Mar 31, 2014
We have audited the accompanying financial statements of Rishab Special
Yarns Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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 the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act 2013. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit We conducted our audit in accordance with
the Standards on Auditing Issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''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 welt 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 Statement of Profit and Loss, of the 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:
As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
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 How Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with the
General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act 2013;
and
e) on the basis of written representations received from the directors
as on 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 THE AUDITORS'' REPORT
Statement on the Matters Specified in paragraph 4 & 5 of Companies
(Auditors Report) order 2003 as referred to in our Report of even date
under the heading "Report on Other Legal & Regulatory" requirements:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of the
Tangible Assets.
(b) As explained to us, the Tangible Assets have been physically
verified by the management during the year at regular Intervals, which
in our opinion is reasonable having regard to the size of the company
and nature of its assets. No material discrepancies were noticed on
such physical verification.
(c) The company has decided to discontinue the manufacturing operations
due to non viability and has disposed off its entire Tangible Assets
except major part of Land & Building and some Furniture. Accordingly,
the going concern status of the company has affected.
2. The Company did not have any inventory during whole of the year
under audit.
3. (a) The company has not granted unsecured loans during the year to
the persons specified under section 301 of The Companies Act 1956.
(b) The company has taken interest-free unsecured loans, repayable on
demand, from three parties covered in the register maintained under
section 301 of the Companies Art, 2013. The maximum amount involved
during the year was Rs. 1,96,00,000/- and the year-end balance of loans
taken from such parties was Rs. 1,76,27,951/-. As the loans are
interest free and repayable on demand, sub clause (f) and (g) are not
applicable.
4. In our opinion and according to the information and explanations
give to us, there are adequate internal control procedures commensurate
with the size of the company and nature of its business with regard to
purchase and also for the sale of goods and services. During the course
of our audit we have not observed any continuing failure to correct
major weaknesses in internal controls.
5. As explained to us, there has not been any transaction required to
be entered in the register maintained under section 301 of the
Companies Act, 1956 aggregating during the year to Rs. 5,00,000/- or
more in respect of each such party.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public.
Hence the provisions of Section 58A and 58AA or any other relevant
provisions of the Companies Act, 2013 and the Rules framed there under
are not applicable.
7. As explained to us, in view of no business activities being carried
on by the company, no interna) audit was carried out.
8. As explained to us, there was no manufacturing activity during the
year, as such the clause regarding maintenance of cost records U/s 209
(1) (d) of the Companies Act, 1956 is not applicable.
9. a. The company is generally regular in depositing undisputed
statutory dues including provident fund, employees'' state insurance,
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess and other statutory dues with appropriate authorities,
wherever applicable to it.
b. According to the information and explanations given to us, as at
31st March, 2014, except a sum of Rs. 14623/- in respect of Sales Tax,
no undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, custom duty, excise duty and cess were in
arrears for a period exceeding six months from the date they become
payable.
c. As per records of the company and in accordance with the information
and explanations given to us, there are no dues of income tax, custom
duty, wealth tax, which have not been deposited on account of any
dispute. However, in the case of excise duty and cess the particulars
on account of dispute are reported herein below:
Name of Statute Nature of Period to Amount Forum
Dues which the (Rupees
amount in Lakh)
relates
Excise & Customs Excise Duty 2002-2003 83.36 The Commissioner -
(NCCD) (Appeals), Customs,
Excise & Service
Tax
Textile Textile 1989-1997 8.27 Rajasthan High
Committee Committee Court
Cess
10. The accumulated losses of the company at the end of the financial
year are more than 50% of its net worth and though the company has not
incurred cash losses during the year immediately preceding financial
year, it has incurred cash losses during the year under report.
11. During the year the company has not availed any loan from financial
institutions. There are no dues of Financial Institutions, Banks &
Debenture Holders.
12. The company has not granted any loans and/or advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
14. During the year, the company has not done any dealing/trading in
shares, debentures and other securities.
15. According to the information and explanations given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions.
16. During the year the company has not taken any term loan.
17. According to the information and explanations given to us and an on
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
investments.
18. During the year, the company has not made any preferential
allotment of shares to the parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956.
19. The company has not issued any debentures.
20. During the year, the company has not raised any money by public
issue.
21. 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 Jain Shrimal & CO.
Chartered Accountants
(FRN. 001704C)
[S.K. Jain]
Place : Jaipur Partner
Dated : 30.05.2014 (M. No. 010145)
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Rishab Special
Yarns 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 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 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 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''* 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 issuod 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 nvolves 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. 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 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
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.
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
suDsection (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.
RE : RISHAB SPECIAL YARNS LIMITED, JAIPUR ANNEXURE TO THE AUDITOR''S
REPORT
(Referred to in Paragraph 3 of our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of the angible
Assets.
(b) As explained to us, the Tangible Assets have been physically
verified by the management during the year at regular intervals, which
in our opinion is reasonable having regard to the size of the company
and nature of its assets. No material discrepancies were noticed on
such physical verification.
(c) The company has decided to discontinue the manufacturing operations
due to non viability and has disposed off its entire Tangible Assets
except major part of Land & Building and some Furniture. Accordingly,
the going concern status of the company has affected.
2. The Company did not have any inventory during whole of the year
under audit. i
3. (a) The company has not granted unsecured loans during the year to
the persons specified under section 301 of The Companies Act 1956.
(b) The company has taken interest-free unsecured loans, repayable on
demand, from four parties covered in the register maintained under
section 301 of the Companies Act, 1956. The maximum amount involved
during the year was Rs. 2,25,78,117/- and the year end balance of
loans taken from such parties was Rs. 2,00,85,360/-. As the loans are
interest free and repayable on demand, sub clause (f) and (g) are not
applicable.
4. In our opinion and according to the information and explanation
give to us, there are adequate internal control procedures commensurate
with the size of the company and nature of its business with regard to
purchase and also for the sale of goods and services. During the course
of our audit we have not observed any continuing failure to correct
major weaknesses in internal controls.
5. As explained to us, there has not been any transaction required to
be entered in the register maintained under section 301 of the
Companies Act, 1956 aggregating during the year to Rs. 5,00,000/- or
more in respect of each such party.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public.
Hence the provisions of Section 58A, 58Aa or any other relevant
provisions of the Companies Act, 1956 and the Rules framed there under
are not applicable.
7. As explained to us, in view of no business activities being carried
on by the company, no internal audit was carried out.
8. As explained to us, there was no manufacturing activity during the
year, as such the clause regarding maintenance of cost records U/s
209(1)(d) of the Companies Act, 1956 is not applicable.
9. a. The company is generally regular in depositing undisputed
statutory dues including provident fund, employees'' state insurance,
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess and other material statutory dues with appropriate
authorities, wherever applicable to it.
b. According to the information and explanations given to us, as at
31** March, 2013, except a sum of Rs. 14623/- in respect of Sales Tax,
no undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, custom duty, excise duty and cess were in
arrears for a period exceeding six months from the date they become
payable.
10. The accumulated losses of the company at the end of the financial
year are more than 50% of its net worth and though the company has not
incurred cash losses during the year under report, it has incurred cash
losses during the immediately preceding financial year.
11. During the year the company has not availed any loan from
financial institutions. There are no dues of Financial Institution,
Banks & Debenture Holders.
12. The company has not granted any loans and/or advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
14. During the year, the company has not done any dealing/trading in
shares, securities, debentures and other investments.
15. According to the information and explanation given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions.
16. During the year the company has not taken any term loan.
17. According to the information and explanations given to us and an
on 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
investments.
18. During the year, the company has not made any preferential
allotment of Shares to the parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956.
19. The company has not issued any debentures.
20. During the year, the company has not raised any money by public
issue.
21. In accordance with the information and explanations given to us,
no fraud on or by the company has been noticed or reported during the
year.
FOR Jain Shrimal & CO.
CHARTERED ACCOUNTANTS
(FRN.001704C)
[S.K.JAIN]
Place: Jaipur PARTNER
Dated: 30/05/2013 (M. No. 010145)
Mar 31, 2011
We have audited the attached Balance Sheet of RISHAB SPECIAL YARNS
LIMITED, JAIPUR as at 31st March 2011. and also the Profit & Loss
Account for the year ended on that date annexed thereto and cash flow
statement for the year ended on that date. 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 the 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, 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 paragraphs 4 and 5 of the said order.
Further to our comments in the annexure referred to in the paragraph
(1) above:
(i) 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.
(ii) In our opinion proper books of account as required by law have
been maintained by the company so far as appears from our examination
of such books.
(iii) The Balance Sheet, the Profit and 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, the Profit 8. Loss Account and
Cash Flow Statement dealt by this report have been prepared in
compliance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956..
(v) Based on representations made by all the directors of the company
and the information and explanation as made available, directors of the
company do not prima facie have any disqualification as referred to in
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 with the notes
thereon, give the information required by the Companies Act 1956 in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) In the case of Balance Sheet, of the state of affairs as at 31st
March, 2011 and
(b) In the case of Profit and Loss Account, of the Profit for the year
ended on that date.
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in Paragraph 3 of our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of the Fixed
Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year at regular intervals, which in our
opinion is reasonable having regard to the size of the company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) The company has decided to discontinue the manufacturing operations
due to non viability and has disposed off its entire fixed assets
except major part of Land & Building and some Furniture. Accordingly,
the going concern status of the company has been affected.
2. The Company did not have any inventory during whole of the year
under audit.
3. (a) The company has not granted unsecured loans during the year.
(b) The company has taken interest-free unsecured loans, repayable on
demand, from four parties covered in the register maintained under
section 301 of the Companies Act, 1956. The maximum amount involved
during the year was Rs. 26158787/- and the year end balance of loans
taken from such parlies was Rs. 22126526/-. As the loans are interest
free and repayable on demand, sub clause (f) and (g) are not
applicable.
4. In our opinion and according to the information and explanation
give to us, there are adequate internal control procedures commensurate
with the size of the company and nature of its business with regard to
purchase and also for the sale of goods and services. During the course
of our audit we have not observed any continuing failure to correct
major weaknesses in internal controls.
5. As explained to us, there has not been any transaction required to
be entered in the register maintained under section 301 of the
Companies Act, 1956 aggregating during the year to Rs. 5,00,000/- or
more in respect of each such party.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public.
Hence the provisions of Section 58A, 58Aa or any other relevant
provisions of the Companies Act, 1956 and the Rules framed there under
are not applicable.
7. As explained to us, in view of no business activities being carried
on by the company, no internal audit was carried out.
8. As explained to us, there was no manufacturing activity during the
year, as such the clause regarding maintenance of cost records U/s 209(
1) (d) of the Companies Act, 1956 is not applicable.
9. a. The company is generally regular in depositing undisputed
statutory dues including provident fund,
employees state insurance, income tax, sales tax, wealth tax, service
fax, custom duty, excise duty, cess and other material statutory dues
with appropriate authorities, wherever applicable to it.
b. According to the information and explanations given to us, as at
31st March, 2011, except a sum of Rs. 14623/- in respect of Sales Tax,
no undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, custom duty, excise duty and cess were in
arrears for a period exceeding six months from the date they become
payable.
c. As per records of the company and in accordance with the
information and explanation given to us, there are no dues of income
tax, custom duty, wealth tax, which have not been deposited on account
of any dispute. However, in the case of excise duty and cess the
particulars on account of dispute are reported herein below:
Name of Statute Nature of Period to
which the Amount Forum
Dues amount
relates
Excise & Customs Excise Duty 2002-2003 83.36 Customs, Excise &
(NCCD) Service Tax Appellate
Tribunal
Textile
Committee Textile 1989-1997 8.27 Rajasthan High Court
Committee
Cess
10. The accumulated losses of the company at the end of the financial
year are more than 50% of the net worth of the company and the company
has incurred cash losses during the year and also in the immediately
preceding financial year.
11. During the year the company has not availed any loan from
financial institutions. There are no dues of Financial Institution,
Banks & Debenture Holders. The company has not issued any debentures.
12. The company has not granted any loans and/or advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
14. During the year, the company has not done any dealing/trading in
shares, securities, debentures and other investments.
15. According to the information and explanation given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions.
16. During the year the company has not taken any term loan.
17. According to the information and explanations given to us and an
on 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
investments.
18. During the year, the company has not made any preferential
allotment of shares to the parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956.
19. The company has not issued any debentures.
20. During the year, the company has not raised any money by public
issue.
21. In accordance with the information and explanations given to us,
no fraud on or by the company has been noticed or reported during the
year.
FOR N. C. DHADDA & CO.
CHARTERED ACCOUNTANTS
(Regn. No. 000986C)
[S.K.JAIN]
PARTNER
(M. No. 010145)
Place: Jaipur
Dated: 27.05.2011
Mar 31, 2010
We have audited the attached Balance Sheet of RISHAB SPECIAL YARNS
LIMITED, JAIPUR as at 31st March 2010, and also the Profit & Loss
Account for the year ended on that date annexed thereto and cash flow
statement for the year ended on that date. 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 the 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, 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 paragraphs 4 and 5 of the said order.
Further to our comments in the annexure referred to in the paragraph
(1) above:
{I) 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.
(ii) In our opinion proper books of account as required by law have
been maintained by the company so far as appears from our examination
of such books.
(iii) The Balance Sheet, the Profit and 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, the Profit 8. Loss Account and
Cash Flow Statement dealt by this report have been prepared in
compliance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956..
(v) Based on representations made by all the directors of the company
and the information and explanation as made available, directors of the
company do not prima facie have any disqualification as referred to in
clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
(vi) We refer to Note No. 2 in the financial statements. In view of
continued losses and unavibility of the business, the management
discontinued the business operations of the company and sold entire
remaining plant & machinery & misc. fixed assets except for land and
building & some furniture & fixtures. These factors, along with other
matters as set forth in the Note No. 2 may unable the company to
continue as a going concern.
(vii) In our opinion and to the best of our information and according
to the explanations given to us, the said accounts read with the notes
thereon, give the information required by the Companies Act 1956 in the
manner so required and subject to para (vi) above, give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) In the case of Balance Sheet, of the state of affairs as at 31st
March, 2010; and
(b) In the case of Profit and Loss Account of the LOSS for the year
ended on that date.
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to In Paragraph 3 of our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of the Fixed
Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year of regular intervals, which in our
opinion is reasonable, having regard to the size of the company and
nature of its assets. No material discrepancies were notice on such
physical verification.
(c) The company has decided to discontinue the manufacturing operations
of the company due to non viability and has disposed off the entire
plant & machinery of the company. Accordingly, the going concern status
of the company has been affected.
2. The Company did not have any inventory during whole of the year
under audit.
3. (a) The company has granted interest free unsecured loans,
repayable on demand, to one party listed in the register maintained
under section 301 of the Companies Act, 1956. The maximum amount
involved during the year was Rs. 4,79,000/- and the year end balance of
such loans was Rs. NIL. As the loans are interest free and repayable on
demand, sub clause (b), (c) and (d) are not applicable.
(b) The company has taken interest-free unsecured loans, repayable on
demand, from four parties covered in the register maintained under
section 301 of the Companies Act, 1956. The maximum amount involved
during the year was Rs. 27267737/- and the year end balance of loans
taken from such parties was Rs. 26165237/-. As the loans are interest
free and repayable on demand, sub clause (f) and (g) are not
applicable.
4. In our opinion and according to the information and explanation
give to us, there are adequate internal control procedures commensurate
with the size of the company and nature of its business with regard to
purchase and also for the sale of goods and services. During the course
of our audit we have not observed any continuing failure to correct
major weaknesses in internal controls.
5. As explained to us, there has not been any transaction required to
be entered in the register maintained under section 301 of the
Companies Act, 1956 and aggregating during the year to Rs. 5,00,000/-
or more in respect of each such party.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public.
Hence the provisions of Section 58A, 58Aa or any other relevant
provisions of the Companies Act, 1956 and the Rules framed there under
are not applicable. As informed to us in companys case, no order has
been passed by the Company Law Board or National Company Law Tribunal
or any court or any other tribunal.
7. As explained to us, in view of no business activities, no internal
audit was carried out.
8. As explained to us, there was no manufacturing activity during the
year, as such the clause regarding maintenance of cost records U/s
209(1) (d) of the Companies Act, 1956 is not applicable.
9. a. The company is generally regular in depositing undisputed
statutory dues including provident fund, employees state insurance,
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess and other material statutory dues with appropriate
authorities, wherever applicable to it.
b. According to the information and explanations given to us, as at
31st March, 2010, except a sum of Rs. 14623/- in respect of Sales Tax,
no undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, custom duty, excise duty and cess were in
arrears for a period exceeding six months from the date they become
payable.
c. As per records of the company and in accordance with the
information and explanation given to us, there are no dues of income
tax, custom duty, wealth tax, which have not been deposited on account
of any dispute. However, in the case of excise duty and cess the
particulars on account of dispute are reported herein below:
Name of Statute Nature of Period to
which the Amount Forum
Dues amount relates
Excise &
Customs Excise Duty 2002-2003 83.36 Customs,
Excise &
(NCCD) Service Tax
Appellate
Tribunal
Textile
Committee Textile 1989-1997 8.27 Rajasthan
High Court
Committee
Cess
10. The accumulated losses of the company at the end of the financial
year are more than 50% of the net worth of the company and the company
has incurred cash losses during the year and also in the immediately
preceding financial year.
11. During the year the company has not availed any loan from
financial institutions. There are no dues of Financial Institution,
Banks & Debenture Holders. The company has not issued any debentures.
12. The company has not granted any loans and/or advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
14. During the year, the company has not done any dealing/trading in
shares, securities, debentures and ther investments.
15. According to the information and explanation given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions.
16. During the year the company has not taken any term loan.
17. According to the information and explanations given to us and an on
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
investments.
18. During the year, the company has not made any preferential
allotment of shares to the parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956.
19. During the year, the company has not issued any debentures.
20. During the year, the company has not raised any money by way of
public issue.
21. In our opinion, on the basis of audit conducted by us and in
accordance with the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
FOR N. C. DHADDA & CO.
CHARTERED ACCOUNTANTS
(Regn. No. 000986C)
[ S.K.JAIN ]
PARTNER
(M. No. 010145)
Place: Jaipur
Dated :20th August, 2010
Mar 31, 2009
We have audited the attached balance sheet of Rishab Special Yarns
Limited as at 31st March, 2009 the Profit & Loss Account for the year
ended on that date annexed thereto and the cash flow statement for the
year ended on that date. 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 the auditing standards
generally accepted in India. Those Standards require that we plan &
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 statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of sub- section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
1. Further to our comments in the annexure referred to in the paragraph
(1) above:
(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 the law have
been maintained by the company so far as appears from our examination
of such books.
(c) The balance sheet, the 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, the profit & loss Account and
cash flow statement dealt with by this report have been prepared in
compliance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956;
(e) based on representations made by all the directors of the company
and the information and explanation as made available, directors of the
company do not prima facie have any disqualification as referred to in
clause (g) of sub- section (1) of section 274 of the Companies Act,
1956;
(f) We refer to Note No.2 in the financial statements. In view of
continued losses and unvaibilHy of the business, the management
discontinued the business operations of the company and sold entire
remaining plant & machinery & misc. fixed assets except for land &
building . These factors, alongwith other matters as set forth in the
Note No.2 may unable the company to continue as a going concern.
(g) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and subject to para (f) above, give a true and
fair view in conformity with the accounting principles generally
accepted in India:
i. in the case of balance sheet, of the state of affairs as at 31 st
March, 2009; and
ii. in the case of profit and loss account, of the loss for the year
ended on that date.
iii. in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in Paragraph 3 of our
report of even dqte) To The Members of Rishab Special Yarns Limited
Jaipur
i. a) As informed by the management, the proper records of fixed assets
showing full particulars including quantitative details and location of
fixed assets are under updation and compilation.
b) As explained to us, the fixed assets have been physically verified
by the management during the year at regular intervals, which in our
opinion is reasonable, having regard to the size of the company and
nature of its assets. No material discrepancies were notice on such
physical verification.
c) The company has decided to discontinue the manufacturing operations
of the company due to non viability and has disposed off the entire
plant & machinery of the company. Accordingly, the going concern status
of the company has been affected.
ii. a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) in our opinion and according to information and explanation given to
us, the procedures of physical verification of the company are
reasonable and adequate having regard to the size of the company and
nature of its business.
c) in our opinion and according to the information and explanation
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on such verification between physical stocks
and book records were not material and have been properly dealt with in
the books of accounts.
iii. a. The company has granted interest free unsecured loans,
repayable on demand, to one party listed in the register maintained
under section 301 of the Companies Act, 1956. The maximum amount
involved during the year was Rs. 700000/- and the year end balance of
such loans was Rs. 479000/-. As the loans are interest free and
repayable on demand, sub clause (b),(c) and (d) are not applicable. b.
The company has taken interest-free unsecured loans, repayable on
demand, from two parties covered in the register maintained under
section 301 of the Companies Act, 1956. The maximum amount involved
during the year was Rs. 2,43,90,727/- and the year end balance of loans
taken from such parties was Rs. 2,16,92,727/-. As the loans are
interest free and repayable on demand, sub clause (f) and (g) are not
applicable.
iv. In our opinion and according to the information and explanation
give to us, there are adequate internal control procedures commensurate
with the size of the company and nature of its business with regard to
purchase and also for the sale of goods and services. During the course
of our audit we have not observed any continuing failure to correct
major weaknesses in internal controls.
v. As explained to us, there has not been any transaction required to
be entered in the register maintained under section 301 of the
Companies Act, 1956 and aggregating during the year to Rs. 5,00,000/-
or more in respect of each such party.
vi. in our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public.
Hence the provisions of Section 58A, 58AA or any other relevant
provisions of the Companies Act, 1956, and the Rules framed there under
are not applicable. In companys case, no order has been passed by the
Company Law Board or National Company Law Tribunal or any court or any
other tribunal. As informed to us , no order has been passed by the
Company Law Board.
vii. As explained to us, in view of no business activities, no
internal audit was carried out.
viii. As explained to us, there was no manufacturing activity during
the year, as such the clause regarding maintenance of cost records u/s
209(1 )(d) of the companies Act, 1956 is not applicable.
ix. a. The company is generally regular in depositing undisputed
statutory dues including provident fund, employees state insurance,
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty cess and other material statutory dues with appropriate
authorities, wherever applicable to it.
b. According to the information and explanations given to us, as at
31st March, 2009, except a sum of Rs. 14623/- in respect of Sales Tax,
no undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, custom duty, excise duty and cess were in
arrears for a period exceeding six months from the date they became
payable.
c. As per records of the company and in accordance with the
information and explanation given to us, there are no dues of income
tax, custom duty, wealth tax, which have not been deposited on account
of any dispute. However, in the case of excise duty and Cess the
particulars on account of dispute are reported herein below:-
Name of Nature of dues Period to which the
Statute amount relates
Excise & Excise Duty(NCCD) 2002-2003
Customs
Textile Textile Committee 1989-1997
Committee Cess
(Cess), Rules
Name of Statue Amount Forum
Excise &
Customs 83.36 Customs, Excise & Service Tax
Appellate Tribunal
Textile
Committee
(Cess), Rules 8.27 Rajasthan High Court
x. The accumulated losses of the company at the end of the financial
year are more than 50% of the net worth of the company and the company
has incurred cash losses during the year and also in the immediately
preceding financial year.
xi. During the year the company has not availed any loan from financial
institutions. There are no dues of Financial Institution, Banks &
debenture holders.The company has not issued any debentures.
xii. The company has not granted any loans and/or advances on the
basis of security by way of pledge of shares, debentures and other
securities. xiii. In our opinion, the company is not a chit fund or a
nidhi/mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
xiv. During the year, the company has not done any dealing/trading in
shares, securities, debentures and other investments.
xv. According to the information and explanation given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions. xvi. During the year the company has not
taken any term loan .
xvii. 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
investments.
xviii. During the year, the company has not made any preferential
allotment of shares to the parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956.
xix. During the year, the company has not issued any debentures.
xx. During the year, the company has not raised any money by way of
public issue.
xxi. In our opinion, on the basis of audit conducted by us and in
accordance with the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit. For R.MohnoU Co.
Chartered Accountants
Place: Jaipur (Narender Mital)
Dated: 11/11/2009 Partner
M.No.72715