Mar 31, 2011
We have audited the attached Balance Sheet of M/s. Priyadarshini
Spinning Mills Limited, as at 31st March, 2011 and also the Profit and
Loss Account and also the Cash Flow Statement for the year ended on
that date .annexed thereto. These finan- cial statements are the
responsibility of the Company's management. Our responsibil- ity is to
express an opinion on these finan- cial 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 perfonii
the audit to obtain reasonable assurance about whether the financial
statements are flee of material misstate- ments. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the ac- counting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation, We believe that our audit pro- vides a
reasonable basis for our opinion.
1. As required by the Companies (Auditor's Report) Ordcr,2003 issued
by the Central Government in terms of Section 227 (4,) of the
Companies Act, I 956, We annex hereto a statement on the matters
specified in paragraph 4 and 5 of the said order.
2. Further to our Comments in the annex- ure referred to in paragraph
I above We report that:
a) We have obtained all the information and ex- planations which tn the
best of our knowledge and belief are necessary for t4e purpose of our
audit.
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 such
books
c) The Balance Sheet. Profit and Loss account and ('ash 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 by this report comply with the accounting stan-
dards referred to in Section 21 l(3C) of the Com- panies Act, 1956.
e) On the basis of written representations received from directors and
taken on record by the Board of Directors, we report that none of the
directors of the Company are disqualified from being appointed as
directors of the Company under clause (g) of subsection(l)ofseetion 274
ofthe Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Actl956 in the maimer so required and give a
true and fair view in confor- mity with the accounting principles
generally accepted in India:
i. In the case of the Balance Sheet of the StaLe of Affairs of the
Company as at 3lt March.201 I;
ii. In the vase of The Profit and Loss Account., of the Profit of the
Company for the year ended on that date: and
iii. In the case of Cash Flew Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO AUDITORS' REPORT Annexure referred to, in paragraph 1 of
our report:
1. The Company has maintained proper records showing full particulars
including quantitative" details and situation of fixed assets.
2. The management has physically verified most of the fixed assets of
the company. The discrepancies noticed on comparison between book
records and physical inventory were not material and have been properly
dealt with in the books of account.
3. As per information and explanations given by the management during
the year the company has riot disposed off a substantial part of its
fixed assets arid the going concern assumption of the company is not
affected.
4. The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
5. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the site
olthe company and the nature of its business.
6. The company has maintained proper records of inventory and the
discrepancies noticed on physical verification as compared to hook
records were not material and have been appropriately dealt with in the
books of account.
7. The Company has not, during the year, granted or taken any loans,
secured or unsecured to/ from companies, firms or other parties covered
in the Register maintained tinder Section 301 ci the Companies
Act,1956.
8. As the Company has not granted or taken loans to/from companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act,1956,thc clause relating to rate of interest
aqd other terms mid conditions of loans given or taken by the company,
secured or unsecured, which are prima facie prejudicial to the interest
of the company is nut applicable to the company.
9. As the company has not taken loans from/ granted to companies,
firms or other parties listed in the register maintained under Section
301 of the companies Act,1956, the clause relating to the regular
payment of principal amount and interest is not applicable to the
company,
10. As the company has not taken loans from or granted to companies,
firms or other parties listed I the register maintained under section
301 of the Companies Act, 1956, the clause relating to steps taken for
recovery/payment of the principal and interest on overdue amount olmore
than one lakh, is not applicable to the company.
11. In our opinion and according to the inforrjwtion and explanations
given to us, there are adequate internal control procedures
corntnensurate with the site of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, no major
weakness has been noticed in the internal controls.
12. Fased on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 of the Companies Act,l956, have been so
entered.
13. In our opirnon and according to the information and explanations
given to us. the company has not entered into contracts or arrangements
exceeding Rs. 5 lakhs in value with companies in which directors are
interested as listed in the register maintained under Section 301 of
the Companies Act, 1956.
14. In our opinion and according to the information and explanations
given to us. the company has complied with the provisions of Sections
58A and 5SAA of the Companies Act.l956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from ihe
public. No order has been passed by the National Company Law Tribunal.
15. In our opinion, the Company has an internal audit system
commensurate with the size and nature ot'its business.
16. In our opinion and according to the information and explanations
given to us. the company has made and maintained accounts and records
prescribed by thy Central Government under secron 209(l)(d) of the
companies Act, 1956.
17. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales-tax, wealth- tax, customs
duty, excise duty, cess and other statutory dues applicable to it.
18. The Company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit and the
immediately preceding financial year.
19. In our opinion and according to the infbrmation ani explanations
given to us. the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
20. The company has not granted loans and advance on the basis of
security by way of pledge of shares, debentures and other securities.
21. The company is not a chit fund or nidhi or mutual benefit fund
/society and hence the provisions of clause 4(xiii) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
22. The Company is not dealing in or trading in shares, securities,
debentures and other investments and hence the provisions of clause
4(xiv) of the Companies (Auditor's Report Order, 2003 are not
applicable to the company.
23. In our opinion, as the Company has not given any guarantee for
loans taken by others from banks or financial institutes the provisions
of clause 4(xv) of th Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
24. In our opinion, the he term loans taken by the Company have been
applied for the purpose for which they were raised.
25. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment, No long- term funds have been used to finance short- term
basis.
26. According to the information and explanations 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.
27. According to the information and explanations given to us, during
the period covered by our audit report the Company has riot issued any
debentures.
28. According to the inlormation and explanations given to us, during
the period covered by our audit report, the Company has not raised any
monies by public issue.
29. According to the information and explanations given to us and the
books arid records examined by us, no fraud on or by the Company has
been noticed or reported during the year.
For P.SRINIVASAN & Co.,
Chartered Accountants
FR No. 004055S
Hyderabad K.RANGANATHAN
July 8, 2011 Partner
M.No. 10842
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. Priyadarshini
Spinning Mills Limited, as at 31st March,2010 and also the Profit and
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 responsibil- ity is to
express an opinion on these finan- cial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
ac- cepted in India. Those standards require that we plan and perform
the audit to ob- tain reasonable assurance about whether the financial
statements are free of mate- rial misstatements. An audit includes ex-
amining, on a test basis, evidence sup- porting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by man- agement, as well as evaluating the overall financial statement
presentation. We be- lieve that our audit provides a reasonable basis
for our opinion.
1. As required by the Companies (Auditors Report) Order,2003 issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act,1956,We annex hereto a statement on the matters specified in
paragraph 4 and 5 of the said order.
2. Further to our Comments in the annex- ure referred to in paragraph
1 above We report that:
a) We have obtained all the information and explanations which to the
best of our knowl- edge and belief are necessary for the pur- pose of
our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Com- pany so far as appears from our examina- tion of such
books.
c) The Balance Sheet, Profit and Loss ac- count 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 State- ment dealt by this report comply with the accounting
standards referred to in Sec- tion 211(3C) of the Companies Act, 1956.
On the basis of written representations received from directors and
taken on record by the Board of Directors, we report that none of the
directors of the Company are disqualified from being appointed as
directors of the Company under clause (g) of sub-section (1) of section
274 of the Companies Act, 1956.
a) In our opinion and to the best of our infor- mation and according to
the explanations given to us, the said accounts give the in- formation
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 ac- cepted 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 and Loss Account, of the Loss of the
Company for the year ended on that date; and
iii. In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
Annexure referred to, in paragraph 1 of our report:
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. The management has physically verified most of the fixed assets of
the company. The discrepancies noticed on comparison between book
records and physical inventory were not material and have been properly
dealt with in the books of account.
3. As per information and explanations given by the management during
the year the company has not disposed off a substantial part of its
fixed assets and the going concern assumption of the company is not
affected.
4. The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
5. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
6. The company has maintained proper records of inventory and the
discrepancies noticed on physical verification as compared to book
records were not material and have been appropriately dealt with in the
books of account.
7. The Company has not, during the year, granted or taken any loans,
secured or unsecured to/from companies, firms or other parties covered
in the Register maintained under Section 301 of the Companies Act, 1956.
8. As the Company has not granted or taken loans to/from companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act,1956,the clause relating to rate of interest
and other terms and conditions of loans given or taken by the company,
secured or unsecured, which are prima facie prejudicial to the interest
of the company is not applicable to the company.
9. As the company has not taken loans from/ granted to companies,
firms or other parties listed in the register maintained under Section
301 of the companies Act,1956,the clause relating to the regular
payment of principal amount and interest is not applicable to the
company.
10. As the company has not taken loans from or granted to companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956, the clause relating to steps taken for
recovery/payment of the principal and interest on overdue amount of
more than one lakh, is not applicable to the company.
11. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, no major
weakness has been noticed in the internal controls.
12. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 of the Companies Act, 1956, have been so
entered.
13. In our opinion and according to the information and explanations
given to us, the company has not entered into contracts or arrangements
exceeding Rs.5 lakhs in value with companies in which directors are
interested as listed in the register maintained under Section 301 of
the Companies Act,1956.
14. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of Sections
58A and 58AA of the Companies Act,1956 and the Companies (Acceptance of
Deposits) Rules,1975 with regard to the deposits accepted from the
public. No order has been passed by the National Company Law Tribunal.
15. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
16. In our opinion and according to the information and explanations
given to us, the company has made and maintained accounts and records
prescribed by the Central Government under section 209(1 )(d) of the
companies Act, 1956.
17. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales-tax, wealth-tax, customs
duty, excise duty, cess and other statutory dues applicable to it.
18. The Company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit and the
immediately preceding financial year.
19. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
20. The company has not granted loans and advance on the basis of
security by way of pledge of shares, debentures and other securities.
21. In our opinion, the company is not a chit fund or nidhi or mutual
benefit fund /society and hence the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order,2003 are not applicable to the
Company.
22 In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments and hence the
provisions of clause 4(xiv) of the Companies (Auditors Report )
Order,2003 are not applicable to the company.
23. In our opinion, the Company has not given any guarantee for loans
taken by others from banks or financial institutes the provisions of
clause 4(xv) of the Companies (Auditors Report) Order,2003 are not
applicable to the company.
24. In our opinion, the term loans taken by the Company have been
applied for the purpose for which they were raised.
25. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment. No long- term funds have been used to finance short- term
assets.
26. According to the information and explanations 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.
27. According to the information and explanations given to us, during
the period covered by our audit report, the Company has not issued any
debentures.
28. According to the information and explanations given to us, during
the period covered by our audit report, the Company has not raised any
money by public issue.
29. According to the information and explanations given to us and the
books and records examined by us, no fraud on or by the Company has
been noticed or reported during the course of our audit.
Hyderabad
August 14, 2010
For P.SRINIVASAN & Co.,
Chartered Accountants
K.RANGANATHAN
Partner
M.No.10842