Mar 31, 2015
We have audited the accompanying financial statements of TUNI TEXTILE
MILLS LIMITED ("the Company"), which comprise the Balance Sheet as at
31 March 2015, 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
The Company's Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding the assets of the Company and for
preventing and detecting the frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give true
and fair view in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion
on whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
(b) in the case of the Statement of Profit and Loss , of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) the Balance Sheet, the 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 aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies Act, 2013 (Audit and
Auditors) Rules, 2014, in our opinion and to the best of our knowledge
and belief and according to the information and explanations given to
us.
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements (refer note no.29)
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses; and
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
Annexure to Independent Auditor's Report
Referred to in our report of even date under the heading of "Report on
Other Legal and Regulatory Requirements"
In terms of information and explanations given to us and the books and
records examined by us in the normal course of audit and to the best of
our knowledge and belief, we state that:
1. in respect of fixed assets:
a) the Company has generally maintained records showing particulars,
including quantitative details and situation of its fixed assets; and
b) we have been informed that the management has, at reasonable
intervals during the year, physically verified major portion of the
fixed assets. No material discrepancies, as represented to us, were
noticed on such verification;
2. in respect of Inventory:
a) the inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable;
b) the procedures, as explained to us, of physical verification of
inventories followed by the management are, in our opinion; reasonable
and adequate in relation to the size of the Company and the nature of
its business; and
c) the Company has maintained proper records. No material
discrepancies, as informed to us, have been noticed on physical
verification of stock as compared to book records;
3. the Company has, during the year, not granted any loans, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under section 189 of the Act. Accordingly clauses (a) and
(b) of paragraph 3 (iii) of the Order are not applicable;
4. in our opinion, there are generally adequate internal control
procedures commensurate with the size of the Company and the nature of
its business, for the purchase of inventory and fixed assets and for
the sale of goods and services. During the course of audit, no
continuing failure to correct major weakness has been noticed in these
internal control systems;
5. the Company has not accepted any deposit from public;
6. the Central Government has not specified the maintenance of cost
records under sub section 1 of Section 148 of the Act for any of the
products of the Company for the year under audit;
7. in case of in respect of Statutory Dues;
a) on the basis of books and records examined by us, the following
undisputed statutory dues have delayed been deposited with the
appropriate authorities:
Sr. No. Nature Amount in Rs. Due date Date deposited on
a. Provident Fund 8213 20/05/2014 10/12/2014
8244 20/06/2014 10/12/2014
8240 20/07/2014 17/12/2014
7909 20/08/2014 17/12/2014
7985 20/09/2014 09/01/2015
8400 20/10/2014 09/01/2015
7779 20/11/2014 09/01/2015
8105 20/12/2014 20/03/2015
7010 20/01/2015 20/03/2015
6880 20/02/2015 20/03/2015
b. Professional Tax 8900 30/04/2014 05/03/2015
8900 31/05/2014 05/03/2015
8900 30/06/2014 05/03/2015
8550 31/07/2014 05/03/2015
8550 31/08/2014 05/03/2015
8550 30/09/2014 05/03/2015
8550 31/10/2014 05/03/2015
8550 30/11/2014 05/03/2015
8350 31/12/2014 05/03/2015
8350 31/01/2015 05/03/2015
8350 28/02/2015 19/03/2015
8175 31/03/2015 17/04/2015
c. Service Tax 10016 05/05/2014 21/10/2014
9901 05/06/2014 21/10/2014
9786 05/07/2014 21/10/2014
9671 05/08/2014 21/10/2014
9555 05/09/2014 21/10/2014
9440 05/10/2014 21/10/2014
10178 05/11/2014 07/04/2015
10040 05/12/2014 07/04/2015
9901 05/01/2015 07/04/2015
9763 05/02/2015 07/04/2015
9625 05/03/2015 07/04/2015
9487 31/03/2015 07/04/2015
There are no arrears except ' 6,819/- towards Labour welfare Fund and
Rs. 12,392/- towards Service Tax as at 31st March 2015 for the period
of more than six months from they became payable; and
b) according to the information, the dues in respect of income tax /
sales tax / wealth tax / service tax /duty of custom /duty of excise
/value added tax/ cess that have not been deposited on account of any
dispute with the appropriate authorities, where the disputes are
pending, are as under:
Name of the Nature of Amount (Rs.) Period to which
Statute dues the amount relates*
Income Tax Act Interest 947334 1995-1996
Income Tax Act Interest 338640 1996-1997
Income Tax Act Interest 158134 1997-1998
Name of the Due date as per
Statute notice of demand
Income Tax Act 10.05.2001
Income Tax Act 19.09.2003
Income Tax Act 19.09.2003
*assessment year
* for the above demands, as informed to us, the Company has filed
waiver petitions before Chief Commissioner of Income Tax for waiver of
interest, those petitions are pending to be heard;
* the waiver of above demands has been considered in scheme of
rehabilitation by BIFR;
* the Company has represented before the Tax Recovery Officer, to give
effect to the order of Honourable BIFR; and
c) on the basis of books and records examined by us, there are no
amounts which were required to be transferred to the investor education
and protection fund by the Company in accordance with the relevant
provisions of the Companies Act 1956 and rules made there under.
8. the Company has not incurred cash losses in the year under review
and in the immediately preceding financial year; and its accumulated
losses at the end of the financial year under review are not more than
fifty percent of its networth;
9. on the basis of selective checks carried out during the course of
audit, we are of the opinion that the Company has not defaulted in the
repayment of dues to banks. There had been no dues payable to financial
institutions or to debenture holders;
10. the Company has not given any guarantee for loans taken by others
from bank or financial institutions;
11. the Company has not obtained any term loan during the year; and
12. according to the representation made, and to the best of our
knowledge and belief, no fraud on or by the Company, has been noticed
or reported by the Company during the course of our audit.
For R. S. Agrawal & Associates
Chartered Accountants
Firm Registration No.100156W
Place: Mumbai
Date : May 29th, 2015
Alka Somani
Partner
Membership No. 147269
Mar 31, 2014
We have audited the accompanying financial statements of TUNI TEXTILE
MILLS LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, 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") 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, 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 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 ouraudit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 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
theAnnexure a statement on the matters specified in paragraphs 4 and 5
of the Order.
2. As required by section 227(3) of theAct, 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, the 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, the Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub section (3C) of section 211 of theCompaniesAct, 1956 read
with General Circular 15/2013 dated 13th September,2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the
CompaniesAct,2013;
e. on the basis of the 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 theCompaniesAct, 1956.
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements of our report of even date
1. in respect of fixed assets:
a) the Company has generally maintained records showing particulars,
including quantitative details and situation of its fixed assets;
b) we have been informed that the management has, at reasonable
intervals during the year, physically verified major portion of the
fixed assets. No material discrepancies, as represented to us, were
noticed on such verification; and
c) fixed assets disposed off during the year were not substantial, and
therefore do not affect the going concern assumption;
2. in respect of Inventory:
a) as explained to us, inventories have been physically verified during
the year by the management. In our opinion, the frequency of
verification is reasonable;
b) the procedures, as explained to us, of physical verification of
inventories followed by the management are, in our opinion; reasonable
and adequate in relation to the size of the Company and the nature of
its business; and
c) the Company, for inventory, has maintained proper records. No
material discrepancies, as informed to us, have been noticed on
physical verification of stock as compared to bookrecords;
3. according to information and explanation given to us:
a) the Company has, during the year, not granted any loans, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under section 301 of the Act;
b) as the Company has not granted any loans, therefore, the provisions
of sub clauses (b), (c) and
(d) of the clause 4 (iii) of the Order are not applicable to the
Company;
c) the Company has, during the year, taken unsecured loans from the
companies, firm or other parties covered in the register maintained
under section 301 of the Act. The maximum amount involved during the
year was Rs. 32,21,702/- from 1 party. The year end balance was
Rs.20,01,216/- from such party.
d) the terms and conditions of the aforesaid interest free unsecured
loans taken were prima facie not prejudicial to the interest of the
Company; and
e) since the aforesaid loans have not become due for payment, payment
of principal amount of the same is considered to be regular..
4. in our opinion, there are generally adequate internal control
procedures commensurate with the size of the Company and the nature of
its business, for the purchase of inventory and fixed assets and for
the sale of goods and services. During the course of audit, no major
weakness has been noticed in these internal control systems;
5. a) to the best of our knowledge and belief and representations given
to us, we are of the
opinion that the particulars of the contracts or arrangements referred
to in section 301 of theAct have been entered in the register
maintained under section 301 of theAct; and b) in our opinion, there
were no transactions, made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Act,
exceeding the value of Rs. 5,00,000 in respect of any party during the
year.
6. in our opinion, the Company has not accepted any deposit from the
public; within the meaning of section 58Aand 58AAof theAct and the
Rules framed thereunder.
7. the Company is required to have an internal audit system as the
Company''s paid up capital and reserves at the commencement of financial
year exceeds Rs. 50,00,000 and its average annual
turnover of preceding three years also exceeds Rs. 5,00,00,000 however,
the Company, during the year, had no such internal audit system;
8. we have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government, for the
maintenance of cost records under section 209(1)(d) of the Act, and are
of the opinion that prima facie the prescribed records have been made
and maintained by the Company;
9. In respect of Statutory Dues:
a) on the basis of books and records examined by us, the following
undisputed statutory dues have delayed been deposited with the
appropriate authorities
Nature Amount in Due date Date deposited on
Provident Fund 4185 20.05.2013 02.07.2013
4185 20.06.2013 15.07.2013
4260 20.08.2013 20.11.2013
4695 20.09.2013 20.11.2013
4845 20.10.2013 20.11.2013
4845 20.02.2014 15.03.2014
4845 20.04.2014 24.05.2014
Professional Tax 9525 31.05.2013 02.07.2013
9525 30.06.2013 15.08.2013
9525 31.07.2013 15.08.2013
9350 31.08.2013 28.03.2014
9700 30.09.2013 28.03.2014
9700 31.10.2013 28.03.2014
9700 30.11.2013 28.03.2014
9700 31.12.2013 28.03.2014
9700 31.01.2014 28.03.2014
9700 28.02.2014 28.03.2014
9525 30.04.2014 24.05.2014
Service Tax 9062 05.05.2013 24.10.2013
9211 05.06.2013 24.10.2013
9211 05.07.2013 24.10.2013
9211 05.08.2013 24.10.2013
9211 05.09.2013 24.10.2013
9211 05.10.2013 24.10.2013
9211 05.11.2013 26.05.2014
9211 05.12.2013 26.05.2014
9211 05.01.2014 26.05.2014
9211 05.02.2014 26.05.2014
9211 05.02.2014 26.05.2014
9211 31.03.2014 26.05.2014
There are no arrears except Rs. 5,679/- towards Labour welfare Fund as at
31st March,2014 for the period of more than six months from they became
payable; and
b) according to the information, the dues in respect of income tax /
sales tax / wealth tax / service tax / custom duty / excise duty / cess
that have not been deposited with the appropriate authorities on
account of dispute, where the disputes are pending, are as under:
Name of the Statute Nature of dues Amount (Rs) Period to which
the amount relates
Income Tax Act Interest 947334 1995-1996
Income Tax Act Interest 338640 1996-1997
Income Tax Act Interest 158134 1997-1998
Name of the Statute Due date as per notice of demand
Income Tax Act 10.05.2001
Income Tax Act 19.09.2003
Income Tax Act 19.09.2003
- For the above demands, as informed to us, the Company has filed
waiver petitions before Chief Commissioner of Income Tax for waiver of
interest, those petitions are pending to be heard;
- The waiver of above demands has been considered in scheme of
rehabilitation by BIFR;
- The Company has represented before the Tax Recovery Officer, to give
effect to the order of Honourable BIFR.
10. the Company has not incurred cash losses in the year under review
and in the immediately preceding financial year; and its accumulated
losses at the end of the financial year under review are not more than
fifty percent of its networth;
11. according to the information and explanation given to us and on the
basis of selective checks carried out during the course of audit, we
are of the opinion that the Company has defaulted in repayment of dues
to its bankers towards the interest for the month of February and
March, 2014 amounting to Rs. 1,18,675/- and Rs. 1,20,040/- for a period of
37 days and 23 days respectively (since been paid). There had been no
dues payable to financial institutions or to debenture holders.
12. the Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
therefore, reporting requirement under clause 4(xii) of the Order is
not applicable to the Company;
13. the Company is not a chit fund or a nidhi mutual benefit fund/
society; therefore, reporting requirement under clause 4(xiii) of the
Order is not applicable to the Company;
14. the Company is not dealing or trading in shares, securities,
debentures and other investments; therefore, reporting requirement
under clause 4(xiv) of the Order is not applicable to the Company;
15. the Company has not given any guarantee for loans taken by others
from bank or financial institutions; therefore reporting requirement
under clause 4(xv) of the Order is not applicable to the Company;
16. on the basis of the records examined by us, and relying on the
information complied by the Company for co-relating the funds raised to
the end use of the term loans, we have to state that, the Company has,
prima facie, applied the term loan for the purpose for which they were
obtained.;
17. on an overall examination of the balance sheet of the Company, we
report that no funds raised on short-term basis have, prima facie, been
used for long-term investment;
18. the Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act; therefore, reporting requirement under clause 4(xviii)
of the Order is not applicable to the Company;
19. the Company has not even issued any secured debentures; therefore
reporting requirement under clause 4 (xix) of the Order is not
applicable to the Company;
20. the Company has not raised any money through a public issue during
the year; therefore, reporting requirement under clause 4(xx) of the
Order is not applicable to the Company; and
21. according to the representation made, and to the best of our
knowledge and belief, no fraud on or by the Company, has been noticed
or reported by the Company during the course of our audit.
For and on behalf of
R. S. AGRAWAL & ASSOCIATES
Chartered Accountants
(Firm Registration No. 100156W)
Anuja Sharma
Place : Mumbai Partner
Date : May 29, 2014 Membership No. 123589
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of TUNI TEXTILE
MILLS LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, 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 Principles generally accepted in India including
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and 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 aforesaid financial statements, subject
to our comments in paragraph 1 under the heading "Other Matters" below
and the consequential impact thereof which are not quantifiable, 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, the 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, the 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 Accounting Standard - 28 Impairment of assets, the Company
has not made provision for time - barred debt of Rs. 2,26,060/-;
e. on the basis of the 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.
Other matters
1. As stated in note 36 to the financial statements,
a. Loans and Advances, involving an amount of Rs. 2,56,657/- (year end
outstanding Rs. NIL ) given during the year under review, are in
contravention of provisions of Section 295 of the Act; The possible
impact of these non - compliances, in the event of the Company''s
condonation requests are not granted has not been determined or
recognized in the financial statements.
b. we, further report that, had the Company made the provision for a
time barred debt, the profit for the year and also surplus in Statement
of Profit and Loss would have been lower by Rs. 2,26,060/-
Annexure to Independent Auditor''s Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements of our report of even date
1. in respect of fixed assets:
a) the Company has generally maintained records showing particulars,
including quantitative details and situation of its fixed assets;
b) we have been informed that the management has, at reasonable
intervals during the year, physically verified major portion of the
fixed assets. No material discrepancies, as represented to us, were
noticed on such verification; and
c) during the year the Company has not disposed off any fixed assets;
2. in respect of Inventory:
a) as explained to us, inventories have been physically verified during
the year by the management. In our opinion, the frequency of
verification is reasonable;
b) the procedures, as explained to us, of physical verification of
inventories followed by the management are, in our opinion; reasonable
and adequate in relation to the size of the Company and the nature of
its business; and
c) the Company, for inventory, has maintained proper records. No
material discrepancies, as informed to us, have been noticed on
physical verification of stock as compared to book records;
3. according to information and explanation given to us :
a) the Company has granted interest free unsecured loan to the
companies, firm and other parties covered in the register maintained
under section 301 of the Act. The maximum amount involved during the
year was Rs. 2,56,657/- to 1 party. The year end balance was Rs. Nil ;
b) the terms and conditions of the aforesaid interest free loans
granted are prima facie not prejudicial to the interest of the Company;
c) the receipt of principal amount of the aforesaid loans granted is
regular;
d) since the aforesaid loans granted, as informed to us, are receivable
on demand, no amount has been classified as overdue;
e) the Company has not granted, during the year, any secured or
unsecured loans to the companies, firm or other parties covered in the
register maintained under section 301 of the Act, therefore provisions
of clause 4(iii) (a) to (d) of the Order are not applicable to the
Company; and
f) the Company has, during the year, taken unsecured loans from the
companies, firm or other parties covered in the register maintained
under section 301 of the Act. The maximum amount involved during the
year was Rs. 8,20,000/- from 1 party. The year end balance was Rs.
8,20,000/- from such party.
g) the above unsecured loan taken was free of interest and in our
opinion the other terms and conditions are not prima facie prejudicial
to the interest of the Company.
4. in our opinion, there are generally adequate internal control
procedures commensurate with the size of the Company and the nature of
its business, for the purchase of inventory and fixed assets and for
the sale of goods and services. During the course of audit, no major
weakness has been noticed in these internal control systems;
5. a) to the best of our knowledge and belief and representations
given to us, we are of the opinion that the particulars of the
contracts or arrangements referred to in section 301 of the Act have
been entered in the register maintained under section 301 of the Act ;
and
b) in our opinion, there were no transactions, made in pursuance of
contracts or arrangements entered in the register maintained under
section 301 of the Act, exceeding the value of Rs. 5,00,000 in respect of
any party during the year.
6. in our opinion, the Company has not accepted any deposit from the
public; within the meaning of section 58A and 58AA of the Act and the
Rules framed thereunder.
7. the Company is required to have an internal audit system as the
Company''s paid up capital and reserves at the commencement of financial
year exceeds Rs. 50,00,000 and its average annual turnover of preceding
three years also exceeds Rs. 5,00,00,000 however, the Company, during the
year, had no such internal audit system;
8. we have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government, for the
maintenance of cost records under section 209(1)(d) of the Act, and are
of the opinion that prima facie the prescribed records have been made
and maintained by the Company;
9. In respect of Statutory Dues: according to the information and
explanations given to us, the Company is generally regular in
depositing with the appropriate authorities undisputed current
statutory dues including provident fund, investor education and
protection fund, employees'' state insurance, income tax, sales tax,
wealth tax, custom duty, excise duty, cess and other material statutory
dues applicable to it. There are no arrears except Rs. 4,743/- towards
Labour welfare Fund as at 31st March, 2013 for the period of more than
six months from they became payable; and
- For the above demands, as informed to us, the Company has filed
waiver petitions before Chief Commissioner of Income Tax for waiver of
interest, those petitions are pending to be heard;
- The waiver of above demands has been considered in scheme of
rehabilitation by BIFR;
- The Company has represented before the Tax Recovery Officer, to give
effect to the order of Honourable BIFR.
10. the Company has not incurred cash losses in the year under review
and in the immediately preceding financial year; and its accumulated
losses at the end of the financial year under review are not more than
fifty percent of its networth;
11. according to the records examined by us, the Company has not
defaulted in repayment of dues to the banks. There are no dues to a
financial institution or debenture holders;
12. the Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
therefore, reporting requirement under clause 4(xii) of the Order is
not applicable to the Company;
13. the Company is not a chit fund or a nidhi mutual benefit fund/
society; therefore, reporting requirement under clause 4(xiii) of the
Order is not applicable to the Company;
14. the Company is not dealing or trading in shares, securities,
debentures and other investments; therefore, reporting requirement
under clause 4(xiv) of the Order is not applicable to the Company;
15. the Company has not given any guarantee for loans taken by others
from bank or financial institutions; therefore reporting requirement
under clause 4(xv) of the Order is not applicable to the Company;
16. on the basis of the records examined by us, and relying on the
information complied by the Company for co-relating the funds raised to
the end use of the term loans, we have to state that, the Company has,
prima facie, applied the term loan for the purpose for which they were
obtained.;
17. on an overall examination of the balance sheet of the Company, we
report that no funds raised on short-term basis have, prima facie, been
used for long-term investment;
18. the Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act; therefore, reporting requirement under clause 4(xviii)
of the Order is not applicable to the Company;
19. the Company has not even issued any secured debentures; therefore
reporting requirement under clause 4 (xix) of the Order is not
applicable to the Company;
20. the Company has not raised any money through a public issue during
the year; therefore, reporting requirement under clause 4(xx) of the
Order is not applicable to the Company; and
21. according to the representation made, and to the best of our
knowledge and belief, no fraud on or by the Company, has been noticed
or reported by the Company during the course of our audit.
For and on behalf of
R. S. AGRAWAL & ASSOCIATES
Chartered Accountants
(Firm Registration No. 100156W)
Anuja Dedhia
Place : Mumbai Partner
Date : May 30, 2013 Membership No. 123589
Mar 31, 2012
1. We have audited the attached Balance Sheet of TUNI TEXTILE MILLS
LIMITED (hereinafter referred to as "the company") as at 31st March
2012, the Statement of Profit and Loss and the Cash Flow Statement 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 conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles and significant estimates made by
the management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003
(hereinafter referred to as 'the CARO 2003') issued by the Central
Government of India in terms of section 227(4A) of the Companies Act,
1956, (hereinafter referred to as 'the Act') we enclose in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to above, we
report that:
(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 kept by the company so far as appears from our examination of
those books;
(iii) 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;
(iv) in our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3-C) of section 211 of
the Act;
(v) based on the representation made by the directors of the company
and information and explanation given to us, none of the directors is
prima-facie disqualified as on 31st March, 2012, from being appointed
as a director in terms of clause (g) of sub section (1) of section 274
of the Act on the said date;
(vi) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant Accounting Policies and notes on 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 Balance Sheet, of the state of affairs of the company
as at 31st March, 2012;
b) in the case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure referred to in Paragraph (3) of Auditors' Report of even date
on the Accounts for the year ended 31st March, 2012 of Tuni Textile
Mills Limited on the basis of such checks as we considered appropriate
and in terms of the information and explanation given to us, we state
that:
(i) in respect of fixed assets:
a) the company has generally maintained records showing particulars,
including quantitative details and situation of its fixed assets;
b) we have been informed that the management has, at reasonable
intervals during the year, physically verified major portion of the
fixed assets. No material discrepancies, as represented to us, were
noticed on such verification; and
c) during the year the company has not disposed off a substantial part
of its fixed assets which affects the going concern status of the
company;
(ii) in respect of Inventory:
a) as explained to us, inventories have been physically verified during
the year by the management. In our opinion, the frequency of
verification is reasonable;
b) the procedures, as explained to us, of physical verification of
inventories followed by the management are, in our opinion; reasonable
and adequate in relation to the size of the company and the nature of
its business; and
c) the company, for inventory, has maintained proper records. No
material discrepancies, as informed to us, have been noticed on
physical verification of stock as compared to book records;
(iii) a) the company has not granted, during the year, any secured or
unsecured loans to the companies, firm or other parties covered in the
register maintained under section 301 of the Act, therefore provisions
of clause 4(iii) (a) to (d) of the CARO,2003 are not applicable to the
company; and
b) the company has taken, during the year, unsecured loans from the
companies, firm or other parties covered in the register maintained
under section 301 of the Act. The maximum amount involved during the
year was Rs. 900,458.04 from 2 parties. The year end balance was 'Nil'.
c) The above unsecured loan taken was free of interest and in our
opinion the other terms and conditions are not prima facie prejudicial
to the interest of the company.
(iv) in our opinion, there are generally adequate internal control
procedures commensurate with the size of the company and the nature of
its business, for the purchase of inventory and fixed assets and for
the sale of goods and services. During the course of audit, no major
weakness has been noticed in these internal control systems;
(v) a) to the best of our knowledge and belief and representations
given to us, we are of the opinion that the particulars of the
contracts or arrangements referred to in section 301 of the Act have
been entered in the register maintained under section 301 of the Act;
and
b) in our opinion, there were no transactions, made in pursuance of
contracts or arrangements entered in the register maintained under
section 301 of the Act, exceeding the value of Rs. 5,00,000 in respect of
any party during the year.
c) have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time were such market prices
are available.
(vi) in our opinion, the company has not accepted any deposit from the
public; within the meaning of section 58A and 58AA of the Act and the
Rules framed there under.
(vii) the company is required to have an internal audit system as the
company's paid up capital and reserves at the commencement of financial
year exceeds Rs. 50,00,000 and its average annual turnover of preceding
three years also exceeds Rs. 5,00,00,000 however, the company, during the
year, had no such internal audit system;
(viii) we have broadly reviewed the books of account maintained by the
company pursuant to the Rules made by the Central Government, for the
maintenance of cost records under section 209(1)(d) of the Act, and are
of the opinion that prima facie the prescribed records have been made
and maintained by the company;
(ix) In respect of Statutory Dues:
a) according to the information and explanations given to us, the
company is generally regular in depositing with the appropriate
authorities undisputed current statutory dues including provident fund,
investor education and protection fund, employees' state insurance,
income tax, sales tax, wealth tax, custom duty, excise duty, cess and
other material statutory dues applicable to it. There are no arrears
except 4743/- towards Labour welfare Fund as at 31st March, 2012 for
the period of more than six months from they became payable; and
b) according to the information, the dues in respect of income tax /
sales tax / wealth tax / service tax / custom duty / excise duty / cess
that have not been deposited with the appropriate authorities on
account of dispute, where the disputes are pending, are as under:
Name of Nature of Amount Period to
which Due date as per
the Statute dues (Rs.) the amount
relates* notice of demand
Income Tax Act Interest 947334 1995-1996 10.05.2001
Income Tax Act Interest 338640 1996-1997 19.09.2003
Income Tax Act Interest 158134 1997-1998 19.09.2003
*assessment year
- For the above demands, as informed to us, the company has filed
waiver petitions before Chief Commissioner of Income Tax for waiver of
interest, those petitions are pending to be heard; and
- The waiver of above demands has been considered in scheme of
rehabilitation by BIFR;
(x) the company has not incurred cash losses in the year under review
and in the immediately preceding financial year; and its accumulated
losses at the end of the financial year under review are not more than
fifty percent of its networth;
(xi) according to the records examined by us, the company has not
defaulted in repayment of dues to the banks. There are no dues to a
financial institution or debenture holders; (xii) the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities; therefore, reporting
requirement under clause 4(xii) of the CARO 2003 is not applicable to
the company;
(xiii) the company is not a chit fund or a nidhi mutual benefit fund/
society; therefore, reporting requirement under clause 4(xiii) of the
CARO 2003 is not applicable to the company;
(xiv) the company is not dealing or trading in shares, securities,
debentures and other investments; therefore, reporting requirement
under clause 4(xiv) of the CARO 2003 is not applicable to the company;
(xv) the company has not given any guarantee for loans taken by others
from bank or financial institutions; therefore reporting requirement
under clause 4(xv) of the CARO 2003 is not applicable to the company;
(xvi) on the basis of the records examined by us, and relying on the
information complied by the company for co-relating the funds raised to
the end use of the term loans, we have to state that, the company has,
prima facie, applied the term loan for the purpose for which they were
obtained.;
(xvii) on an overall examination of the balance sheet of the company,
we report that no funds raised on short-term basis have, prima facie,
been used for long-term investment; (xviii)the company has not made
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Act; therefore,
reporting requirement under clause 4(xviii) of the CARO 2003 is not
applicable to the company;
(xix) the company has not even issued any secured debentures; therefore
reporting requirement under clause 4 (xix) of the CARO 2003 is not
applicable to the company; (xx) the company has not raised any money
through a public issue during the year; therefore, reporting
requirement under clause 4(xx) of the CARO 2003 is not applicable to
the company; and
(xxi) according to the representation made, and to the best of our
knowledge and belief, no fraud on or by the company, has been noticed
or reported by the company during the course of our audit.
For and on behalf of
R. S. AGRAWAL & ASSOCIATES
Chartered Accountants
(Registration no. 100156W)
Anuja Dedhia
Place : Mumbai Partner
Date : August 21, 2012 Membership No. 123589
Mar 31, 2011
1. We have audited the attached Balance Sheet of TUNI TEXTILE MILLS
LIMITED (hereinafter referred to as "the company") as at 31 st March
2011, the Profit and Loss Account and also Cash Flow Statement 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 conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles and significant estimates made by
the management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003
(hereinafter referred to as 'the CARO 2003') issued by the Central
Government of India in terms of section 227(4A) of the Companies Act,
1956, (hereinafter referred to as 'the Act') we enclose in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to above, we
report that:
(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 kept by the company so far as appears from our examination of
those books;
(iii) the Balance Sheet, 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, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3-C) of section 211 of
the Act;
(v) based on the representation made by the directors of the company
and information and explanation given to us, none of the directors is
prima-facie disqualified as on 31st March, 2011, from being appointed
as a director in terms of clause (g) of sub section (1) of section 274
of the Act on the said date;
(vi) As stated in note no.6 of Schedule 23:
i) Loans & Advances, involving an amount of Rs. 9.44 lacs,(year end
outstanding was Rs. NIL) given during the year under review, are in
contravention of provisions of Section 295 of the Act; and
ii) Contracts of Job charges received and paid amounting to Rs. 0.53
lacs and Rs. 2.16 lacs respectively, in which directors are interested,
entered in to during the year, are in contravention of provisions of
section 297 of the Act;
The possible impact of these non-compliances, in the event of
condonation requests are not granted, has not been determined or
recognized in the financial statements.
(vii) in our opinion and to the best of our information and according
to the explanations given to us, the said accounts subject to our
comments in paragraphs (vi) above and the consequential effects thereof
which are not quantifiable, read together with significant accounting
policies and notes on accounts in schedule '21' and '22' respectively
and those appearing elsewhere with the financial statement 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 Balance Sheet, of the state of affairs of the company
as at 31 st March, 2011;
b) in the case of Profit and Loss Account, of the profit for the year
ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH (3) OF AUDITORS' REPORT OF EVEN DATE
ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2011 OF TUNI TEXTILE
MILLS LIMITED ON THE BASIS OF SUCH CHECKS AS WE CONSIDERED APPROPRIATE
AND IN TERMS OF THE INFORMATION AND EXPLANATION GIVEN TO US, WE STATE
THAT:
(i) in respect of fixed assets:
a) the company has generally maintained records showing particulars,
including quantitative details and situation of its fixed assets;
b) we have been informed that the management has, at reasonable
intervals during the year, physically verified major portion of the
fixed assets. No material discrepancies, as represented to us, were
noticed on such verification; and
c) during the year the company has not disposed off a substantial part
of its fixed assets which affects the going concern status of the
company;
(ii) in respect of Inventory:
a) as explained to us, inventories have been physically verified during
the year by the management. In our opinion, the frequency of
verification is reasonable;
b) the procedures, as explained to us, of physical verification of
inventories followed by the management are, in our opinion; reasonable
and adequate in relation to the size of the company and the nature of
its business; and
c) the company, for inventory, has maintained proper records. No
material discrepancies, as informed to us, have been noticed on
physical verification of stock as compared to book records;
(iii) according to the information and explanation given to us:
a) the company has granted unsecured loan to the companies, firm and
other parties covered in the register maintained under section 301 of
the Act. The maximum amount involved during the year was Rs. 9.44 lacs
to 4 parties. The year end balance was ' Nil;
b) the terms and conditions of the aforesaid loans granted are prima
facie not prejudicial to the interest of the company and such loans
were granted free of interest;
c) the receipt of principal amount of the aforesaid loans granted is
regular;
d) since the aforesaid loans granted, as informed to us, are receivable
on demand, therefore no amount has been classified as overdue;
e) the company has taken unsecured loan from the companies, firm and
other parties covered in the register maintained under section 301 of
the Act. The maximum amount involved during the year was Rs. 5.32 lacs
from 2 parties. The year end balance was Rs. 4.92 lacs;
f) the terms and conditions of the aforesaid loans taken were prima
facie not prejudicial to the interest of the company and such loans
were taken free of interest; and
g) since the aforesaid unsecured loans taken, as informed to us, were
repayable on demand, therefore the payment of the principal amount of
same is considered to be regular.
(iv) in our opinion, there are generally adequate internal control
procedures commensurate with the size of the company and the nature of
its business, for the purchase of inventory and fixed assets and for
the sale of goods and services. During the course of audit, no major
weakness has been noticed in these internal control systems;
(v) a) to the best of our knowledge and belief and representations
given to us, we are of the opinion that the particulars of the
contracts or arrangements referred to in section 301 of the Act have
been entered in the register maintained under section 301 of the Act;
and
b) in our opinion the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Act exceeding the value of Rs. 5.00 lacs 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 where such
market prices are available;
(vi) in our opinion , the company has not accepted any deposit from the
public; within the meaning of section 58A and 58AA of the Act and the
Rules framed there under.
(vii) the company is required to have an internal audit system as the
company's paid up capital and reserves at the commencement of financial
year exceeds Rs. 50 lacs and its average annual turnover of preceding
three years also exceeds Rs. 5.00 crores, however, the company, during
the year, had no such internal audit system;
(viii) we have broadly reviewed the books of account maintained by the
company pursuant to the Rules made by the Central Government, for the
maintenance of cost records under section 209(1 )(d) of the Act, and
are of the opinion that prima facie the prescribed records have been
made and maintained by the company;
(ix) In respect of Statutory Dues:
a) according to the information and explanations given to us, the
company is generally regular in depositing with the appropriate
authorities undisputed current statutory dues including provident fund,
investor education and protection fund, employees' state insurance,
income tax, sales tax, wealth tax, custom duty, excise duty, cess and
other material statutory dues applicable to it. There are no arrears
except Rs.3843/- towards Labour welfare Fund as at 31st March, 2011 for
the period of more than six months from they became payable; and
b) according to the information, the dues in respect of income tax /
sales tax / wealth tax / service tax / custom duty / excise duty / cess
that have not been deposited with the appropriate authorities on
account of dispute, where the disputes are pending, are as under:
Name of the
Statute Nature of
dues Amount (Rs.) Period to which
the Due date as per
amount relates* notice of demand
Income Tax
Act Interest 947334 1995-1996 10.05.2001
Income Tax
Act Interest 338640 1996-1997 19.09.2003
Income Tax
Act Interest 158134 1997-1998 19.09.2003
* assessment year
* For the above demands, the company has filed waiver petitions before
Chief Commissioner o Income Tax for waiver of interest, those petitions
are pending to be heard; and
* The waiver of above demands has beep considered in scheme of
rehabilitation by BIFR.
(x) the company has not incurred cash losses in the year under review
and in the immediately preceding financial year; and its accumulated
losses at the end of the financial year under review are not more than
fifty percent of its networth;
(xi) according to the records examined by us, the company has not
defaulted in repayment of dues to the banks. There are no dues to a
financial institution or debenture holders;
(xii) the company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities; therefore, reporting requirement under clause 4(xii) of the
CARO 2003 is not applicable to the company;
(xiii) the company is not a chit fund or a nidhi mutual benefit fund/
society; therefore, reporting requirement under clause 4(xiii) of the
CARO 2003 is not applicable to the company;
(xiv) the company is not dealing or trading in shares, securities,
debentures and other investments; therefore, reporting requirement
under clause 4(xiv) of the CARO 2003 is not applicable to the company;
(xv) the company has not given any guarantee for loans taken by others
from bank or financial institutions; therefore reporting requirement
under clause 4(xv) of the CARO 2003 is not applicable to the company;
(xvi) on the basis of the records examined by us, and relying on the
information complied by the company for co-relating the funds raised to
the end use of the term loans, we have to state that, the company has,
prima facie, applied the term loan for the purpose for which they were
obtained.;
(xvii) on an overall examination of the balance sheet of the company,
we report that no funds raised on short- term basis have, prima facie,
been used for long-term investment;
(xviii) the company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act; therefore, reporting requirement under clause 4(xviii)
of the CARO 2003 is not applicable to the company;
(xix) the company has not even issued any secured debentures; therefore
reporting requirement under clause 4 (xix) of the CARO 2003 is not
applicable to the Company;
(xx) the company has not raised any money through a public issue during
the year; therefore, reporting requirement under clause 4(xx) of the
CARO 2003 is not applicable to the company; and
(xxi) according to the representation made, and to the best of our
knowledge and belief, no fraud on or by the company, has been noticed
or reported by the company during the course of our audit.
For and on behalf of
R. S. AGRAWAL & ASSOCIATES
Chartered Accountants
(Registration no. 100156W)
Anuja Dedhia
Mumbai Partner
19 th August 2011 Membership No. 123589
Mar 31, 2010
1. We have audited the attached Balance Sheet of TUNI TEXTILE MILLS
LIMITED as at 31 st March 2010, 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles and significant estimates made by
the management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003
(hereinafter referred to as the CARO 2003) issued by the Central
Government of India in terms of section 227(4A) of the Companies Act,
1956, (hereinafter referred to as the Acf) we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to above, we
report that:
(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 kept by the company so far as appears from our examination of
those books;
(iii) the Balance Sheet, 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, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3-C) of section 211 of
the Act;
(v) based on the representation made by the directors of the company
and information and explanation given to us, none of the directors is
prima-facie disqualified as on 31st March, 2010, from being appointed
as a director in terms of clause (g) of sub section (1) of section 274
of the Act on the said date; and
(vi) in our opinion and to the best our information and according to
the explanations given to us, the said accounts read together with
significant accounting policies and notes on accounts In schedule 22
and 23 respectively and those appearing elsewhere with the financial
statement 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 Balance Sheet, of the state of affairs of the company
as at 31st March, 2010;
b) in the case of Profit and Loss Account, of the profit for the year
ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED IN PARAGRAPH (3) OF AUDITORS REPORT OF EVEN DATE ON
THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2010 OF TUNI TEXTILE MILLS
LIMITED ON THE BASIS OF SUCH CHECKS AS WE CONSIDER APPROPRIATE AND IN
TERMS OF THE INFORMATION AND EXPLANATION GIVEN TO US, WE STATE THAT:
(i) a) the company has generally maintained records showing
particulars, including quantitative details and situation of fixed
assets;
b) we have been informed that the management has, at reasonable
intervals during the year, physically verified major portion of the
fixed assets. No material discrepancies, as represented to us, were
noticed on such verification; and
c) the company has, during the year, replaced certain machineries which
has not affected the ability of the company to continue as a going
concern.
(ii) a) as explained to us, inventories have been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable;
b) the procedures, as explained to us, of physical verification of
inventories followed by the management are, in our opinion; reasonable
and adequate in relation to the size of the company and the nature of
its business; and
c) the company, for inventory, has maintained proper records. No
material discrepancies, as informed to us, have been noticed on
physical verification of stock as compared to book records;
(iii) a) as informed to us, the company has, during the year, not
granted any loans, secured or unsecured to companies, firms or other
parties covered in the register maintained under section 301 of the
Act; therefore reporting requirements under clause 4 (iii) (a) to (d)
of the CARO 2003 are not applicable to the company;
b) as informed to us, the unsecured loan taken in earlier years from a
company covered in the register maintained under section 301 of the Act
involving an amount of Rs. 9.25 lacs, has, during the year, been
repaid;
c) the above unsecured loan taken was free of interest and in our
opinion the other terms and conditions are not prima facie prejudicial
to the interest of the company;
(iv) in our opinion, there are generally adequate internal control
procedures commensurate with the size of the company and the nature of
its business, for the purchase of inventory and fixed assets and for
the sale of goods and services. During the course of audit, no major
weakness has been noticed in these internal control systems;
(v) a) to the best of our knowledge and belief, we are of the opinion
that the particulars of the contracts or arrangements referred to in
section 301 of the Act have been entered in the register maintained
under that section; and
b) in our opinion, there were no transactions made in pursuance of
contracts or arrangements required to be entered in the register
maintained under section 301 of the Act exceeding the value of Rs. 5
lacs in respect of any party during the year;
(vi) in our opinion , the company has not accepted any deposit from the
public;
(vii) the company has no internal audit system, however, as explained
to us, the company has internal check system commensurate with its size
and nature of its business;
(viii) we have broadly reviewed the books of account maintained by the
company pursuant to the Rules made by the Central Government, for the
maintenance of cost records under section 209(1 )(d) of the Act, and
are of the opinion that prima facie the prescribed records have been
made and maintained by the company;
(ix) a) the company is generally regular in depositing with the
appropriate authorities undisputed current statutory dues including
provident fund, investor education and protection fund, employees
state insurance, income tax, sales tax, wealth tax, custom duty, excise
duty, cess and other material statutory dues applicable to it. There
are no arrears except Rs.2853/- towards Labour welfare Fund as at 31st
March, 2010 for the period of more than six months from they became
payable; and
b) according to the information, the dues in respect of income tax /
sales tax / wealth tax / service tax / custom duty / excise duty / cess
that have not been deposited with the appropriate authorities on
account of dispute, where the disputes are pending, are as under:
Name of the Nature of Amount Period to which
Statute dues (Rs.) the amount
relates*
Income Tax Act Interest 947334 1995-1996
Income Tax Act Interest 338640 1996-1997
Income Tax Act Interest 158134 1997-1998
Name of the Statue Due date as Date of
per notice of payment
demand
Income Tax Act 10.05.2001 Not paid till date
Income Tax Act 19.09.2003 Not paid till date
Income Tax Act 19.09.2003 Not paid till date
Ãassessment year and waiver petitions for the above interest demand
have been filed by the company with Chief Commissioner of Income Tax
that are pending to be heard and has also been considered in scheme of
rehabilitation by BIFR.
(x) the company has not incurred cash losses in the year under review
and in the immediately preceding financial year; and its accumulated
losses at the end of the financial year under review are not more than
fifty percent of its networth;
(xi) according to the records examined by us, the company has not
defaulted in repayment of dues to the banks. There are no dues to
financial institutions or debenture holders;
(xii) the company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities; therefore, reporting requirement under clause 4(xii) of the
CARO 2003 is not applicable to the company;
(xiii) the company is not a chit fund or a nidhi mutual benefit fund/
society; therefore, reporting requirement under clause 4(xiii) of the
CARO 2003 is not applicable to the company;
(xiv) the company is not dealing or trading in shares, securities,
debentures and other investments; therefore, reporting requirement
under clause 4(xiv) of the CARO 2003 is not applicable to the company;
(xv) the company has not given any guarantee for loans taken by others
from bank or financial institutions; therefore reporting requirement
under clause 4(xv) of the CARO 2003 is not applicable to the company;
(xvi) on the basis of the records examined by us, and relying on the
information complied by the company for co- relating the funds raised
to the end use of the term loans, we state that, the company has, prima
facie, applied the term loans for the purpose for which they were
obtained;
(xvii) on an overall examination of the balance sheet of the company,
we report that no funds raised on short- term basis have prima facie
been used for long-term purposes;
(xviii) the company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act; therefore, reporting requirement under clause 4(xviii)
of the CARO 2003 is not applicable to the company;
(xix) the company has not even issued any secured debentures; therefore
reporting requirement under clause 4 (xix) of the CARO 2003 is not
applicable to the Company;
(xx) the company has not raised any money through a public issue during
the year; therefore, reporting requirement under clause 4(xx) of the
CARO 2003 is not applicable to the company; and
(xxi) according to the representation made, and to the best of our
knowledge and belief, no fraud on or by the company, has been noticed
or reported by the company during the course of our audit.
For and on behalf of
R. S. AGRAWAL & ASSOCIATES
Chartered Accountants
(Registration no. 100156W)
R.S. Agrawal
Partner
Membership No. 033216
Mumbai
18th August 2010