Mar 31, 2015
We have audited the accompanying financial statements of M/s Aditya
Spinners Limited. Hyderabad ("the Company"), which comprise the Balance
Sheet as at 3ST March, 201S, the Statement of Profit and Less, the Cash
Flow Statement for Ehe year then ended, and a summary of the
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
-n Section 134< 5) o- the Com pa ries Act. 203 (Jthe Act") with
respect te the preparation of these financial statements that give a
tme 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, inciudirrg the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014 This -responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting 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 matenal 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 mailers which are required to be included n
the audit report under the provisions of the Act and the Rules made
(hereunder.
We conducted our auoit in accordance with the Standards on Auditing
specifieo under Section 143(1 Q) of the Act. Those Standards require
that we comply with ethical requirements and pian 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 evsaence about
trie amounts and the disclosures in the financial slatenreuts The
procedures selected depend an the auditor s judgment, including the
essessmentof the risks of matenal misstatement of the financial
statements, whether due la fraud or error, in making those risk
assessments, the auditor considers internal financial conlrol relevant
to the Compa ay's preparation of the financial statements that give a
Vue and fair view in order to desig n audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting pol-cies used and the reasonableness
of the accounting estimates made by the Company's rectors, as well as
evaluating Ihe overall presentation of the financial statements
We beiieve that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion or 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 Joy the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India,
fal in the case of the Balance Sheet, of the state of affairs of the
Company as at 31" March, 2015;
(bj tn th e case of the Stare nient of Profit and Loss, of the orofir
of the Company for the year ended on that date; and
tc) En Ihe case of Ihe Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal end Regulatory Requirements
As required by the Companies (Auditor's Report) order, 2)0tSr issued by
the Central Government of India in terms of sub-section {HI of Section
143 of the Companies Act, 2013, we give in the Annexure a statement on
the matters specified in paragraphs 3 and 4 of Ihe order, to the extent
applicable
As required by Section 143 (3} of the Act, we report that:
fa'i 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 it apoears from our examination oi
those books
(c) The Balance Sheet, the Statement of Profit and Loss, and Ihe Cash
Flow Statement dealt with by this Repad are in agreement with Ihe books
of account.
idl In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 cf th e AcL read with
R me 7 of the Companies (Accounts) Rules, 2014
i si Based on the Written Representation received from the directors as
on 31 March 2D15, and taken on record by the Board of Directors, we
report that none of the director are c isq u alified as an 31 March, 2D
15 from being ap pointed as a director in terms of Sub-section 2 of
Section 154 of the Act.
(II} With respect to the other matters to be included in tl'.e Auditor's
Report in accordance with Ru le 11 of th b Com pan les (Audit a nd
Auditors) Rules. 2014, In our opinion and to the best of our
information and according to the explanations given to us:
i. The Company does not have any penoing legal litigations.
ii The company dees not have any pending amounts required to be
transferred to the Investor Education and Protection Fund
Annexure referred to in paragraph 3 of the Independent Auditor's Report
of even date of Aditya Spinners Limited, Hyderabad on the financial
statements for the year ended March 31,2015.
i In respect of fixed assets
(a) The company is maintaining proper records shewing mil particulars,
including quantitative details and situation of fixed assets;
(bj As explamed to us, ail the fixed assets hove been physsca:ly
verified by the Management during the year No matenel discrepancies
were noticed on such verification
ii. In reaped of its inventories:
(a) As explained to us, the inventories excepting in case of goods in
transit, stocks lying in Central / Elate Warehouses (where confirmation
were obtained from the parties and relied uporu were physically
verified during the year by the Management at reasonable intervals.
(b) In our opinion, procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation lo
the size of the Company and the nature of its business.
(c) On the basis at our examination of records of the inventory, in oar
opinkzi, the Company is maintaining proper records of inventory. No
material discrepancies were noted on such verification.
iii In respect of loans"
As informed to usr the company has not granted any loans, secured or
unsecured tc companies, fimts or other parties coveretr in the register
maintained under section 139 of the Companies Act
iv. tn our opinion and according to the information and explanations
given to us, there are adequate into mar control systems commensurate
with [he size of the company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods &
services.
v The company has net accepted any deposits, and hence clause (v) of
Companies (Auditor's Report} Order, 2015 is not applicable.
VL We have broadly reviewed the books of account maintained by company
pursuant to rules p nescribed by the centra- government of I nd ia for
maintenance of cost records under Section of the Companies Act 2013 in
respect of products {Yam) of (he company and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained However, we have not made a detailed examination of the
records
vii.a} According to the information and explanations given la us and
The records as produced and examined by us, in our opinion, the company
is regular in depositing undisputed statutory dues including income
tax, service tax, Customs Duly and other materia: statutory dues during
the year by the company with the appropnate authorities though there
are no ahnomnar deays in respect at Professional Tax As explained to
us. the company did not have any dues on accounl of Employee's State
insurance, Sales lax, Excise duty. Wealth tax and Investor Education
and Protection Fund.
According to the information ana explanations given to us no undisputed
amounts payable in respect of Provident Fund, fncanTje-tax. Service
tax, Customs duty and other material statutory dues were in arrears as
at 31K March 2D15 for a period of more than six months from the period
they became payable.
b) According to the information and explanations given to us, there are
no dues of income-tax. Service tax and Customs duly which have not been
deposited with the appropriate authorities on account of any dispute As
informed to us, the company did not have any dues on account of Wealth
tax and Excise duly.
c) According to the information and explanations given lo us, there are
no pending amounts required to be transferred to Erie Investor
Education and Protection Fund and hence clause (vii) {c) of Companies
(Auditor's Report) Order. 2D15 is not appNcabhe
viii The Company does not have any accumulated lasses and has not
incurred any cash losses in the current financial year and in Ihe
immediately preceding financial year
ix. in our opinion and according to the information and explanations
given to us, the company has noL defaulted in repayment of loans to its
bankers and financial institutions:
x- According lo the information and explanatory given to us the company
has not given any guarantee for loans taken by others- or banks or
financial institutions. Thus paragraph 3 (x) of the order does not
apply to the company for the year
xi in our option and according to the information and explanations
given to uar the term loans taken by the company have been aopliec for
the purpose for which they wens rais-ea
xii. According to ihe mfomnason a no explanations given to us, no fraud
on or by the company has been noticed or reported dunng the course of
audit.
For C Ramachandram & Co,L
Chartered accountants,
Firm Registration No. 0028645
C.Ramach andram
Partner
M.No:Q25B34
Place: Hyderabad
Date: 29.0B3}15
Mar 31, 2014
We have audited the accompanying financial statements of M/s. Aditya
Spinners Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
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 notified under the companies Act 1956 ("The
Act") read with the general circular 15/2013 dated 13th September
2013 of the Ministry of Corporate affairs in respect of Section 133 of
the Companies Act 2013. 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 Judgement, 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 on opinion on the effectiveness of the entitys
internal capital. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial Statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 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 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:
- 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.
- 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.
- 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.
- In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
the companies Act 1956 ("The Act") read with the general circular
15/2013 dated 13th September 2013 of the Ministry of Corporate affairs
in respect of Section 133 of the Companies Act 2013.
- On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph (5) of our report of even date of the Auditors
to the members of ADITYA SPINNERS LIMITED on the (financial statments
for the year ended March 31, 2014).
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to size of the company and
nature of its assets. No material discrepancies were notice on such
physical verification.
(c) In our opinion the Company has not disposed off substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
2. (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) In our opinion and according to the information and explanations
given to us, 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 books records were not material.
3. (a) The company has not granted any loans, secured or unsecured to
companies, firms, or other parties covered in the register maintained
U/s.301 of the Companies Act 1956.
(b) The Provisions of Clause (b), (c), and (d) of Paragraph 4(iii)of
the companies (Auditors Report) order, 2003 are not applicable to the
company.
(c) The Company has taken loans from parties covered in the register
maintained U/s.301 of the Companies Act, 1956. The maximum amount
involved during the year was Rs.230.61 lakhs and the year end balance
of loans outstanding from such party was Rs.166.65 lakhs.
(d) The rate of interest and other terms of loan as explained above,
are prima facie not prejudicial to the interest of the company.
(e) The loans taken by the company are repayable on demand.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company.
5. In our opinion and according to the information and explanations
given to us, we are of the opinion that there are no contracts or
arrangements which need to be entered in the register maintained under
section 301 of the Act. In view of this, paragraphs 4 v (a) and 4 v (b)
of CARO are not applicable.
6. The company has not accepted any deposits from the public within the
meaning of Section 58A and 58AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company in respect of manufacturing yarn, 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.
9. In respect of Statutory dues:
a. According to the information and explanations given to us, the
company has regular in depositing with appropriate authorities
undisputed statutory dues including investor education and protection
fund, wealth tax, customs duty, excise duty, service tax, cess and
other statutory dues to the extent applicable to it.
b. According to the information and explanations given to us no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, customs duty, excise duty and cess were in arrears as at
March 31,2013 for a period of more than Six months from the date they
became payable.
c. According to the information and explanation given to us, there are
no dues of income tax, sales tax, excise duty, service tax, custom
duty, wealth tax and cess which have not been deposited on account of
the dispute.
10. In our opinion the accumulated losses of the company are more than
fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our report and in the
immediately preceding financial year.
11. In our opinion that the company has not defaulted in repayment of
dues to a financial institution or debenture holders during the year.
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.
13. In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provision of clause 4(xiii) of the
companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
14. In our opinion, the company has maintained proper records of
transaction and contracts relating to dealing or trading in shares,
securities, debentures and other investments and timely entries have
been made therein. The shares, debentures and other securities have
been held by the company in its own name.
15. 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.
16. The company has not raised any term loans during the year. The term
loans out standings at the beginning of the year were applied for the
purposes for which they were raised.
17. According to the information and explanation given to us and on an
overall examination of the balance sheet of the company, we report that
no funds raised on short-term basis have been used for long-term
investment.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under sec 301
of the act during the year.
19. The Company has not issued any debentures during the year.
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 explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For C.RAMACHANDRAM & CO.
Chartered Accountants
Firm Reg. No. : 002864S
C.RAMACHANDRAM
Partner
Membership No. 025834
Place : Hyderabad
Date : 25-04-2014
Mar 31, 2012
1. We have audited the attached balance sheet of M/s. Aditya Spinners
Limited as at March 31' 2012 and the related profit and loss Account
for the year ended on that date annexed there to and the cash flow
statement of the year ended on that date. These financial Statements
are the responsibility of the management of the Company. 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 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 estimate made
by 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 issued by
the Central Government in terms of Section 227(4A) of the companies
Act' 1956' we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the annexure referred to in paragraph 3
above' we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 it appears from our examination of those
books.
c) The Balance Sheet' the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion' these financial statements have been prepared in
compliance with the applicable accounting standards referred to in
Section 211 (3C) of the companies Act' 1956.
e) Based on the representations made by all the Directors of the
Company as on March 31' 2012 and taken on record by the Board of
Directors of the Company and in accordance with the information and
explanations as made available' the Directors of the Company do not'
prima face' have any disqualification as referred to in Clause (g) of
subsection (1) to Section 274 of the Companies Act
1956.
f) In our opinion and to the best of our information and according to
the explanations given to us' the said accounts give the information
required by the Companies Act' 1956' in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
(i) in the case of the Balance Sheet' of the State of affairs of the
Company as at March 31' 2012.
(ii) in the case of the profit and loss Account' of the loss for the
year ended on that date' and
(Hi) in the case of cash flow statement' of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
(Refferred to in paragraph 3 of our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us the fixed assets have been physically verified
by the management during the year in a phased periodical manner' which
in our opinion is reasonable' having regard to size of the company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion the Company has not disposed off substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
2. (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) In our opinion and according to the information and explanations
given to us' 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.
3. (a) The Company has not granted any loans' secured or unsecured to
companies' firms' or other parties covered in the register maintained
U/s301 of the companies Act 1956.
(b) The Provisions of Clause (b)' (c)' and (d) of Paragraph 4(iii) of
the companies (Auditors Report) order' 2003 are not applicable to the
company.
(c) The Company has taken loans from two parties covered in the
register maintained U/s.301 of the Companies Act' 1956. The maximum
amount involved during the year was Rs.20.14 lakhs and the year end
balance of loans outstanding from such party was Rs.20.14 Lakhs.
(d) The rate of interest and other terms of loan as explained above'
are prima facie not prejudicial to the interest of the company.
(e) The loans taken by the company are repayable on demand.
4. In our opinion and according to the information and explanations
given to us' there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory' fixed assets and with regard to the sale of
goods and services. During the course of our audit' we have not
observed any continuing failure to correct major weaknesses in internal
control system.
5. According to the information and explanations given to us' we are
of the opinion that there are no contracts or arrangements which need
to be entered in the register maintained under section 301 of the Act.
In view of this' paragraphs 4 v (a) and 4 v (b) of CARO are not
applicable.
6. The Company has not accepted any deposits from the public within
the meaning of sections 58 A and 58AA or any other relevant provisions
of the Company Act' 1956 and the ruled framed there under.
7. In our opinion the company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company in respect of manufacturing yarn' 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.
9. (a) According to the information and explanation given to us' the
Company has
been regular in depositing with appropriate authorities undisputed
statutory dues including investor education and protection fund' wealth
tax' custom duty' excise duty' service tax' cess' other statutory dues
to the extent applicable to it.
(b) According to the information and explanations given to us no
undisputed amounts payable in respect of income tax' wealth tax'
services tax' custom duty' excise duty and cess were in arrears as at
March 31' 2012 for a period of more than Six months from the date they
became payable.
(c) According to the information and explanation given to us' there are
no dues of income tax' sales tax' excise duty' service tax' custom
duty' wealth tax and cess which have not been deposited on account of
the dispute.
10. In our opinion the accumulated losses of the company are more than
fifty percent of its networth. The company has not incurred cash losses
during the financial year covered by our report and in the immediately
proceeding financial year.
11. In our opinion that the Company has not defaulted in repayment of
dues to a financial institution or debenture holders during the year.
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.
13. In our opinion' the company is not a chit fund or nidhi mutual
benefit fund/society. Therefore' the provisions of clause 4 (xiii) of
the companies (Auditor's Report) Order' 2003 are not applicable to the
company.
14. In our opinion the Company has maintained proper records of
transaction and contracts relating to dealing or trading in shares'
securities' debentures and other investments and timely entries have
been made therein. The shares' debentures and other securities have
been held by the Company in its own name.
15. In our opinion and according in the information and explanations
given to us' the company has not given any guarantee for loans taken by
others from banks for financial institutions during the year.
16. The company has not raised any new term loans during the year. The
term loans out standings at the beginning of the year were applied for
the purposes for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company' we report
that no funds raised on short-term basis have been used for long-term
investment.
18. The company has made preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Act during the year. The No. of shares alloted is 91'40'000 shares
at a price of Rs.10/- each and the price at which shares have beef)
issued is not prejudicial to the interest of the company.
19. The company has not issued any debentures during the year.
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 explanations
given to us' no fraud on or by the company has been noticed or reported
during the year' that causes the financial statements to be materially
misstated.
For C.RAMACHANDRAM & CO.'
Chartered Accountants
Sd/-
C.RAMACHANDRAM
Partner
Membership No. 02S834
Place: Hyderabad
Date: 31st May' 2012
Mar 31, 2011
1. We have audited the attached balance sheet of M/s. Aditya Spinners
Limited as at March 31, 2011 and the related profit and loss Account
for the year ended on that date annexed there to and the cash flow
statement of the year ended on that date.' These financial Statements
are the responsibility of the management of the Company. 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 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 estimate made
by 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 issued by
the Central Government in terms of Section 227(4A) of the companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 it appears from our examination of those
books.
c) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, these financial statements have been prepared in
compliance with the applicable accounting standards referred to in
Section 211 (3C) of the companies Act, 1956.
e) Based on the representations made by all the Directors of the
Company as on March 31, 2011 and taken on record by the Board of
Directors of the Company and in accordance with the information and
explanations as made available, the Directors of the Company do not,
prima face, have any disqualification as referred to in Clause (g) of
subsection (1) to Section 274 of the Companies Act 1956
f) In our opinion and to the best of our information and according/
the explanations given to us, the said accounts, subject to our
comments made on Secured Loans vide Notes on Accounts SI No.6, 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 March 31, 2011.
(ii) in the case of the profit and loss Account, of the loss for the
year ended on that date, and
(iii) in the case of cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT
(Refferred to in paragraph 3 of our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to size of the company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion the Company has not disposed off substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
2 (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) In our opinion and according to the information and explanations
given to us, 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.
3. (a) The Company has not granted any loans, secured or unsecured to
companies, firms, or other parties covered in the register maintained
U/s301 of the companies Act 1956.
(b) The Provisions of Clause (b), (c), and (d) of Paragraph 4(iii) of
the companies (Auditors Report) order, 2003 are not applicable to the
company
(c) The Company has taken loans from two parties covered in the
register maintained U/s.301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 14.55 lakhs and the year end
balance of loans outstanding from such party was Rs.14.55 Lakhs.
(d) The rate of interest and other terms of loan as explained above,
are prima facie not prejudicial to the interest of the company.
(e) The loans taken by the company are repayable on demand.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
5. According to the information and explanations given to us, we are of
the opinion that there are no contracts or arrangements which need to
be entered in the register maintained under section 301 of the Act. In
view of this, paragraphs 4 v (a) and 4 v (b) of CARO are not
applicable.
6. The Company has not accepted any deposits from the public within the
meaning sections 58 A and 58AA or any other relevant provisions of
the CompanyAct,1956 and the ruled framed there under.
7. In our opinion the company has an internal audit system commensurate
with its size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company in respect of manufacturing yarn, 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.
9. (a) According to the information and explanation given to us, the
Company has been regular in depositing with appropriate authorities
undisputed statutory dues including investor education and protection
fund, wealth tax, custom duty, excise duty, service tax, cess, other
statutory dues to the extent applicable to it.
(b) According to the information and explanations given to us no
undisputed amounts payable in respect of income tax, wealth tax,
services tax, custom duty, excise duty and cess were in arrears as at
March 31, 2011 for a period of more than Six months from the date they
became payable, except - In respect of Sales tax deferment dues
amounting to a total of Rs.2,89,67,579/-. The Company has obtained
relief from BIFR in respect of these dues to repay the same in equal
Instalments over a period of Six Years commencing from 1st April 2011.
(c) According to the information and explanation given to us, there are
no dues of income tax, sales tax, excise duty, service tax, custom
duty, wealth tax and cess which have not been deposited on account of
the dispute.
10. In our opinion the accumulated losses of the company are more than
fifty percent of its networth. The company has not incurred cash losses
during the financial year covered by our report and in the immediately
proceeding financial year.
11. According to the records of the company examined by us and the
Information and explanations given to us, the Company has entered into
One Time Settlement in respect of Long Term Loans including interest
accrued thereon and cleared the entire dues as per said OTS agreement
made and the Company has obtained the No Dues Certificates from the
Financial Institutions and Banks but the effect of OTS settlements were
not reflected in the books of account.
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.
13 In our opinion, the company is not a chit fund or nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the companies (Auditor's Report) Order, 2003 are not applicable to
the company.
14. 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 for financial institutions during the year.
15. The company has not raised any new term loans during the year. The
term loans out standings at the beginning of the year were applied for
the purposes for which they were raised.
16. According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
no funds raised on short-term basis have been used for long-term
investment.
17. The 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.
18. The company has not issued any debentures during the year.
19. The company has not raised any money by way of public issue during
the year.
20. In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For C.RAMACHANDRAM & CO.,
Chartered Accountants
Sd/-
C.RAMACHANDRAM
Partner
Membership No. 25834
Place: Hyderabad
Date: 24th August, 2011.
Mar 31, 2010
1. We have audited the attached balance sheet of Aditya Spinners
Limited as at March 31. 2010 and the related profit and loss Account
for the year ended on that date annexed there of and the cash flow
statement of the year ended on that date. These financial Statements
are the responsibility of the management of the Company. 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 a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimate made
by 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 issued by
the Central Government of India in terms of Section 227(4A) of the
companies Act 1956, we enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 and profit and loss account dealt with by this
report are in agreement with the books of account.
d) In our opinion, these financial statements have been prepared in
compliance with the applicable accounting standards referred to in
Section 21 I (3C) of the companies Act, 1956.
e) Based on the representations made by all the Directors of the
Company as on March 31, 2010 and taken on record by the Board of
Directors of the Company and in accordance with the information and
explanations as made available, the Directors of the Company do not,
prima lace, have any disqualification as referred to in Clause (g) of
subsection (1) to Section 274 of the Companies Act 1956.
f) 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 made on secured loans and interest on secured loans vide Notes
on Accounts SI No. 6, 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 March 31,2010.
(ii) in the case of the profit and loss Account, of the loss for the
year ended on that date, and
(iii) in the case of cash flow statement, of the cash flows for. the
year ended on that date,
ANNEXURE TO AUDITORS REPORT
1. (a) The company has maintained proper records showing full
particular including quantitative details and situation of fixed
assets.
(b) As explained to us the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to size of the company and
nature of its assets. No materia] discrepancies were noticed on such
physical verification.
(c) in our opinion the Company has not disposed off substantial part of
fixed assets during the year and the going concern status of the
company is not affected,
2. (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) In our opinion and according to the information and explanations
given to us, 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.
3.. (a) The Company ha.s not granted any loans, secured or unsecured
to companies, firms, or other parties covered in the register
maintained U/s301 of the companies Act 1956.
(b) The Provisions of Clause (b), (c), and (d) of Paragraph 4{iii) of
the companies (Auditors Report) order, 2003 are not applicable to the
company.
(c) The Company has taken loans from one party covered in the register
maintained U/s.301 of the Companies Act, 1956. The maximum amount
involved during the year was Rs. 14.55 lakhs and the year end balance
of loans outstanding from such party was Rs. 14.55 Lakhs.
(d) The rate of interest and other terms of loan as explained above,
are prima facie not prejudicial to the interest of the company.
(e) The loans taken by the company are repayable on demand.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system,
5. (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the companies Act, 1956 have been entered in the
register required to be maintained under that section.
b) According to the information and explanations given to us, the
Company has not entered into any transaction for purchase of goods and
materials and sale of goods and services made in the registers
maintained u/s 301, of the Companies Act, 1956 aggregating during the
year to Rs.5,00,000/- or more in respect of the each party.
6. The Company has not accepted any deposits from the public within
the meaning of sections 58 A and 5SAA or any other relevant provisions
of the Company Act, 956 and the ruled framed there under,
7. In our opinion the company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company in respect of manufacturing yarn, 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 (I) 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.
9. (a) According to the information and explanation given to us, the
Company has been regular in depositing with appropriate authorities
undisputed statutory dues including investor education and protection
fund, wealth tax, custom duty, excise duty, service tax, cess, other
statutory dues to the extent applicable to it.
(b) According to the information and explanations given to its no
undisputed amounts payable in respect of income tax, wealth tax,
services tax, custom duty, excise duty and cess were in arrears as at
March 31, 2010 for a period of more than Six months from the date they
became payable, except - In respect of Sales tax deferment dues, the
company has not paid Rs.1,52,13,448/Ã as on March 31, 2010 for which
the Company has a protection under Section 22(1) of Sick Industrial
Companies (Special Provision) Act, 1985.
(c) According to the information and explanation given to us, there arc
no dues of income tax, sales tax, excise duty, service tax, custom
duty, wealth, tax and cess which have not been deposited on account of
the dispute,
10. In our opinion, the accumulated losses of the company are more than
fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our report and in the
immediately preceding financial year.
11, According to the records of the Company examined by us and the
Information and explanations given to us, the Company has entered into
One Time Settlement and cleared the entire dues as per the said OTS
agreement made with them and the Company has obtained the No Dues
Certificates from the Financial Institutions and Banks but the effect
of OTS settlements were not reflected in the books of account,
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.
13. In our opinion, the company is not a chit fund or nidhi mutual
benefit fund/society, Therefore, the provisions of clause 4 (xiii) of
the companies {Auditors Report) Order, 2003 are not applicable to the
company.
14. The company has maintained proper records of transactions and
contracts in respect of purchase of shares and timely entries have been
made therein. All shares have been held by the company its own name.
15. 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 for financial institutions during the year.
16. The company has not raised any new term loans during the year. The
term loans out standings at the beginning of the year were applied for
the purposes for which they were raised.
17. According to the Information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
18. The 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,
19. The company has not issued any debentures during the year.
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 explanations
given to us, no fraud on or by the company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated,
For C,RAMACHANDRAM & CO.,
Chartered Accountants
C, RAMACHANDRAM
Partner
Membership No. 25834
Place; Hyderabad
Date: August 18,2010