim Receivable.
Pending decision of the appellate forum; no provision for loss [the
difference between the insurance claim as per books of account and
claim approved by the insurer] has been made in the books of account.
Adjustment if any, arising upon the settlement of claim will be made in
the year when the insurance claim is finally settled.
Our opinion is not modified in respect of these matters.
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 term of
Sub-Section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in the Paragraph 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, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act, 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 statements (Refer Note No. 26 and
27 to the financial statements)
ii. The Company does not have long-term contracts including derivative
contracts for which there were any material foreseeable losses.
iii. There was no amounts that was required to be transferred by the
company to the Investor Education and Protection Fund .
Annexure to Independent Auditors' Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date
As required by the Companies (Auditors' Report) Order, 2015 and
according to the information and explanations given to us and on the
basis of such checks as we considered appropriate, we state that in our
opinion:-
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The management at the year-end has physically verified all the
assets. No material discrepancy was noticed on such verification. The
periodicity of the physical verification is reasonable having regard to
the size of the company and nature of its assets.
(ii) (a) The management has made physical verification of the
inventories at reasonable intervals.
(b) The procedures for 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 record of the inventories. No
material discrepancy was noticed on physical verification of the
inventories.
(iii) The company has not granted any loan; secured or unsecured, to
Companies, Firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013. Accordingly, provisions
of clause 3(iii) of the Companies (Auditors' Report) order 2015 are not
applicable to the company.
(iv) There are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchases of inventory, fixed assets and with regards to the sale of
goods and sale of services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control system.
(v) The Company has not accepted deposits from the public. Accordingly,
provisions of clause 3(v) of the Companies (Auditors' Report) order
2015 are not applicable to the company.
(vi) In respect of the activities carried on by the company, the
maintenance of cost records has not been specified by the Central
Government under sub section (1) of section 148 of the Companies Act,
2013. Accordingly, provisions of clause 3(vi) of the Companies
(Auditors' Report) order 2015 are not applicable to the company.
(vii) During the year undisputed statutory dues including provident
fund, employees state insurance, income tax, sales tax, wealth tax,
service tax, duty of customs, duty of excise, value added tax, cess and
other material statutory dues applicable to the company have generally
been deposited in time with the statutory authorities.
No undisputed amounts payable in respect of provident fund, employees
state insurance, income tax, sales tax, wealth tax, service tax, duty
of customs, duty of excise, value added tax, cess and other material
statutory dues applicable to the company were in arrear as at 31st
March 2015 for a period of more than six months from the date they
become payable.
(b) There are no material dues of income tax, sales tax, wealth tax,
service tax, duty of customs, duty of excise, value added tax and cess
and other material statutory dues which have not been deposited on
account of any dispute.
(c) During the year under audit no amount was required to be
transferred to investor education and protection fund in accordance
with the relevant provision of Companies Act, 1956 and rules made there
under.
(viii) The company does not have accumulated losses. The company has
not incurred cash losses during the financial year covered by our audit
and during the immediately preceding financial year.
(ix) The Company has not defaulted in repayment of dues to banks. The
company has neither borrowed funds from financial institutions nor
issued debentures. Accordingly, the provisions of clause 3(ix) of the
Companies (Auditors' Report) Order, 2015 in respect of repayment of
dues to financial institutions and debenture holders are not applicable
to the company.
(x) The company has not given guarantees for loans taken by others from
banks or financial institutions. Accordingly, the provisions of clause
3(x) of the Companies (Auditors' Report) Order, 2015 are not applicable
to the company.
(xi) The term loans raised by the company were applied for the purpose
those were obtained.
(xii) According to the information and explanations given to us, no
material fraud on or by the company has been noticed or reported during
the year.
For A.K. ASSOCIATES
Chartered Accountants
(A.K.GUPTA)
PARTNER
Membership No. 16533
Firm's Registration No. 000596N
Place of Signature: NEW DELHI
Date: 29th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of H P Cotton
Textile Mills Limited ("the Company"), which comprise the Balance Sheet
as at March 31,2014, 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 principles generally accepted in India including
Accounting Standards notified under the Company Act, 1956 ("the Act"),
(which continue to be applicable in respect of Section 133 of the
Companies Act, 2013 in terms of General Circular 15/2013 dated 13
September 2013 of the Ministry of Corporate Affairs) and in accordance
with the accounting principles generally accepted in India. This
responsibility includes the design, implementation and maintenance of
internal control relevant too the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India
(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 of
the Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Emphasis of Matter
We draw attention to Note No. 16 to the Balance Sheet wherein the
Company is carrying Insurance Claim Receivable of Rs. 33362 thousand.
"The Company has received the intimation from Insurer that it has
approved the insurance claim; relating to fire incident during the
financial year 2010-11, for Rs. 17160 thousand. For this claim the
company had made provision of Rs. 33362 thousand.
The company; not being satisfied with the claim approved by the
insurer, has referred such matter to the appellate forum and the first
appellate forum is arbitration.
Pending decision of the appellate forum; no provision for loss [the
difference between the insurance claim as per books of account and
claim approved by the insurer] has been made in the books of account.
Adjustment; if any, arising upon the settlement of claim will be made
in the year when the insurance claim is finally settled" and we have
relied on Management''s contention. However, our opinion is not
qualified in respect of above matter.
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 Section
227(4A) 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 explanation which to the
best of our knowledge and belief were necessary 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting standards
notified under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs).
e. On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1 )(g) of
the Act.
Annexureto Independent Auditors'' Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date.
According to the information and explanations given to us and on the
basis of such checks as we considered appropriate, we state that in our
opinion:-
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management at
the year end. No material discrepancies were noticed on such
verification.
(c) During the year, the company has not disposed off a substantial
part of its fixed asserts. Accordingly the provisions of clause 4(i) (
c ) of the Companies (Auditor''s Report) Order 2003 are not applicable.
(ii) (a) The inventories except lying with third parties and in transit
have been physically verified during the year by the management at
reasonable intervals. 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. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) The company has taken loan from four other companies covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs. 3422 thousand
and the year-end balance of loans taken from such parties was Rs. 3422
thousand.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from the companies listed in the
register maintained under section 301 of the Companies Act, 1956 are
not, prima facie prejudicial to the interest of the company.
(c) The company is regular in repaying the principal and payment of
interest as stipulated.
(d) The company has not granted any loan to companies, firms or other
parties as listed in the register maintained under section 301 of the
Companies Act, 1956. Accordingly provisions of clause 4(iii) (a) to
(d) of the Companies (Auditors'' Report) order2003 are not applicable to
the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regards to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal control.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been duly entered.
(b) In our opinion and according to the information and explanations
given to us, no transactions was made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakh in
respect of each party during the year,
(vi) The company has not accepted deposits from the public. Accordingly
provisions of clause 4(vi) of the Companies (Auditors'' Report) order
2003 are not applicable to the company.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account relating to
materials, labour and other items of cost 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.
(ix) (a) Undisputed statutory dues including provident fund, investor
education protection fund, employees state insurance, income tax, sales
tax, wealth, custom duty, excise duty, cess and other material
statutory dues applicable to the company have generally been deposited
in time with the statutory authorities.
(b) According to the information and explanation given to us, there are
no disputed statutory dues payable by the company in respect of sales
tax, income tax, wealth, custom duty, excise duty, cess and other
material statutory dues
(x) The company does not have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit and
during the immediately preceding financial year.
(xi) According to the information and explanations given to us, during
the year the company has not defaulted in repayment of dues to
financial institutions and/ or banks.
(xii) Keeping in view the business carried on by the company at present
the provisions of clause 4
(xii) of the Companies (Auditors'' Report) order 2003 are not applicable
to the company.
(xiii) Keeping in view the business carried on by the company at
present 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 (Auditor''s Report) Order,
2003 are not applicable to the company.
(xv) The company has not given guarantees for loans taken by others
from banks or financial institutions. Accordingly, the provisions of
clause 4(xv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
(xvi) The term loans were applied for the purpose for which the loans
were obtained.
(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 the company has not used funds raised on short term basis for long
term investment and vice versa.
(xviii) During the year under audit the company has not made
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Act. Accordingly, the
provisions of clause 4(xviii) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the company.
(xix) During the year under audit the company has not issued
debentures. Accordingly, the provisions of clause 4(xix) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
(xx) During the year under audit the Company has not raised funds by
way of public issue. Accordingly, the provisions of clause 4(xx) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company
(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 A K ASSOCIATES,
Chartered Accountants
(CAAK GUPTA)
PLACE: New Delhi M.No.16533
DATE: 30/05/2014 Firm Registration No. 000596N
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of H P Cotton
Textiles Mills Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2013, 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 principles generally accepted in India including
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956 ("the Act"). This responsibility includes the design,
implementation and maintenance of internal control relevant too the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
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
As explained in Note 15 to the audited accounts; The Company has
received intimation from the insurer that it has approved the insurance
claim; relating to fire incident during the financial year 2010-11,
fort 17160 thousand. For this claim the company had made provision
ofRs.. 33362 thousand.
The company; not being satisfied with the claim approved by the
insurer, has referred such matter to the appellate forum and the first
appellate forum is arbitration. Therefore, no provision for loss (the
difference between the insurance claim as per books of account and
claim approved by the insurer) has been made in the books of account.
Adjustment; if any, arising upon the settlement of claim will be made
in the year when the insurance claim is finally settled.
Subject to above, in our opinion and to the best of our information and
according to the explanations given to us, the aforesaid financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India
(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 Section
227(4A) 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 explanation which to the
best of our knowledge and belief were necessary 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting standards
referred to in Section 211(3C)oftheAct.
e) On the basis of the written representations received from the
directors as on March 31, 2013, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2013,
from being appointed as a director in terms of Section 274(1 )(g) of
the Act.
Annexure to Independent Auditors'' Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date.
According to the information and explanations given to us and on the
basis of such checks as we considered appropriate, we state that in our
opinion:-
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management at
the year end. No material discrepancies were noticed on such
verification.
(c) During the year, the company has not disposed off a major part of
the plant and machinery. Accordingly the provisions of clause 4(i) (c)
of the Companies (Auditor''s Report) Order 2003 are not applicable.
(ii) (a) The inventories except lying with third parties and in transit
have been physically verified during the year by the management at
reasonable intervals. 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. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) The company has taken loan from four other companies covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs. 3422 thousand
and the year-end balance of loans taken from such parties was Rs. 3422
thousand.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from the companies listed in the
register maintained under section 301 of the Companies Act, 1956 are
not, prima facie prejudicial to the interest of the company.
(c) The company is regular in repaying the principal and payment of
interest as stipulated.
(d) The company has not granted any loan to companies, firms or other
parties as listed in the register maintained under section 301 of the
Companies Act, 1956. Accordingly provisions of clause 4(iii) (a) to
(d) of the Companies (Auditors'' Report) order 2003 are not applicable
to the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regards to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal control.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been duly entered.
(b) In our opinion and according to the information and explanations
given to us, no transactions was made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. five lakh in
respect of each party during the year.
(vi) The company has not accepted deposits from the public. Accordingly
provisions of clause 4(vi) of the Companies (Auditors'' Report) order
2003 are not applicable to the company.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account relating to
materials, labour and other items of cost 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.
(ix) (a) Undisputed statutory dues including provident fund, investor
education protection fund, employees state insurance, income tax, sales
tax, wealth, custom duty, excise duty, cess and other material
statutory dues applicable to the company have generally been deposited
in time with the statutory authorities.
(b) According to the information and explanation given to us, there are
no disputed statutory dues payable by the company in respect of sales
tax, income tax, wealth, custom duty, excise duty, cess and other
material statutory dues.
(x) The company does not have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit and
during the immediately preceding financial year.
(xi) According to the information and explanations given to us, during
the year the company has not defaulted in repayment of dues to
financial institutions and/ or banks.
(xii) Keeping in view the business carried on by the company at present
the provisions of clause 4 (xii) of the Companies (Auditors'' Report)
order 2003 are not applicable to the company.
(xiii) Keeping in view the business carried on by the company at
present 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, dePentures 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) The company has not given guarantees for loans taken by others
from banks or financial institutions. Accordingly, the provisions of
clause 4(xv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
(xvi) The term loans were applied for the purpose for which the loans
were obtained.
(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 the company has not used funds raised on short term basis for long
term investment and vice versa.
(xviii) During the year under audit the company has not made
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Act. Accordingly, the
provisions of clause 4(xviii) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the company.
(xix) During the year under audit the company has not issued
debentures. Accordingly, the provisions of clause 4(xix) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
(xx) During the year under audit the Company has not raised funds by
way of public issue. Accordingly, the provisions of clause 4(xx) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company
(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 A K ASSOCIATES,
Chartered Accountants
(CA AK GUPTA)
PLACE : New Delhi M. No. 16533
DATE : 30/05/2013 Firm Registration No. 000596N
Mar 31, 2012
1. We have audited the attached Balance Sheet of H P COTTON TEXTILE
MILLS LIMITED, as at 31st March 2012, the Statement of Profit and Loss
Account and also the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit. '
2. We conducted our audit in accordance-with the auditing standards
generally accepted in India Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by 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. As explained in Note 16 to the Balance Sheet that Insurance Claim
receivable amounting to Rs. 33999 thousand is subject to settlement by
the insurance company.
Adjustment; if any, arising upon the settlement of claim will be made
during the year in which claim is settled by the insurance company.
5. 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, Statement of Profit and Loss Account and Cash
Flow Statements dealt with by this report are in agreement with the
books of account.
(iv) In our opinion, the Balance Sheet, Statement of 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 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) Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts give the information required by the Companies Act, 1956 in
the matter so required and give a true and fair view in conformity with
the accounting principles generally accepted in India
(i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March 2012.
(ii) In the case of the Statement of Profit and Loss Account, of the
Profit of the Company for the year ended on that date, and
(iii) In the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
Re: H P COTTON TEXTILE MILLS LIMITED
Annexure to the Auditors' Report referred to in paragraph 3 of our
report of even date.
As required by the Companies (Auditors' Report) Order, 2003 and
according to the information and explanations given to us and on the
basis of such checks as we considered appropriate, we state that in our
opinion:- _
(i) (a) The Company has maintained proper records showing full
particulars including quantitative
details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at
the year end. No material discrepancies were noticed on such
verification.-
(c) During the year, the company has not disposed off a major part
of the plant and machinery. Accordingly the provisions of clause
4(i)(c) of the Companies (Auditor's Report) Order 2003 are not
applicable.
(ii) (a) The inventories except lying with third parties and in transit
have been physically verified
during the year by the management at reasonable intervals. 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. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) The company has taken loan from four other companies covered
in the register maintained
under section 301 of the Companies Act, 1956. The maximum amount
involved during the year was Rs.3422 thousand and the year-end balance
of loans taken from such parties was Rs. 3422 thousand.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from the companies listed in the
register maintained under section 301 of the Companies Act, 1956 are
not, prima facie prejudicial to the interest of the company.
(c) The company is regular in repaying the principal and payment of
interest as stipulated.
(d) The company has not granted any loan to companies, firms or other
parties as listed in the register maintained under section 301 of the
Companies Act, 1956. Accordingly provisions of clause 4(iii) (a) to (d)
of the Companies (Auditors' Report) order 2003 are not applicable to
the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regards to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal control.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the
Companies Act, 1956 have been duly entered.
(b) In our opinion and according to the information and explanations
given to us, no transactions was made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakh in
respect of each party during the year,
(vi) The company has not accepted deposits from the public. Accordingly
provisions of clause 4(vi) of the Companies (Auditors' Report) order
2003 are not applicable to the company.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly rfeviewed the books of account relating to
materials, labour and other items of cost 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.
(ix) (a) Undisputed statutory dues including provident fund, investor
education protection fund,
employees state insurance, income tax, sales tax, wealth, custom duty,
excise duty, cess and other material statutory dues applicable to the
company have generally been deposited in time with the statutory
authorities.
(b) According to the information and explanation given to us, there are
no disputed statutory dues payable by the company in respect of sales
tax, income tax, wealth, custom duty, excise duty, cess and other
material statutory dues
(x) The company does not have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit and
during the immediately preceding financial year.
(xi) According to the information and explanations given to us, during
the year the company has not defaulted in repayment of dues to
financial institutions and/ or banks.
(xii) Keeping in view the business carried on by the company at present
the provisions of clause 4 (xii) of the Companies (Auditors' Report)
order 2003 are not applicable to the company.
(xiii) Keeping in view the business carried on by the company at
present the provisions of clause 4 (xiii) (a) to (d) 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 (Auditor's Report) Order,
2003 are not applicable to the company.
(xv) The company has not given guarantees for loans taken by others
from banks or financial institutions. Accordingly, the provisions of
clause 4(xv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
(xvi) The term loans were applied for the purpose for which the loans
were obtained.
(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 the company has not used funds raised on short term basis for long
term investment and vice versa.
(xviii) During the year under audit the company has not made
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Act. Accordingly, the
provisions of clause 4(xviii) of the Companies (Auditor's Report)
Order, 2003 are not applicable to the company.
(xix) During the year under audit the company has not issued
debentures. Accordingly, the provisions of clause 4(xix) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
(xx) During the year under audit the Company has not raised funds by
way of public issue. Accordingly, the provisions of clause 4(xx) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
company
(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 A. K. ASSOCIATES,
Chartered Accountants
(CA A. K. GUPTA)
M. No. 16533
Firm Registration No. 000596N
PLACE: New Delhi
DATE: 30/05/2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of H P COTTON TEXTILE
MILLS LIMITED, as at 31st March 2010, the Profit and Loss Account and
also the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to 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 and Loss Account and Cash Flow
Statements dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in 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, 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) Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts give the information required by the Companies Act, 1956 in
the matter so required and give a true and fair view in conformity with
the accounting principles generally accepted in India
(i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March 2010.
(ii) In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date, and
(iii) In the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
Annexure to the Auditors Report referred to in paragraph 3 of our
report of even date.
As required by the Companies (Auditors Report) Order, 2003 and
according to the information and explanations given to us and on the
basis of such checks as we considered appropriate, we state that in our
opinion:-
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at
the year end. No material discrepancies were noticed on such
verification.
(c) During the year, the company has not disposed off a major part of
the plant and machinery. Accordingly the provisions of clause 4(i) (
c) of the Companies (Auditors Report) Order 2003 are not applicable.
(ii) (a) The inventories except lying with third parties and in transit
have been physically verified during the year by the management at
reasonable intervals. 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. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) The company has taken loan from four other companies covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs.34.22 lakh and
the year-end balance of loans taken from such parties was Rs. 34.22
lakh.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from the companies listed in the
register maintained under section 301 of the Companies Act, 1956 are
not, prima facie prejudicial to the interest of the company.
(c) The company is regular in repaying the principal amounts as
stipulated and has also been regular in the payment of interest as
stipulated.
(d) The company has not granted any loan to companies, firms or other
parties as listed in the register maintained under section 301 of the
Companies Act, 1956. Accordingly provisions of clause 4(iii) (a) to (d)
of the Companies (Auditors Report) order 2003 are not applicable to
the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regards to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal control.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been duly entered.
(b) In our opinion and according to the information and explanations
given to us, no transactions was made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakh in
respect of each party during the year,
(vi) The company has not accepted deposits from the public. Accordingly
provisions of clause 4(vi) of the Companies (Auditors Report) order
2003 are not applicable to the company.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government forthe maintenance
of cost records under section 209(l)(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.
(ix) (a) Undisputed statutory dues including provident fund, investor
education protection fund, employees state insurance, income tax, sales
tax, wealth, custom duty, excise duty, cess and other material
statutory dues applicable to the company have generally been deposited
in time with the statutory authorities.
(b) According to the information and explanation given to us, there are
no disputed statutory dues payable by the company in respect of sales
tax, income tax, wealth, custom duty, excise duty, cess and other
material statutory dues
(x) The company does not have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit and
during the immediately preceding financial year.
(xi) According to the information and explanations given to us, during
the year the company has defaulted in repayment of dues to financial
institutions and/ or banks as detailed hereunder:-
Repayment of Term Loan from IDBI
Due date of Payment Amount Date of Payment
01/04/2009 300000.00 04/07/2009
01/07/2009 40274.00 04/07/2009
01/07/2009 259726.00 03/08/2009
300000.00
Interest on Term Loan from IDBI
Due date of Payment Amount Date of Payment
01/04/2009 118264.00 23/04/2009
01/04/2009 1179445.00 23/06/2009
1297709.00
01/07/2009 1367286.00 03/08/2009
(xii) Keeping in view the business carried on by the company at present
the provisions of clause 4 (xii) of the Companies (Auditors Report)
order 2003 are not applicable to the company.
(xiii) Keeping in view the business carried on by the company at
present the provisions of clause 4 (xiii) (a) to (d) 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) The company has not given guarantees for loans taken by others
from banks or financial institutions. Accordingly, the provisions of
clause 4(xv) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
(xvi) The term loans were applied for the purpose for which the loans
were obtained.
(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 the company has not used funds raised on short term basis for long
term investment and vice versa.
(xviii) During the year under audit the company has not made
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Act. Accordingly, the
provisions of clause 4(xviii) of the Companies (Auditors Report)
Order, 2003 are not applicable to the company.
(xix) During the year under audit the company has not issued
debentures. Accordingly, the provisions of clause 4(xix) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
company.
(xx) During the year under audit the Company has not raised funds by
way of public issue. Accordingly, the provisions of clause 4(xx) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
company
(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 A. K. ASSOCIATES,
Chartered Accountants
(CA A. K.GUPTA)
F.C A.
M.No.16533
PLACE: New Delhi Firm Registration No. 000596N
DATE:31/05/ 2010