Mar 31, 2014
We have audited the accompanying financial statements of M/s. LWS
KNITWEAR LIMITED, G.T. ROAD (WEST), LUDHIANA which comprise the Balance
Sheet as at 31.03.2014, the statement of Profit & Loss Account & Cash
Flow Statement for the year ended on that date and a summary of
significant accounting policies and other explanatory statements.
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 read with the General Circular 15/2013 dated
13 September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor''s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the 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 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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2014;
(ii) in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, 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
sub-section (3C) of section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
; and
e. on the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDIT REPORT FOR THE YEAR ENDING
31.03.2014.
Referred to in Paragraph 1 under the heading of "report on other legal
and regulatory requirements" of our report of even date
(1) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets, which are in process of up- dation/completion.
(b) As explained to us, the fixed assets have been physically verified
by the management according to the phased programme. Pursuant to
programme, physical verification of the fixed assets was carried out
during the period by the management and discrepancies noticed were not
material.
(c) No Substantial part of the fixed assets has been disposed during
the year.
(2) (a) The inventories have been physically verified by the management
during the year at reasonable intervals.
(b) In our opinion and according to the information & explanations
given to us, the proceeds of physical verification followed by the
management are reasonable and adequate in relation to the size of the
company and nature of the business.
(c) The company has maintained stock records of inventories and
discrepancies noticed on physical verification were not material.
(3) (a) The Company has not taken any loans (secured or unsecured) from
Shareholders/other parties covered under Section 301 of the Companies
Act, 1956. The company has not granted loans to companies, firms and
other parties covered under section 301 of the Act.
(b) N.A.
(c) N.A.
(d) There is no overdue amount in respect of loans taken by the
company.
(4) In our opinion and according to information provided to us, there
are adequate internal control procedures commensurate with the size of
the company and nature of the business for the purchase of the
inventory and fixed assets of the company and for the sale of the
goods. During the course of our audit, we have not observed any major
weaknesses in internal controls.
(5) (a) According to the information and explanation given to us and
audit in accordance with generally accepted auditing practices, in our
opinion, the transactions that need to be entered into the register in
pursuance of section 301 of the Act have been so entered.
(b) In our opinion and according to information and explanations given
to us, the transactions with parties as stated in para 5(a) above, with
whom transactions exceeding Rs.5,00,000/- have been entered into during
the financial year are at prices which are reasonable having regard to
the prevailing market prices at the relevant time.
(6) As per the information and documents provided to us, during the
year the company has not accepted any deposits from the public as
defined under section 58A and 58AA of the Companies Act 1956, and the
rules framed there under.
(7) In our opinion the company has an internal audit system
commensurate with the size and nature of the business.
(8) During the year under review, Maintenance of Cost records under
section 209(1) of the Companies Act, 1956, is not applicable to
company.
(9) (a) According to the records of the company, the company is regular
in depositing with appropriate authorities undisputed statutory dues
including P.F., ESI, Income Tax, Sale Tax, Wealth Tax, Custom Duty,
Excise Duty, Cess and other statutory dues which are applicable to it.
According to the information and explanation given to us, disputed
amount payable in respect of the statutory dues which are remained
outstanding as at 31.03.2014 for a period more than 6 months is Nil.
(b) According to the records and information and explanations given to
us, there are dues of Rs. Nil in respect of P.F., ESI, Income Tax, Sale
Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory
dues that have not been deposited on account of dispute.
(10) The company has neither any accumulated losses nor has incurred
any cash losses in the current financial year.
(11) Based on our audit procedures and on the information and
explanations provided by the management, the company has not defaulted
in repayment of dues to bank. There were no dues to debenture holders
during the year.
(12) According to the information and explanations provided to us and
based on the documents and records produced before us, the company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(13) Clause (xiii) is not applicable to the company as the company is
not a Chit fund company or nidhi/mutual benefit fund/society.
(14) In our opinion and according to information and explanations given
to us, the company is not dealing in shares, securities, debentures and
other investments and therefore clause (xiv) of the Order is not
applicable to the company.
(15) According to information and explanations given to us, the company
has not given any guarantee for loans taken by others from the bank or
financial institutions.
(16) According to information and explanations given to us, the no term
loan has been availed during the year under review.
(17) According to information and explanations given to us, and on
overall examination of the Balance Sheet of the company, we are of the
opinion that the company has not used funds raised on short term basis
for long term investments and vice versa.
(18) The company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 during the year.
(19) No debentures have been issued / outstanding during the year hence
the provision of clause (xix) of the said order is not applicable.
(20) The company has not raised money by public issues during the year.
(21) Based on the audited procedures performed and information and
explanation given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
FOR RAJESH K. SHARMA & ASSOCIATES
CHARTERED ACCOUNTANTS
Date : 30.05.2014
Place : Ludhiana Sd/-
(RAJESH SHARMA)
PARTNER
Mar 31, 2012
We have audited the attached Balance Sheet of M/s. LWS KNITWEAR LTD.,
LUDHIANA and also Profit & Loss Account & Cash Flow Statement for the
year ended 31.03.2012 annexed thereto. These financial statements are
responsibility of the Company's 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
disclosures in the financial statements. An audit also includes
assessing the accounting principles 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.
1. As required by the Manufacturing and other Companies (Auditors
Report) Order 2005, issued by the Central Govt, of India in terms of
Section 227(4A) of the Companies Act, 1956, we annexe a statement on
the relevant matters specified in paragraph 4 & 5 of the said order.
2. Further to our comments in annexure referred to 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
ouraudit.
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of such
books.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with referred to by this report are in agreement with the books
of account of the company.
(d) In our opinion, Balance Sheet, Profit & Loss Account and Cash Flow
statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of section 211 of the
Companies Act, 1956.
(e) The Directors are not disqualified as on 31.03.2012 for being
appointed as director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act,
(f) In our opinion and to the best of our information and according to
the explanations given to us and subject to the notes on accounts given
at, Annexure XVII, 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:
(i) In the case of the Balance Sheet of the State if affairs of the
company as at 31.03.2012 and; (ii) In the case of Profit & Loss Account
of the profits for the year ended on that date and; (iii) In the case
of the Cash Flow Statement, of the Cash Flows for the period ended on
that date.
ANNEXURE TO AUDIT REPORT FOR THE YEAR ENDING 31.03.2012.
As required by the Manufacturing and Other Companies (Auditor's Report)
order, 2004, issued by the Company Law Board in terms of Section
227(4A) of the Companies Act, 1956, we further report that:
(1) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets, which are in process of up-dation/completion.
(b) As explained to us, the fixed assets have been physically verified
by the management according to the phased programme. Pursuant to
programme, physical verification of the fixed assets was carried out
during the period by the management and discrepancies noticed were not
material.
(c) No Substantial part of the fixed assets has been disposed during
the year.
(2) (a) The inventories have been physically verified by the management
during the year at reasonable intervals.
(b) In our opinion and according to the information & explanations
given to us, the proceeds of physical verification followed by the
management are reasonable and adequate in relation to the size of the
company and nature of the business.
(c) The company has maintained stock records of inventories and
discrepancies noticed on physical verification were not material.
(3) (a) The Company has not taken any loans (secured or unsecured) from
Shareholders/other parties covered
under Section 301 of the Companies Act, 1956. However the company has
granted loans to companies, firms and other parties covered under
section 301 of the Act.
(b) N.A.
(c) N.A.
(d) There is no overdue amount in respect of loans taken by the
company.
(4) In our opinion and according to information provided to us, there
are adequate internal control procedures commensurate with the size of
the company and nature of the business for the purchase of the
inventory and fixed assets of the company and for the sale of the
goods. During the course of our audit, we have not observed any major
weaknesses in internal controls.
(5) (a) According to the information and explanation given to us and
audit in accordance with generally accepted
auditing practices, in our opinion, the transactions that need to be
entered into the register in pursuance of section 301 of the Act have
been so entered.
(b) In our opinion and according to information and explanations given
to us, the transactions with parties as stated in para 5(a) above, with
whom transactions exceeding Rs. 5,00,000/- have been entered into
during the financial year are at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(6) As per the information and documents provided to us, during the
year the company has not accepted any deposits from the public as
defined under section 58A and 58AA of the Companies Act 1956, and the
rules framed there under.
(7) In our opinion the company has an internal audit system
commensurate with the size and nature of the business.
(8) During the year under review, Maintenance of Cost records under
section 209(1) of the Companies Act, 1956, is not applicable to
company.
(9) (a) According to the records of the company, the company is regular
in depositing with appropriate authorities undisputed statutory dues
including P.F., ESI, Income Tax, Sale Tax, Wealth Tax, Custom Duty,
Excise Duty, Cess and other statutory dues which are applicable to it. According to the information and explanation given to us, disputed
amount payable in respect of the statutory dues which are remained
outstanding as at 31.03.2012 for a period more than 6 months is Nil.
(b) According to the records and information and explanations given
to us, there are dues of Rs. Nil in respect of P.F., ESI, Income Tax,
Sale Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other
statutory dues that have not been deposited on account of dispute.
(10) The company has neither any accumulated losses nor has incurred
any cash losses in the current financial year.
(11) Based on our audit procedures and on the information and
explanations provided by the management, the company has not defaulted
in repayment of dues to bank. There were no dues to debenture holders
during the year.
(12) According to the information and explanations provided to us and
based on the documents and records produced before us, the company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(13) Clause (xiii) is not applicable to the company as the company is
not a Chit fund company or nidhi/mutual benefit fund/society.
(14) In our opinion and according to information and explanations given
to us, the company is not dealing in shares, securities, debentures and
other investments and therefore clause (xiv) of the Order is not
applicable to the company.
(15) According to information and explanations given to us, the company
has not given any guarantee for loans taken by others from the bank or
financial institutions.
(16) According to information and explanations given to us, the no term
loan has been availed during the year under review.
(17) According to information and explanations given to us, and on
overall examination of the Balance Sheet of the company, we are of the
opinion that the company has not used funds raised on short term basis
for long term investments and vice versa.
(18) The company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 during the year.
(19) No debentures have been issued / outstanding during the year hence
the provision of clause (xix) of the said order is not applicable.
(20) The company has not raised money by public issues during the year.
(21) Based on the audited procedures performed and information and
explanation given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
FOR RAJESH K. SHARMA & ASSOCIATES
CHARTERED ACCOUNTANTS
Sd/
Place: LUDHIANA (RAJESH SHARMA)
Date : 25-08-2012 Partner
M.No. 092948
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. LWS KNITWEAR LTD.,
LUDHIANA and also Profit & Loss Account & Cash Flow Statement for the
year ended 31.03.2010 annexed thereto. These financial statements are
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
disclosures in the financial statements. An audit also includes
assessing the accounting principles 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.
1. As required by the Manufacturing and other Companies (Auditors
Report) Order 2005, issued by the Central Govt, of India in terms of
Section 227(4A) of the Companies Act, 1956, we annexe a statement on
the relevant matters specified in paragraph 4 & 5 of the said order.
2. Further to our comments in annexure referred to 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 examination of such
books.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with referred to by this report are in agreement with the books
of account of the company.
(d) In our opinion, Balance Sheet, Profit & Loss Account and Cash Flow
statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of section 211 of the
Companies Act, 1956.
(e) The Directors are not disqualified as on 31.03.2010 for being
appointed as director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act,
(f) In our opinion and to the best of our information and according to
the explanations given to us and subject to the notes on accounts given
at, Annexure XVI, 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:-
(i) In the case of the Balance Sheet of the State if affairs of the
company as at 31.03.2010 and;
(ii) In the case of Profit & Loss Account of the profits for the year
ended on that date and;
(iii) In the case of the Cash Flow Statement, of the Cash Flows for the
period ended on that date.
ANNEXURE TO AUDIT REPORT FOR THE YEAR ENDING 31.03.2010.
As required by the Manufacturing and Other Companies (Auditors Report)
order,2004, issued by the Company Law Board in terms of Section 227(4A)
of the Companies Act, 1956, we further report that:-
(1) (a) The Company has maintained proper records showing full
particulars,
including quantitative details and situation of fixed assets, which are
in process of up-dation/completion.
(b) As explained to us, the fixed assets have been physically verified
by the management according to the phased programme. Pursuant to
programme, physical verification of the fixed assets was carried out
during the period by the management and discrepancies noticed were not
material.
(c) No Substantial part of the fixed assets has been disposed during
the year.
(2) (a) The inventories have been physically verified by the management
during
the year at reasonable intervals.
(b) In our opinion and according to the information & explanations
given to us, the proceeds of physical verification followed by the
management are reasonable and adequate in relation to the size of the
company and nature of the business.
(c) The company has not maintained stock records of inventories hence
we are unable to give our opinion on this issue.
(3) (a) The Company has taken loans (secured or unsecured) aggregating
to Rs. 259.06 lacs from Shareholders/other parties covered under
Section 301 of the Companies Act, 1956. The company has also granted
loans to companies, firms and other parties covered under section 301
of the Act.
(b) In our opinion and according to the information and explanations
given to us, the above said loans are taken free of interest; the
principal amount is repayable on demand.
(c) In respect of loan taken from shareholders/directors, the principal
amount is repayable on demand.
(d) There is no overdue amount in respect of loans taken by the
company.
(4) In our opinion and according to information provided to us, there
are adequate internal control procedures commensurate with the size of
the company and nature of the business for the purchase of the inventory
and fixed assets of the company and for the sale of the goods. During
the course of our audit, we have not observed any major weaknesses in
internal controls.
(5) (a) According to the information and explanation given to us and
audit in accordance with generally accepted auditing practices, in our
opinion, the transactions that need to be entered into the register in
pursuance of section 301 of the Act have been so entered.
(b) In our opinion and according to information and explanations given
to us, the transactions with parties as stated in para 5(a) above, with
whom transactions exceeding Rs.5,00,000/- have been entered into during
the financial year are at prices which are reasonable having regard to
the prevailing market prices at the relevant time.
(6) As per the information and documents provided to us, during the
year the company has accepted deposits from the public as defined under
section 58A and 58AA of the Companies Act 1956, and the rules framed
there under.
(7) In our opinion the company has an internal audit system
commensurate with the size and nature of the business.
(8) During the year under review, Maintenance of Cost records under
section 209(1) of the Companies Act, 1956, is not applicable to
company.
(9) (a) According to the records of the company, the company is regular
in depositing with appropriate authorities undisputed statutory dues
including P.F., ESI, Income Tax, Sale Tax, Wealth Tax, Custom Duty,
Excise Duty, Cess and other statutory dues which are applicable to it.
According to the information and explanation given to us, disputed
amount payable in respect of the statutory dues which are remained
outstanding as at 31.03.2010 for a period more than 6 months is Nil.
(b) According to the records and information and explanations given to
us, there are dues of Rs. Nil in respect of P.F., ESI, Income Tax, Sale
Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory
dues that have not been deposited on account of dispute.
(10) The company has accumulated profits of Rs. 434.77 Lacs at the year
ended 31.03.2010 and it has not incurred cash losses during the
financial year under review.
(11) Based on our audit procedures and on the information and
explanations provided by the management, the company has not defaulted
in repayment of dues to bank. There were no dues to debenture holders
during the year, however there was default in the repayment of the dues
of financial institutions.
(12) According to the information and explanations provided to us and
based on the documents and records produced before us, the company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(13) Clause (xiii) is not applicable to the company as the company is
not a Chit fund company or nidhi/mutual benefit fund/society.
(14) In our opinion and according to information and explanations given
to us, the company is not dealing in shares, securities, debentures and
other investments and therefore clause (xiv) of the Order is not
applicable to the company.
(15) According to information and explanations given to us, the company
has given guarantee for loans taken by others from the bank or
financial institutions.
(16) According to information and explanations given to us, the no term
loan has been availed during the year under review.
(17) According to information and explanations given to us, and on
overall examination of the Balance Sheet of the company, we are of the
opinion that the company has not used funds raised on short term basis
for long term investments and vice versa.
(18) The company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 during the year.
(19) No debentures have been issued / outstanding during the year hence
the provision of clause (xix) of the said order is not applicable.
(20) The company has not raised money by public issues during the year.
(21) Based on the audited procedures performed and information and
explanation given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For Rajesh K. Sharma & Associates.
Chartered Accountants
(Rajesh Sharma)
Date : 07.06.2010 Partner
Place : Ludhiana
Mar 31, 2009
We have audited the attached Balance Sheet of M/s. LWS KNITWEAR LTD.,
LUDHIANA and also Profit & Loss Account & Cash Flow Statement for the
year ended 31.03.2009 annexed thereto. These financial statements are
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
disclosures in the financial statements. An audit also includes
assessing the accounting principles 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.
1. As required by the Manufacturing and other Companies (Auditors
Report) Order 2005, issued by the Central Govt, of India in terms of
Section 227(4A) of the Companies Act, 1956, we annexe a statement on
the relevant matters specified in paragraph4&5 of the said order.
2. Further to our comments in annexure referred to 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 cur examination of such
books.
(c) The Balance Sheet, Profit & Loss Account and Cash Flovû Statement
dealt with referred to by this report are in agreement with the books
of account of the
company.
(d) In our opinion, Balance Sheet, Profit & Loss Account and Cash Flow
statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of section 211 of the
Companies Act, 1956.
(e) The Directors are disqualified as on 31.03.2009 for being appointed
as director in terms of clause (g) of sub-section (1) of Section 274 of
the Companies Act,
(f) In our opinion and to the best of our information and according to
the explanations given to us and subject to the notes on accounts given
at, Annexure XVI, the said accounts read together with the notes
thereon give thf
information required by the Companies Act,1956 in the manner so
required and give a true and fair view:-
(i) In the case of the Balance Sheet of the State if affairs of the
company as
at 31.03.2009 and;
(ii) In the case of Profit & Loss Account of the
profits for the year, ended on
that date and;
(iii) In the case of the Cash Flow Statement, of the
Cash Flews for the period
ended on that date.
ANNEXURE TO AUDIT REPORT FOR THE YEAR ENDING 31.03.2009.
As required by the Manufacturing and Other Companies (Auditors Report)
order,2004, issued by the Company Law Board in terms of Section 227(4A)
of the Companies Act, 1956, we further report that:-
(1) (a) The Company has maintained proper records showing full
particulars,
including quantitative details and situation of fixed assets, which are
ii* process of up-dation/completion.
(b) As explained to us, the fixed assets have been physically verified
by the management according to the phased programme. Pursuant to
programme, physical verification of the fixed assets was carried out
during the period by the management and discrepancies noticed were not
material.
(c) No Substantial part of the fixed assets has been disposed during
the year.
(2) (a) The inventories have been physically verified by the management
during
the year at reasonable intervals.
(b) In our opinion and according to the information & explanations
given to us, the proceeds of physical verification followed by the
management are reasonable and adequate in relation to the size of the
company and nature of the business.
(c) The company has not maintained stock records of inventories hence
we are unable to give our opinion on this issue.
(3) (a) The Company has taken loans (secured or unsecured) aggregating
to Rs.
184.30 lacs from Shareholders/other parties covered under Section 301
of the Companies Act, 1956. The company has also granted loans to
companies, firms and other parties covered under section 301 of the
Act.
(b) In our opinion and according to ilic information and explanations
given to us, the above said loans are taken free of interest; the
principal amount is repayable on demand.
(c) In respect of loan taken from shareholders/directors, the principal
amount is repayable on demand.
(d) There is no overdue amount in respect of loans taken by the
company.
(4) In our opinion and according to information provided to us, there
are adequate internal control procedures commensurate with the size of
the company and nature of the business for the purchase of the
inventory and fixed assets of the company and for the sale of the
goods. During the course of our audit, we have not observed any major
weaknesses in internal controls.
(5) (a) According to the information and (xplanation given to us a id
audit in
accordance with generally accepted mditing practices, in our opinion,
the transactions that need to be entered into the register in pursuance
of
section 301 of the Act have been so entered.
(b) In our opinion and according to information and explanations given
to us, the transactions with parties as stated in para 5(a) above, with
whom transactions exceeding Rs.5,00,000/- have been entered into during
the financial year are at prices which are reasonable having regard to
the prevailing market prices at the relevant time.
(6) As per the information ard documents provided to us, during the
year the company has not accepted any deposits from the public as
defined under section 58A and 58AA of the Companies Act 1956, and the
rules framed there under.
(7) In our opinion the company has an internal audit system
commensurate with the size and nature of the business.
(8) During the year under review, Maintenance of Cost records under
section 209(1) of the Companies Act, 1956, is not applicable to
company.
(9) (a) According to the records of the company, the company is regular
in
depositing with appropriate authorities undisputed statutory dues
including P.F., ESI, Income Tax, Sale Tax, Wealth Tax, Custom Duty,
Excise Duty, Cess and other statutory dues which are applicable to it.
According to the information and explanation given to us, disputed
amount payable in respect of the statutory dues which are remained
outstanding as at 31.03.2009 for a period more than 6 months is Nil.
(b) According to the records and information and explanations given to
us, there are dues of Rs. Nil in respect of P.F., ESI, Income Tax, Sale
Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory
dues that have not been deposited on account of dispute.
(10) The company has accumulated profits of Rs. 366.99 Lacs at the year
ended 31.03.2009 and it has not incurred cash losses during the
financial year under review.
(11) Based on our audit procedures and on the information and
explanations provided by the management, the company has not defaulted
in repayment of dues to bank. There were no dues to debenture holders
during the year, however there was default in the repayment of the dues
of financial institutions.
(12) According to the information and explanations provided to us and
based on the documents and records produced before us, the company has
not granted loans and advances on tha, basis of security by way of
pledge of shares, debentures and other securities.
(13) Clause (xiii) is not applicable to the company as the company is
not a Chit fund company or nidhi/mutual benefit fund/society.
For Rajesh K. Sharma & Associates,
Chartered Accountants,
Date : 28.08.2009
Place : Ludhiana
(Rajesh sharma)
partner *
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