Mar 31, 2018
REPORT ON THE IND AS FINANCIAL STATEMENTS
We have audited the accompanying Ind AS Financial Statements of Indian Terrain Fashions Limited ("the Company"), which comprises the Balance sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other comprehensive income) and the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE IND AS 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 Ind AS Financial Statements to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS 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 Ind AS Financial Statements based on our audit.
We have taken into account the provisions of the Act and the Rules made thereunder including 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 of the Ind As Financial Statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS Financial Statements. The procedures selected depend on the auditors'' judgement, including the assessment of the risks of material misstatements 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 Company''s 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 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 Ind AS Financial Statements.
We believe that the audit evidence obtained by us 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 including the Ind AS, of the state of affairs of the Company as at 31st March, 2018, and its profits (including other Comprehensive Income) and its cash flows and changes in Equity for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (here in after referred to as the "Order")and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in Annexure B, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Companies Act, 2013, 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, the Statement of Profit and Loss (including other comprehensive income) and the Cash Flows Statement and the statement of changes in Equity dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid Ind AS Financial Statements comply with the Indian 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, 2018, and taken on record by the Board of Directors, none of the directors are disqualified as on 31st March, 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 ''Annexure A''.
(g) with respect to the other matters to be included in the Auditor''s Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i. The Company has disclosed the impact of pending litigations on as at 31st March, 2018 on its financial position in its Ind AS Financial Statements as referred to in Note 42 to the Financial Statements;
ii. The Company did not have any long-term contracts including derivative contracts as at 31st March, 2018;
iii. There were no amounts required to be transferred to the Investor Education and Protection Fund by the Company for the year ended 31st March, 2018;
TO THE INDEPENDENT AUDITORS'' REPORT ON THE FINANCIAL STATEMENTS OF INDIAN TERRAIN FASHIONS LIMITED
(Referred to in paragraph 12(f) of the Independent Auditors'' Report of even date to the members of Indian Terrain Fashions Limited on the Ind AS Financial Statements for the year ended 31sl March, 2018)
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 ("THE ACT").
We have audited the internal financial controls over financial reporting of Indian Terrain Fashions Limited ("the Company") as of 31March, 2018 in conjunction with our audit of the Ind AS 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 (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. 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 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 issued by the Institute of Chartered Accountants of India (ICAI) 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 operate 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 Ind AS Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 Ind AS 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 Ind AS Financial Statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the Ind AS Financial Statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the Inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31March, 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.
TO THE INDEPENDENT AUDITORS'' REPORT ON THE IND AS FINANCIAL STATEMENTS OF INDIAN TERRAIN FASHIONS LIMITED
The Annexure referred to in our Independent Auditors'' Report to the members of Indian Terrain Fashions Limited on the Ind AS Financial Statements for the year ended March 31, 2018, we report that:
1. In respect of its Fixed Assets:
a. To the best of our knowledge and on the basis of available information, we report that the Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b. As explained to us, the Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased periodical manner designed to cover all the items over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no discrepancies were noticed on such verification. In our opinion this periodicity of physical verification is reasonable having regard to the size of the Company and nature of its assets.
c. According to the information and explanations given to us and on the basis of our examinations of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2. In our opinion, the inventories of the Company have been physically verified during the year by the Management, at reasonable intervals and as explained to us no material discrepancies were noticed on such physical verification.
3. To the best of our knowledge and accordance to the information and explanation given to us, the Company has not granted secured/unsecured loans to Companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Consequently, in our opinion requirements of clause (iii) of paragraph 3 of the order are not applicable.
4. To the best of our knowledge and belief and according to the information and explanations given to us there are no loans, investments, guarantees and securities provided by the Company as specified under Sections 185 and 186 of the Companies Act, 201 3. Therefore, the provisions of the paragraph 3(iv) of the order are not applicable to the Company.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of Sections 73 to 76 or any other relevant provisions of the Act and rules framed thereunder. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal
6. To the best of our knowledge and as explained to us, the Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Companies Act, 2013 for any of the products/services manufactured/rendered by the Company.
7. In respect of Statutory dues:
a. According to the information and explanations given to us, and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues, including provident fund, employees state insurance scheme, income tax, duty of customs, duty of excise, Goods and Services Tax, cess and other material statutory dues as applicable, have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance scheme, income tax, duty of customs, duty of excise, Goods and Services Tax, cess and other material statutory dues were in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
b. According to the information and explanations given to us, the following amounts have not been deposited by the Company on account of any disputes: -
Name of the Statue |
Nature of Dues |
Forum Where the dispute is pending |
Period to which the amount relates |
Amount (Rs. in Lakhs) |
Central Excise Act, 1944 |
Excise duty |
Appellate Tribunal, Central Excise & Service Tax, Chennai |
February 2012 to April 2012 |
47.43 |
Central Excise Act, 1944 |
Excise duty |
Appellate Tribunal, Central Excise & Service Tax, Chennai |
May 2012 to September 2012 |
32.18 |
Central Excise Act, 1944 |
Excise duty |
Appellate Tribunal, Central Excise & Service Tax, Chennai |
October 2012 to January 2013 |
23.29 |
Central Excise Act, 1944 |
Excise duty |
Commissioner, Central Excise, Chennai |
February 2013 |
51.82 |
Central Excise Act, 1944 |
Excise duty |
Appellate Tribunal, Central Excise & Service Tax, Chennai |
October 2015 |
42.65 |
Total |
197.37 |
8. In our opinion and according to the information and explanations given to us by the management, we are of the opinion that the Company has not defaulted in repayment of loans and borrowings to banks and loans and borrowings to financial institutions. There are no loans or borrowings from government nor the Company issued any debentures during the year.
9. To the best of our knowledge and according to the information and explanations given to us, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments). In our opinion and according to the information and explanations given to us, the Company has utilized the monies raised by way of term loans for the purpose for which they were raised.
10. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud by the Company or on the Company by it''s officers or employees has been noticed or reported during the year.
11. To the best of our knowledge and belief and according to the information and explanations given to us, managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. In our opinion and according to the information and explanations given to us and based on our examination of the records of the Company, transactions with its related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Ind AS Financial Statements as required by the applicable Accounting Standards.
14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. In our opinion and according to the information and explanation given to us, during the year, the company has not entered into any non-cash transactions with its directors or persons connected with him and hence reporting under clause (xv) of paragraph 3 of the order is not applicable to the company.
16. In our opinion and 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.
for ANIL NAIR & ASSOCIATES for CNGSN & ASSOCIATES LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number ICAI Firm Registration Number
000175S 004915S/S200036
sd/- sd/-
G. ANIL C.N. GANGADARAN
Partner Partner
Membership Number: 022450 Membership Number: 011205
Chennai, May 28, 2018
Mar 31, 2015
We have audited the accompanying financial statements of Indian Terrain
Fashions Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, Statement of Profit and Loss , the Cash Flow
Statement for the year the 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 of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, the state of affairs of the Company as at
March 31, 2015, and its profit and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (11) of section 143 of the Companies Act, 2013 we give
in the Annexure 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 Companies Act, 2013 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 the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e. on the basis of the written representations received from the
directors as on March 31, 2015, and taken on record by the Board of
Directors, none of the directors are disqualified as on March 31, 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 as referred to in Note
27C 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; and
iii. There were no amounts requiring to be transferred to the Investor
Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our Independent Auditor's Report to the
members of Indian Terrain Fashions Limited ("the Company") on the
financial statements for the year ended March 31, 2015, we report that:
1. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the fixed assets of the Company have been
physically verified by the Management during the year in a phased
periodical manner, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. In accordance with
the phased programme of verification, certain fixed assets were
verified during the year and no material discrepancies were noticed on
such verification.
2. In respect of its inventories :
a. As explained to us the inventories of the Company, except in the
case of stock of raw material of the value Rs. 2.98 crores lying in
transit for which confirmation has been obtained, have been physically
verified during the year by the management. In our opinion, the
frequency of verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the physical verification of inventories followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
c. According to the information and explanations given to us, the
Company has maintained proper records of inventories. As explained to
us, there were no material discrepancies noticed on physical
verification of inventories as compared to book records.
3. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the register maintained
under Section 189 of the Companies Act, 2013. Hence, the question of
reporting whether the receipt of principal and interest are regular and
whether reasonable steps for recovery of over dues of such loans taken
do not arise.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of fixed assets, inventory and for the sale of goods
and services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither observed nor have we been
informed of any continuing failure to correct major weaknesses in the
internal control system.
5. According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore in
our opinion the provisions of Clause (v) of paragraph 3 of the Order
(as amended) are not applicable to the Company.
6. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules 2011
prescribed by the Central Government under section 148(1) of the
Companies Act, 2013 and are of the opinion that prima facie the
prescribed cost records have been maintained. However we are not
required to and have not carried out any detailed examination of such
accounts and records.
7. In respect of statutory dues:
a. According to the information and explanations given to us and on the
basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, income tax, wealth tax,
service tax, duty of customs, value added tax, cess and other material
statutory dues have been regularly deposited during the year by the
Company with the appropriate authorities. As explained to us, the
Company did not have any dues on account of duty of excise.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
wealth tax, service tax, duty of customs, value added tax, cess and
other material statutory dues were in arrears as at 31 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, the disputed
statutory dues aggregating to Rs. 177.88 lakhs that has not been
deposited on account of matters pending before the appropriate
authorities are as under:-
Name of the Nature of Forum Where the dispute
Statue Dues is pending
Central Appellate Tribunal, Central
Excise Act, CENVAT Excise & Service Tax,
1944 Chennai
Central Appellate Tribunal, Central
Excise Act, CENVAT Excise & Service Tax,
1944 Chennai
Central Commissioner Appeals,
Excise Act, CENVAT Central Excise, Chennai
1944
Central Commissioner, Central
Excise Act, CENVAT Excise, Chennai
1944
Name of the Statute Period to which the amount Amount (Rs.
relates in Lakhs)
Central Excise Act,1944 February 2012 to April 2012 47.43
Central Excise Act,1944 May 2012 to September 32.18
2012
Central Excise Act,1944 October 2012 to January 46.45
2013
Central Excise Act,1944 February 2013 51.82
Total 177.88
c. According to the information and explanations given to us, there
were no 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 there
under.
8. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
9. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
The Company did not have any Debentures outstanding during the year.
10. 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. Hence in our opinion clause (x) of
paragraph 3 of the Companies (Auditors Report) Order, 2015 is not
applicable to the Company.
11. According to the information and explanations given to us, and
based on the records and documents produced before us, in our opinion
the term loans have been applied for the purposes for which they were
obtained.
12. According to the information and explanations given to us no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
Date : 21.05.2015 For CNGSN & Associates LLP
Place : Chennai Chartered Accountants
F.R.No.004915S
C.N. Gangadaran
Partner
Membership No.11205
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying fnancial statements of Indian Terrain
Fashions Limited ("the Company"), which comprise the Balance sheet as
at 31st March 2013, the Statement of Proft and Loss and the Cash Flow
Statement for the year then ended, and a summary of signifcant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fnancial
statements that give a true and fair view of the fnancial position,
fnancial performance and cash fows of the company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the fnancial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these fnancial
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 fnancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fnancial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatements of the fnancial 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 fnancial 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 fnancial statements.
We believe that the audit evidence we have obtained is suffcient 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 fnancial 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 Proft and Loss, of the proft for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash fows 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 specifed 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 Proft 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 Proft and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; and
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 disqualifed as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notifcation as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure To The Auditors'' Report
The Annexure referred to in our report to the members of Indian Terrain
Fashions Limited ("the Company") for the year ended March 31, 2013. We
report that:
1. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fxed assets on the
basis of available information.
b. As explained to us, the fxed assets of the Company have been
physically verifed by the Management during the year in a phased
periodical manner, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. In accordance with
the phased programme of verifcation, certain fxed assets were verifed
during the year and no material discrepancies were noticed on such
verifcation.
c. The fxed assets disposed of during the year do not constitute a
substantial part of the fxed assets of the Company and such disposal in
our opinion has not affected the going concern status of the Company.
2. In respect of its inventories :
a. The inventories have been physically verifed during the year by the
management. In our opinion the frequency of verifcation is reasonable.
b. In our opinion and according to the information and explanations
given to us, the physical verifcation 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 has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verifcation of inventories as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, frms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 :
a. The Company has not granted any loans, secured or unsecured, to
companies, frms or other parties listed in the Register maintained
under Section 301 of the Act.
b. The Company has not taken any loans, secured or unsecured, from
companies, frms or other parties listed in the Register maintained
under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of fxed assets, inventory and for 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 system.
5. In respect of contracts or arrangements referred to in section 301
of Companies Act, 1956
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 or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5 lakh in
respect of each party during the year have been made at prices which
appear reasonable having regard to the prevailing market prices at the
relevant time, as per information available with the Company.
6. According to the information and explanations given to us the
Company has not accepted any deposits from the public. Therefore the
provisions of Clause (vi) of paragraph 4 of the Order (as amended) are
not applicable to the Company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules 2011
prescribed by the Central Government under section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have however not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
9. In respect of statutory dues:
a. According to the information and explanations given to us, and on
the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues, including Provident Fund, Employees State Insurance
Scheme, Excise Duty, Service Tax, Customs Duty and other material
statutory dues, as applicable have been regularly deposited during the
year by the Company with the appropriate authorities. However during
the year under review the Company has been irregular in remitting the
Income Tax dues under Minimum Alternate Tax (MAT).
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees
State Insurance Scheme, Income Tax, Service Tax, Value Added Tax and
other material statutory dues were in arrears as at March 31, 2013 for
a period of more than six months from the date they became payable.
10. The Company does not have any accumulated losses at the end of the
fnancial year and has not incurred cash losses in the fnancial year and
in the immediately preceding fnancial year.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to banks.
12. According to the information and explanations given to us, and
based on the records and documents produced before us, The Company has
not granted loans and advances on the basis of security by way of
pledge of share, debentures and other securities.
13. In our opinion and to the best of our information and according to
the explanations provided by the management, the Company is not a Chit
Fund or a Nidhi / Mutual Beneft Fund / Society. Therefore the
provisions of Clause 4(xiii) of the Companies (Auditors Report) Order
2003 (as amended) do not apply to the Company.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or fnancial institutions.
16. According to the information and explanations given to us, the
term loans have been applied for the purposes for which they were
obtained.
17. According to the information and explanations given to us and an
overall examination of the balance sheet of the Company, we are of the
opinion that the funds raised on a short term basis have not been used
for long term investments.
18. The Company has not made any preferential allotment of shares to
companies/frms/parties covered in the register maintained under Section
301 of the Companies Act, 1956.
19. The Company did not have any outstanding debentures during the
period.
20. The Company has not raised any money by way of public issue during
the period. Hence in our opinion Clause 4(xx) of the Companies
(Auditors Report) Order 2003 (as amended) is not applicable to the
Company.
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the fnancial statements, and as per
the information and explanations given to us by the management, we
report that no material fraud on or by the Company has been noticed or
reported during the course of our audit.
for ANIL NAIR & ASSOCIATES for CNGSN & ASSOCIATES
Chartered Accountants Chartered Accountants
Firm Registration Number 000175S Firm Registration Number 004915S
G. ANIL C.N. GANGADARAN
Partner Partner
Membership Number 22450 Membership Number 11205
Place: Chennai Date: May 3, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/S INDIAN TERRAIN
FASHIONS LIMITED as at March 31, 2012, the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date,
annexed thereto. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. 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
preparation. We believe that our audit provides a reasonable basis for
our opinion.
3. 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 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 in paragraph 3
above, we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. In our opinion, proper books of account, as required by law, have
been kept by the Company, so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d. In our opinion the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred in sub-section (3C) of Section 211 of
the Companies Act, 1956.
e. 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 prima facie 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.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and 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:
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, 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 AUDITOR'S REPORT
Referred to in paragraph 3 of our report of even date
1. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the fixed assets of the Company have been
physically verified by the Management during the year in a phased
periodical manner, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. In accordance with
the phased programme of verification, certain fixed assets were
verified during the year and no material discrepancies were noticed on
such verification.
c. The fixed assets disposed of during the year do not constitute a
substantial part of the fixed assets of the Company and such disposal
in our opinion has not affected the going concern status of the
Company.
2. In respect of it's inventories :
a. The inventories have been physically verified during the year by
the management. In our opinion the frequency of verification is
reasonable.
b. In our opinion and according to the information and explanations
given to us, the physical certification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of it's business.
c. The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 :
a. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the Register maintained
under Section 301 of the Act.
b. The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the Register maintained
under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of fixed assets, inventory and for 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 system.
5. In respect of contracts or arrangements referred to in section 301
of Companies Act, 1956
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 or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs.500,000/- in
respect of each party during the year have been made at prices which
appear reasonable having regard to the prevailing market prices at the
relevant time, as per information available with the Company.
6. According to the information and explanations given to us the
Company has not accepted any deposits from the public. Therefore the
provisions of Clause (vi) of paragraph 4 of the Order (as amended) are
not applicable to the Company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules 2011
prescribed by the Central Government under section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have however not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
9. In respect of statutory dues:
a. According to the information and explanations given to us, and on
the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues, including Provident Fund, Employees State Insurance
Scheme, Income Tax, Excise Duty, Service Tax, Value Added Tax and other
material statutory dues, as applicable have been regularly deposited
during the year by the Company with the appropriate authorities.
Further since the Central Government has till date not prescribed the
amount of cess payable under section 441A _of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the Company in depositing the same.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees
State Insurance Scheme, Income Tax, Service Tax, Value Added Tax and
other material statutory dues were in arrears as at March 31, 2012 for
a period of more than six months from the date they became payable.
c. According to the information and explanations given to us, the
disputed statutory dues aggregating to Rs.71.18 Lacs that has not been
deposited on account of matters pending before the appropriate
authority are as under:-
Period to Forum Amount
Name Nature of which the where (Rs in
of the Dues amount dispute Lacs)
Statute related is Pending
Service Tax Service Tax March 2009 to Pending 71.18*
Demand September 2011 Before
Supreme
Court
* As per the directions of the Supreme Court the Company has remitted a
sum of Rs. 35.59 Lacs against this demand.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
The Company did not have any debentures outstanding during the year.
12. According to the information and explanations given to us, and
based on the records and documents produced before us, The Company has
not granted loans and advances on the basis of security by way of
pledge of share, debentures and other securities.
13. In our opinion and to the best of our information and according to
the explanations provided by the management, 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 (as amended) do not apply to the Company.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
15. 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.
16. According to the information and explanations given to us, the
term loans have been applied for the purposes for which they were
obtained.
17. According to the information and explanations given to us and an
overall examination of the balance sheet of the Company, we are of the
opinion that the funds raised on a short term basis have not been used
for long term investments.
18. The Company has not made any preferential allotment of shares to
companies/firms/parties covered in the register maintained under
Section 301 of the Companies Act, 1956.
19. The Company did not have any outstanding debentures during the
period.
20. The Company has not raised any money by way of public issue during
the period. Hence in our opinion Clause 4(xx) of the Companies
(Auditors Report) Order 2003 (as amended) is not applicable to the
Company.
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements, and as
per the information and explanations given to us by the management, we
report that no fraud on or by the Company has been noticed or reported
during the course of our audit.
for ANIL NAIR & ASSOCIATES for CNGSN & ASSOCIATES
Chartered Accountants Chartered Accountants
Registration Number:000175S Registration Number:004915S
G.ANIL C.N. GANGADARAN
Partner Partner
Membership Number:22450 Membership Number: 11205
Chennai,
May 15, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of M/S INDIAN TERRAIN
FASHIONS LIMITED as at 31st March 2011, the Profit and Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These Financial Statements are the responsibility of the
Company's Management. Our responsibility is to express an opinion on
these Financial Statements based on our audit.
1. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by Management, as well as evaluating the overall financial statement
preparation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003 as
amended, issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, and on the basis
of such checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure, a statement on the matters specifed in
paragraphs 4 & 5 of the said Order.
3. Further to our comments in the annexure referred to in paragraph 2
above we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account as required by law, have
been kept by the Company, so far as appears from our examination of
those books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred in sub section (3C) of Section 211 of the Companies
Act, 1956.
e) On the basis of written representations received from the Directors
as on 31st March, 2011 and taken on record by the Board of Directors,
none of the directors is prima facie disqualifed 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; and
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Signifcant Accounting Policies and 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:
i) in the case of the Balance Sheet of the state of affairs of the
Company as at 31st March 2011;
ii) in the case of the Profit and Loss Account of the Profit for the year
ended on that date ; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 2 of the Auditor's Report of even date to the
members of Indian Terrain Fashions Limited on the accounts for the year
ended March 31st 2011)
(i). In respect of its Fixed Assets :
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, the fixed assets of the Company have been
physically verifed by the Management during the year in a phased
periodical manner, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. In accordance with
the phased programme of verification, certain fixed assets were verifed
during the year and no material discrepancies were noticed on such
verification.
c) The fixed assets disposed of during the year do not constitute a
substantial part of the fixed assets of the Company and such disposal in
our opinion has not affected the going concern status of the Company
(ii). In respect of its Inventories
a) As explained to us the inventories of the Company have been
physically verifed by the Management during the year. In respect of
inventories lying with third parties, these have substantially been
confrmed by them. In our opinion the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion the Company has maintained proper record of
inventories. There were no material discrepancies noticed on physical
verification of inventories as compared to the book records.
(iii).
a) The Company has not granted any loans, secured or unsecured, to
companies, frms or other parties listed in the Register maintained
under Section 301 of the Act.
b) The Company has not taken any loans, secured or unsecured, from
companies, frms or other parties listed in the Register maintained
under Section 301 of the Act.
(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 with regard
to the purchase of inventory and fixed assets and for the sale of goods.
On the basis of our examination of the books and information and as per
the explanations given to us, we have neither come across nor have we
been informed of any instance of continuing failure to correct major
weaknesses in the aforesaid internal control.
(v). In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956 :
b. 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.
c. 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 the value of Rs. 500,000/=
in respect of each party during the year have been made at prices which
appear reasonable as per information available with the Company.
(vi). The Company has not accepted any deposits from the public.
Accordingly paragraph 4(vi) of the Order is not applicable.
(vii). The Company has an internal audit system, which in our opinion
is commensurate with the size and nature of its business.
(viii). According to the information and explanations given to us, the
Central Government has not prescribed for the maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956. Accordingly
paragraph 4(viii) of the Order is not applicable.
(ix). a. According to the information and explanations given to us and
the records of the Company examined by us, in our opinion the Company
is generally regular in depositing with the appropriate authorities
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income Tax, Customs Duty, Cess and other material statutory
dues applicable to it.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were in
arrears as at 31st March 2011 for a period of more than six months from
the date they became payable.
c. According to the information and explanations given to us there
were no amounts in respect of the aforesaid dues which have not been
deposited on account of any dispute.
(x). The company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses in the financial
year covered by our audit and in the immediately preceding financial
year.
(xi). In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank. The Company did not have any debentures
outstanding during the year.
(xii). The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly paragraph 4(xii) of the Order is not applicable
(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). According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, paragraph 4(xiv) of the Order is not
applicable.
(xv). 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. Accordingly paragraph 4(xv) of the
Order is not applicable.
(xvi). According to the information and explanations given to us, the
term loans have been applied for the purposes for which they were
obtained
(xvii). According to the information and explanations given to us and
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). During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix). According to the information and explanations given to us,
during the period covered by our audit report, the Company has not
issued any debentures
(xx). The company has not raised any money by way of public issue
during the year. Accordingly paragraph 4(xx) of the Order is not
applicable.
(xxi). 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, no material fraud on or by the Company has
been noticed or reported during the course of our audit.
for ANIL NAIR & ASSOCIATES for CNGSN & ASSOCIATES
Chartered Accountants Chartered Accountants
(Registration No 175S) (Registration No 4915S)
G. ANIL C.N. GANGADARAN
Partner Partner
Membership No 22450 Membership No 11205
Place: Chennai
Date : May 30, 2011