Mar 31, 2015
We have audited the accompanying financial statements of SNS Textiles
Ltd., which comprise the Balance Sheet as at March 31,2015, and the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information for the year then ended.
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 preparation of the Act for safeguarding the assets of the Company
and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included
in the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
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 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 control 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 qualified audit opinion on the
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
b) In the case of the Profit and Loss Account, of the Loss for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
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
subsection (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 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 appears from our examination of those
books.
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2015, from being
appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 25 to the
financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts, which were required to be transferred to
the Investor Education and Protection Fund by the Company.
ANNEXURE 'A' TO AUDIT REPORT (As referred to in 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) We are informed that all the fixed assets have been physically
verified by the management in accordance with a phased programme
of verification. The frequency is reasonable, considering the size
and nature of its business and no material discrepancies
have been noticed on such physical verification.
(ii) (a) As informed to us, the physical verification of inventories
is conducted by the management. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) In our opinion, the company is maintaining proper records of
inventory. As per information and explanations provided, no
discrepancies were noticed on physical verification.
(iii) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties listed in the Register maintained
under Section 189 of the Companies Act, 2013 and therefore paragraph 3
(iii) (a) & (b) of the order is not applicable.
(iv) In our opinion and according to information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods and
services. During the course of our audit, we have not observed any
major weaknesses in internal control system.
(v) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from public
within the meaning of Sections 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and the Companies (Acceptance of
Deposits) Rules, 2014. Consequently, the clause 3(v) is not applicable
to the Company.
(vi) The maintenance of cost records under section 148(1) of the
Companies Act, 2013, is not applicable to the Company.
(vii) (a) According to the information and explanations given to us
and according to the books and records as produced and examined by us,
the Company is regular in depositing with the appropriate authorities
undisputed statutory dues including provident fund, employees' state
insurance, income tax, sales tax, wealth tax, service tax, custom
duty, excise duty, cess and other statutory dues wherever applicable
to it. Based on our audit procedures and according to the information
and explanations given to us, there are no arrears of undisputed
statutory dues which remained outstanding as at 31st March, 2015 for a
period of more than six months from the date they became payable.
(b) According to the records made available to us and the information
and explanations given by the management, the disputed statutory dues
on account of Income tax/Sales-tax/Wealth-tax/Service tax/Custom
duty/excise duty/value added tax and cess that have not been deposited
on account of matters pending before appropriate authorities are as
follows:
(c) According to the records made available to us and the information
and explanations given by the management, there is no amount
outstanding to be transferred to the investor education and protection
fund in accordance with the relevant provisions of the act, 1956.
(viii) The accumulated losses of the company have exceeded 50% of the
Net worth. The company has incurred cash loss during the financial
year covered by our audit however, in the immediately preceding
financial year the company had not incurred cash loss.
(ix) According to the records made available to us and the information
and explanations given by the management, the Company has not borrowed
funds from any financial institutions or banks or issued debentures
till 31st March, 2015. Consequently, in our opinion, the question of
reporting on defaults in repayment of dues to financial institutions
or banks or debentures does not arise.
(x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
bank or financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, the company neither has any unutilized amount as on the
1st day of the financial year out of any term loan obtained during the
earlier years on this account, nor has raised any term loans during
the year. Accordingly, the provisions of Clause 3 (xi) of the
Companies (Auditors' Report) Order, 2015, are not applicable to the
Company.
(xii) According to the records and information and explanations
provided by the management, we report that no fraud on or by the
company has been noticed or reported during the course of audit.
For Natvarlal Vepari & Co.
Chartered Accountants
FRN : 123626W
Ravindra N. Vepari
Place : Surat Partner
Date : 30th May, 2015 Membership No. : 006728
Mar 31, 2014
We have audited the accompanying financial statements of SNS Textiles
Ltd., which comprise the Balance Sheet as at March 31, 2014, and the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Profit and Loss Account, of the Loss for the year
ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 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 clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE ''A'' TO AUDIT REPORT (As referred to in 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) We are informed that all the fixed assets have been physically
verified by the management in accordance with a phased programme of
verification. The frequency is reasonable, considering the size and
nature of its business and no material discrepancies have been noticed
on such physical verification.
(c) The Company has not disposed off any substantial/major part of its
fixed assets so as to affect its going concern status.
(ii) (a) As informed to us, the physical verification of inventories is
conducted by the management.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventory. As per information and explanations provided, no
discrepancies were noticed on physical verification.
(iii) (a) The Company has not granted any loan, secured or unsecured,
to companies, firms or other parties listed in the Register maintained
under Section 301 of the Companies Act, 1956 and therefore paragraph 4
(iii) (b), (c) & (d) of the order is not applicable.
(b) According to explanations and information provided and subsequent
to the verification of records produced, previously the Company had
taken loan from 7 parties covered in the Register, maintained u/s 301
of the Companies Act, 1956. The year end balance of this loan aggregate
to Rs. 9500000 /-. The maximum amount involved during the year was Rs.
9500000 /-.
(c) According to the information and explanations given to us, loan is
interest free hence; we are unable to make any comment on the same.
(d) According to the information and explanations given to us, loan is
payable on demand and therefore, we are unable to make any comment
regarding the regularity of payment of principal and interest.
(iv) In our opinion and according to information and explanations given
to us, there are adequate internal control systems commensurate with
the size of the Company and the nature of its business for the purchase
of inventory, fixed assets and also for the sale of goods and services.
During the course of our audit, we have not observed any major
weaknesses in internal control system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the Company has entered all the particulars of
contracts and arrangements referred to in section 301 of the Companies
Act, 1956 into the register required to be maintained under that
section. (b) According to the information and explanations given to
us, the company has entered into contracts or arrangements referred in
section 301 of the companies Act, 1956. However, none of such
transactions entered during the financial year with parties referred
under section 301 exceeded Rs. 5 lacs.
(vi) As explained to us the Company has not accepted deposits from the
public within the meaning of Section 58A, 58AA or any other relevant
Provision of the Companies Act, 1956 and the rules framed there under.
Therefore, the provisions of Clause 4(vi) of the Order are not
applicable.During the previous years, the company has transferred share
application money pending allotment into Non Current liability.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 in respect of the Company''s products to which the said rules
are made applicable, and are of the opinion that, prima facie the
prescribed accounts and records are being maintained.
(ix) (a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, the
Company is regular in depositing with the appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employees'' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues wherever applicable to it. Based on our audit procedures
and according to the information and explanations given to us, there
are no arrears of undisputed statutory dues which remained outstanding
as at 31st March, 2014 for a period of more than six months from the
date they became payable.
(b) According to the records made available to us and the information
and explanations given by the management, the disputed statutory dues
on account of Income tax/Sales- tax/Wealth-tax/Service tax/Custom
duty/excise duty and cess that have not been deposited on account of
matters pending before appropriate authorities are as follows:
Name of Nature of Amount Period to Forum where Amount
the Statute dues under
dispute which the dispute deposited
(Rs.) amount
relates is pending against
(Rs.)
Foreign Trade Custom Duty Yet 1997-98 Deputy General 21,00,000
1992 / Export not of Foreign
Obligation determined Trade.
Surat
Central
Excise Excise Duty 30,42,620 Jul''95 CEGAT, 6,80,000
Act,1944 to Feb''97.Mumbai
Income Tax Income Tax 18,64,220 A.Y. 1996
-97 ITAT -
Act,1961 Ahmedabad
Sales Tax Sales Tax 32,99,845 2001-02 Gujarat Value -
Act,1969 Added Tax
Tribunal
(x) The accumulated losses of the company have exceeded 50% of the Net
worth. However, the company has not incurred any cash loss during the
financial year covered by our audit and in the immediately preceding
financial year.
(xi) According to the records made available to us and the information
and explanations given by the management, the Company has not borrowed
funds from any financial institutions or banks or issued debentures
till 31st March, 2014. Consequently, in our opinion, the question of
reporting on defaults in repayment of dues to financial institutions or
banks or debentures does not arise.
(xii) According to the records made available to us and the information
and explanations given by the management, the company has not granted
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities. Consequently, clause 4(xii) of the
Order is not applicable to the company.
(xiii) In our opinion and to the best of our information and according
to the explanations provided by the management , the company is neither
a Chit Fund nor a nidhi/mutual benefit society. Consequently, the
requirement of para 4(xiii) of the Order is not applicable to the
company.
(xiv) In our opinion and to the best of our information and according
to the explanations provided by the management, the Company does not
deal or trade in shares, securities, debentures and other investments.
Accordingly, the requirement of para 4(xiv) of the Order is not
applicable to the company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the company neither has any unutilized amount as on the
1st day of the financial year out of any term loan obtained during the
earlier years on this account, nor has raised any term loans during the
year. Accordingly, the provisions of Clause 4 (xvi) of the Companies
(Auditors'' Report) Order, 2003, are not applicable to the Company.
(xvii) According to the information and explanations provided by the
management and based on the overview of cash flow statement and other
records examined by us, funds raised on short term basis have prima
facie, not been used during the year for long term investment.
(xviii) According to the records of the company and information and
explanations provided by the management, the company has not made any
preferential allotment of shares during the year.
(xix) According to the records of the company and information and
explanations provided by the management, the company has not issued any
debentures during the year. Accordingly, the requirement of para 4(xix)
is not applicable to the Company.
(xx) According to the records of the company and information and
explanations provided by the management, the company has not raised any
money by public issue during the year. Accordingly, the requirement of
para 4(xx) is not applicable to the Company.
(xxi) According to the records and information and explanations
provided by the management, we report that no fraud on or by the
company has been noticed or reported during the course of audit.
Forming an Opinion and Reporting on Financial Statements
For Natvarlal Vepari & Co.
Chartered Accountants
Firm Registration No. : 123626W
Ravindra N. Vepari
Place:Surat Partner
Date :28th May, 2014 Membership No. : 006728
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of SNS Textiles
Ltd., which comprise the Balance Sheet as at March 31, 2013, and the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 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 notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE ''A'' TO AUDIT REPORT (As referred to in 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) We are informed that all the fixed assets have been physically
verified by the management in accordance with a phased programme of
verification. The frequency is reasonable, considering the size and
nature of its business and no material discrepancies have been noticed
on such physical verification.
(c) The Company has not disposed off any substantial/major part of its
fixed assets so as to affect its going concern status.
(ii) (a) As informed to us, the physical verification of inventories
conducted by the management. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventory. As per information and explanations provided, no
discrepancies were noticed on physical verification.
(iii) (a) The Company has not granted any loan, secured or unsecured,
to companies, firms or other parties listed in the Register maintained
under Section 301 of the Companies Act, 1956 and therefore paragraph 4
(iii) (b), (c) & (d) of the order is not applicable.
(b) The Company has not taken any loan, secured or unsecured, from
companies, firms or other parties listed in the Register maintained
under Section 301 of the Companies Act, 1956 and therefore paragraph 4
(iii) (f) & (g) of the order is not applicable.
(iv) In our opinion and according to information and explanations given
to us, there are adequate internal control systems commensurate with
the size of the Company and the nature of its business for the purchase
of inventory, fixed assets and also for the sale of goods and services.
During the course of our audit, we have not observed any major
weaknesses in internal control system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the Company has entered all the particulars of
contracts and arrangements referred to in section 301 of the Companies
Act, 1956 into the register required to be maintained under that
section.
(b) According to the information and explanations given to us, the
company has entered into contracts or arrangements referred in section
301 of the companies Act, 1956. However, none of such transactions
entered during the financial year with parties referred under section
301 exceeded Rs. 5 lacs.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from public
within the meaning of Section 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975. Consequently, the clause 4(vi) is not applicable
to the Company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business. However the same
needs to be improved.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 in respect of the Company''s products to which they said rules
are made applicable, and are of the opinion that, prima facie the
prescribed accounts and records are being maintained.
(ix) (a) Is the Company regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess and any other statutory dues with
the appropriate authorities and if not, the extent of the arrears of
outstanding statutory dues as at the last day of the financial year
concerned for a period of more than six months from the date they
became payable, shall be indicated by the auditor.
(b) According to the records made available to us and the information
and explanations given by the management, the disputed statutory dues
on account of Income tax/Sales- tax/Wealth-tax/Service tax/Custom
duty/excise duty and cess that have not been deposited on account of
matters pending before appropriate authorities are as follows:
Name of Nature of Amount Period to
the Statute dues under dispute which the
(Rs.) amount relates
Foreign Trade Custom Duty Yet 1997-98
1992 / Export not
Obligation Available
Central Excise Excise Duty 30,42,620 July-1995
Act,1944 to Feb.-1997.
Income Tax Income Tax 18,64,220 A.Y. 1996-97
Act,1961
Sales Tax Sales Tax 32,99,845 2001-02
Act,1969
Name of Statute Forum where Amount
dispute deposited
is pending against (Rs.)
Foreign Trade Deputy General 21,00,000
1992 of Foreign
Trade.
SURAT
Central Excise CEGAT, 6,80,000
Act,1944 Mumbai.
Income Tax ITAT
Act,1961 Ahmedabad
Sales Tax Gujarat Value
Act,1969 Added Tax
Tribunal
(x) The accumulated losses of the company have exceeded 50% of the Net
worth. However, the company has not incurred any cash loss during the
financial year covered by our audit and in the immediately preceding
financial year.
(xi) According to the records made available to us and the information
and explanations given by the management, the Company has not borrowed
funds from any financial institutions or banks or issued debentures
till 31st March, 2013. Consequently, in our opinion, the question of
reporting on defaults in repayment of dues to financial institutions or
banks or debentures does not arise.
(xii) According to the records made available to us and the information
and explanations given by the management, the company has not granted
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities. Consequently, clause 4(xii) of the
Order is not applicable to the company.
(xiii) In our opinion and to the best of our information and according
to the explanations provided by the management, the company is neither
a Chit Fund nor a Nidhi/mutual benefit society. Consequently, the
requirement of Para 4(xiii) of the Order is not applicable to the
company.
(xiv) In our opinion and to the best of our information and according
to the explanations provided by the management, the Company does not
deal or trade in shares, securities, debentures and other investments.
Accordingly, the requirement of Para 4(xiii) of the Order is not
applicable to the company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the company neither has any unutilized amount as on the
1st day of the financial year out of any term loan obtained during the
earlier years on this account, nor has raised any term loans during the
year. Accordingly, the provisions of Clause 4 (xvi) of the Companies
(Auditors'' Report) Order, 2003, are not applicable to the Company.
(xvii) According to the information and explanations provided by the
management and based on the overview of cash flow statement and other
records examined by us, funds raised on short term basis have prima
facie, not been used during the year for long term investment.
(xviii) According to the records of the company and information and
explanations provided by the management, the company has not made any
preferential allotment of shares during the year.
(xix) According to the records of the company and information and
explanations provided by the management, the company has not issued any
debentures during the year. Accordingly, the requirement of Para 4(xix)
is not applicable to the Company.
(xx) According to the records of the company and information and
explanations provided by the management, the company has not raised any
money by public issue during the year. Accordingly, the requirement of
Para 4(xx) is not applicable to the Company.
(xxi) According to the records and information and explanations
provided by the management, we report that no fraud on or by the
company has been noticed or reported during the course of audit.
For Natvarlal Vepari & Co.
Chartered Accountants
Firm Registration No. : 123626W
Ravindra N. Vepari
Place: Surat Partner
Date : 30th May, 2013 Membership No. : 006728
Mar 31, 2011
1. We have audited the attached Balance Sheet of SNS TEXTILES LIMITED
as at 31st March, 2011 the Profit and Loss account and the Cash Flow
statement of the Company for the year ended on that date attached
hereto. 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 principle used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the ÃOrderÃ), issued by the Central Government of India in
terms of sub-section (4A) of Section 227of the Companies Act, 1956, we
enclose in the Annexure, a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in Annexure referred to in Para 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
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 the
books;
c. The Balance Sheet and Profit and Loss Account dealt with by the
report are in agreement with the books of accounts;
d. In our opinion, the Profit and Loss Account and Balance Sheet
comply with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the Directors
of the Company as at March 31,2011 and taken on record by the Board of
Directors, we report that no Director is disqualified from being
appointed as Director of the Company under clause (g) of sub- section
(1) of Section 274 of the Companies Act, 1956;
f. Subject to matters referred to above, in our opinion and to the
best of our information and according to the explanation given to us,
the said accounts read together with the notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in accordance with the Generally
Accepted Accounting Principles in India:
1) in the case of the Balance Sheet of the Company of the state of
affairs of the Company as at 31st March, 2011,
2) In the case of the Profit and Loss account of the Loss of the
company for the year ended on that date and
3) In the case of the Cash Flow Statement of the company the cash flows
for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Statement referred to in Paragraph 3 of the Auditors' Report of even
date to the Members of SNS Textiles Limited on the Accounts for the
year ended 31st March, 2011)
(1) In respect of its fixed assets:
a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, the fixed assets 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. No material discrepancies were noticed on
such verification.
c) During the year, the Company has not disposed off any fixed assets
that would affect the going concern.
(2) In respect of its Inventories:
a) As explained to us, inventories have been physically verified by the
management at reasonable intervals during the year.
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) 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 loans, secured or unsecured to
companies, firms, or other parties covered in the register maintained
under section 301 of the Companies Act. Hence sub clause (a),(b), (c),
and (d) of clause (iii) of the order are not applicable to the company.
b) The Company has not taken loans during the financial year from the
parties listed in the register maintained under section 301 of the
Companies Act, 1956. One loan exists from the party listed in the
register maintained under section 301 of the Companies Act, 1956. The
year end balance of this loan aggregate to Rs. 1332.50 lacs.
c) As per information and explanations given to us, these are interest
free loans and other terms and conditions are not prima facie
prejudicial to the interest of the Company.
d) In respect of loans taken, the principal amount is repayable on
demand.
e) Since the loans are repayable on demand, the question of overdue
amount, if any, does not arise.
(4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regards to the purchase of inventory and fixed assets and
also for the sale of goods and services. During the course of our
audit, we have not come across any major weaknesses in internal control
system of the company.
(5) In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a) According to information and explanations given to us, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act that need to be entered into the register
maintained under section 301 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
into during the financial year at price which are reasonable having
regard to the prevailing market prices at the relevant time except
where because of the unique and specialized nature of the items and
services involved and in absence of any comparable prices, we are
unable to comment whether the transactions were made at prevailing
market prices at the relevant time.
(6) As explained to us the Company has not accepted deposits from the
public within the meaning of Section 58A, 58AA or any other relevant
Provision of the Companies Act, 1956 and the rules framed there under.
Therefore, the provisions of Clause 4(vi) of the Order are not
applicable.
(7) In our opinion, the Company has an adequate internal audit system
commensurate with the size of the Company and the nature of its
business.
(8) We have been informed by the management that maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956, in respect
of the company has applied for withdrawal.
(9) In respect of statutory dues:
a) Undisputed statutory dues including provident fund, investor
education and protection fund, or employees' state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
have been regularly deposited by the Company with appropriate
authorities in all cases during the year. According to the information
and explanations given to us, no undisputed amounts payable in respect
of income tax, sales tax, wealth tax, custom duty and excise duty were
outstanding, at the year end for a period more than six months from the
date they became payable.
b) According to the records of the Company and the information and
explanations given to us, the disputed statutory dues
(provided/considered as contingent liability, as appropriate) on
account of sales tax, custom duty, Income tax, excise duty, and cess
that have not been deposited on account of matters pending before
appropriate authorities are as follows:
Name of Nature of Amount to Period to
the Statute dues extent not which the
deposited amount relates
Foreign Trade Custom Duty Yet 1997-98
1992 /Export not
Obligation Available
Central Excise Excise Duty 30,42,620 July-1995
Act,1944 to Feb.-1997.
Income Tax Income Tax 18,64,220 A.Y. 1996-97
Act,1961
Sales Tax Sales Tax 32,99,845 1st April, 2001
Act,1969 to 31st March
2002.
Name of Forum where Remarks
the Statute dispute is
pending
Foreign Trade Deputy General Out of total
1992 of Foreign three cases
Trade.SURAT order for two
have been
received and
amount payable
has been paid
Central Excise CEGAT, To the extent
Act,1944 Mumbai. not deposited
Income Tax ITAT Amount
Act,1961 Ahmedabad Disallowed
Sales Tax Gujarat Value To the extent
Act,1969 Added Tax not deposited
Tribunal
(10) According to the Financial Statement, the Company shows a position
where accumulated losses exceeded 50% of its net worth at the end of
the Current Year as well as Preceding Year.
(11) The Company has not taken loans from bank or financial
institutions or issued any debentures.
(12) According to the information and explanations given to us, 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.
(13) In our opinion the Company is not a chit fund/nidhi/mutual benefit
fund/society to which provisions of special statute relating to chit
fund are applicable; accordingly paragraph 4(xiii) of the Order is not
applicable.
(14) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities.
(15) According to the information and explanations given to us, the
Company has not given any guarantee during the year for loans taken by
others from banks or financial institutions.
(16) The Company has not raised any new term loan during the year.
(17) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and Cash Flow Statement of
the Company, we are of the opinion that no funds raised on short term
basis have been used for long term investment by the Company.
(18) 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.
(19) The Company did not have outstanding debentures during the year.
Accordingly no securities have been created.
(20) The Company has not raised any money by way of public issue during
the year.
(21) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For and on behalf of
Natvarlal Vepari & Co.
Chartered Accountants
Firm Registration No. : 123626W
R. N. Vepari
Partner
Membership No. : 006728
Place Surat
Date 30th May, 2011
Mar 31, 2010
We have audited (he attached Balance Sheet of SNS TEXTILES LIMITED as
at 31st MARCH, 2010 the Profit and Loss account and the Cash Flow
statement of the Company for the year ended on that date attached
hereto. 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.
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 principle used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion. We report that:
(1) As required by the Companies (Auditors Report] Order, 2003 issued
by the Company Law Board in terms of Section 2ã7(4-A) of the Companies
Act, 1956, we annex hereto Annexure A on the matters specified in
paragraph 4 and 5 of the said order.
(2) Further to our comments in Annexure referred to in Para (1 ] 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
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 the
books;
c. The Balance Sheet and Profit and Loss Account dealt with by the
report are in agreement with the books of accounts;
d In our opinion, the Profit and Loss Account and Balance Sheet comply
with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956, Subject to note no. 5 of
Schedule 16 of the Financial Statement.
e. On the basis of written representations received from the Directors
of the Company as at March 31,2010 and taken on record by the Board of
Directors, we report that no Director is disqualified from being
appointed as Director of the Company under clause (gj of sub section
(1) of Section 274 of the Companies Act, 1956; and
(3) Subject to matters referred to above, in our opinion and to the
best of our information and according to the explanation given to us.
the said accounts read together with the notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in accordance with the Generally
Accepted Accounting Principles in India-
a. in the case of the Balance Sheet of the Company of the state of
affairs of the Company as at 31st MARCH, 2010,
b. In the case of the Profit and Loss account of the LOSS of the
Company for the year ended on that date and
c. In the case of the Cash Flow Statement of the Company the cash
flows for the year ended on that date.
ANNEXURE A TO AUDITORS REPORT FOR THE YEAR ENDED: 31-03-2010.
(1) In respect of its fixed assets:
a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, the fixed assets have been physically verified
by the management during the /ear in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on
such verification.
c) During the year, the Company has not disposed off any fixed assets
that would affect the going concern.
(2) In respect of its Inventories:
a) As explained to us. inventories have been physically verified by the
management at reasonable intervals during the year
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) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory 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 loans, secured or unsecured to
companies, firms, or other parties covered in the register maintained
under section 301 of the Companies Act. Hence subclause (a).(b), (c),
and (d) of clause (iii)of the order are not applicable to the Company.
b) The Company has not taken loans during the financial year from the
parties listed in the register maintained under section 301 of the
Companies Act, 1956. One loan exists from the party listed in the
register maintained under section 30! of the Companies Act, 1956. The
year end balance of this loan aggregate to Rs. 1332,50 Lacs
c) As per information and explanations given to us, these are interest
free loans and other terms and conditions are not prima facie
prejudicial to the interest of the Company.
d) In respect of loans taken, the principal amount is repayable on
demand,
e) Since the loans are repayable on demand, the question of overdue
amount, if any, does not arise.
(4) In our opinion and according to the information and explanations
given to us. there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of fixed assets and also for the sale of
goods and services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
(5) In respect of transactions covered under Section 301 of the
Companies Act. 1956:
a) According to information and explanations given to us, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act that need to be entered into the register
maintained under section 301 have been so entered.
b] In ouropinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
into during the financial year at price which are reasonable having
regard to the prevailing market prices at the relevant time except
where because of the unique and specialized nature of the items and
services involved and in absence of any comparable prices, we are
unable to comment whether the transactions were made at prevailing
market prices at the relevant time.
(6) The Company has not accepted any deposits from the public to which
the directions issued by the Reserve Bank of India & the provisions of
section 58A, 58AA or any other relevant Provision of the Companies Act,
1956 and the rules framed there under apply.
(7) In our opinion, trie Company has an adequate internal audit system
commensurate with the size of the Company and the nature of its
business
(8) We have been informed by the management that maintenance of cost
records under section 209(1.| (d) of the Companies Act. 1956, in
respect of the Company has applied for withdrawal.
(9) In respect of statutory dues:
a) Undisputed statutory dues including provident fund, investor
education and protection fund, or employees state insurance, income
tax. sales tax, weallh tax, service tax, custom duty, excise duty, cess
have been regularly deposited by the Company with appropriate
authorities in alt cases during the year. According to the information
and explanations given to us, no undisputed amounts payable in respect
of income tax, sales tax, wealth tax, custom duly and excise duty were
outstanding, at the year end for a period more than six months from the
date they became payable.
b) According to the records of the Company, the disputed statutory dues
(provided/considered as contingent liability, as appropriate) on
account of sales tax, custom duty. Income tax, excise duty, and cess
that have not been deposited on account of matters pending before
appropriate authorities are as follows:
Name of Nature of Amount to Period to Forum where Remarks
the Statute dues extent not which the dispute
deposited amount
relates is pending
Foreign
Trade Custom Duty Yet 1997-98 Deputy General Out of total
1992 / Export not of Foreign three cases
Obligation Available Trade. SURAT order for two
have been
received and
amount payable
has been paid
Central
Excise Excise Duty 30.42,620 July-1995 CEGAT, To the extent
Act.1944 to Feb.
-1997. Mumbai. not deposited
Income Tex Income Tax 18,64.220 A.Y. 1996
-97 ITAT Amount
Act,1961 Ahmedabad Disallowed
Sales Tax Sales Tax 32,99,845 1st April.
2001 Gujarat
Value To the
extent
Act,1969 to 31st
March Added Tax not deposited
2002. Tribunal
(10) According to the Financial Statement, the Company shows a position
where accumulated losses exceeded 50% of its net worth at the end of
the Current Year as well as Preceding Year.
(11) The Company has not taken loans from bank or financial
institutions or issued any debentures.
(12) In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
(13) The Company is not a chit fund or a nidhi/mulual benefit
fund/society. Therefore, clause 4(xiii) of the Companies (Auditors
Report) Order 2003 is not applicable to the Company.
(14) In our opinion and 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 bank
or financial institutions.
(16) The Company has not raised any new term loan during the year.
(17) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and Cash Flow Statement of
the Company, we are of the opinion that no funds raised on short term
basis have been used for long term investment by the Company.
(18) 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.
(19) The Company did not have outstanding debentures during the year.
Accordingly no securities have been created.
(20) The Company has not raised any money by way of public issue during
the year.
(21) in our opinion and according to the information and explanations
given to us. no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For Natvarlal Vapari & Co.
Chartered Accountants
Firm Membership No. : 123626W
R. N. Vepari
Place : Sural Partner
Date : 29th May, 2010 Membership No. : 006728
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