Mar 31, 2015
We have audited the accompanying financial statements of Vandana
Knitwear Limited ( Formerly known as Trendy Knitwear Limited) ("the
Company"), which comprise the Balance Sheet as at March 31, 2015, 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 Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors Responsibility
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 disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
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 profit and Loss Account, of the PROFIT of the
Company for the year ended on that date.
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's report) order, 2015 issued
by the Company Law Board in terms of Section 143 (11) of the Act. , We
annexe hereto a statement on the matters specified in the paragraphs 3
and 4 of the said order to the extent they are applicable in the
company.
2. Further to our comments in the Annexure referred to in paragraph 1
above:-(a) We have sought and 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 the
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 aforesaid standalone 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 31.03.2015 taken on record by the Board of Directors, we report
that none of the directors is disqualified as on March 31, 2015 from
being appointed as a Director in terms of Section 164 (2) of the Act,
and;
(f) With respect to the other matters included in the Auditor's Report
and to the best of our information and according to the explanations
given to us :
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. The company is not liable for contribution to the Investor
Education and Protection Fund.
1. In respect of its assets
a) The Company has maintained records showing full particulars
including quantitative details of Fixed Assets.
b) As explained to us, fixed assets have been physically verified by
the management during the year, which in our opinion is reasonable,
having regard to the size of the Company and nature of the assets. No
material discrepancies were noticed in such physical verification.
2. In respect of Inventories :
a) As explained to us, Inventories have been physically verified by the
management at regular intervals during the year.
b) In our opinion, and according to information and explanation given
to us, the procedures of physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the registered maintained
under Section 189 of the Companies Act, 2013.
4. In our opinion and according to our information and explanation
given to us, there are adequate internal control procedure commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and also for the sale of the goods.
During the course of our audit, we have not observed any major
weaknesses in internal controls.
5. The Company has not accepted any deposits from the public.
6. The Central Government has not prescribed maintenance of Cost
Records under Section 209, (1) (d) of the Companies Act, 1956 for the
company.
7. In respect of statutory dues :
a) According to the records of the Company undisputed statutory dues
including Income-Tax, sales tax and other statutory dues have been
generally regularly deposited with the appropriate authorities except
for some minor delays in depositing TDS. According to the information
and explanation given to us, no undisputed amounts payable in respect
of the aforesaid dues were outstanding as at 31 March, 2015 for a
period of more than six months from the date of becoming payable. The
company is not liable to Provident fund, Investor Education and
Protection Fund, ESI, Wealth Tax, Custom Duty and Cess as certified by
the company.
b) The disputed dues of the company which are outstanding are as : Nil
8. The accumulated losses of the company are not more than fifty
percent of its worth Company at the end of the financial year under
report and has not incurred any cash losses during the financial year
covered by our audit or in the immediately preceding financial year.
9. The company has not defaulted in repayment of dues to banks. It
does not have any liabilities towards financial institution or
debenture holders.
10. Based on our audit procedures and as per information given to us
the Company has not given guarantees for loans taken by others from
banks or financial institutions.
11. Based on our audit procedures and as per information given to us
the company has not raised any term loans during the year.
12. In our opinion and according to the information and explanation
given to us, no fraud on /or by the Company has been noticed or
reported during the year , that causes the financial statement to be
materially misstated.
For and on behalf of
S. N. Kabra & Co.
Chartered Accountants
FRN: 03439C
Place: Hyderabad
Date: 30.05.2015
Satyanarayan Kabra
Partner
M.NO. 072497
Mar 31, 2014
We have audited the accompanying financial statements of VANDANA
KNITWEAR 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 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 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.
Auditors 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 our qualified audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b. in the case of the Profit and Loss Account, 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 are in agreement with the books of
account;
d) In our opinion, the Balance sheet and the profit & Loss Account
dealt with by this report are in compliance 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 of the Companies Act, 2013.
e) On the basis of written representations received from the directors
concerned and taken on record by the Board of Directors, and taken on
record by the Board of Directors, none of the directors is disqualified
as on March 31, 2014, from being appointed as a director in terms of
clause (g) of sub-section (1) of section 274 of the Act.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 1 of our Report of even date)
1. In respect of its assets
a) The Company has maintained records showing full particulars
including quantitative details of Fixed Assets.
b) As explained to us, fixed assets have been physically verified by
the management during the year, which in our opinion is reasonable,
having regard to the size of the Company and nature of the assets. No
material discrepancies were noticed in such physical verification.
c) In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of Inventories :
a) As explained to us, Inventories have been physically verified by the
management at regular intervals during the year.
b) In our opinion, and according to information and explanation given
to us, the procedures of physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted by the Company
to /from companies, firms or other parties covered in the registered
maintained under Section 301 of the Companies Act,1956 :
a) The Company has not given any loans to parties listed in the
register maintained under Section 301.
b) The Company has not taken any loans from parties listed in the
register maintained under Section 301.
4. In our opinion and according to our information and explanation
given to us, there are adequate internal control procedure commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and also for the sale of the goods.
During the course of our audit, we have not observed any major
weaknesses in internal controls.
5. In respect of transactions covered under Section 301 of the
Companies Act,1956 :
a) In our opinion and according to the information and explanation
given to us, the transactions made in purchase of contracts on
arrangements, that under Section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and to the best of our information and knowledge the
transactions have been made at prices which appear as per information
available with the company.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government has not prescribed maintenance of Cost
Records under Section 209, (1) (d) of the Companies Act, 1956 for the
company.
9. In respect of statutory dues :
a) According to the records of the Company undisputed statutory dues
including Income-Tax, sales tax and other statutory dues have been
generally regularly deposited with the appropriate authorities except
for some minor delays in depositing TDS. According to the information
and explanation given to us, no undisputed amounts payable in respect
of the aforesaid dues were outstanding as at 31st March, 2014 for a
period of more than six months form the date of becoming payable. The
company is not liable to Provident fund, Investor Education and
Protection Fund, ESI, Wealth Tax, Custom Duty and Cess as certified by
the company.
10. The accumulated losses of the company are not more than fifty
percent of its worth Company at the end of the financial year under
report and has not incurred any cash losses during the financial year
covered by our audit or in the immediately preceding financial year.
11. The company has not defaulted in repayment of dues to banks. It
does not have any liabilities towards financial institution or
debenture holders.
12. In our opinion and according to the information and explanation
give to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / Society. Therefore clause 4 (xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
14. The Company has maintained proper records of the transactions and
contracts of dealing in shares, securities, debenture and other
investments with timely entries having been made therein.
15. Based on our audit procedures and as per information given to us
the Company has not given guarantees for loans taken by others from
banks or financial institutions.
16. Based on our audit procedures and as per information given to us
the company has not raised any term loans during the year.
17. According to the information and explanations given to us and on
overall examination of the Balance Sheet of the Company, we are of the
opinion that the company has not utilized any short term resources for
investment in long term assets.
18. In our opinion and to the best of our information and knowledge,
the company has not made any preferential allotment of shares during
the year.
19. The Company has not issued any debentures.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanation
given to us, no fraud on /or by the Company has been noticed or
reported during the year , that causes the financial statement to be
materially misstated.
For S. N. Kabra & Co.
Chartered accountants
Firm Registration No. 03439C
sd/-
Satyanarayan Kabra
Partner
Membership No. 072497
Date: 26th May, 2014
Place: Indore
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of Vandana
Knitwear Limited ( Formerly Known as Trendy Knitwear 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, which we have signed under reference to
this report.
Management''s Responsibility for the Financial Statements
2. 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 the Accounting Standards referred to in sub- section
(3C) of section 211 of ''the Companies Act, 1956'' of India (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.
Auditors'' Responsibility
3. 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.
4. An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' 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 auditors consider 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 polices used and the reasonableness of
the accounting estimates made by Management, as well as evaluating the
overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion. Opinion
6. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying 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 loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by ''the Companies (Auditor''s Report) Order, 2003''
as amended by ''the Companies (Auditor''s Report) (Amendment) Order,
2004'', issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act (hereinafter referred to as
the "Order"), and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. 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 deal with by this Report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement deal with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Act;
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph 7 of the Independent Auditors'' Report of
even date to the members of Vandana Knitwear Limited ( Formerly Known
as Trendy Knitwear Limited) on the financial statements as of and for
the year ended March 31, 2013
i. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the management during the year and no material discrepancies have been
noticed on such verification. In our opinion, the frequency of
verification is reasonable.
(c) In our opinion, and according to the information and explanations
given to us, the company has not disposed off any fixed assets during
the year.
ii. (a) The inventory (excluding stocks with third parties) has been
physically verified by the Management during the year.
In respect of inventory lying with third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii. The Company not granted any Loans, secured and unsecured loans to
any companies, firms or other parties covered in the register
maintained under Section 301 of the Act. Hence clause 3(b), 3(c), 3(d)
and 3(e) of the order are not applicable for the 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 for the
purchase of inventory and fixed assets and for the sale of goods. The
Company''s operations do not involve sale of services. Further, on the
basis of our examination of the books and records of the Company, and
according to the information and explanations given to us, we have
neither come across, nor have been informed of, any continuing failure
to correct major weaknesses in the aforesaid internal control system.
v. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion, and according to the information and explanation
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi. The Company has not accepted any deposits any deposits from the
public within the meaning of Sections 58A and 58AA of the Act and rules
framed there under.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
ix. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular depositing undisputed statutory dues in respect
of, Income Tax & Tax Deducted at Sources have been generally deposited
with the appropriate authorities except some minor delay in depositing
in TDS .
(b) According to the information and explanations given to us and the
records of the Company examined by us, no undisputed amount payable in
respect of the aforesaid dues were outstanding as at 31st March 2013
for a period of more than six months from the date of becoming payable.
The company is not liable to provident fund, Investor education and
Protection Fund, ESI, Wealth Tax, Custom duty and cess as certified by
the company.
x. The accumulated losses of the company are not more than fifty
percent of its Net worth of Company at the end of financial year under
report, company has not incurred any cash losses in the financial year
ended on that date or in the immediately preceding financial year.
xi. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders, as applicable, as at the balance sheet date.
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, the provisions of Clause 4(xii) of the Order are not
applicable to the Company.
xiii. As the provisions of any special statute applicable to chit
fund/ nidhi/ mutual benefit fund/ societies are not applicable to the
Company, the provisions of Clause 4(xiii) of the Order are not
applicable to the Company.
xiv In our opinion, the Company has maintaining proper records of the
transaction and contracts of delaing in Shares and other investments
with timely entries having veen made therein.
xv. In our opinion, and 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 during the year.
Accordingly, the provisions of Clause 4(xv) of the Order are not
applicable to the Company.
xvi. Based on our audit procedures and as per information given to us
the company has not raised any term loan during the year.
xvii According to the information and explanations given to us and on
overall examination of the Balance Sheet of the company, we are of the
opinion that the company not utilized any short term resources for
investment in long term assets.
xviiiThe Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year. Accordingly, the provisions of Clause
4(xviii) of the Order are not applicable to the company.
xix. The Company has not issued any debentures during the year and does
not have any debentures outstanding as at the beginning of the year and
at the year end. Accordingly, the provisions of Clause 4(xix) of the
Order are not applicable to the Company.
xx. The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable to the Company.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For S. N. Kabra & Co.
Chartered Accountants
Firm Registration No.: 03439C
sd/-
Satyanarayan Kabra
Partner
Membership Number 072497
Place: Indore
Date : 30th May, 2013
Mar 31, 2009
We have audited the attached Balance Sheet of TRENDY KNITWEAR LIMITED,
as at 31st March, 2009, the Profit and Loss Account 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.
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 misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we annex hereto a statement on the matters
specified in paragraphs 4 and 5 of the said Order;
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 purposes 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 the
Books of the Company;
(iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
(iv) In our opinion, the Balance Sheet and Profit and Loss Account
dealt with by this report comply with the Accounting Standards referred
to in Section 211(3C) of the Companies Act, 1956;
(v) On the basis of written representations received from the
Directors, as on 31st March, 2009, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2009, from being appointed as a director in terms Section
274(1)(g) of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
accounting policies & notes to the 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 principles
generally accepted in India;
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2009;
(ii) in the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date)
(i) In our opinion and according to the information and explanations
given to us, the nature of the Companys business/activities during the
year are such that clauses (ii), (vii), (viii), (xiii), (xiv), (xix)
and (xx) of CARO 2003 are not applicable to the Company.
(ii) In respect of its Fixed Assets:
(a) The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
(b) According to the information and explanations given to us, fixed
assets of the Company have been physically verified by the Management
at the year end which, in our opinion, is reasonable having regard to
the size of the Company and the nature of its business. No
discrepancies were noticed on such verification;
(c) The company has not disposed off any fixed assets during the year;
(iii) The company has not taken loans from the parties listed in the
register maintained U/s 301 of the companies Act, 1956 and or from
companies under the same management as defined under section 370(IB) of
the companies Act.
(iv) The company has not granted any loans to companies, firm or other
parties as listed in the register maintained under section 301 of the
companies Act, 1956 or to the companies under the same management as
defined u/s 370(IB) of the companies Act,. 1956.
(v) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the company and the nature of its business.
(vi) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that need to be entered into the Register maintained Under section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of the contracts or
arrangements entered in the register maintained under section 301 of
the companies Act, 1956 and exceeding the value of rupees 500000 in
respect of any party during the year have been made at prices which are
reasonable having regards to prevailing market price at the relevant
time.
(vii) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits within the
meaning of directives issued by the Reserve Bank of India and the
provision of section 58A and 58AA of the Companies Act, 1956 or any
other relevant provision of the Act and the rules framed there under.
No order has been passed by the Company Law Board or The National
Company Law Tribunal or any Court or any other Tribunal.
(viii) (a) On the basis of information available, the company is
generally regular in depositing with appropriates authorities
undisputed statutory, dues including Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance, Sales Tax, Income Tax,
Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues
applicable to it though there has been a slight delay in a few cases;
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, sales tax, wealth
tax, service Tax , custom duty , excise duty and cess were in arrears
as at 31st March, 2009 for a period of more than six months from the
date they became payable. There are no dues of income tax, sales tax,
wealth tax, service tax custom duty, excise duty, cess which have not
been deposited on account of any dispute.
(ix) The company have accumulated losses as at 31st March, 2009 are Rs.
40,86,661/- (P.Y 41,50,094/-).
(x) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to the bank. The Company
has not obtained any borrowings from financial institutions or by way
of debentures.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xii) To the best of our knowledge and belief and according to the
information and explanations given to us, the Company has not given any
guarantees for loans taken by others from banks or financial
institutions.
(xiii) To the best of our knowledge and belief and according to the
information and explanations given to us, no term loans were obtained
by the company during the year.
(xiv) To the best of our knowledge and belief and the information and
explanations given to us, on an overall basis, funds raised on short
term basis have prima facie, not been used during year for long term
investment no term loan were obtained by the company during the year.
(xv) To the best of our knowledge belief and the information and
explanations given to us, on an overall basis, funds raised on short
term basis have prima facie, not been used during year for long term
investment.
(xvi) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
(xvii) To the best of our knowledge and according to information and
explanations given to us, no fraud on or by the company has been
noticed or reported during the year.
For S. N. Kabra & Co.
(Chartered Accountants)
(S. N. Kabra)
Partner
M. No. 72497
Place : Hyderabad
Date : 04/09/2009
Mar 31, 2008
We have audited the attached Balance Sheet of TRENDY KNITWEAR LIMITED,
as at 31st March, 2008, the Profit and Loss Account 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.
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 misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we annex hereto a statement on the matters
specified in paragraphs 4 and 5 of the said Order;
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 purposes 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 the
Books of the Company;
(iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
(iv) In our opinion, the Balance Sheet and Profit and Loss Account
dealt with by this report comply with the Accounting Standards referred
to in Section 211(3C) of the Companies Act, 1956;
(v) On the basis of written representations received from the
Directors, as on 31st March, 2008, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2008, from being appointed as a director in terms Section
274(1)(g) of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
accounting policies & notes to the 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 principles
generally accepted in India;
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2008;
(ii) in the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date)
(i) In our opinion and according to the information and explanations
given to us, the nature of the Company's business/activities during the
year are such that clauses (ii), (vii), (viii), (xiii), (xiv), (xix)
and (xx) of CARO 2003 are not applicable to the Company.
(ii) In respect of its Fixed Assets:
(a) The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
(b) According to the information and explanations given to us, fixed
assets of the Company have been physically verified by the Management
at the year end which, in our opinion, is reasonable having regard to
the size of the Company and the nature of its business. No
discrepancies were noticed on such verification;
(c) The company has not disposed off any fixed assets during the year;
(iii) The company has not taken loans from the parties listed in the
register maintained U/s 301 of the companies Act, 1956 and or from
companies under the same management as defined under section 370(IB) of
the companies Act.
(iv) The company has not granted any loans to companies, firm or other
parties as listed in the register maintained under section 301 of the
companies Act, 1956 or to the companies under the same management as
defined u/s 370(IB) of the companies Act,. 1956.
(v) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the company and the nature of its business.
(vi) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that need to be entered into the Register maintained Under section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of the contracts or
arrangements entered in the register maintained under section 301 of
the companies Act, 1956 and exceeding the value of rupees 500000 in
respect of any party during the year have been made at prices which are
reasonable having regards to prevailing market price at the relevant
time.
(vii) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits within the
meaning of directives issued by the Reserve Bank of India and the
provision of section 58A and 58AA of the Companies Act, 1956 or any
other relevant provision of the Act and the rules framed there under.
No order has been passed by the Company Law Board or The National
Company Law Tribunal or any Court or any other Tribunal.
(viii) (a) On the basis of information available, the company is
generally regular in depositing with appropriates authorities
undisputed statutory, dues including Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance, Sales Tax, Income Tax,
Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues
applicable to it though there has been a slight delay in a few cases;
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, sales tax, wealth
tax, service Tax , custom duty , excise duty and cess were in arrears
as at 31st March, 2008 for a period of more than six months from the
date they became payable. There are no dues of income tax, sales tax,
wealth tax, service tax custom duty, excise duty, cess which have not
been deposited on account of any dispute.
(ix) The company have accumulated losses as at 31st March, 2008 are Rs.
41,50,094/- ( P. Y 41,40,094/-) Rs. 10,000/- has incurred losses during
the financial year covered by our audit.
(x) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to the bank. The Company
has not obtained any borrowings from financial institutions or by way
of debentures.
(xi) In our opinion and according to the information and explanations
Given to us the company has not granted loans and advances on the basis
of security by way of pledge of shares, debentures and other securities.
(xii) To the best of our knowledge and belief and according to the
information and explanations given to us, the Company has not given any
guarantees for loans taken by others from banks or financial
institutions.
(xiii) To the best of our knowledge and belief and according to the
information and explanations given to us, no term loans were obtained
by the company during the year.
(xiv) To the best of our knowledge and belief and the information and
explanations given to us, on an overall basis, funds raised on short
term basis have prima facie, not been used during year for long term
investment no term loan were obtained by the company during the year.
(xv) To the best of our knowledge belief and the information and
explanations given to us, on an overall basis, funds raised on short
term basis have prima facie, not been used during year for long term
investment.
(xvi) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
(xvii) To the best of our knowledge and according to information and
explanations given to us, no fraud on or by the company has been
noticed or reported during the year.
For S. N. Kabra & Co.
(Chartered Accountants)
(S. N. Kabra)
Partner
M. No. 72497
Place : Hyderabad
Date : 04-09-2008
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