Mar 31, 2014
We have audited the accompanying financial statements of Santosh Fine
Fab Limited "the Company"), which comprise the Balance Sheet as at
March 31,2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements The Company''s
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
Accounting Standards notified under the Companies Act,1956 (the Act)
read with the General Circular 15/2013 dated 13th September, 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and in accordance with the accounting principles
generally accepted in India. 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. 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 ofthe
Company as at March 31,2014;
(b) in the case ofthe Statement of Profit and Loss, ofthe profit for
the year ended on that date; and
(c) in the case ofthe Cash Flow Statement, ofthe cash flows for the
year ended on that date.
Emphasis of Matter
We would like to draw the attention on The Company''s policy of
providing gratuity and other long term employee''s benefits on the
payment basis and not on the actuarial valuation as per accounting
standard-15. The same has been stated in Note No. 24
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 ofthe Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 ofthe Order.
2. As required by Section 227(3) ofthe 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 o f 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 attached Balance Sheet, Statement of Profit and
Loss and Cash Flow Statement comply with the Accounting Standards
notified under the Act read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 ofthe Companies Act, 2013; except non provision of gratuity
as perNote No. 24.
(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 ofthe Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT (Referred to in paragraph 1 of our
report of even dale to the members of Santosh Fine-Fab Limited on the
accounts for the year ended 1st March, 2014)
i. In respect of the Fixed Assets,
a) The company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets.
b) As per the information and explanations given to us. physical
verification of fixed assets has been carried out by the Company and no
material discrepancies were noticed on such verification. In our
opinion, the frequency of verification is reasonable, having regard to
the size of the Company and nature of its business.
c) None of part of fixed assets has been disposed off during the year
under review, which could affect the going concern status of the
company.
ii. In respect of the inventories :
a) As per the information furnished, the inventories have been
physically verified during the year by the management. In our opinion,
having regard to the nature and location of stocks, the frequency of
the physical verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory 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 inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
iii. In respect of loans granted, secured or unsecured, to the
companies, firms or other parties covered in the Register maintained
under section 301 of the Companies Act, 1956, as per the information
and explanations provided to us, we report that the Company has not
granted any such loans and therefore, sub-clauses (b), (c) and (d) of
clause (iii) of paragraph 4 of the said Order are not applicable to the
Company.
In respect of loans taken, secured or unsecured, from the companies,
firms or other parties covered in Register maintained under Section 301
of Companies Act, 1956, as per information and explanations given to us
, we report that the company has not taken any unsecured loan during
the year under review, hence other sub clause are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets. During the course of our audit, we have
not come across any continuing failure to correct major weaknesses in
internal control system.
v. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we report that
the transactions that need to be entered into a register in pursuance
of section 301 of the Act, have been so entered.
b) In our opinion and according to the information and explanations
give to us, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 and
exceeding the value of five lacs rupees in respect of any party during
the year, have been made at prices which are reasonable having regard
to prevailing market prices at the relevant time.
vi. According to the information and explanations given to us, the
Company has not accepted any deposits during the year from the public,
within the meaning of the provisions of Sections 58A and 58AA of the
Companies Act, 1956 and rules made there under. Therefore, the
provisions of clause (vi) of paragraph 4 of the said Order are not
applicable to the Company.
vii. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
business.
viii. The Central Government has prescribed maintenance of the cost
records under section 209(l)(d)of the Companies Act, 1956 in respect of
textile manufacturing activity of the company. We have broadly reviewed
the books of accounts and records maintained by the Company in this
connection and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records with a view to
determining whether they are accurate or complete.
ix. a) According to the information and explanations given to us and
the records examined by us, the company has been regular in depositing
with appropriate authorities undisputed statutory dues including Income
Tax, Provident Fund, Sales Tax and any other statutory dues wherever
applicable. According to the information and explanations given to us,
no undisputed arrears of statutory dues were outstanding as at 31 st
March 2014 for a period of more than six months from the date they
became payable.
b) According to the records of the Company, and information and
explanations given to us there are no dues of Income tax / Sales Tax/
Wealth Tax/ Service Tax/ Custom Duty, Excise Duty/ Cess which has not
been deposited on account of disputes.
x. There are no accumulated losses of the Company as on 31 st March
2014. The Company has not incurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
xi. As per the information and explanations given to us and based on
our audit, the Company has not defaulted in repayment of dues to
financial institution or bank.
xii. Based on our examination of the records and the information given
to us, 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. Therefore, the provisions of clause (xii) of paragraph 4 of
the said Order are not applicable to the Company.
xiii. In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
(xiii) of paragraph 4 of the said Order are not applicable to the
Company.
xiv. Based on our examination of the records and the information given
to us, the Company has not dealt or traded in shares, securities,
debentures and other investments. Therefore, the provisions of clause
(xiv) of paragraph 4 of the said Order are not applicable to the
Company.
xv. According to the information and explanations given to us. the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi. As per information and explanation, the company has taken term
loans of Rs.26.41 Lacs during the year has been utilised for the
purpose it was taken.
xvii. In our opinion and according to information and explanations made
available to us, no short term funds have been utilized for long term
purposes during the year.
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. The Company has not issued any debentures. Therefore, the
provisions of clause (xix) of paragraph 4 of the said Order are not
applicable to the Company.
xx. The Company has not raised any money by public- issues during the
year covered by our report. Therefore. the provisions of clause (xx)
of paragraph 4 of the said Order are not applicable to the Company.
xxi. Based on our audit procedures performed for the purpose of
reporting the true and fair view of financial statements and as per the
information and explanations given to us by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For Bhuwania & Agrawal Associates
ICAI Firm Registration Number: 101483W
(Chartered Accountants)
ABHISHEK JAIN
Partner
Membership Number: 509839
PLACE: MUMBAI
DATE : 29th May, 2014
Mar 31, 2013
Report on the Financial Statements We have audited the accompanying
financial statements of Santosh Fine Fab 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 accounting principles
generally accepted in India, including 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''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.
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
The company has not provided gratuity as per accounting standard-15 and
the exact amount of gratuity not ascertained. Except above in our
opinion und 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
1. As required by the Companies ( Auditor''s Report) Order. 2003
("the Order") issued by the Central Government of India in terms of
sub-section <4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report arc 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
sub- section (3C) of Section 211 of the Companies Act. 1956; except
non provision of gratuity as per Note No. 23.
(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.
(Referred to in paragraph 1 of our report of even dale to the members
of Santosh Fine-Fab Limited on the accounts for the year ended 31 st
March. 2013)
i. In respect of the Fixed Assets.
a) The company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets.
b» As per the information and explanations given to us. physical
verification of fixed assets has been earned out by the Company and no
internal discrepancies were noticed on such verification. In our
opinion, the frequency of verification is reasonable, having regard to
the size of the Company and nature of its business.
c) None of pan of fixed assets has been disposed off during the year
under review, which could affect the going concern status of the
company.
ii. In respect of the inventories:
a) As per the information famished, the inventories have been
physically verified dung the year by the management. In our opinion,
having regard to the nature and location of stocks, the frequency of
the physical verification is reasonable.
b) In our opinion and according to the information and explanations
given lo us. procedures of physical verification of inventory 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 inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
iii. In respect of loans granted, secured or unsecured, to the
companies, limns or other panics covered in the Register maintained
under section 301 of the Companies Act. 1956. as per the information
and explanations provided to us. we repos that the Company has not
granted any such loans and therefore, sub-clauses (b). (c) and (d) of
clause (iii) of paragraph 4 of the said Order are not applicable to the
Company.
In respect of loans taken, secured or unsecured, from the companies,
firms or other panics covered in Register maintained under Section 301
of Companies Act. 1956. as per information and explanations given to us
, we repot that the company has not taken any unsecured loan during the
year under review, hence other sub clause arc not applicable.
iv. In our opinion and according to the information and explanations
given to us. there is an adequate internal corm system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets. During the course of our audit, we have
not come across any continuing failure technical major weaknesses in
internal corral system.
v. a) Based on the audit procedures applied by us and
according to the information and explanations provided by the
management, we repon that the transactions that need to be entered into
a register in pursuance of section 301 of the Act, have been so
entered.
b) In our opinion and according to the intonation and explanations
give to us. the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 and
exceeding the value of five lacs rupees in respect of any partly during
the year, have been made at prices which are reasonable having regard
to prevailing market prices all the relevant time.
vi. According to the information and explanations given to us. the
Company has not accepted any deposits during the year from the public,
within the meaning of the provisions of Sections 58A and 58AA of the
Companies Act, 1956 and rules made there under. Therefore, the
provisions of clause (vi) of paragraph 4 of the said Order are not
applicable to the Company.
vii. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
business.
vii. The Central Government- has prescribed maintenance of the cost
records under section 209(1 Xd) of the Companies Act. 1956 in rcspcct
of textile manufacturing activity of the company. We have broadly
reviewed the books of accounts and records maintained by the Company in
this connection and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determining whether they are accurate or complete.
ix. a) According to the information and explanations given to us and
the records examined by us, the company has been regular in depositing
with appropriate authorities undisputed statutory dues including Income
Tax. Provident Fund. Sales Tax and any other statutory dues wherever
applicable. According to the information and explanations given 10 us.
no undisputed arrears of statutory dues were outstanding as at 31st
March. 2013 for a period of more than six months from the dale they
became payable.
b) According to the records of the Company, and information and
explanations given to us there are no dues of Income lax / Sales Tax
Wealth Tax-'' Service Tax. Custom Duty/ Excise Duly/ Cess which has not
been deposited on account of disputes.
x There are no accumulated losses of the Company as on 31st March 2013
The Company has not incurred any cash losses during the financial year
covered by our audit and the immediately preceding financial year.
xi. As per the information and explanations given to us and based on
our audit, the Company has not defaulted in repayment of dues lo
financial institution or bank.
xii. Based on our examination of the records and the intonation given
lo us. the Company has not gramed any loans and/or advances on the
basis of security by way of pledge of shares, debentures and other
securities. Therefore, the provisions of clause (xii) of paragraph 4 of
the said Order are not applicable lo the Company.
xiii In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the said Order are not applicable to the Company.
xiv. Based on our examination of the records and the information given
to us. the Company has not dealt or traded in shares, securities,
debentures and other investments. Therefore, the provisions of clause
(xiv) of paragraph 4 of the said Order are not applicable to the
Company.
xv. According to the information and explanations given to us. the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi. The company has not taken any term loans during Ihe year.
Therefore, the provisions of clause (xvi) of paragraph 4 of the said
Order are noi applicable to the Company.
xvii In our opinion and according to information and explanations made
available to us. no short term funds have been utilized for long term
purposes during the year.
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. The Company has not issued any debentures. Therefore, the
provisions of clause (xix) of paragraph 4 of the said Order are not
applicable lo the Company.
xx. The Company has not raised any money by public issues during the
year covered by our report. Therefore, the provisions of clause (xx) of
paragraph 4 of the said Order are not applicable to the Company.
xxi. Based on our audit procedures performed for the purpose of
reporting the true and fair view of financial statements and as per the
information and explanations given to us by the management, we repon
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For Bhuwania & AgrawaI Associates
ICAI Firm Registration Number: 101483W
(Chartered Accountants)
Ravi Kumar Bhattcr
(Partner
M.No. 146658
PLACE. MUMBAI
DATE: 29th May. 2013
Mar 31, 2012
1) We have audited the attached Balance Sheet of Santosh Fine-Fab
Limited ("the Company") as at 31st March 2012, and the related Profit
and Loss Account and Cash Flow Statement of the Company for the year
ended on that date annexed thereto, which we have signed under
reference to this report. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2) We conduct our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An Audit includes,
examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
3) As required by the Companies (Auditor's Report) Order, 2003 (CARO),
and as amended by the Companies (Auditors Report) (Amendment) Order,
2004 (together the "Order"), issued by the Central Government of India
in terms of sub section (4 A) of section 227 of the Companies Act, 1956,
we give in the Admixture hereto a statement on the matters specified in
paragraphs 4 & 5 of the said Order.
4) Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of accounts a s required by Law have
been kept by the Company so far as appears from our examination of
those books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the attached Balance Sheet, Profit and Loss Account
dealt with by this report are in compliance with the Accounting
Standards referred to in Section 211 (3C) of the Companies Act, 1956 to
the extent applicable except non provision of long term defined
employee benefits as referred in point No. 24 of notes on account.
e) On the basis of written representations received from the
directors, as on 31st March 2012 and taken on record by board of
Directors, none of the Directors are disqualified as on 31st March 2012
from being appointed as Directors in term of clause (g) of sub-section
(1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts give the information
required by the Companies Act, 1956in the manner so required and give a
true & fair view in conformity with the accounting principle generally
accepted in India.
i. In the case of Balance Sheet of the state of affairs of the Company
as at 31 st March 2012;
ii. In the case of the Profit and Loss Account of the Profit for the
year ended on that date and
iii. In the case of the Cash Flow Statement of the Cash Flow of the
company for the year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 3 of our report of even date to the members
of Santosh Fine-Fab Limited on the accounts for the year ended 31 st
March. 2012)
i. In respect of the Fixed Assets,
a) The company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets.
b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out by the Company and no
material discrepancies were noticed on such verification. In our
opinion, the frequency of verification is reasonable, having regard to
the size of the Company and nature of its business.
c) No substantial part of fixed assets has been disposed off during the
year under review, which could affect the going concern status of the
company.
ii. In respect of the inventories:
a) As per the information furnished, the inventories have been
physically verified during the year by the management. In our opinion,
having regard to the nature and location of stocks, the frequency of
the physical verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory 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 inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
iii. In respect of loans granted, secured or unsecured, to the
companies, firms or other parties covered in the Register maintained
under section 301 of the Companies Act, 1956, we report, as per the
information and explanations provided to us, that the Company has not
granted any such loans and therefore, sub-clauses
(b), (c) and (d) of clause (iii) of paragraph 4 of the said Order are
not applicable to the Company.
In respect of loans taken, secured or unsecured, from the companies,
firms or other parties covered in Register maintained under Section 301
of Companies Act, 1956, details of the same has been provided as under
(Amt. in Rs. Lac)
No. of Account Amount Maximum Closing
Of Loan taken Outstanding. Balance
2 90.00 62.00 --
In our opinion, and according to the information and explanations given
to us, other terms and conditions of above loan taken is prima facie
not prejudicial to the interest of the company.
In absence of any stipulated term for repayment of principal amount we
are unable to comment on whether the principal amount is due for
repayment.
As stated above in the absence of any stipulated term for repayment of
principal amount, we are unable to comment on whether there has been
any overdue amount of Rs. 1.00 Lac for more than one year.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets. During the course of our audit, we have
not come across any continuing failure to correct major weaknesses in
internal control system.
v. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we report that
the transactions that need to be entered into a register in pursuance
of section 301 of the Act, have been so entered.
b) In our opinion and according to the information and explanations
give to us, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 and
exceeding the value of five lacs rupees in respect of any party during
the year, have been made at prices which are reasonable having regard
to prevailing market prices at the relevant time.
vi. According to the information and explanations given to us, the
Company has not accepted any deposits during the year from the public,
within the meaning of the provisions of Sections 58A and 58AA of the
Companies Act, 1956 and rules made there under. Therefore, the
provisions of clause (vi) of paragraph 4 of the said Order are not
applicable to the Company.
vii. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
business.
vii. The Central Government has prescribed maintenance of the cost
records under section 209(l)(d) of the Companies Act, 1956 in respect
of textile manufacturing activity of the company. We have broadly
reviewed the books of accounts and records maintained by the Company in
this connection and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determining whether they are accurate or complete.
ix. a) According to the information and explanations given to us and
the records examined by us, the company has been regular in depositing
with appropriate authorities undisputed statutory dues including Income
Tax, Provident Fund, Sales Tax and any other statutory dues wherever
applicable. According to the information and explanations given to us,
no undisputed arrears of statutory dues were outstanding as at 31st
March, 2012 for a period of more than six months from the date they
became payable.
b) According to the records of the Company, and information and
explanations given to us there are no dues of Income tax / Sales Tax/
Wealth Tax/ Service Tax/ Custom Duty/ Excise Duty/ Cess which has not
been deposited on account of disputes.
x. There are no accumulated losses of the Company as on 31st March
2012. The Company has not incurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
xi. As per the information and explanations given to us and based on
our audit, the Company has not defaulted in repayment of dues to
financial institution or bank.
xii. Based on our examination of the records and the information given
to us, 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. Therefore, the provisions of clause (xii) of paragraph 4 of
the said Order are not applicable to the Company.
xiii. In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
(xiii) of paragraph 4 of the said Order are not applicable to the
Company.
xiv. Based on our examination of the records and the information given
to us, the Company has not dealt or traded in shares, securities,
debentures and other investments. Therefore, the provisions of clause
(xiv) of paragraph 4 of the said Order are not applicable to the Company.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi. The company has not taken any term loans during the year.
Therefore, the provisions of clause (xvi) of paragraph 4 of the said
Order are not applicable to the Company.
xvii. In our opinion and according to information and explanations
made available to us, no short term funds have been utilized for long
term purposes during the year.
xviii. During the year, the Company has not made any preferential
allotment of snares to the parties and companies covered in the
Register maintained under Section 301 of the Companies Act, 1956.
xix. The Company has not issued any debentures. Therefore, the
provisions of clause (xix) of paragraph 4 of the said Order are not
applicable to the Company.
xx. The Company has not raised any money by public issues during the
year covered by our report. Therefore, the provisions of clause (xx) of
paragraph 4 of the said Order are not applicable to the Company.
xxi. Based on our audit procedures performed for the purpose of
reporting the true and fair view of financial statements and as per the
information and explanations given to us by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For Bhuwania & Agrawal Associates
(Chartered Accountants)
(Regn.No.l01483W)
N. K. Agrawal
(Partner
M.No. 34659
PLACE: MUMBAI
DATE: 29th May, 2012
Mar 31, 2011
I) We have audited the attached Balance Sheet of SANTOSH FINE-FAB
LIMITED, as at 31st March 2011, and the Profit and Loss Account and
also cash flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
ii) We conduct our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An Audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
iii) As required by the Companies (Auditor's Report) Order, 2003,
issued by the Central Government of India in terms of sub section (4A)
of section 227 of the Companies Act, 1956, We enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
iv) Further to our comments in the annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of accounts as required by Law have
been kept by the Company so far as appears from our examination of
those books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the attached Balance Sheet, Profit and Loss Account
and cash flow statement dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956 except non- provision of Gratuity as referred in Point.No.3
of notes of Accounts.
e) On the basis of written representations received from the directors,
as on 31st March 2011 and taken on record by board of Directors, we
report that none of the Directors are disqualified as on 31 st March
2011 from being appointed as Directors in term of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true & fair view in conformity with the accounting principle
generally accepted in India, subject to note No.3 .of Notes of account
regarding non provision of gratuity and the exact quantum of such non
provision is not ascertainable.
i. In the case of Balance Sheet of the state of affairs of the Company
as at 31st March 2011;
ii. In the case of the Profit and Loss Account of the Profit for the
year ended on that date.
iii. In the case of the Cash Flow Statement of the Cash Flow for the
year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
Statement referred to in paragraph iii) of the Auditors Report of even
date to the Members of SANTOSH FINE-FAB LIMITED on the accounts for the
year ended 31st March 2011
As required by the Companies (Auditor's Report) Order 2003, issued by
the Company Law Board in terms of Section 227 (4A) of the companies
Act, 1956, and on the basis of such checks as consider appropriate and
as per the information and explanations given to us during the course
of the audit.
1. i) The company has maintained proper records showing
full particulars, including quantitative details and situations of
fixed assets.
ii) As per the information and explanations given to us, physical
verification of fixed assets has been carried out by the Company and no
material discrepancies were noticed on such verification. In our
opinion, the frequency of verification is reasonable, having regard to
the size of the Company and nature of its business.
iii) Non of fixed assets have been disposed off during the year, which
effect going concern status of the company.
2. i) As per the information furnished, the inventories have
been physically verified during the year by the management. In our
opinion, having regard to the nature and location of stocks, the
frequency of the physical verification is reasonable.
ii) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
iii) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
3.i) The Company has not granted any loans secured/unsecured to the
companies, firm & other parties covered in register maintained u/s.301
of the companies act, 1956, during the year under review, hence other
sub clauses are not applicable.
ii) The company has taken unsecured loan from companies covered in the
register maintained u/s.301 of companies act, 1956, during the year
under review, Details are as under:
No. of Account Amount Maximum Closing
Of Loan Outstanding. Balance
2 Rs.58,00,000/- Rs.45,00,000/- 20,20,157/-
ii) The rate of interest and the other terms and conditions of loan
taken are not prima-facie prejudicial to the interest of the company.
ii) The company is regular in paying the principal amount and interest
as stipulated, if any.
iii) As informed to us no amount in excess of Rs. One Lac are overdue
for payment of the principal and interest.
4. 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 purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit, we have not come
across with the continuing major weakness in the internal control
procedure.
5. i) 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 have been so
entered.
ii) In our opinion and according to the information and explanations
give to us, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 and
exceeding the value of five lacs rupees in respect of any party during
the year, have been made at prices which are reasonable having regard
to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits during the year from the
public, within the meaning of the provisions of Sections 58A and 58AAof
the Companies Act, 1956 and rules made there under. Hence, the Clause
(vi) of the order is not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
business.
8. The Central Government has prescribe maintenance of the cost
records under section 209(1 )(d) of the Companies Act, 1956 in respect
of textile manufacturing activity of the Company. We have broadly
reviewed the books o; accounts and records maintained by the Company in
this connection and are of the opinion that, prima facie, the
prescribed account and records have been made and maintained. We have
however, not made a detailed examination of the records with a view to
determining whether they an accurate or complete.
9. i) According to the information and explanations given to us and the
records examined by us, the company is regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Income Tax, Sales Tax, Custom Duty, Excise Duty, cess and any
other statutory dues wherever applicable. According to the information
and explanations given to us, no undisputed arrears of statutory dues
were outstanding as at 31st March, 2011 for a period of more than six
months from the date they became payable.
ii) According to the records of the Company, the dues of sales tax /
income tax / Custom duty / wealth tax / excise duty / cess, which has
not been deposited on account of disputes and the forum where the
dispute is pending are as under: Nil
10. There are no accumulated losses of the Company as on 31st March
2011. The Company has not incurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
11. There is no default in repayment of dues to financial institution
or bank during the year.
12. Based on our examination of the records and the information given
to us, 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. Clause (xiii) of the Order is not applicable to the company as the
Company is not a chit fund Company or nidhi / mutual benefit fund /
societies.
14. The company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investment and timely entries have been made
therein. All shares, debentures and other securities have been held by
the company in its own name.
15. According to the information and explanations given to us, the
Company has been not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the
company has raised short term loan (FCNR working capital loan) which is
converted from working capital.
17. In our opinion and according to information and explanations, no
short-term fund has been used for long-term investment.
18. The Company has not made any preferential allotment of shares
during the year.
19. During the year covered by our audit report, the Company has not
issued secured debentures.
20. The Company has not raised any money by public issues during the
year covered by our report.
21. As per the information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the year.
For Bhiiwania & Agrawal Associates
(Chartered Accountants)
(Regn.No.l01483W)
N. K. Agrawal
Partner
M.No. 34659
PLACE: MUMBAI
DATE: 30/05/2011
Mar 31, 2010
I) We have audited the attached Balance Sheet of SANTOSH FINE-FAB
LIMITED, as at 31 st March 2010, and the Profit and Loss Account and
also cash flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
ii) We conduct our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An Audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
iii) As required by the Companies (Auditors Report) Order, 2003,
issued by the Central Government of India in terms of sub section (4 A)
of section 227 of the Companies Act, 1956, We enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
iv) Further to our comments in the annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of accounts as required by Law have
been kept by the Company so far as appears from our examination of
those books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the attached Balance Sheet, Profit and Loss Account
and cash flow statement dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956 except non-provision of Gratuity as referred in Point. No. 3
of notes of Accounts.
e) On the basis of written representations received from the directors,
as on 31st March 2010 and taken on record by board of Directors, we
report that none of the Directors are disqualified as on 31st March
2010 from being appointed as Directors in term of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts 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 principle
generally accepted in India subject to note No.3 .of Notes of account
regarding non provision of gratuity and the exact quantum of such non
provision is not ascertainable.
i. In the case of Balance Sheet of the state of affairs of the Company
as at 31 st March 2010;
ii.In the case of the Profit and Loss Account of the Profit for the
year ended on that date.
iii.In the case of the Cash Flow Statement of the Cash Flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in paragraph iii) of the Auditors Report of even
date to the Members of SANTOSH FINE-FAB LIMITED on the accounts for the
year ended 31st March 2010
As required by the Companies (Auditors Report) Order 2003, issued by
the Company Law Board in terms of Section 227 (4 A) of the companies
Act, 1956, and on the basis of such checks as consider appropriate and
as per the information and explanations given to us during the course
of the audit.
l.i) The company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
ii) As per the information and explanations given to us, physical
verification of fixed assets has been carried out by the Company and no
material discrepancies were noticed on such verification. In our
opinion, the frequency of verification is reasonable, having regard to
the size of the Company and nature of its business.
iii) None of the fixed assets have been disposed off during the year.
2. i) As per the information furnished, the inventories have
been physically verified during the year by the management. In our
opinion, having regard to the nature and location of stocks, the
frequency of the physical verification is reasonable.
ii) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
iii) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
3. i) The Company has not granted any loans secured/unsecured to the
companies, firm & other parties covered in register maintained u/s.301
of the companies act, 1956, during the year under review, hence other
sub clauses are not applicable.
ii) The company has taken unsecured loan from companies covered in the
register maintained u/s.301 of companies act, 1956, during the year
under review, Details are as under:
No. of Account Amount Maximum Closing
Of Loan Outstanding. Balance
1 Rs. 15,00,000/- Rs. 15,00,000/- Nil
ii) The rate of interest and the other terms and conditions of loan
taken are not prima-facie prejudicial to the interest of the company.
ii) The company is regular in paying the principal amount and interest
as stipulated, if any.
iii) As informed to us no amount in excess of Rs.One Lac are overdue
for payment of the principal and interest.
4. 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 purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit, we have not come
across with the continuing major weakness in the internal control
procedure.
5. i) 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 have been so entered.
ii) In our opinion and according to the information and explanations
give to us, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 and
exceeding the value of five lacs rupees in respect of any party during
the year, have been made at prices which are reasonable having regard
to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits during the year from the
public, within the meaning of the provisions of Sections 58Aand 5 8 AA
of the Companies Act, 1956 and rules made there under. Hence, the
Clause (vi) of the order is not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
business.
8. The Central Government has prescribed maintenance of the cost
records under section 209(1 )(d) of the Companies Act, 1956 in respect
of textile manufacturing activity of the Company. We have broadly
reviewed the books of accounts and records maintained by the Company in
this connection and are of the opinion that, prima facie, the
prescribed account and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determining whether they are accurate or complete.
9. i) According to the information and explanations given to
us and the records examined by us, the company is regular in depositing
with appropriate authorities undisputed statutory dues including
Provident Fund, Income Tax, Sales Tax, Custom Duty, Excise Duty, Cess
and any other statutory dues wherever applicable. According to the
information and explanations given to us, no undisputed arrears of
statutory dues were outstanding as at 31 st March, 2010 for a period of
more than six months from the date they became payable.
ii) According to the records of the Company, the dues of Sales Tax /
Income Tax / Custom Duty / Service Tax /Wealth Tax / Excise Duty /
Cess, which has not been deposited on account of disputes and the forum
where the dispute is pending are as under: Nil
10. There are no accumulated losses of the Company as on 31st March
2010. The Company has not incurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
11. There is no default in repayment of dues to financial institution
or bank during the year.
12. Based on our examination of the records and the information given
to us, 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. Clause (xiii) of the Order is not applicable to the company as the
Company is not a chit fund Company or nidhi / mutual benefit fund /
societies.
14. The company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investment and timely entries have been made
therein. All shares, debentures and other securities have been held by
the company in its own name.
15. According to the information and explanations given to us, the
Company has been not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the
company has raised short term loan (FCNR working capital loan) which is
converted from working capital. The company did not have any other term
loan during the year.
17. In our opinion and according to information and explanations, no
short-term fund has been used for long-term investment.
18. The Company has not made any preferential allotment of shares
during the year.
19. During the year covered by our audit report, the Company has not
issued secured debentures.
20. The Company has not raised any money by public issues during the
year covered by our report.
21. As per the information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the year.
For Bhuwania & Agrawal Associates
(Chartered Accountants)
(Regn.No.l01483W)
N. K. Agrawal
(Partner)
M.No. 34659
PLACE: MUMBAI
DATE: 25/05/2010
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