Home  »  Company  »  R&B Denims Ltd.  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of R&B Denims Ltd.

Mar 31, 2015

Report on the Financial Statements

I have audited the accompanying financial statements of R & B DENIMS LIMITED, ("the company"). which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss, the 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

The Company''s Board of Directors is responsible for the matters in section 134(5] of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts] Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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.

Auditors'' Responsibility

My responsibility is to express an opinion on these financial statements based on my audit. I 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.

I conducted my audit in accordance with the Standards on Auditing specified under section 143(10] of the Act. Those Standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give true and fair view 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 Company''s Directors, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion on the financial statements.

Auditor''s Opinion:

In my opinion and to the best of my information and according to the explanations given to me, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a] in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2015;

b] in the case of the Profit and Loss Account, of the profit/ loss for the year ended on 31st March, 2015; and

c] in the case of the Cash Flow Statement, of the cash flows for the period from 1st April, 2014 to 31st March, 2015 on that date

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report] Order, 2004 issued by the Company Law Board in terms of Section 143(11] of the Companies Act, 2013,1 enclose in the "Annexure A" a statement on the matters specified there in.

2. As required by section 143(3] of the Act, I report that:

a] I have obtained all the information and explanations, which to the best of my knowledge and belief were necessary for the purpose of my audit.

b] In my opinion proper books of accounts as required by Law have been kept by the company, so far as it appears from my examination of the books.

c] The Balance Sheet, Profit & Loss Account and cash flow referred to in the report are in agreement with the books of accounts.

d] In my opinion, the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement comply with the Accounting Standards referred to in sub section (3C] of section 211 of the Companies Act, 1956 read with 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] There is nothing to disclose which is having adverse effect on the functioning of the company.

f] According to the information and explanations given to me and on the basis of written representations received from the directors as on March 31, 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015, from being appointed as a director in terms of sub-section (2] of section 164 of the Act.

g] With respect to the other matters included in the Auditor''s Report and to my best of my information and according to the explanations given to me:

I. The Company does not have any pending litigations which would impact its financial position

II. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses

III. There were no amounts which required to be transferred, to the Investor Education and Protection Fund by the Company.

As required by the Companies (Auditor''s Report] Order, 2004 and according to the information and explanations given to us during the course of audit and on the basis of such checks as were considered appropriate, I report that:

ANNEXURE "A" TO THE AUDITORS REPORT

Sr. Particulars Auditors Remark No.

(i) (a) whether the company is maintaining Yes the company is proper records showing full particulars, maintaining Prpoer including quantitative details and records situation of fixed assets;

(b) whether these fixed assets have been Yes physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account;

(ii) (a) whether physical verification of Yes inventory has been conducted at reasonable intervals by the management;

(b) are the procedures of physical Yes procedure of verification of inventory Yes procedures physical of physical verification of followed by verification of the management reasonable and adequate in inventory followed inventory followed by the management is by the management reasonable relation to the size of the is responsible company and the nature of its and and adequate adequate business. If not, the inadequacies in such procedures should be reported;

(c) whether the company is maintaining Yes Company is proper records of inventory and whether maintaining any material discrepancies were noticed proper records on physical verification and if so, and no material whether the same have been properly discrepancy was dealt with in the books of account; noticed.

(iii) (iii) whether the company has granted No. any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act. If so,

(a) whether receipt of the principal N.A. amount and interest are also regular; and

(b) if overdue amount is more than rupees N.A. one lakh, whether reasonable steps have been taken by the company for recovery of the principal and interest;

(iv) is there an adequate internal control Yes internal system commensurate internal control system control system is adequate, with the size of the company inadequate and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. Whether there is a continuing failure to correct major weaknesses in internal control system.

(v) in case the company has accepted No. Company has not deposits, whether the accepted any directives issued by the Reserve deposits, by the Bank of India and the Directives issued Reserve Bank of provisions of sections 73 to 76 India and or any other relevant provisions the provisions of there under, where relevant provisions sections 73 to 76 of the Companies Act and the applicable, or any have been complied with If not, other of the the nature of rules framed contraventions Companies should be stated; If an order has been Act and passed by Company Law Board or National the rules framed Company Law Tribunal or Reserve there under have Bank of India or any court or any other been complied. tribunal, whether the same has been complied with or not?

(vi) where maintenance of cost records has been Yes maintained. specified by the Central Government under sub-section (1) of section 148 of the Companies Act, whether such accounts and records have been made and maintained;

(vii) (a) is the company regular in depositing Yes. undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor.

(b) in case dues of income tax or sales N.A. tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not constitute a dispute).

(c) whether the amount required to be N.A transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under has been transferred to such fund within time.

(viii) whether in case of a company which has been N.A. as company registered for a period not less than five have no accumulated years, its accumulated losses at the end of losses. the financial year are not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the immediately preceding financial year;

(ix) whether the company has defaulted in No. repayment of dues to a financial institution or bank or debenture holders If yes, the period and amount of default to be reported;

(x) whether the company has given any guarantee No. for loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company;

(xi) whether term loans were applied for the Yes. purpose for which the loans were obtained;

(xii) whether any fraud on or by the company has No. been noticed or reported during the year; If yes, the nature and the amount involved is to be indicated.

NOTE 1

R&B Denims is a Limited Company incorporated in November 2010 by the RawatKhedia and the Borana group, two amongst the most influential textile houses in the polyester hub at Surat. Both of these companies have a long lineage of more than 30 years each, in the textile industry, and are very well known in their areas of expertise. The commercial production of the Company had been started in financial year 2012-13

The Company is engaged in to the business of manufacturing and sale of quality Denim Textile Products. Today the Company is manufacturing various types of Denim ranging from 9 to 14 Oz/Sq. yd. with Open End Spun Yarns, Multi Count, Cottons and Polyester Spandex with Indigo Bottom Sulphur Toppings and Sulphar Bottom and Indigo Toppings with both Foam and Wet Finishes.

Since inception, growth of the company has been remarkable and company created itself a prime position among others. The brand has achieved nationwide recognision and image of its own. To enhance corporate image and brand name. Company has got listed on SME platform of Bombay Stock Exchange on 22nd April 2014.

NOTE 2

1. Basis of Accounting (AS 1)

I. The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India ("Indian GAAP") to comply with the Accounting Standards notified under Section 211(3C] of the Companies Act, 1956 ("the 1956 Act") (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 ("the 2013 Act") in terms of General Circular 15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs] and the relevant provisions of the 1956 Act / 2013 Act, as applicable, and guidelines issued by the Securities Exchange Board of India.

II. These accounts are prepared on the historical cost basis and the accounting principles of a going concern.

III. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2. Use of Estimates (AS 1]

The preparation of financial statement require estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates and differences between actual results and estimates are recognized in the periods in which the results are known / materialize.

3. Inventories (AS 2]

Stock of Raw Material and WIP is valued at cost. Finished goods are valued at cost or market value whichever is less. Cost of Raw Material and Finished Goods includes the purchase cost (Net of any taxes on which credits are received or receivable] and other incidental cost, to bring such material to its present location and condition.

4. Cash Flows (AS 3)

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities of the Company are segregated, accordingly.

5. Depreciation (AS 6)

Depreciation is provided on Written Down Value Method in the manners prescribed in Schedule II of Companies Act 2013 (In previous years as per Schedules XIV to the Companies Act, 1956], on the basis of shifts / manners of utilization of the assets. Depreciation on additions/ disposals during the year has been provided on pro-rata basis with reference to the nos. of days utilized.

The useful life of assets has been changed in Companies Act 2013 and accordingly depreciation rates are taken as per life of assets provided in Part C of Schedule II of Companies Act 2013. For the opening balances of fixed assets as on 1st April 2014, the rates for depreciation have been applied as mentioned in Note 7 of Part C of Schedule II of the Companies Act 2013. Accordingly the opening balances of Fixed Assets as on 1st April 2014 have been written off in the remaining life of respective assets as per New Companies Act.

6. Revenue Recognition (AS 9)

Revenue is recognised when it is earned and no significant uncertainty exists as to its realisation or collection. Revenue from sale of goods is recognised on delivery of the products, when all significant contractual obligations have been satisfied, the property in goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained. Sales are net off taxes and accounted on mercantile basis.

7. Fixed Assets (AS 10)

(i] Fixed assets shown under gross block are valued at cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition and also include cost of installation wherever incurred. All pre-operative costs, including specific financing cost till commencement of commercial production, net charges on foreign exchange contracts and adjustment arising from foreign exchange rate variations attributable to the fixed assets are capitalised.

(ii] (ii] Depreciation on fixed assets has been charged on written down value basis, pro-rata for the period of use, by adopting the revised rates of depreciation specified in Schedule II of the Companies Act,2013.

8. Foreign Currency Transactions fAS 11)

(i) The reporting currency of the company is Indian rupees.

(ii) Transactions in foreign currencies are recognized at the prevailing exchange rates on the transaction dates. Realize gain and losses on settlement of foreign currency transactions are recognized in the profit and loss account under the natural revenue heads of accounts. Exchange differences relating to fixed assets are capitalised to respective Fixed Asset.

(iii] Foreign Currency assets and liabilities at the year end are translated at the year end exchange rates, and the resultant exchange difference is recognized in the profit and loss account.

(iv) In case of forward contract, foreign currency derivatives or other financial instruments that are in substance forward exchange contracts, the premium or discount arising at the inception of the contract transactions are included in determining the net profit for the year.

9. Investments (AS 13)

Long term Investments are valued at cost. Provision for diminution is made to recognise a decline, other than temporary, in the value of investments. Current investments are stated at lower of cost or market value.

10. Employee benefits (AS 15)

Defined- contrihution plans:

i) Provident fund and pension scheme are Defined Contribution Plans in the Company. The Company is a member of recognized Provident Fund scheme established under The Provident Fund & Miscellaneous Act, 1952 by the Government of India. The Company is contributing 12% of Salary & Wages of eligible employees under the scheme every month. The amount of contribution is being deposited each and every month. The contribution paid or payable under the scheme is recognized during the period under which the employee renders the related services.

(ii) Employee Gratuity Fund Scheme is the Defined Benefit Plan. Provision for gratuity has been made in the accounts, in case of those employees who are eligible for the retirement benefits. Gratuity is paid at the time of retirement of employees. Provision for gratuity liability is provided based on Actuarial Valuation made.

11. Foreign exchange transactions

i) Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions are recognised in the profit and loss account. Exchange differences relating to fixed assets are adjusted in the cost of the asset.

(ii] Amount payable and receivable in the foreign currency as at the year end are translated at the year end exchange rate. Gains and losses thereon are recognised in the profit and loss account.

12. Borrowing costs (AS 16)

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalised as part of the cost of that asset till such time the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use.

13. Earnings per share (AS 20)

Basic and Diluted earnings/(loss) per share are calculated by dividing the net profit / (loss) for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes] by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are approved by the board of directors.

14. Taxes on income (AS 22]

Current tax - Provision for current tax is made based on tax liability computed after considering tax allowances and exemptions.

Deferred tax - Deferred tax is recognised on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. Deferred tax assets are recognised and carried forward to the extent that there is a reasonable or virtual certainty, as may be applicable, that sufficient future taxable income will be available against which such deferred tax asset can be realised.

15. Impairment of assets (AS 28)

An impairment loss is charged to the Statement of profit and loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

16. Provisions and contingent liabilities (AS 29)

A provision is recognised when the company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

17. Preliminary Expenses (AS 26)

Preliminary Expenditure is written off fully during the year under its occurance as per As 26.

FOR, PRADEEP SINGHI & ASSOCIATES Chartered Accountants FRN. 108029W

SD/-

PRADEEP KUMAR SINGHI Proprietor Date: 20/05/2015 M. NO. 024612 Place: Surat


Mar 31, 2014

I have audited the accompanying financial statements of R & B DENIMS LIMITED, which comprise the Balance Sheet for the year ended on 31st March, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the same period, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with 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 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

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Auditor''s Opinion:

In my opinion and to the best of my information and according to the explanations given to me, 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 31st March, 2014; and

c) in the case of the Cash Flow Statement, of the cash flows for the period from 1st April, 2013 to 31st March, 2014 on that date

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2004 issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, I enclose in the "Annexure A" a statement on the matters specified in paragraphs 4 and 5 of the said order.

2. As required by section 227(3) of the Act, we report that:

a) I have obtained all the information and explanations, which to the best of my knowledge and belief were necessary for the purpose of my audit.

b) In my opinion proper books of accounts as required by Law have been kept by the company, so far as it appears from my examination of the books.

c) The Balance Sheet, Profit & Loss Account and cash flow referred to in the report are in agreement with the books of accounts.

d) In my opinion, the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement comply with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956 read with 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) According to the information and explanations given to me and 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 31st March, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

As required by the Companies (Auditor''s Report) Order, 2004 and according to the information and explanations given to us during the course of audit and on the basis of such checks as were considered appropriate, I report that:

ANNEXURE "A" TO THE AUDITORS REPORT

1 Fixed Assets :

a) The company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

b) As explained to me, the assets have been physically verified by the management in accordance with a phased program of verification, which in my opinion is reasonable, considering, the size and nature of its business. The frequency of verification is reasonable and no material discrepancies have been noticed on such physical verification.

c) The Company has not disposed of the substantial part of fixed assets during the period covered under Audit, which affect the going concern assumption.

2 Inventory:

a) As informed to me, the stock of finished goods, work-in-progress, stores, spare-parts & raw materials have been physically verified by the management at reasonable intervals during the period covered under Audit, except material lying with third parties, where confirmations are obtained. In my opinion the frequency of verification is reasonable.

b) In my opinion the procedures of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

c) The Company has maintained proper records of inventories. The discrepancies noticed on the verification of stocks as compared to book records were not material and these have been properly dealt with in the books of accounts.

3 Loans & Advances:

a) The company has taken unsecured loans from companies, Firms or other parties mentioned under the register maintained u/s. 301 of the companies Act, 1956. There are four such parties and amount of loan accepted during the period under audit is Rs. 240 lacs. The amount of loan repaid to eight such parties during the period under audit is Rs. 385 lacs.

b) As per information and explanations given to me, the rate of interest wherever applicable and other terms and conditions, if applicable on loan taken are not prima facie prejudicial to the interest of the Company.

c) The company has not granted loans to companies, Firms or other parties mentioned under the register maintained u/s. 301 of the companies Act, 1956.

d) As per information and explanation given to me, no interest is charged on any loan granted by the company wherever applicable. Other terms and conditions, if applicable on loan given are not prima facie prejudicial to the interest of the company.

e) The parties to whom advances in the nature of loans have been given are repaying the principles amounts as stipulated wherever applicable.

f) There are no overdue amounts of loans taken or granted by the company.

4 Internal control procedure :

In my opinion and according to the information and explanations given to me, internal control procedure for the purchase of stores, raw materials including components, plant and machinery, equipment and other assets and for the sale of goods are adequate with the size of the company and nature of its business. During the course of my audit, no major weakness has been noticed in the internal controls.

5 Transaction with Parties u/s. 301:

a) The Transaction made in pursuance of contracts or arrangements that need to be entered into the register maintained u/s. 301 of the companies act, 1956 have been recorded in register.

b) In my opinion and according to the information and explanation given to me, the transaction exceeding Rs.5 Lacs each have been made at price, which are reasonable having regards to prevailing market price at the relevant time.

6 Public Deposits:

The company has not accepted deposits from public; hence the clause is not applicable.

7 Internal Audit System:

In my opinion, the company has an adequate internal audit system commensurate with its size and nature of its business.

8 Cost Records :

I have reviewed the books of accounts maintained by the Company as prescribed by the Central Government for maintenance of cost records u/s. 209(1)(d) of the Companies Act, 1956 and I am of the opinion that prima facia the prescribed accounts and records have been made and maintained. However, I have not carried out a detail examination of the accounts and records.

9 Statutory Dues:

i) According to the information and explanation given to me and the records examined by me, the company is generally regular in depositing undisputed statutory dues including Income tax, Service Tax, Wealth tax, Sales tax, Custom duty, Excise Duty, Provident Fund, Cess and any other statutory dues with appropriate authorities. According to the information and explanations given to me, there are no undisputed amounts payable in respect of Statutory dues which has remained outstanding as at 31st March, 2014 for a period more than six months from the date they became payable.

ii) According to the information and explanation given to me, there is no undisputed amount payable in respect of such statutory dues.

10 Accumulated/Cash Losses :

The company has accumulated losses at the end of the period covered under Audit and it has not incurred any cash losses in the current and immediate preceding financial year.

11 Default in Repayment of Dues to Banks/Financial Institution etc :

The company has not defaulted in repayment of dues to the Financial Institution or Banks.

12 Granting of Loan & Advances :-

According to the information and explanations given to me, the Company has not granted any unsecured or secured Loan & Advances on the basis of securities by way of pledge of shares, debentures and other securities.

13 Chit Fund/Nidhi/Mutual Fund:

The provisions of any Special Statute applicable to Chit Fund, Nidhi, Mutual Benefit Fund/ Societies are not applicable to the company.

14 Dealing or Trading in Shares etc :

As explained to me by the management, the company has not purchased securities / shares of the Govt. and other companies for investment purpose.

15 Guarantee Given by Company :

As explained to me, the company has not given any guarantee.

16 Utilization of Term Loans:

In my opinion and according to the information and explanations given to me, the term loans are applied for the purpose for which the loans were obtained.

17 Application of Short Term Fund for Long Term Investment and vice versa :

According to the information and explanations given to me and on an overall examination of the balance sheet of the company, I report that short term funds have not been used to finance long term investments and vice versa.

18 Preferential Allotment of Shares :

During the period covered under Audit, the company has issued 5,00,000 equity shares at Rs. 10 each with securities Premium Rs. 20 each on 29-04-2013 and 15,00,000 equity shares at Rs. 10 each with securities Premium Rs. 20 each on 28-06-2013.

19 Creation of Securities for Debenture Issued:

The Company has not issued any Debenture during the period covered under Audit.

20 End Use of Money:

The Company has not raised any money by way of public issues during the period covered under Audit.

21 Fraud noticed or Reported :

As per information & explanation given to me, no fraud on or by the company has been noticed or reported during the course of my audit.

FOR, PRADEEP SINGHI & ASSOCIATES Chartered Accountants FRN. 108029W

PRADEEP KUMAR SINGHI Proprietor Date: 25/08/2014 M. NO. 024612 Place: Surat

 
Subscribe now to get personal finance updates in your inbox!