Mar 31, 2015
We have audited the accompanying standalone financial statements of
Modella Woollens Limited ('the Company'), which comprise the balance
sheet as at March 31,2015, the statement of profit and loss and the
cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act 2013 ('the Act") with respect to
the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
the Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of accounting records, relevant
to the preparation and presentation of financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
AUDITOR'S RESPONSIBILTY
Our responsibility is to express an opinion on these standalone
financial statements based on our audit We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
read with the notes thereon give the information required by the Act in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India, of the state of
affairs of the company as at March 31, 2015, and its loss and its cash
flows for the year ended on that date,
EMPHASIS OF MATTERS
We draw attention to the following matters in the Notes to the
financial statements:
(a) Note 17(H) to the financial statement regarding cherubs towards
rent paid but not encased by the landlord.
(b) Note 23 in the financial statements which indicates that the
Company has accumulated losses and its net worth has been fully /
substantially eroded, the Company has incurred a net loss/net cash loss
during the current and previous year(s) and, the Company's current
liabilities exceeded its current assets as at the balance sheet date.
These conditions, along with other matters set forth in Note 23,
indicate the existence of a material uncertainty that may cast
significant doubt about the Company's ability to continue as a going
concern. However, based on the representation received from the
management regarding continuing support the financial statements of the
Company have been prepared on a going concern basis.
Our opinion is not modified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditor's Report) Order, 2015 ('the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
As required by section 143(3) of the Act, we report that:
as We have sought and obtained all the information and explanations
Which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. In our opinion proper books Of accounts as required by the law have
been kept by the Company so far as it appears from our examination of
those books;
c. The Balance Sheet, the statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the aforesaid standalone financial statements
comply with the accounting standards specified under Section 133 of the
Act, read with Rule 7 of Companies (Accounts) Rules, 2014;
e. The going concern matter described In sub paragraph (b) under
Emphasis of Matters paragraph above, in our opinion, may have adverse
effect on the functioning of the Company.
f. On the basis of written representations received from the directors
as on March 31, 2015 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 the Section 164(2) of Companies Act 2013.
g. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of 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, if
any, on its financial position in its financial statements
ii. the Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable lossless.
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITOR'S REPORT
As required by the Companies (Auditors' Report) Order, 2015 issued by
the Company Law Board in terms of Section 143 of the Companies Act,
2013, we further report that:
i. The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
We are informed that fixed assets have been physically verified by the
management at reasonable interval and no material discrepancies were
noticed on such verification. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and nature of its assets.
ii. We are informed that there was no stock of goods during the year or
at the year end and hence physical verification of stock were not
required to be conducted by the management. In view of above therefore,
we have no comment to offer on frequency of the physical verification
of such stocks.
Since company is not having any stock, we have no comment to offer on
whether the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
Since company is not having any stock, we have no comment to offer on
maintaining proper records of inventory and discrepancies on physical
verification of stocks as compared to book records.
iii. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in register maintained under
section 189 of the Companies Act, 2013. Accordingly paragraph 3(iii)
(a) and (b) of the Order are not applicable.
iv. In our opinion and according to information and explanations given
to us, the Company does have an adequate internal control system
commensurate with the size of the Company and the nature of its
business in respect of purchases of inventory and fixed assets and for
the sale of goods and services
We have not observed any major weakness in the internal control system
during the course of the Audit
v. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (v) of paragraph 3 of the CARO 2015 are not
applicable to the Company.
vi. As informed to us the maintenance of cost Records has not been
specified by the central government under section 148(1) of the Act.
vii. According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory dues including Provident fund, Employee's state insurance and
other material statutory dues have been regularly deposited during the
year by the Company with the appropriate authorities. As explained to
us, the Company did not have any dues on account of Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty and duty of excise. '
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident fund, Employee's
state insurance and other material statutory dues were in arrears as at
March 31, 2015 for a period of more than six months from the date they
became payable. We are informed that dues of income tax, sales tax,
wealth tax, service tax, duty of customs and duty of excise are not in
dispute.
According to the information and explanations given to us, there are no
dues of income tax, wealth tax, sales tax, service tax, duty of customs
and duty of excise which have not been deposited with the appropriate
authorities on account of any dispute.
According to the information and explanations given to us the amounts
which were required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time.
viii. The Company has been registered for a period of not less than
five years and its accumulated losses at the end of the financial year
exceeds fifty percent of its net worth. The Company has incurred cash
losses in the current financial year and in the immediately preceding
financial year.
ix. The company has not taken any loans from any financial institution
or bank or debenture holders and hence the question of default in
payment does not arise.
x. In our opinion and according to the information and the explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
xi. The Company has not taken any term loan during the year.
xii. According to information and explanations given to us, no material
fraud on or by the Company has been noticed or reported during the
course of our audit.
Place : Mumbai For Desai & Bhagtaney
Date : 12/5/2015 Chartered Accountant*
Shailesh S. Desal
Partner
Membership No. 036935
Firm No.115646W
Mar 31, 2014
1. We have audited the attached balance sheet of Modella Woollens
Limited, as at March 31, 2014 and the annexed Statement of Profit and
Loss and cash flow statement for the year ended on that date. These
financial statements are the responsibility of the Company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956 we enclosed in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the said
Order.
4. Further to our comments in the 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 the law
have been kept by the company so far as appear from our examination of
those books
c. The balance sheet, profit and loss statement and cash flow
statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report 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, none of the directors are 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. 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
accounting policies and notes on accounts give the information required
by the Companies Act, 1956, in the manner so required and give a true
and fair view in conformity with the accounting principles generally
accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2014; and
ii. in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date.
iii. in the case of the Cash Flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT
As required by the Companies (Auditors'' Report) Order, 2003 issued by
the Company Law Board in terms of Section 227(4A) of the Companies Act,
1956, we further report that:
i. The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
As informed to us. fixed assets have been physically verified by the
management during the year and no material discrepancies were noticed
on such verification.
None of the fixed Assets have been disposed off during the year.
ii. We are informed that there was no stock of goods during the year
or at the year end and hence physical verification of stock was not
required to be conducted by the management In view of above therefore,
we have no comment to offer on frequency of the physical verification
of such stocks.
Since company is not having any stock, we have no comment to offer on
whether the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
Since com ny is not having any stock, we have no comment to offer on
maintaining proper records of inventor and discrepancies on physical
verification of stocks as compared to book records.
iii. The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in register maintained under
section 301 of the Companies Act 1956. Accordingly the provisions of
clauses 4(iii) (b) to (d) of the Order are not applicable.
The Company has not taken any loans, secured or unsecured from
Companies, firms or other parties covered in the register maintained
under section 301 of the Act except Inter Corporate Deposit from
Novamod Trading Company Private Limited. The outstanding balance of
Novamod Trading Company Private Limited as at March 31, 2014 was Rs
29,05,000/- and maximum amount outstanding during the year was Rs
29,05,000/-
In our opinion and as per the explanation given by the management the
rate of interest and other terms and conditions of loans, deposit taken
are prima facie not prejudicial to the interest of the Company.
iv. In our opinion and according to information and explanations given
to us, the Company does have an adequate internal control system
commensurate with the size of the Company and the nature of its
business in respect of purchases of inventory and fixed assets and for
the sale of goods and services.
v. On the basis of our examination and according to the information
and explanation given to us, the company has not entered transactions
that need to be entered in the register maintained under section 301 of
the Companies Act. 1956.
vi. The Company has not accepted any deposits from the public within
the meaning of section 58A and 58AA or any order relevant provisions of
the Companies Act, 1956 and rules framed thereunder.
vii. The Company does not have an internal audit system.
viii. The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956, for any
activities of the Company.
ix. The Company has been regular in depositing 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.
According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth-tax,
sales-tax, custom duty, excise duty and cess were out-standing as a
March 31, 2013 for period of more than six months from the date they
became payable.
x. The Company has been registered for a period of not less than five
years and its accumulated losses at the end of the financial year
exceeds fifty percent of its net worth. The Company has incurred cash
losses in the current financial year and in the immediately preceding
financial year.
xi. The company has not taken any loans from any financial institution
or bank or debenture holders and hence the question of default in
payment does not arise.
xii. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. The provisions of any special statute applicable to chit fund,
Nidhi or mutual Benefit Fund/societies are not applicable to the
Company.
xiv. On the basis of our examination and according to the information
and explanation given to us, the Company during the year has dealt in
investments and has maintained proper records of the transactions and
contracts with timely entries made therein. The said investment has
been held by the company in its own name.
xv. On the basis of our examination and according to the information
and explanation given to us, the Company has not given any guarantee
for loans taken by others from bank or financial institutions.
xvi. The Company has not taken any term loan during the year.
xvii. On the basis of our examination of the Cash Flow statement and
according to the information and explanation given to us, the funds
raised on short-term basis have not been used for long-term
investments.
xviii. On the basis of our examination and according to the information
and explanation given to us, 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 during the
year.
xix. On the basis of our examination and according to the information
and explanation given to us, no Debentures have been issued by the
Company and hence, the question of creating securities in respect
thereof does not arise.
xx. On the basis of our examination and according to the information
and explanation given to us, the Company has not raised any money by
way of public issue during the year.
xxi. On the basis of our examination 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.
Place : Mumbai For Desai & Bhagtaney
Date : 28th April, 2014 Chartered Accountants
Shailesh S. Desai
Partner
M.NO. 36935
Firm No. 115646W
Mar 31, 2013
1 we have audited the accompanying financial statement of Modella
Wollens 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 summary of significant accounting policies and other
explanatory information.
2 Management is responsible for the preparation of these financial
statements that give a true and view o the financial position,
financial performance and cash How s of theCompany,n acco dance with
the Accounting Standards referred to in sub-section (3C) of section 21
of the ComSes Act 956 ("the Act"). This responsibility includes the
design, implementation and Senance of ntemal control relevant to the
preparation and presentation of the financial Sments Lt give a true and
fair view and are free from material misstatement, whether due to fraud
or error.
3 Our responsibility is to express an opinion on these financia)
statements based on our audit We conducfedoT audit in accordance with
the Standards on Auditing.issued by the institute c- Charte''ed
Accountants of India. Those Standards require that we comply with
ethical requirements and planperlorm the aud* to obtain reasonable
assurance about whether the financial statements are free from materia!
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in tSnancial statements The procedures
selected depend on the auditor''s ludgment, including L amenf5Ss of
material misstatement of the financial statements, whether due o raud
or error in making those risk assessments, the auditor considers
internal
4 In our opinion and to the best of our information and according to
the he financial statements give the information required by the Act in
the manner so required andgive Hrue andI fair vw in conformity with
the accounting principles generally accepted in India: j. in the case
of the Balance Sheet, of the state of affairs of the company as at
March 31, 2013;
ii in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date. iii in the case of the Cash Flow statement,
of the cash flows for the year ended on that dale.
5 As required by the Companies {Auditor''s Report) Order, 2003 issued by
the Central Government of .Sa 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
As required by section 227(3) of the Act. we report that:
a we have obtained ail 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. m our opinion, the Balance Sheet, Statement of
Profit and Loss, and Cash Flow" Statement to insub section (3C) of
section 211 of the Companies Act, 1956;
ANNEXURE TO THE AUUllun ncrvm
As required by the Companies (Auditors'' Report) Order. 2003 issued by
Company Uw Board fn terms of Section 2274A) of the Companies Act.
1956. we further report that.
i. The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets. .
As informed to us. fixed assets have been physically verified by the
management dunng the year and no material discrepancies were noticed on
such venficabon. services.
v On the basis of our examination and according to the information and
explanation givenftbi us the company has not entered transactions that
need to be entered in the register ma.nta.ned under section 301 of the
Companies Act. 1956. -n- rÂÂÂ has not accepted any deposits from the
public within the meaning of section 58A the Companies Act, 1956 and
ruiesframed there under.
vii. The Company does not have an internal audit system.
viii The Centra! Government has not prescribed maintenance of cost
records under section 209(l)(d) of the Companies Act, 1956. for any
activities of the Company. h, Th romnanv has been regular in
depositing Provident Fund. Investor Education and Protection "* tax.
Sales tax. Wealth tax. ServK* Tax, Custom Duty. Excise Duty Cess and
any other statutory dues with the appropriate authorities. According
to the information and explanations given to us, no undisputed amounts
payable_ in Sc of ncome-tax. wealth-tax. sales-tax. custom duty,
excise duty and cess were sbnding L7at March 31 2013 for period of more
than six months from the date they became payable. Th* mmrwmv has been
registered for a period of not less than five years and its accumulated
tosses * exceedsifty percent of its net worth. The Company has
incurred cash losses in the current financial year and in the
immediately preceding financial year xi The company has not taken any
loans from any financial institution or bank or debenture holders and
hence the question of default in payment docs not anse. xii. The
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii. The provisions of any special statute applicable to chit fund,
Nidhi or mutual Benefit Fund/societies are not applicable to the
Company.
On the basis of our examination and according to the information and
explanation given to, us, the durina the year has dealt in investments
and has maintained proper records the Swith timely entries made
therein. The said investment has been held by the company in its own
name. On the basis of our examination and according to the information
and explanation g.ven ipus,£» Srnany has not given any guarantee for
loans taken by others from bank or financial institutions. xvi The
Company has not taken any term loan during the year.
On the basis of our examination of the Cash Flow statement and
according to the information ""''and expSon gLn to us. the funds raised
on short-term basis have not been used for long- term investments. ___
 On the basis of our examination and according to the information and
explanation given to us the Smoanhas notmade any preferential allotment
of shares to parties and companies covered ,the Register maintained
under section 301 of the Companies Act, 1956 during the year. Lsio nf
our examination and according to the information and explanation given
to us. no binned by the Company and hence, the question of creating
securities ,respect thereof does not arise. ''
xx On the basis of our examination and according to the information and
explanation g.ven to us. the Company has not raised any money by way of
public issue during the year.
xxi On the basis of our examination 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.
For DESAt & BHAGTANEY
CHARTERED ACCOUNTANTS
SHAILESH S. DESAI
Place of Signature .
Mumbai. Firm No 115646W
Date : 17th April, 2013
Mar 31, 2012
1. We have audited the attached balance sheet of Modella Woollens
Limited, as at 31st March, 2012 and also the annexed profit and loss
account and cash flow statement for the year ended on that date. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956 we enclosed in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the said
Order.
4. Further to our comments in the 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 the law
have been kept by the company so far as appear from our examination of
those books
c. The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
e. On the basis of written representations received from the
directors, none of the directors are disqualified as on March 31, 2012
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read together with the
accounting policies and notes on accounts give the information required
by the Companies Act, 1956, in the manner so required and give a true
and fair view in conformity with the accounting principles generally
accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2012; and
ii. in the case of the Profit and Loss Statement, of the Loss for the
year ended on that date.
iii. in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
As required by the Companies (Auditors' Report) Order, 2003 issued by
the Company Law Board in terms of Section 227(4A) of the Companies Act,
1956, we further report that:
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As informed to us, fixed assets have been physically verified by
the management during the year and no material discrepancies were
noticed on such verification.
ii. (a) We are informed that there was no stock of goods during the
year or at the year end and hence physical verification of stock was
not required to be conducted by the management. In view of above
therefore, we have no comment to offer on frequency of the physical
verification of such stocks.
(b) Since company is not having any stock, we have no comment to offer
on whether the procedures of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
(c) Since company is not having any stock, we have no comment to offer
on maintaining proper records of inventory and discrepancies on
physical verification of stocks as compared to book records.
iii. The company has not granted any loans secured or unsecured to
companies, firms or other parties covered in register maintained under
section 301 of the Companies Act, 1956
iv. The company has taken unsecured inter-corporate loan from a company
covered in register maintained under section 301 of the Companies Act,
1956.
v. In our opinion, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for sale
of goods and services.
vi. On the basis of our examination and according to the information
and explanation given to us, the company has not entered transactions
that need to be entered in the register maintained under section 301 of
the Companies Act. 1956.
vii. The Company has not accepted any deposits from the public within
the meaning of section 58A and 58AA or any order relevant provisions of
the Companies Act, 1956 and rules framed thereunder.
viii. The Company does not have an internal audit system.
ix. The Central Government has not prescribed maintenance of cost
records under section 209(1 )(d) of the Companies Act, 1956, for any
activities of the Company.
x. (a) The Company has been regular in depositing 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.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth-tax,
sales-tax, custom duty, excise duty and cess were out-standing as at
March 31, 2012 for period of more than six months from the date they
became payable.
xi. The Company has been registered for a period of not less than five
years and its accumulated losses at the end of the financial year
exceeds fifty percent of its net worth.
xii. The Company has not incurred cash losses in the financial year
immediately preceding current financial year.
xiii. The company has not taken any loans from any financial
institution or bank or debenture holders and hence the question of
default in payment does not arise.
xiv. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xv. The provisions of any special statute applicable to chit fund,
Nidhi or mutual Benefit Fund/ societies are not applicable to the
Company.
xvi. On the basis of our examination and according to the information
and explanation given to us, the Company during the year has dealt in
investments and has maintained proper records of the transactions and
contracts with timely entries made therein. The said investment has
been held by the company in its own name.
xvii. On the basis of our examination and according to the information
and explanation given to us, the Company has not given any guarantee
for loans taken by others from bank or financial institutions.
xviii. The Company has not taken any term loan during the year.
xix. On the basis of our examination of the Cash Flow statement and
according to the information and explanation given to us, the funds
raised on short-term basis have not been used for long-term
investments.
xx. On the basis of our examination and according to the information
and explanation given to us, 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 during the
year.
xxi. On the basis of our examination and according to the information
and explanation given to us, no Debentures have been issued by the
Company and hence, the question of creating securities in respect
thereof does not arise.
xxii. On the basis of our examination and according to the information
and explanation given to us, the Company has not raised any money by
way of public issue during the year.
xxiii. On the basis of our examination 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.
For DESAI & BHAGTANEY
CHARTERED ACCOUNTANTS
SHAILESH S. DESAI
PARTNER
M. NO. 36935 Firm No. 115646W
Place of Signature : Mumbai.
Date : 25th April, 2012
Mar 31, 2011
1. We have audited the attached balance sheet of Model la Woollens
Limited, as at 31 st March, 2011 and also the annexed profit and loss
account and cash flow statement for the year ended on that date.These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956 we enclosed in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the said
Order.
4. Further to our comments in the 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 the law
have been kept by the company so far as appear from our examination of
those books
c. The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
e. On the basis of written representations received from the
directors, none of the directors are disqualified as on March 31, 2011
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read together with the
accounting policies and notes on accounts particularly note 2.3 and
note 5 give the information required by the Companies Act, 1956, in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2011; and
ii. in the case of the Profit and Loss Account, of the Profit for the
year ended on that date.
iii. in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
As required by the Companies (Auditors' Report) Order, 2003 issued by
the Company Law Board in terms of Section 227(4A) of the Companies Act,
1956, we further report that:
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As informed to us, fixed assets have been physically verified by
the management during the year and no material discrepancies were
noticed on such verification.
(c) No fixed assets have been disposed off during the year except
assignment of trademark "Modella" which has in the opinion of
management not affected the going concern.
ii. (a) We are informed that there was no stock of goods during the
year or at the year end and hence physical verification of stock was
not required to be conducted by the management. In view of above
therefore, we have no comment to offer on frequency of the physical
verification of such stocks.
(b) Since company is not having any stock, we have no comment to offer
on whether the procedures of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
(c) Since company is not having any stock, we have no comment to offer
on maintaining proper records of inventory and discrepancies on
physical verification of stocks as compared to book records.
iii. (a) The company has not granted any loans secured or unsecured to
companies, firms or other parties covered in register maintained under
section 301 of the Companies Act, 1956
iv. (a) The company has taken unsecured inter-corporate loan from a
company covered in register maintained under section 301 of the
Companies Act, 1956 as under :
Number of parties : One
Opening Balance : Nil
Accepted during the year : 3,20,000/-
Closing Balance : Nil
(b) In our opinion the rate of interest and other terms and conditions
on which the above loan taken is not prime facie, prejudicial to the
interest of the company.
v. In our opinion, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for sale
of goods and services.
vi. (a) On the basis of our examination and according to the
information and explanation given to us, the company has not entered
transactions that need to be entered in the register maintained under
section 301 of the Companies Act. 1956.
(b) The Company has not entered transactions that need to be entered in
the register under section 301 of the Companies Act, except assignment
of trademark "Modella". As there are no comparable market prices for
the similliar transactions we cannot comment that the said transaction
has been made at prices, which are reasonable.
vii. The Company has not accepted any deposits from the public within
the meaning of section 58A and 58AA or any order relevant provisions of
the Companies Act, 1956 and rules framed thereunder.
viii. The Company does not have an internal audit system.
ix. The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956, for any
activities of the Company.
x. (a) The Company has been regular in depositing 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.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth-tax,
sales-tax, custom duty, excise duty and cess were out-standing as at
March 31, 2011 for period of more than six months from the date they
became payable.
xi. The Company has been registered for a period of not less than five
years and its accumulated losses at the end of the financial year
exceeds fifty percent of its net worth.
xii. The Company has not incurred cash losses in the financial year
immediately preceding current financial year.
xiii. The company has not taken any loans from any financial
institution or bank or debenture holders and hence the question of
default in payment does not arise.
xiv. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xv. The provisions of any special statute applicable to chit fund,
Nidhi or mutual Benefit Fund/ societies are not applicable to the
Company.
xvi. On the basis of our examination and according to the information
and explanation given to us, the Company during the year has dealt in
investments and has maintained proper records of the transactions and
contracts with timely entries made therein. The said investment has
been held by the company in its own name.
xvii. On the basis of our examination and according to the information
and explanation given to us, the Company has not given any guarantee
for loans taken by others from bank or financial institutions.
xviii. The Company has not taken any term loan during the year.
xix. On the basis of our examination of the Cash Flow statement and
according to the information and explanation given to us, the funds
raised on short-term basis have not been used for long-term
investments.
xx. On the basis of our examination and according to the information
and explanation given to us, 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 during the
year.
xxi. On the basis of our examination and according to the information
and explanation given to us, no Debentures have been issued by the
Company and hence, the question of creating securities in respect
thereof does not arise.
xxii. On the basis of our examination and according to the information
and explanation given to us, the Company has not raised any money by
way of public issue during the year.
xxiii. On the basis of our examination 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.
For DESAI & BHAGTANEY
CHARTERED ACCOUNTANTS
SHAILESH S. DESAI
PARTNER
M. NO. 36935 Firm No. 115646W
Place of Signature : Mumbai.
Date : 27th April, 2011
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