Mar 31, 2018
INDEPENDENT AUDITORSâ REPORT
The Members of
M/s Nahar Spinning Mills Limited,
L U D H I A N A.
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS Financial Statements of Nahar Spinning Mills Ltd (âthe Companyâ), which comprise the balance sheet as at 31 March 2018, the statement of profit and loss (including other comprehensive income), the statement of cash flows and the statement of changes in equity for the year then ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as âstandalone Ind As financial statementsâ). Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued there under.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS 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 Ind AS
Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS Financial Statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS 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 Ind AS Financial Statements. Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at 31 March, 2018, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) 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, a statement on the matters specified in the paragraph 3 and 4 of the order. .
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone Ind AS Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with relevant rules there under;
(e) on the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164(2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) with respect to the other matters to be included in the Auditorâs 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 Ind AS Financial Statements;
ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE-A TO THE AUDITORSâ REPORT The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the standalone Ind AS Financial Statements for the year ended 31 March 2018, we report that:
I) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year 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 the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company except the one property the details of which are as under:
No. of Cases |
Gross Block as on 31.03.2018 |
Net Block as on 31.03.2018 |
Remarks |
|
1(One) |
252.98 Lacs |
235.39 Lacs |
The agreement is in the name of the company only, registration of sale deed is pending. |
ii) The physical verification of inventory has been conducted at reasonable intervals by the management and no material discrepancies were noticed on the physical verification.
(iii) The Company has not granted any loans to any bodies corporate covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ).
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) According to information and explanation given to us, The Company has not accepted any deposits from the public during the year covered under the provisions of section 73 or 76 or any other relevant provisions of the Companies Act, 2013.
(vi) We have broadly reviewed the cost records maintained by the company pursuant to the sub section (1) of section 148 of the Companies Act, specified by the Central Government and are of the opinion that prima facie, the prescribed records have been maintained. We have, however not made a detailed examination of cost records with a view to determine whether they are accurate or complete.
vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income-tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Ind AS Financial Statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE-B TO THE AUDITORSâ REPORT Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Nahar Spinning Mills Ltd (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone Ind AS Financial Statements of the Company for the year ended on that date.
viii) The Company has not defaulted in repayment of any loans or borrowings from any financial institution, banks, government or debenture holders during the year.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been with the appropriate authorities. As explained to us, the Company did not have any dues on account of employeesâ state insurance and duty of excise.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31st March 2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material dues of duty of customs which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of income tax, sales tax, duty of excise, service tax and value added tax have not been deposited by the Company on account of disputes:
Name of Statute |
Nature of Dues |
Amount (Unpaid) (In Lacs) |
Period to which which it Relates |
Forum where dispute is pending |
The Income Tax Act, 1961 |
Income Tax / Penalty |
316.53 |
A Y2011-2012 |
CIT (A), Ludhiana |
The Income Tax Act, 1944 |
Income Tax |
46.78 |
A Y 2015-2016 |
CIT (A) Ludhiana |
The Finance Act, 1962 |
Service Tax |
11.49 |
2004-2005 |
High Court of Jabalpur |
The Finance Act, Act, 1944 |
Service Tax |
4.35 |
2012-2014 |
CESTAT |
The Finance Act, & Vat Act |
Service Tax |
78.61 |
2012-2014 |
Appelate Tribunal |
The Finance Act, 1994 |
Service Tax |
0.91 |
2012-2014 |
CESTAT |
The Finance Act, 1994 |
Service Tax |
0.64 |
2012-2014 |
Commissioner Appeal |
MP Commercial & Vat Act, 1961 |
Entry Tax |
2.94 |
2012-2013 |
Appelate Tribunal |
The Central Excise Act, 1944 |
Excise Duty |
17.47 |
2001-2002 |
High Court Of Jabalpur |
The Central Excise Act, 1944 |
Excise Duty |
4.70 |
1994-1995 |
High Court Of Jabalpur |
The Customs Act, 1962 |
Drawback |
0.93 |
2006-2007 |
High Court Of Jabalpur |
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Ind AS Financial Statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Ind AS Financial Statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the Ind AS Financial Statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For YAPL & Co..
Chartered Accountants
Firm Regn.No.017800N
Place: LUDHIANA. CA Priyanka Shoree
Dated: 30.05.2018 PARTNER
M.NO. 538274
Mar 31, 2015
We have audited the accompanying standalone financial statements of M/s.
Nahar Spinning Mills Limited ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the 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 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 Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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 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 controls 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 accounting policies
used and the reasonableness of the accounting estimates made by the
Company's Directors, as well as evaluating the overall presentation of
the financial statements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit
opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
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 Statement of Profit and Loss, 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, 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.
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
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
such books.
c. The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d. In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors
as on 31st March, 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 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(c), (d),
(e) and (g) to the financial statements.
(ii) The company has made provision as required under the applicable
law or accounting standards in respect of long term derivative
contracts if any on mark to market basis. There are no other long term
contacts for which there were any material foreseeable losses.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of even date)
I) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) According to the information and explanations given to us, the
company has adopted a policy of physically verification of the fixed
assets in a phased manner. In accordance with this policy, certain
fixed assets were verified during the year 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 the nature of its assets.
ii) a) Physical verification has been carried out by the Management in
respect of inventory at reasonable intervals including as on March 31,
2015. In our opinion the frequency of verification is reasonable.
b) Based on information and explanations given to us and the records
produced to us, in our view the procedures of physical verification of
inventory followed by the management during the year are reasonable and
adequate in relation to the size of the Company and the nature of its
business.
c) The Company is maintaining proper records of inventory. As per the
information given to us, the discrepancies noticed on physical
verification of Inventories as compared to book records were not
material and have been dealt properly in the books of account.
iii) (a) The company has granted unsecured loans to 2 (two) the
companies covered in the register maintained under section 189 of the
Companies Act. (b) In our opinion and according to the information and
explanations given to us, the receipt of principal amount and interest
in respect of the aforesaid loan are regular and there is no overdue
amount in respect of principal and interest.
iv) In our opinion and according to the 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 and fixed assets and with regard to sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
systems.
v) According to the information and explanations given to us, the
company has not accepted deposits from public during the year covered
under the provisions of section 73 or 76 any other relevant provisions
of the Companies Act, 2013 and the Companies (Acceptance of Deposits)
Rules 2014.
vi) We have broadly reviewed the cost records maintained by the Company
pursuant to the sub-section (1) of section 148 of the Companies Act,
specified by the Central Government and are of the opinion that, prima
facie, the prescribed cost records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete
vii) (a) According to the information and explanations given to us and
records of the Company examined by us, the company has been regular in
depositing undisputed statutory dues including provident fund,
employees' state insurance, income-tax, sales-tax, wealth tax, service
tax, duty of custom, duty of excise, value added tax, cess and any
other statutory dues with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts in
respect of statutory dues payable were outstanding as at the last day
of the financial year concerned for a period of more than six months
from the date they became payable.
According to the information and explanation given to us, no order
under its aforesaid sections has been passed by the company law board
or the Reserve Bank of India or any Court or any other Tribunal on the
company.
(b) According to the records of the company, the disputed statutory
dues that have not been deposited on account of matters pending before
the appellate authorities in respect of sales tax, duty of custom ,
service tax, duty of excise, value added tax and income tax are given
below:
Name of due/ Amount Financial year Forum where dispute
is pending
Name of Statute (In Lacs) to which it
Relates
MP Vat Act Rs. 2.94 2010-11 Appellate Board Commercial
Tax, Bhopal
Finance Act, Rs. 11.49 2004-05, High Court of Jabalpur
1994 2005-06
Central Excise Rs. 4.70 1994-95 High Court of Jabalpur
Act 1944
Customs Rs. 0.93 2006-07 High Court of Jabalpur
Act 1962
Central Excise Rs.17.46 2000-01 High Court of Jabalpur
Act 1944 2001-02
MP Upkar Rs.129.19 2003-04 Cess on Electricity
(Sansodhan
Tatha
Vidhimany
atakaran)
Adhiniyam,
2004
Income Tax Rs. 28.21 2010-11 ITAT
Act, 1961
Finance Act, Rs. 2.83 2007-08 CESTAT
1994
Central Excise Rs. 33.76 2006-07 CESTAT
Act 1944
Central Excise Rs. 0.91 2009-10 CESTAT
Act 1944
Income Tax Rs. 294.10 2011-12 ITAT
Act, 1961
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time..
viii)In our opinion and according to the information and explanations
given to us, the company does not have accumulated losses and has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions or banks.
x) In accordance with the information and explanations given to us, the
Company has given guarantees for loans taken by others from bank or
financial institutions. The terms and conditions at which guarantees
have been given are not prejudicial to interests of the company.
(xi) In our opinion and according to the information and explanations
given to us, the term loans taken during the year by the Company have
been applied for the purpose for which they were raised.
(xii)Further on the basis of information and explanation given to us,
we report that no fraud on or by the company has been noticed or
reported during the course of our audit.
For GUPTA VIGG & CO.
Chartered Accountants
Firm Regn.No.001393N
Place: LUDHIANA. VINOD KUMAR KHANNA
Dated: 30.05.2015 PARTNER
M.NO.081585
Mar 31, 2014
We have audited the accompanying financial statements of M/s Nahar
Spinning Mills Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2014, and the Statement of Profit and Loss and
Cash Flow Statement for the year 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 notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13.09.2013 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 fair presentation of the financial statements that 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 judgement, 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:
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 profit/ 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 ("the
Order") issued by the Central government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters 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 notified under
the Companies Act, 1956 read with the General Circular 15/2013 dated
13.09.2013 of the Ministry of Corporate Affairs in respect of section
133 of the Companies Act, 2013.
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
[Referred to in paragraph (1) UNDER THE HEADING OF "Reporting on Other
Legal and Regulatory Requirements" of our report of even date]
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) All the fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of physical verification
is reasonable and no material discrepancies were noticed on such
verification.
c) No substantial part of Fixed Assets has been disposed off during the
year.
ii) a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) 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) On the basis of our examination of inventory records, we are of the
opinion that the Company is maintaining proper records of the
inventory. As explained to us, no material discrepancies were noticed
on physical verification of inventories as compared to book records.
iii) According to the explanations and information given to us, the
Company has neither granted nor taken any loan from the parties covered
in the Register maintained under section 301 of the Companies Act,
1956. Hence, the clause 4(iii)(a) to (g) of the Companies (Audit
Report) Order, 2003 are not applicable in the case of the company.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and nature of its business with regards to
purchase of inventory and fixed assets and for sale of goods &
services. During the course of our audit, we have not observed any
major weakness in internal control.
v) a) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of the contracts or
arrangements that need to be entered in register maintained u/s 301 of
the Companies Act,1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us , the transactions made in pursuance contracts and
arrangements entered in the Register maintained under section 301 have
been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time
vi) The Company has not accepted any deposits from the public. Hence,
the clause 4(vi) of the Order is not applicable to the Company.
vii) In our opinion, the Company has internal audit system commensurate
with its size and nature of its business.
viii)We have broadly reviewed the books of accounts and records of cost
maintained by the Company pursuant to the rules made by Central
Government for maintenance of cost records under Section 209(1)(d) of
the Companies Act, 1956 and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have,
however, not done a detailed examination of the records with a view to
determine whether they are accurate and complete.
ix) a) According to the records of the Company, undisputed statutory
dues including provident fund, investor education and protection fund,
income tax, wealth tax, service tax and other material statutory dues
applicable to the Company, if any, have been regularly deposited with
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were 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 of the Company, no dues of sales tax,
income tax, custom duty, wealth tax, service tax, excise duty, cess and
Service Tax which have not been deposited on account of any dispute
except those mentioned below : -
Sr. Statutes Forum before (Rs. in lacs) Nature of Dues
No. Whom pending
1 Finance Act CESTAT 2.83 Service Tax
2 Central Excise Act CESTAT 34.67 Excise
Duty/CENVAT
3 Income Tax Act CIT (A) 322.31 Income Tax
4 M.P.Upkar Supreme Court 129.19 Cess of
(sanshodan tatha Electricity
vidhimanyatakaran)
Adhiniyam 2004
5 Central Excise Act High Court of 29.08 Cenvat
Jabalpur
6 Finance Act High Court of 11.49 Service Tax
Jabalpur
7 MPVAT Additional 4.08 Entry Tax
Commissioner
x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the financial year immediately preceding such financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of loans taken
from banks and financial institutions.
(xii) 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.
Therefore, the provisions of Clause 4(xii) of the Order are not
applicable to the Company.
(xiii) The Company is not a chit fund or a nidhi mutual benefit
fund/society. Accordingly, the provisions of Clause 4(xiii) of the
Order are not applicable to the Company.
(xiv) In respect of investments made, in our opinion and according to
the information and explanations given to us, proper records have been
maintained of the investments and timely entries have been made
therein. The investments have been held by the company in its own name.
(xv) As per the information and explanations given to us, we are of the
opinion that the terms and conditions at which guarantees have been
given by the company for loans taken from financial institutions and/or
banks by other, are not prejudicial to the interest of the Company
(xvi) Based on the information & explanations given to us by the
management, we are of the opinion that the loans taken were applied for
the purpose they are obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
(xviii)During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956. Hence, clause
4(xviii) of the order is not applicable.
(xix) The Company has not issued debentures during the year. Therefore,
the provisions of Clause 4(xix) of the Companies (Auditors'' Report)
Order, 2003 are not applicable to the Company.
(xx) The Company has not raised money by way of public issue during the
year. Therefore, the provisions of Clause 4(xx) of the Companies
(Auditors'' Report) Order, 2003 are not applicable to the Company.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For GUPTA VIGG & CO.
Chartered Accountants
Firm Regn.No.001393N
Place: LUDHIANA. VIPAN KUMAR GUPTA
Dated: 29.05.2014 PARTNER
M.NO. 502737
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s Nahar
Spinning Mills Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2013, and the Statement of Profit and Loss and
Cash Flow Statement for the year 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 principles generally accepted in India including
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and fair presentation of the financial statements
that 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 judgement, 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/ 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
("the Order") issued by the Central government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters 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.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
[Referred to in paragraph (1) UNDER THE HEADING OF "Reporting on
Other Legal and Regulatory Requirements" of our report of even date]
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) All the fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of physical verification
is reasonable and no material discrepancies were noticed on such
verification.
c) No substantial part of Fixed Assets has been disposed off during the
year.
ii) a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) 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) On the basis of our examination of inventory records, we are of the
opinion that the Company is maintaining proper records of the
inventory. As explained to us, no material discrepancies were noticed
on physical verification of inventories as compared to book records.
iii) According to the explanations and information given to us, the
Company has neither granted nor taken any loan from the parties covered
in the Register maintained under section 301 of the Companies Act,
1956. Hence, the clause 4(iii)(a) to (g) of the Companies (Audit
Report) Order, 2003 are not applicable in the case of the company.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and nature of its business with regards to
purchase of inventory and fixed assets and for sale of goods &
services. During the course of our audit, we have not observed any
major weakness in internal control.
v) According to the information and explanation given to us, we are of
the opinion that there are no transactions that need to be entered in
register maintained u/s301 of the Companies Act,1956.
vi) The Company has not accepted any deposits from the public. Hence,
the clause 4(vi) of the Order is not applicable to the Company.
vii) In our opinion, the Company has internal audit system commensurate
with its size and nature of its business.
viii)We have broadly reviewed the books of accounts and records of cost
maintained by the Company pursuant to the rules made by Central
Government for maintenance of cost records under Section 209(1)(d) of
the Companies Act, 1956 and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have,
however, not done a detailed examination of the records with a view to
determine whether they are accurate and complete.
ix) a) According to the records of the Company, undisputed statutory
dues including provident fund, investor education and protection Fund,
Income Tax, Wealth Tax, Service Tax and other material statutory dues
applicable to the Company, if any, have been regularly deposited with
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at 31st March, 2013, for a period of more than
six months from the date they became payable.
b) According to the records of the Company, no dues of sales tax,
income tax, custom duty, wealth tax, service tax, excise duty, cess and
Service Tax which have not been deposited on account of any dispute
except those mentioned below :-
Sr.
No. Statutes Forum before (Rs.inlacs) Nature of Dues
Whom pending
1. Finance Act High court of 11.49 Service Tax
Jabalpur
2. Central High court
Excise Act of Jabalpur 29.08 Cenvat
3. Custom/Central CESTAT 68.42 Excise/
Excise Act Cenvat
4. Finance Act CESTAT 0.95 Service Tax/
Cenvat
5. Income Tax Act Comm Appeals 28.21 Income Tax
6. M.P.Electricty
Act Supreme Court 129.19 Cess of
Electricity
x) The Company does not have any accumulated losses at the end of the
financial year but has incurred cash loss in the financial year
immediately preceding such financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of loans taken
from banks and financial institutions.
(xii) 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.
Therefore, the provisions of Clause 4(xii) of the Order are not
applicable to the Company.
(xiii) The Company is not a chit fund or a nidhi mutual benefit
fund/society. Accordingly, the provisions of Clause 4(xiii) of the
Order are not applicable to the Company.
(xiv) In respect of investments made, in our opinion and according to
the information and explanations given to us, proper records have been
maintained of the investments and timely entries have been made
therein. The investments have been held by the company in its own name.
(xv) As per the information and explanations given to us, we are of the
opinion that the terms and conditions at which guarantees have been
given by the company for loans taken from financial institutions and/or
banks by other, are not prejudicial to the interest of the Company
(xvi) Based on the information & explanations given to us by the
management, we are of the opinion that the loans taken were applied for
the purpose they are obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
(xviii)During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956. Hence, clause
4(xviii) of the order is not applicable.
(xix) The Company has not issued debentures during the year. Therefore,
the provisions of Clause 4(xix) of the Companies (Auditors'' Report)
Order, 2003 are not applicable to the Company
(xx) The Company has not raised money by way of public issue during the
year. Therefore, the provisions of Clause 4(xx) of the Companies
(Auditors'' Report) Order, 2003 are not applicable to the Company.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For GUPTA VIGG & CO.
Chartered Accountants
Firm Regn.No.001393N
Place: LUDHIANA. VIPAN KUMARGUPTA
Dated: 30.05.2013 PARTNER
M.NO. 502737
Mar 31, 2012
We have audited the attached Balance Sheet of M/s Nahar Spinning Mills
Limited, Ludhiana (the Company) as at 31st March, 2012, Statement of
Profit and Loss and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Company's Management. Our responsibility is to express an
opinion on these financial statements based on our audit.
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.
As required by the Companies (Auditors' Report) Order, 2003 {as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004}
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the annexure a
Statement on the matters specified in Paragraph 4 of the said Order.
Further to our comments in the Annexure referred to in Paragraph 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 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 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
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2012 from being appointed as a Director in terms of Clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us, they said accounts read together with the
significant accounting policies & notes to the financial statement,
give the information required by the Companies Act, 1956, in the
manner so required and give a true and fair in conformity with the
accounting principles generally accepted in India:-
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) in the case of the Statement of Profit and Loss, of the Loss of
the company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, the Cash Flows of the Company
for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT [Referred to in paragraph (3) thereof]
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management during the year. In our opinion, the frequency of physical
verification is reasonable and no material discrepancies were noticed
on such verification.
(c) No substantial part of Fixed Assets has been disposed off during
the year.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) 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) On the basis of our examination of inventory records, we are of the
opinion that the Company is maintaining proper records of the
inventory. As explained to us, no material discrepancies were noticed
on physical verification of inventories as compared to book records.
(iii) According to the explanations and information given to us, the
Company has neither granted nor taken any loan from the parties covered
in the Register maintained under section 301 of the Companies Act,
1956. Hence, the clause 4(iii)(a) to (g) of the Companies (Audit
Report) Order, 2003 are not applicable in the case of the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and nature of its business with regards to
purchase of inventory and fixed assets. The provisions regarding sale
of goods and services are not applicable to the Company. During the
course of our audit, we have not observed any major weakness in
internal control.
(v) According to the information and explanation given to us,we are of
the opinion that there are no transactions that need to be entered in
register maintained u/s 301 of the Companies Act,1956.
(vi) The Company has not accepted any deposits from the public. Hence,
the clause 4(vi) of the Order is not applicable to the Company.
(vii) In our opinion, the Company has internal audit system
commensurate with its size and nature of its business.
(viii)We have broadly reviewed the books of accounts and records of
cost maintained by the Company pursuant to the rules made by Central
Government for maintenance of cost records under Section 209(1)(d) of
the Companies Act, 1956 and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have,
however, not done a detailed examination of the records with a view to
determine whether they are accurate and complete.
(ix) (a) According to the records of the Company, undisputed statutory
dues including provident fund, investor education and protection fund,
income tax, wealth tax, service tax and other material statutory dues
applicable to the Company, if any, have been regularly deposited with
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at 31st March, 2012, for a period of more than
six months from the date they became payable.
(b) According to the records of the Company, no dues of sales tax,
income tax, custom duty, wealth tax, service tax, excise duty, cess and
Service Tax which have not been deposited on account of any dispute
except those mentioned below:-
Sr.
No. Statutes Forumbe fore (Rs. in lacs) Nature of Dues
Whom pending
1. Finance Act High court of
jabalpur 7.01 Service Tax
2. Central
Excise Act High court of
Jabalpur 23.09 Cenvat
3. Custom/Central CESTAT 6.28 Service
Excise Act Tax/Cenvat
4. Custom/ Central
Excise Act Comm. Appeal 78.06 Custom/Service
Tax/Cenvat
5. Central
Excise Act At joint
Secretary 11.00 Draw back
6. M.P.Electricty Supreme Court 129.19 Cess of
Act Electricity
(x) The Company does not have any accumulated losses at the end of the
financial year but has incurred cash loss in the financial year and
there was no cash loss in the financial year immediately preceding such
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of loans taken
from banks and financial institutions.
(xii) 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.
Therefore, the provisions of Clause 4(xii) of the Order are not
applicable to the Company.
(xiii) The Company is not a chit fund or a nidhi mutual benefit
fund/society. Accordingly, the provisions of Clause 4(xiii) of the
Order are not applicable to the Company.
(xiv) In respect of investments made, in our opinion and according to
the information and explanations given to us, proper records have been
maintained of the investments and timely entries have been made
therein. The investments have been held by the company in its own name.
(xv) As per the information and explanations given to us, we are of the
opinion that the terms and conditions at which guarantees have been
given by the company for loans taken from financial institutions and/or
banks by other, are not prejudicial to the interest of the Company
(xvi) Based on the information & explanations given to us by the
management, we are of the opinion that the loans taken were applied for
the purpose they are obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
(xviii)During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956. Hence, clause
4(xviii) of the order is not applicable.
(xix) The Company has not issued debentures during the year. Therefore,
the provisions of Clause 4(xix) of the Companies (Auditors' Report)
Order, 2003 are not applicable to the Company.
(xx) The Company has not raised money by way of public issue during the
year. Therefore, the provisions of Clause 4(xx) of the Companies
(Auditors' Report) Order, 2003 are not applicable to the Company.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For GUPTA VIGG & CO.
Chartered Accountants
Firm Regn.No.001393N
Place: LUDHIANA. VIPAN KUMAR GUPTA
Dated: 30.05.2012 PARTNER
M.NO.502737
Mar 31, 2011
We have audited the attached Balance Sheet of M/s Nahar Spinning Mills
Limited, Ludhiana (the Company) as at 31st March, 2011 and also Profit
& Loss Ac- count and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial state- ments are the
responsibility of the Company's Man- agement. 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 Stan- dards require that we plan and perform
the audit to obtain reasonable assurance about whether the finan- cial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the finan- cial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the over- all financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors' Report) Or- der, 2003 {as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004}
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the annexure a
Statement on the matters specified in Paragraph 4 of the said Order.
Further to our comments in the Annexure referred to in Paragraph above,
we report that:-
a) We have obtained all the information and expla- nations, which to
the best of our knowledge and belief were necessary for the purpose of
our au- dit;
b) In our opinion, proper books of account as re- quired by law have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & 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
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2011 from being appointed as a Director in terms of Clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with the
Sched- ule-24 of Notes on Accounts thereon, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair in conformity with the accounting principles gen-
erally accepted in India:-
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(ii) in the case of the Profit & Loss Account, of the profit for the
year ended on that date; and
(iii) in the case of Cash Flow Statement, the Cash Flows of the Company
for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT [Referred to in paragraph (3) thereof]
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management during the year. In our opinion, the frequency of physical
verification is reasonable and no material discrepancies were noticed
on such verification.
(c) No substantial part of Fixed Assets has been disposed off during
the year.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) 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) On the basis of our examination of inventory records, we are of the
opinion that the Company is maintaining proper records of the
inventory. As explained to us, no material discrepancies were noticed
on physical verification of inventories as compared to book records.
(iii) According to the explanations and information given to us, the
Company has neither granted nor taken any loan from the parties covered
in the Register maintained under section 301 of the Companies Act,
1956. Hence, the clause 4(iii)(a) to (g) of the Companies (Audit
Report) Order, 2003 are not applicable in the case of the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and nature of its business with regards to
purchase of inventory and fixed assets. The provisions regarding sale
of goods and services are not applicable to the Company. During the
course of our audit, we have not observed any major weakness in
internal control.
(v) According to the information and explanation given to us,we are of
the opinion that there are no transactions that need to be entered in
register maintained u/s 301 of the Companies Act,1956.
(vi) The Company has not accepted any deposits from the public. Hence,
the clause 4(vi) of the Order is not applicable to the Company.
(vii) In our opinion, the Company has internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of accounts and records of
cost maintained by the Company pursuant to the rules made by Central
Government for maintenance of cost records under Section 209(1)(d) of
the Companies Act, 1956 and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have,
however, not done a detailed examination of the records with a view to
determine whether they are accurate and complete.
(ix) (a) According to the records of the Company, undisputed statutory
dues including provident fund, investor education and protection fund,
income tax, wealth tax, service tax and other material statutory dues
applicable to the Company, if any, have been regularly deposited with
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at 31st March, 2011, for a period of more than
six months from the date they became payable.
(b) According to the records of the Company, no dues of sales tax,
income tax, custom duty, wealth tax, service tax, excise duty, cess and
Service Tax which have not been deposited on account of any dispute
except those mentioned below :-
Sr. Statutes Forum before Amount Nature of Dues
No. Whom Pending (Rs.)
1. Finance Act Comm. Appeal 2321766 Service Tax
2. CEA High Court of 1170485 Excise Duty
Jabalpur
3. Customs/Central Comm. Appeal 9993678 Custom/Excise
Excise Act Duty
4. M.P.Electricity Act Supreme 12918635 Cess of
Court electricity
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the financial year immediately preceding such financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of loans taken
from banks and financial institutions.
(xii) 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. Therefore,
the provisions of Clause 4(xii) of the Order are not applicable to the
Company.
(xiii) The Company is not a chit fund or a nidhi mutual benefit
fund/society. Accordingly, the provisions of Clause 4(xiii) of the
Order are not applicable to the Company.
(xiv) In respect of investments made, in our opinion and according to
the information and explanations given to us, proper records have been
maintained of the investments and timely entries have been made
therein. The investments have been held by the company in its own name.
(xv) As per the information and explanations given to us, we are of the
opinion that the terms and conditions at which guarantees have been
given by the company for loans taken from financial institutions and/or
banks by other, are not prejudicial to the interest of the Company
(xvi) Based on the information & explanations given to us by the
management, we are of the opinion that the loans taken were applied for
the purpose they are obtained.
(xvii)According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short- term basis that
have been used for long-term investment.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956. Hence, clause
4(xviii) of the order is not applicable.
(xix) The Company has not issued debentures during the year. Therefore,
the provisions of Clause 4(xix) of the Companies (Auditors' Report)
Order, 2003 are not applicable to the Company.
(xx) The Company has not raised money by way of public issue during the
year. Therefore, the provisions of Clause 4(xx) of the Companies
(Auditors' Report) Order, 2003 are not applicable to the Company.
(xxi)According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For GUPTA VIGG & CO.
Chartered Accountants
Firm Regn.No.001393N
Vinod Khanna
(Partner)
M. No. 81585
PLACE : Ludhiana
DATED : 30.05.2011
Mar 31, 2010
We have audited the attached Balance Sheet of M/s Nahar Spinning Mills
Limited, Ludhiana (the Company) as at 31st March, 2010 and also Profit
& Loss Account and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the
responsibility of the Companys Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Stan- dards require that we plan and perform
the audit to obtain reasonable assurance about whether the finan- cial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the finan- cial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the over- all financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Or- der, 2003 {as
amended by the Companies (Auditors Report) (Amendment) Order, 2004}
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the annexure a
Statement on the matters specified in Paragraph 4 of the said Order.
Further to our comments in the Annexure referred to in Paragraph above,
we report that:-
i We have obtained all the information and expla- nations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii In our opinion, proper books of account as re- quired by law have
been kept by the Company so far as appears from our examination of
those books;
iii The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv In our opinion, the 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;
v On the basis of written representations received from the Directors
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2010 from being appointed as a Director in terms of Clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
vi In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Sched- ule-24 of Notes on Accounts thereon, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair in conformity with the accounting principles gen-
erally accepted in India:- (i) in the case of the Balance Sheet, of the
state of affairs of the Company as at 31st March, 2010;
(ii) in the case of the Profit & Loss Account, of the profit for the
year ended on that date; and
(iii) in the case of Cash Flow Statement, the Cash Flows of the Company
for the year ended on that date.
ANNEXURE TO AUDITORS REPORT [Referred to in paragraph (3) thereof]
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management during the year. In our opinion, the frequency of physical
verification is reasonable and no material discrepancies were noticed
on such verification.
(c) No substantial part of Fixed Assets has been disposed off during
the year.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) 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) On the basis of our examination of inventory records, we are of the
opinion that the Company is maintaining proper records of the
inventory. As explained to us, no material discrepancies were noticed
on physical verification of inventories as compared to book records.
(iii) According to the explanations and information given to us, the
Company has neither granted nor taken any loan from the parties covered
in the Register maintained under section 301 of the Companies Act,1956.
Hence, the clause 4(iii)(a) to (g) of the Companies (Audit Report)
Order,2003 are not applicable in the case of the company
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and nature of its business with regards to
purchase of inventory and fixed assets. The provisions regarding sale
of goods and services are not applicable to the Company. During the
course of our audit, we have not observed any major weakness in
internal control.
(v) (a) In our opinion and according to the information and
explanations given to us, we are of the opinion that the transactions
made in pursuance of contracts or arrangements that need to be entered
in the register maintained under Section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements entered in the Register maintained under section 301 have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public. Hence,
the clause 4(vi) of the Order is not applicable to the Company.
(vii) In our opinion, the Company has internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of accounts and records of
cost maintained by the Company pursuant to the rules made by Central
Government for maintenance of cost records under Section 209(1)(d) of
the Companies Act, 1956 and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have,
however, not done a detailed examination of the records with a view to
determine whether they are accurate and complete.
(ix) (a) According to the records of the Company, undisputed statutory
dues including provident fund, investor education and protection fund,
income tax, wealth tax, service tax and other material statutory dues
applicable to the Company, if any, have been regularly deposited with
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at 31st March, 2010, for a period of more than
six months from the date they became payable.
(b) According to the records of the Company, no dues of sales tax,
income tax, custom duty, wealth tax, service tax, excise duty, cess and
Service Tax which have not been deposited on account of any dispute
except those mentioned below :-
Sr.
No. Statutes Forum before Amount Nature of Dues
Whom Pending (Rs.)
1. Finance Act Comm. Appeal 2229480 Service Tax
2. CEA High Court of 969765 Excise Duty
Jabalpur
3. Finance Act High Court of 700720 Service Tax
Jabalpur
4. M.P.
Electricity
Act Supreme 12918635 Cess of electricity
Court
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the financial year immediately preceding such financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of loans taken
from banks and financial institutions.
(xii) 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. Therefore,
the provisions of Clause 4(xii) of the Order are not applicable to the
Company.
(xiii) The Company is not a chit fund or a nidhi mutual benefit
fund/society. Accordingly, the provisions of Clause 4(xiii) of the
Order are not applicable to the Company.
(xiv) In respect of investments made, in our opinion and according to
the information and explanations given to us, proper records have been
maintained of the investments and timely entries have been made
therein. The investments have been held by the company in its own name.
(xv) As per the information and explanations given to us, we are of the
opinion that the terms and conditions at which guarantees have been
given by the company for loans taken from financial institutions and/or
banks by others, are not prejudicial to the interest of the company.
(xvi) Based on the information & explanations given to us by the
management, we are of the opinion that the loans taken were applied for
the purpose they are obtained.
(xvii)According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short- term basis that
have been used for long-term investment.
(xviii) During the year, the Company has not made any preferential
allotment of shares, Hence, clause 4(xviii) of the order is not
applicable.
(xix) The Company has not issued debentures during the year. Therefore,
the provisions of Clause 4(xix) of the Companies (Auditors Report)
Order, 2003 are not applicable to the Company.
(xx) The Company has not raised money by way of public issue during the
year. Therefore, the provisions of Clause 4(xx) of the Companies
(Auditors Report) Order, 2003 are not applicable to the Company.
(xxi)According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For GUPTA VIGG & CO.
Chartered Accountants
Firm Regn.No.001393N
PLACE : Ludhiana Vinod Khanna
DATED : 29.05.2010 (Partner)
M. No. 81585