Mar 31, 2015
We have audited the accompanying standalone financial statements of
KHATOR FIBRE AND FABRICS LIMITED('the Company'), which comprise the
Balance Sheet as at 31 March 2015, the statement of Profit and Loss &
the Cash flow statement for the year then ended, and a summary of
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 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 and
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the 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 31 March 2015 and its profit for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in 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 Cash flow
statement that dealt with by this Report are in agreement with the
books of accounts;
(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 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regards to the size of the company and
nature of its Assets. No material discrepancies were noticed on such
physical verification.
ii). (a) As explained to us, physical verification of inventory of
finished goods, stores, spare parts and materials has been conducted at
reasonable intervals by the management, which in our opinion is
reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on such physical verification.
iii). According to the information and explanation given to us, the
company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section
189 of the Companies Act, 2013. Therefore, paragraph 3 (iii) of the
order is not applicable.
iv) . In our opinion and according to the information and explanations
given to us there is adequate internal control procedure commensurate
with the size of the company and nature of its business, for the
purchase of inventory, purchase of fixed assets and for the sale of
goods and services. We have not observed any major weakness in the
internal control system during the course of audit.
v) . As informed to us, the Company has not accepted any deposit from
the public during the year within the meaning of section 73 or 76 of
the Companies Act 2013 and the rules framed there under. Therefore, the
directives issued by the reserve bank of India or any other relevant
provisions of the Companies Act and the rules framed there under, are
not applicable.
vi). As per information and explanations given to us, the cost records
as prescribed by the Central Government u/s 148(1) of the Companies Act
2013 in respect of process house are being made and maintained. We
have, however not made a detailed examination of the said records with
a view to determine whether they are accurate or complete.
vii) (a) The company is regular in depositing undisputed statutory dues
with appropriate authorities applicable to it.
(b) According to the information and explanation given to us, there are
no dues in respect of Income tax, wealth tax, service tax, custom duty,
excise duty, cess that have not been deposited with the appropriate
authorities on account of any dispute.
(c ) As per information and explanations given to us there is no such
amount that is required to be transferred to investor education and
protection fund in accordance with the relevant provision of the
Companies Act,1956(1 of 1956) .
viii) The company does not have accumulated losses; therefore paragraph
3(viii) of the order is not applicable & the company has not incurred
any cash losses during the year.
ix) . The company has not defaulted in repayment of dues to a
financial institution or bank. The company has not issued any type of
debenture during the year.
x) . According to the information and explanation given to us, the
terms and conditions on which the company has given guarantees for
loans taken by others from banks or financial institutions are not
prima facie prejudicial to the interest of company.
xi) . The company has raised term loans during the year, and the same
were applied for the purpose for which the loans 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 course of our audit.
FOR S.R. GOYAL & CO.
CHARTERED ACCOUNTANTS
FRNo-001537C
Sd/-
Place: Mumbai (Anil Goyal)
Dated: 30/05/2015 Partner
M.No.71158
Mar 31, 2014
We have audited the accompanying financial statements of Khator Fibre &
Fabrics Ltd. ("the Company"), which comprise the Balance Sheet as at
March 31,2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year ended, and a summary of significant accounting
policies and other explanatory information. Management''s
Responsibility for 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
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956 read with
General Circular 15/2013 dated 13th September 2013, issued by the
Ministry of Corporate Affairs, in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to
design audit procedures that are appropriate in the circumstances but
not for the purpose of expressing an opinion on the effectiveness of
the entity''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 Companies Act, 1956 ("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) m the case of the Statement of Profit and Loss, of the profit for
the year ended on that date;
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date
Report on other Legal and Regulatory Requirements
1 .As required by the Companies (Auditor''s Report) Order, 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 explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss, 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,
comply with the Accounting Standards notified under the Companies Act,
1956 read with General Circular 15/2013 dated 13th September 2013,
issued by the Ministry of Corporate Affairs, in respect of Section 133
of the Companies Act, 2013;
e) On the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of section 274 (1)(g) of the Act,
1956.
Referred to in paragraph 1 under the heading of "Report on other
Legal and Regulatory Requirements" of our report of even date
i) a.The Company has maintained proper records snowing full particulars
including quantitative details and situation of fixed assets.
b. AII the assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification as compared with available record.
c. The company has not disposed off any substantial part of its fixed
assets during the year.
ii) . a.The stock of finished goods, stores, spare parts
and materials have been physically verified during the year by the
management.
b. The procedure of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
c. The company is maintaining proper records of Inventory. The
discrepancies noticed on verification between the physical stock and
books records were not material.
iii) We have been informed that the Company has neither granted nor
taken any loans, secured or unsecured, to or from companies, firms or
other parties listed in the Register maintained under section 301 of
the Companies Act 1956. Accordingly, clause 4(iii) (b) to (d) of the
order are not applicable.
iv) . According to the information and explanations given
to us and the records verified by us, there is adequate internal
control procedure commensurate with the size of the company and nature
of its business.
v) . There are no transaction during the year of purchase
of stores, raw materials or components and sale of goods and materials
(there being no sale of services) made in pursuance of contracts or
agreements entered in the register maintained u/s 301 of the Companies
Act, 1956 as is evident from the said register.
vi) .As informed to us, the Company has not accepted
any deposit from the public during the year within the meaning of
section 58A or 58AA of the Companies Act1956 and the rules framed there
under. Therefore, the directives issued by the reserve bank of India
are not applicable.
vii) In our opinion, the internal audit system is
commensurate with the size of the Company and the nature of its
business ''
viii) . As per information and explanations given to us, the cost
records as prescribed by the Central Government u/s 209(1 )(d) of the
Companies Act, 1956 in respect of process house are being made and
maintained. We have, however not made a detailed examination of the
said records with a view to determine whether they are accurate or
complete.
ix) a. According to the records of the Company, the company is
generally regular in depositing undisputed statutory dues applicable to
it.
b.According to the information and explanation given to us, there are
no dues in respect of Income tax, wealth tax, excise duty, custom duty,
service tax and cess that have not been deposited with the appropriate
authorities on account of any dispute.
x) The company does not have accumulated losses, therefore clause
4(x) of the order is not applicable.
xi) The company has not defaulted in repayment of any dues to
financial institution/ bank. The company has not issued any
debentures.
xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly clause 4(xii) of the order is not applicable.
xiii)The company is not a chit fund or a nidhi mutual benefit
fund/society. Accordingly clause 4(xiii) of the order is not
applicable.
xiv) The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly clause 4(xiv) of the
Order is not applicable.
xv) According to the information and explanation given to us, the
terms and conditions on which the company has given guarantees for
loans taken by others from banks or financial institutions are not
prima facie prejudicial to the interest of the company.
xvi) In our opinion, on the basis of information and explanation given
to us, the term loans were applied for the purpose for which the loans
were obtained.
xvii) On the basis of an overall examination of the balance sheet of
the company, no funds raised on short term basis have been used for
long term investment or vice versa.
xviii) The company has not made any preferential allotment of shares,
accordingly clause 4(xviii) of the order is not applicable.
xix) The company has not issued any debentures. Accordingly clause
4(xix) of the Order is not applicable.
xx) The company has not raised any money by public issue during the
year. Accordingly clause 4(xx) of the Order is not applicable.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
FORS.R. GOYAL&CO.
CHARTERED ACCOUNTANTS
FRNO-001537C
Sd/-
A. K. Atolia
Camp: Mumbai Partner
Date: 30/05/2014 M. No. 77201
Mar 31, 2013
Report on the Financial Statements We have audited the accompanying
financial statements of Khator Fibre & Fabrics Ltd. ("the Company"),
which comprise the Balance Sheet as at March 31, 2013, and the
Statement of Profit and Loss and Cash Flow Statement for the year than
ended, and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the Accounting
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 to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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;
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 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 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 accounts as required by law have
been kept by the Company, so far as appears from our examinations of
those books;
c) The Balance Sheet & dealt with by the report are in agreement with
the books of accounts of the Company;
d) In our opinion, the Statement of Profit & Loss and the Balance Sheet
comply with the mandatory accounting Standards referred to in
sub-section (3C) of section 211 of the companies act, 1956.
e) On the basis of confirmation received from directors concerned as on
March 31, 2013 and taken on record by the Board of directors, none of
the director are disqualified from being appointed as a director under
clause (g) of Sub-section (1) of Section 274 of the Companies Act,
1956.
Referred to in paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date
i) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. All the assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification as compared with available record.
c. The company has not disposed off any substantial part of its fixed
assets during the year.
ii). a. The stock of finished goods, stores, spare parts and materials
have been physically verified during the year by the management.
b. The procedure of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
c. The company is maintaining proper records of Inventory. The
discrepancies noticed on verification between the physical stock and
books records were not material.
iii). We have been informed that the Company has neither granted nor
taken any loans, secured or unsecured, to or from companies, firms or
other parties listed in the Register maintained under section 301 of
the Companies Act 1956. Accordingly, clause 4(iii) (b) to (d) of the
order are not applicable.
iv). According to the information and explanations given to us and the
records verified by us, there is adequate internal control procedure
commensurate with the size of the company and nature of its business.
v). There are no transaction during the year of purchase of stores, raw
materials or components and sale of goods and materials (there being no
sale of services) made in pursuance of contracts or agreements entered
in the register maintained u/s 301 of the Companies Act, 1956 as is
evident from the said register.
vi). As informed to us, the Company has not accepted any deposit from
the public during the year within the meaning of section 58A or 58AA of
the Companies Act 1956 and the rules framed there under. Therefore, the
directives issued by the reserve bank of India are not applicable.
vii). In our opinion, the internal audit system is commensurate with
the size of the Company and the nature of its business
viii). As per information and explanations given to us, the cost
records as prescribed by the Central Government u/s 209(1)(d) of the
Companies Act, 1956 in respect of process house are being made and
maintained. We have, however not made a detailed examination of the
said records with a view to determine whether they are accurate or
complete.
ix) a. According to the records of the Company, the company is
generally regular in depositing undisputed statutory dues applicable to
it.
b. According to the information and explanation given to us, there are
no dues in respect of Income tax, wealth tax, excise duty, custom duty,
service tax and cess that have not been deposited with the appropriate
authorities on account of any dispute.
x). The company does not have accumulated losses, therefore clause 4(x)
of the order is not applicable.
xi). The company has not defaulted in repayment of any dues to
financial institution/ bank. The company has not issued any debentures.
xii). The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly clause 4(xii) of the order is not applicable.
xiii). The company is not a chit fund or a nidhi mutual benefit
fund/society. Accordingly clause 4(xiii) of the order is not
applicable.
xiv). The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly clause 4(xiv) of the
Order is not applicable.
xv). According to the information and explanation given to us, the
terms and conditions on which the company has given guarantees for
loans taken by others from banks or financial institutions are not
prima facie prejudicial to the interest of the company.
xvi). In our opinion, on the basis of information and explanation given
to us, the term loans were applied for the purpose for which the loans
were obtained.
xvii). On the basis of an overall examination of the balance sheet of
the company, no funds raised on short term basis have been used for
long term investment or vice versa.
xviii). The company has not made any preferential allotment of shares,
accordingly clause 4(xviii) of the order is not applicable.
xix). The company has not issued any debentures. Accordingly clause
4(xix) of the Order is not applicable.
xx). The company has not raised any money by public issue during the
year. Accordingly clause 4(xx) of the Order is not applicable.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
FOR S.R. GOYAL & CO.
CHARTERED ACCOUNTANTS
FRNo-001537C
Sd/-
Camp : Mumbai (Anil Goyal)
Dated: 30.05.2013 Partner
M.No.71158
Mar 31, 2012
We have audited the attached Balance Sheet of Khator Fibre & Fabrics
Ltd., as at 31 st March 2012 also the Profit and Loss Account and Cash
Flow Statement of the Company for the year ended on that date annexed
thereto..
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial positio/i,
financial statements 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 financial statement that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
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 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 of
material misstatement
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risk of material misstatement of the financial statement, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the compan/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.
As required by the Companies (Auditors report) order 2003,ëas amended
by the Companies (Auditor's Report) (Amendment) Order, 2004, (together
the 'Order') issued by the Central Government in terms of section 227
(4A) of Companies Act. 1956' of India (the 'Act') and on the basis of
such examinations of the books and records as we considered appropriate
and as per the information and explanation given to us we further
report that:
i) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. All the assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification as compared with available record.
c. The com pany has not disposed off any substantial part of its fixed
assets during the year.
ii). a.The stock of finished goods, stores, spare parts and materials
have been physically verified during the year by the management.
b.The procedure of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
c.The company is maintaining proper records of Inventory. The
discrepancies noticed on verification between the physical stock and
books records were not material.
iii).We have been informed that the Company has neither granted nor
taken any loans, secured or unsecured, to or from companies, firms or
other parties listed in the Register maintained under section 301 of
the Companies Act 1956. Accordingly, clause 4(iii) (b) to (d) of the
order are not applicable.
iv) According to the information and explanations given to uts and the
records verified by us, there is adequate internal control procedure
commensurate with the size of the company and nature of its business.
v). There are no transaction during the year of purchase of stores, raw
materials or components and sale of goods and materials (there being no
sale of services) made in pursuance of contracts or agreements entered
in the register maintained u/s 301 of the Companies Act, 1956 as is
evident from the said register.
vi). As informed to us, the Company has not accepted any deposit from
the public during the year within the meaning of section 58A or 58AA of
the Companies Act 1956 and the rules framed there under. Therefore,
the directives issued by the reserve bank of India are not applicable.
vii). In our opinion, the internal audit system is commensurate with
the size of the Company and the nature of its business
viii). As per information and explanations given to us, the cost
records as prescribed by the Central Government u/s 209(1 )(d) of the
Companies Act, 1956 in respect of process house are being made and
maintained. We have, however not made a detailed examination of the
said records with a view to determine whether they are accurate or
complete.
ix) a. According to the records of the Company, the company is
generally regular in depositing undisputed statutory dues applicable to
it.
b. According to the information and explanation given to us, there are
no dues in respect of Income tax, wealth tax, excise duty, custom duty,
service tax and cess that have not been deposited with the appropriate
authorities on account of any dispute.
x). The company does not have accumulated losses, therefore clause 4(x)
of the order is noi applicable.
xi). The company has not defaulted in repayment of any dues to
financial institution/ bank. The company has not issued any debentures.
xii). The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly clause 4(xii) of the order is not applicable.
xiii). The company is not a chit fund or a nidhi mutual benefit
fund/society. Accordingly clause 4(xiii) of the order is not
applicable.
xiv). The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly clause 4(xiv) of the
Order is not applicable.
xv). According to the information and explanation given to us, the
terms and conditions on which the company has given guarantees for
loans taken by others from banks or financial institutions are not
prima facie prejudicial to the interest of the company.
xvi). In our opinion, on the basis of information and explanation given
to us, the term loans were applied for the purpose for which the loans
were obtained.
xvii). On the basis of an overall examination of the balance sheet tof
the company, no funds raised on short term basis have been used for
long term investment or vice versa.
xviii).The company has not made any preferential allotment of shares,
accordingly clause 4(xviii) of the order is not applicable.
xix).The company has not issued any debentures. Accordingly clause
4(xix) of the Order is not applicable.
xx).The company has not raised any money by public issue during the
year. Accordingly clause 4(xx) of the Order is not applicable.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
Further to our comments 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 purpose of our
audit;
b.ln our opinion, proper books of accounts as required by law have been
kept by the Company, so far as appears from our examinations of those
books;
c. The Balance Sheet & Profit & Loss A/c dealt with by the report are
in agreement with the books of accounts of the Company;
d. In our opinion, the profit & loss account and the balance sheet
comply with the mandatory accounting standards referred to in
sub-section (3C) of section 211 of the companies act, 1956.
e. On the basis of confirmation received from directors concerned as on
March 31,2012 and taken on record by the Board of directors, none of
the director are disqualified from being appointed as a director under
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 Balance Sheet and Profit and
Loss Account read together with the other notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required, and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) In case of the Balance Sheet of the state of affairs of the Company
as at 31 st March, 2012;
(ii) In the case of Profit and Loss Account of the profit for the year
ended on that date and
(iii) In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
FORS.R.GOYAL&CO.
CHARTERED ACCOUNTANTS
FRNO-001537C
Camp: Mumbai (AnilGoyal)
Dated: 30.05.2012 Partner
M.No.71158
Mar 31, 2011
1) We have audited the attached Balance Sheet of Khator Fibre & Fabrics
Ltd., as at 31st March 2011 also the Profit and Loss Account and Cash
Flow Statement of the Company 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 disclosure 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
cur opinion.
3) As required by the Companies (Auditors report) order 2003, as
amended by the Companies (Auditor's Report Amendment) Order, 2004,
together by the Central Government in terms of section 227 {4A} of
Companies Act. 1956' of India (the 'Act') and on the basis of such
examinations of the books and records, as we considered appropriate and
as per the information and explanation given to us we further report
that:
i) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. All the assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification as compared with available record.
c. The company has not disposed off any substantial part of its fixed
assets during the year.
ii) a. The stock of finished goods, stores, spare parts and materials
have been physically verified during the year by the management.
b. The procedure of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
c. The company is maintaining proper records of Inventory, The
discrepancies noticed on verification between the physical stock and
books records were not material.
iii) We have been informed that the Company has neither granted nor
taken any loans, secured unsecured, to or from companies, firms or
other parties listed in the Register maintained under section 301 of
the Companies Act 1956. Accordingly, clause 4(iii) (b) to (d) of the
order are not applicable.
iv). According to the information and explanations given to us and the
records verified by us, there is adequate internal control procedure
commensurate with the size of the company and nature of its business.
v) There are no transaction during the year of purchase of stores, raw
materials or components and sale of goods and materials (there being no
sale of services) made in pursuance of contracts or agreements entered
in the register maintained u/s 301 of the Companies Act, 1956 as is
evident From the said register.
vi) As informed to us, the Company has not accepted any deposit from
the public during the year within the meaning of section 58A or 58AA of
the Companies Act 1956 and the rules framed there under. Therefore, the
directives issued by the reserve bank of India are not applicable.
vii) In our opinion, the internal audit system is commensurate with the
size of the Unit and the nature of its business.
viii) As per information and explanations given to us, the cost records
as prescribed by the Central Government u/s 209(1 )(d) of the Companies
Act, 1956 in respect of process house are being made and maintained. We
have, however not made a detailed examination of the said records with
a view to determine whether they are accurate or complete.
ix) a. According So the records of the Company, the company is
generally regular in depositing undisputed statutory dues applicable to
it.
b. According to the information and explanation given to us , there are
no dues in respect of Income tax, wealth tax, excise duty, custom duty,
service tax and cess that have not been deposited with the appropriate
authorities on account of any dispute.
x) The company does not have accumulated losses, therefore clause 4(x)
of the order is not applicable.
xi) The company has not defaulted in repayment of any dues to financial
institution/ bank. The company has not issued any debentures,
xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly clause 4(xii) of the order is not applicable.
xiii) The company is not a chit fund or a nidhi mutual benefit
fund/society. Accordingly clause 4(xiii) of the order is not
applicable.
xiv) The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly clause 4(xiv) of the
Order is not applicable. xv) According to the information and
explanation given to us, the terms and conditions on which the company
has given guarantees for loans taken by others from banks or financial
institutions are not prima facie prejudicial to the interest of the
company.
xvi) In our opinion, on the basis of information and explanation given
to us, the term loans were applied for the purpose for which the loans
were obtained. xvii) On the basis of art overall examination of the
balance sheet of the company, no funds raised on short term basis have
been used for long term investment or vice versa.
xviii) The company has not made any preferential allotment of shares,
accordingly clause 4{xviii) of the order is not applicable.
xix) The company has not issued any debentures. Accordingly clause
4(xix) of the Order is not applicable.
xx) The company has not raised any money by public issue during the
year. Accordingly clause 4(xx) of the Order is not applicable.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
4. Further to our comments 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 purpose of our
audit;
b. In our opinion, proper books of accounts as required by law have
been kept by the Company, so far as appears from our examinations of
those books.
c. The Balance Sheet & Profit & Loss A/c dealt with by the report are
in agreement with the books of accounts of the Company;
d. In our opinion, the profit & loss account and the balance sheet
comply with the mandatory accounting standards referred to in
sub-section (3C) of section 211 of the companies act, 1956.
e. On the basis of confirmation received from directors concerned as
on March 31,2011 and taken on record by the Board of directors, none of
the director are disqualified from being appointed as a director under
clause (g) of Sub-section (1) of Section ?74 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 Balance Sheet and Profit and
Loss Account read together with the other notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required, and give a true and fair view in conformity with the
accounting principles generally accepted in India.
i) In case of the Balance Sheet of the state of affairs of the Company
as at 31st March, 2011;
ii) In the case of Profit and Loss Account of the PROFIT for the year
ended on that date and
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
FOR S.R. GOYAL & CO.
CHARTERED ACCOUNTANTS
FR No.- 001537C
(ANIL GOYAL)
PARTNER
M.No. 71158
Camp: Mumbai
Date: 30.05.2011
Mar 31, 2010
1) We have audited the attached Balance Sheet of Khator Fibre & Fabrics
Ltd., as at 31st March 2010 also the Profit and Loss Account and Cash
Flow Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2) We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure 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, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004.
(togetherthe Order) issued by the Central Government in terms of
section 227 (4A) of Companies Act. 1956 of India (the Act) and on
the basis of such examinations of the books and records, as we
considered appropriate and as per the information and explanation given
to us we further report that:
i) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. All the assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification as compared with available record.
c. The company has not disposed off any substantial part of its fixed
assets during the year.
ii) a. The stock of finished goods, stores, spare parts and materials
have been physically verified during the year by the management.
b. The procedure of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
c. The company is maintaining proper records of Inventory. The
discrepancies noticed on verification between the physical stock and
books records were not material.
iii) We have been informed that the Company has neither granted nor
taken any loans secured or unsecured, to or from companies, firms or
other parties listed in the Register maintained under section 301 of
the Companies Act 1956. Accordingly, clause 4(iii)(b) to (d) of the
order are not applicable.
iv). According to the information and explanations given to us and the
records verified by us, there is adequate internal control procedure
commensurate with the size of the company and nature of its business.
v) There are no transaction during the year of purchase of stores, raw
materials or components and sale of goods and materials (there being no
sale of services) made in pursuance of contracts or agreements entered
in the register maintained u/s 301 of the Companies Act, 1956 as is
evident from the said register.
vi) As informed to us, the Company has not accepted any deposit from
the public during the year within the meaning of section 58A or 58AA of
the Companies Act 1956 and the rules framed there under. Therefore, the
directives issued by the reserve bank of India are not applicable.
vii) In our opinion, the internal audit system is commensurate with the
size of the Unit and the nature of its business.
viii) As per information and explanations given to us, the cost records
as prescribed by the Central Government u/s 209(1 )(d) of the Companies
Act, 1956 in respect of process house are being made and maintained. We
have, however not made a detailed examination of the said records with
a view to determine whether they are accurate or complete.
ix) a. According to the records of the Company, the company is
generally regular in depositing undisputed statutory dues applicable to
it.
b. According to the information and explanation given to
us , there are no dues in respect of Income tax, wealth tax, excise
duty, custom duty, service tax and cess that have not been deposited
with the appropriate authorities on account of any dispute.
x) The company does not have accumulated losses, therefore clause 4(x)
of the order is not applicable.
xi) The company has not defaulted in repayment of any dues to financial
institution/bank. The company has not issued any debentures,
xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly clause 4(xii) of the order is not applicable.
xiii) The company is not a chit fund or a nrdhi mutual benefit
fund/society. Accordingly clause 4{xiii) of the order is not
applicable.
xiv) The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly clause 4(xiv) of the
Order is not applicable. xv) According to the information and
explanation given to us, the terms and conditions on which the company
has given guarantees for loans taken by others from banks or financial
institutions are not prima facie prejudicial to the interest of the
company.
xvi) In our opinion, on the basis of information and explanation given
to us, the term loans were applied for the purpose for which the loans
were obtained.
xvii) On the basis of an overall examination of the balance sheet of
the company, no funds raised on short term basis have been used for
long term investment or vice versa.
xviii) The company has not made any preferential allotment, of shares,
accordingly clause 4{xviii) of the order is not applicable.
xix) The company has not issued any debentures.
Accordingly clause 4(xix) of the Order is not applicable.
xx) The company has not raised any money by public issue during the
year. Accordingly clause 4
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
4. Further to our comments 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 purpose of our
audit;
b. In our opinion, proper books of accounts as required by law have
been kept by the Company, so far as appears from our examinations jof
those books;
c. The Balance Sheet & Profit & Loss A/c dealt with by the report are
in agreement with the books of accounts of the Company;
d. In our opinion, the profit & loss account and the balance sheet
comply with the mandatory accounting standards referred to in
sub-section (3C) of section 211 of the companies act, 1956.
e. On the basis of confirmation received from directors concerned as
on March 31,2010 and taken on record by the Board of directors, none of
the director are disqualified from being appointed as a director under
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 Balance Sheet and Profit and
Loss Account read together with the other notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required, and give a true and fair view in conformity with the
accounting principles generally accepted in India.
I) In case of the Balance Sheet of the state of affairs of the Company
as at 31st March, 2010;
ii) In the case of Profit and Loss Account of the PROFIT for the year
ended on that date and
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
FOR S. R. GOYAL& CO.
CHARTERED ACCOUNTANTS
FR No. 001537C
(AnilGoyal)
Camp : Mumbai Partner
Date : 31 May, 2010 M. No. 71158