Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
ARORA FIBRES LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March, 2015 , the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone 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 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 material
misstatement, whether due to fraud or error.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these standalone
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 thereunder.
4. 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.
5. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
6. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
Opinion
7. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone 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, of the state of
affairs of the Company as at 31st March, 2015 , and its profit and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor's Report) Order, 2015 ('the
Order'), issued by the Central Government of India in exercise of
powers conferred by sub-section 11 of section 143 of the Act, we
enclose in the Annexure a statement on the matters specified in
paragraphs 3 and 4 of the Order.
9. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the 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 the written representations received from the
directors as on 31st M a r c h , 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
a. The Company does not have any pending litigations which would
impact its financial position
b. The Company does not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
c. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
(Referred to in paragraph 8 under "Report on other Legal and Regulatory
Requirements' section of our report of even date on the accounts of
ARORA FIBRES Limited ("the company") for the year ended 31st March 2015
(i) (a) the company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets;
(b) The fixed assets are being physically verified by the management
under a phased programme of verification, which in our opinion is
reasonable having regard to the nature and value of its assets.
However, no material discrepancies were noticed on such verification.
(ii) (a) The stock of inventory has been physically verified by the
Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedure for physical verification of inventory
followed by the Management is reasonable and adequate in relation to
the size of the Company and 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 were not material and
have been properly dealt with in the accounts.
(iii) The company has not granted loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
(iv) In our opinion and according to information and explanation given
to us, there is an adequate internal control system commensurate with
the size of the company & nature of its business, with regards to fixed
assets and for sale of goods. 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) the company has not accepted deposits within the meaning of the
provisions of sections 73 to 76 or any other relevant provisions of the
Companies Act and the rules framed there under.
(vi) The Central Government has not prescribed the maintenance of cost
records under sub-section (1) of section 148 of the Companies Act for
any of the services rendered by the Company.
(vii) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty, cess and
other material statutory dues were in arrears as at 31st March 2015 for
a period of more than six month from the date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion there are no
disputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty, cess and
other material statutory dues as applicable with the appropriate
authorities.
(c) According to the information and explanations given to us and the
records of the Company examined by us, there were no amounts which were
required to be transferred to the Investor Education and Protection
Fund in accordance with the relevant provisions of the Companies Act,
1956 (1 of 1956) and rules made there under.
(viii) In our opinion, the accumulated losses as at the end of the
financial year are not more than fifty percent of its net worth and it
has not incurred cash loss in the financial year ended on that date.
The company has not incurred cash loss in the immediately preceding
financial year.
(ix) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders during the year.
(x) According to the records of the Company examined by us and the
information and explanations given to us, the company has not given any
guarantee for loans taken by others from bank or financial
institutions.
(xi) In our opinion and according to the information and explanations
given to us, on an overall basis the term loans have been applied for
the purposes for which they were obtained.
(xii) According to the information and explanations given to us, we
have neither noticed any instance of fraud on or by the Company,
noticed or reported during the year, nor was any such instance reported
by the Management during the year
For Vinay Gudi & Associates
Chartered Accountants
Firm's Registration No. 129032W
CA. Vinay Gudi
Proprietor
Membership No. 129349
Place of Signature: Mumbai
Date : 27th May, 2015
Mar 31, 2014
1. We have audited the attached Balance Sheet of M/s Arora Fibres
Limited as at 31st March, 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
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General
Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013. 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
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 auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
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 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 & Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order
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 dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; 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
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 referred to in para 7 of our audit report of even date
1. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b. The fixed assets are being physically verified by the management
under a phased programme of verification, which in our opinion is
reasonable having regard to the nature and value of its assets.
However, no material discrepancies were noticed on such verification.
c. During the year, the Company has not disposed off substantial part
of its fixed assets.
2. a. The stock of inventory has been physically verified by the
Management. In respect of inventory lying with third parties, these
have been substantially confirmed by them.
b. In our opinion and according to the information and explanations
given to us, the procedure for physical verification of inventory
followed by the Management is reasonable and adequate in relation to
the size of the Company and 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 were not material and
have been properly dealt with in the accounts.
3. a. The Company has not granted any loans, secured or unsecured,
during the year, to companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly paragraph 4(iii)(b),4(iii)(c),4(iii)(d) are not
applicable
b. The company has taken unsecured loans from one party covered in the
register maintained under section 301 of the Act. The outstanding
balance as on 31st March 2014 is Rs. 2,61,70,589/- and the maximum
outstanding amount during the year was Rs. 10,82,34,805/-
c. The terms and conditions of unsecured loans taken by the company are
prima facie not prejudicial to the interest of the company.
d. There is no stipulation as to payment of Principle and interest on
such loan
4. In our opinion and according to information and explanation given to
us, there is an adequate internal control system commensurate with the
size of the Company & nature of its business, for the purchase of
inventory and fixed assets and sale of goods. 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.
5. a. Based on the audit procedures applied by us and according to the
information and explanations given to us, transactions that need to
be entered in the register in pursuance of 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, transactions made in pursuance of contract or arrangement
entered in the register maintained under Section 301 of the Companies
Act, 1956 exceeding an amount of Rs. Five lacs have been made at prices
which are reasonable with regard to prevailing market prices at the
relevant time.
6. The Company has not accepted any deposits from the public within the
meaning of Sections 58A and 58AA of the Act and the rules framed there
under.
7. The company has an internal audit system commensurate with the size
of the Company & nature of the business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Companies Act, 1956 and are of the opinion that prima
facie the prescribed cost records have been made and maintained. We
have, however, not made a detailed examination of the cost records with
a view to determine whether they are accurate or complete.
9. 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 in depositing the undisputed statutory dues including provident fund, investor education and protection fund, employees''
state insurance, income tax, sales tax, wealth tax, service tax, customs
duty, excise duty, cess and other material statutory dues as applicable
with the appropriate authorities.
b. According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, no undisputed
amounts payable in respect of provident fund, investor education and
protection fund, employees'' state insurance, income tax, sales tax,
wealth tax, service tax, customs duty, excise duty, cess and other
material statutory dues were in arrears as at 31st March 2014 for a
period of more than six month from the date they became payable.
c. According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of sales
tax, customs duty and cess as at March 31, 2014 which have not been
deposited on account of a dispute are as follows:
Name of the Statute Nature Amount of Dues Period Forum where
dispute
pending
Income tax Act 1961 income tax 66,161 Asst CIT Appeal
Year
2005-2006
10. In our opinion, the accumulated losses as at the end of the
financial year are not more than fifty percent of its net worth and it
has not incurred cash loss in the financial year ended on that date.
The company has incurred cash loss 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 not defaulted
in repayment of dues to any financial institution or bank 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. The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund / society are not applicable to the
Company.
14. The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
15. According to the information and explanations gives to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the
Company has taken term loan during the year and applied the same for
the intended purpose.
17. On the basis of our examination of the books of account and the
information and explanations given to us funds raised on short term
basis have not been used for long term investments.
18. The Company has not made any preferential allotment of shares or to
parties or companies covered in the register maintained under Section
301 of the Act.
19. The Company has not issued any debentures during the year.
20. During the year the Company has not raised any money by public
issue.
21. According to the information and explanations given to us, we have
neither noticed any instance of fraud on or by the Company, noticed or
reported during the year, nor was any such instance reported by the
Management during the year.
The Company has only one class of Equity Shares. Each shareholder is
eligible for one vote per share. The dividend proposed by the Board is
subject to the approval of shareholders except in case of interim
dividend. In the event of liquidation, the equity shareholders are
eligible are eligible to receive the remaining assets of the Company
after distribution of all preferential amounts in proportion to their
shareholding.
Shareholders holding more than 5% shares of the Company
There are no delays in payments to Micro and Small Enterprises as
required to be disclosed under the Micro, Small and Medium Enterprises
Development Act,2006. The information regarding Micro and Small
enterprises has been determined to the extent such parties have been
identified on the basis of information available with the Company.
For Vinay Gudi & Associates
Chartered Accountants
Firm No: 129032W
Vinay Gudi
Proprietor
M No: 129349
Place - Mumbai
Date - 26th May, 2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s Arora Fibres
Limited as at 31st March, 2012 and the Profit & Loss Account and Cash
Flow statement of the Company annexed hereto for the financial year
ended on that date. These financial statements are the responsibility
of the Company's Management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on 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.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the necessary information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of the
books.
(iii) The Balance Sheet, Profit & Loss Account and cash flow statement
dealt with by this report are in agreement with the books of account of
the company.
(iv) In our opinion, the Balance Sheet, Profit & Loss account and cash
flow statement comply with the accounting standards referred to in
section 211 (3C) of the Companies Act, 1956
(v) On the basis of written representation received from the directors
as on 31 st March 2012 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2012 from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements read
together with the Significant Accounting Policies and Notes thereon,
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view, in conformity with the
accounting principles generally accepted in India:
a) In case of-the Balance sheet, of the state of affairs as at 31st
March 2012;
b) In 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.
Annexure referred to in para 2 of our audit report of even date
1. a. The Company has maintained proper records showing full
particulars including quantitative details
and situation of its fixed assets.
b. The fixed assets are being physically verified by the management
under a phased programmed of verification, which in our opinion, is
reasonable having regard to the nature and value of its assets.
however, no material discrepancies were noticed on such verification.
c. During the year, the Company has not disposed off substantial part
of its fixed assets.
2. a. The stock of inventory has been physically verified by the
Management. In respect of inventory lying with third parties, these
have been substantially confirmed by them.
b. In our opinion and according to the information and explanations
given to us, the procedure for physical verification of inventory
followed by the Management is reasonable and adequate in relation to
the size of the Company and 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 were not material and
have been properly dealt with in the accounts.
3. a. The Company has not granted any loans, secured or unsecured,
during the year, to companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956.Accordingly paragraph
4(iii)(b),4(iii)(c),4(iii)(d) are not applicable
e. The company has taken unsecured loans from Two parties covered in
the register maintained under section 301 of the Act. The outstanding
balance as on 31st March 2012 is Rs 12,26,97,126/ - and the maximum
outstanding amount during the year was Rs 14,48,09,092
f The terms and conditions of unsecured loans taken by the company are
prima facie not prejudicial to the interest of the company
g. there is no stipulation as to payment of Principle and interest on
such
4. In our opinion and according to information and explanation given
to us, there is an adequate internal control system commensurate with
the size of the Company & nature of its business, for the purchase of
inventory and fixed assets and sale of goods. 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.
5. a. Based on the audit procedures applied by us and according to
the information and explanations given to us, transactions that need to
be entered in the register in pursuance of 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, transactions made in pursuance of contract or arrangement
entered in the register maintained under Section 301 of the Companies
Act, 1956 exceeding an amount of Rs.five lacs have been made at prices
which are reasonable with regard to prevailing market prices at the
relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7. The company has an internal audit system commensurate with the size
of the Company & nature of the business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Companies Act, 1956 and are of the opinion that prima
facie the prescribed cost records have been made and maintained. We
have, however, not made a detailed examination of the cost records with
a view to determine whether they are accurate or comolete.
9. 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 in depositing
the undisputed statutory dues including provident fund, investor
education and protection fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty, cess and
other material statutory dues as applicable with the appropriate
authorities.
b. According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, no undisputed
amounts payable in respect of provident fund, investor education and
protection fund, employees' state insurance, income tax, sales tax,
wealth tax, service tax, customs duty, excise duty, cess and other
material statutory dues were in arrears as at 31st March 2012 for a
period of more thap six month from the date they became payable.
c. According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of sales
tax, customs duty and cess as at March 31, 2012 which have not been
deposited on account of a dispute are as follows:
Name of the
Statute Nature Amount of
Dues Period Forum where
dispute
pending
Income Tax
Act,1961 Income
Tax Rs.66,161/- Asst. Year CIT Appeal
2005-2006
10. In our opinion, the accumulated losses as at the end of the
financial year are not more than fifty percent of its net worth and it
has incurred cash loss in the financial year ended on that date.
However the company has not incurred cash loss 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 not defaulted
in repayment of dues to any financial institution or bank 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. The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund / society are not applicable to the
Company.
14. The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
15. According to the information and explanations gives to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the
Company has not availed any term loan during the year and hence
paragraph 4 (xvi) is not applicable.
17. On the basis of our examination of the books of account and the
information and explanations given to us funds raised on short term
basis have not been used for long term investments.
18. The Company has not made any preferential allotment of shares or
to parties or companies covered in the register maintained under
Section 301 of the Act.
19. The Company has not issued any debentures during the year.
20. During the year the Company has not raised any money by public
issue.
21. According to the information and explanations given to us, we have
neither noticed any instance of fraud on or by the Company, noticed or
reported during the year, nor was any such instance reported by the
Management during the year.
For Vinay Gudi & Associates
Chartered Accountants
Firm No: 129032W
Vinay Gudi
Proprietor
MNo: 129349
Place - Mumbai
Date-31st May, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s Arora Fibres
Limited as at 31st March, 2011 and the Profit & Loss Account and Cash
Flow statement of the Company annexed hereto for the financial year
ended on that date. These financial statements are the responsibility
of the Company's Management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on 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.
3. 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 Companies Act, 1956 ('the Act'),
we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order
4. Further to our comments in the annexure referred to in (2) above,
we report that :
(i) We have obtained all the necessary information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of the
books.
(iii) In our opinion, the Balance Sheet, Profit & Loss account and cash
flow statement comply with the accounting standards referred to in
section 211(3C) of the Companies Act, 1956.
(iv) The Balance Sheet, Profit & Loss Account and cash flow statement
dealt with by this report are in agreement with the books of account of
the company.
(v) On the basis of written representation received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March 2011 from being
appointed as a director in terms of clause (g) of sub section (1) of
section 274 of the Companies Act, 1956.
(vi) In our opinion and according to the explanations given to us, the
said accounts read together with the Significant Accounting Policies
and notes thereon, give the information required by the Companies
Act,1956 in the manner so required and give a true and fair view :
a) In case of the Balance sheet, of the state of affairs as at 31st
March 2011, and
b) In case of the Profit & 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.
Annexure referred to in para 2 of our audit report of even date
1. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b. Major fixed assets were physically verified by the management, no
material discrepancies were noticed on such verification.
c. During the year, the Company has not disposed off substantial part
of its fixed assets.
2. a. The stock of inventory has been physically verified by the
Management .In respect of inventory lying with third parties, these
have been substantially confirmed by them.
b. In our opinion and according to the information and explanations
given to us, the procedure for physical verification of inventory
followed by the Management is reasonable and adequate in relation to
the size of the Company and 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 were not material and
have been properly dealt with in the accounts.
3. a. The Company has not granted any loans, secured or unsecured,
during the year, to companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act,
1956.Accordingly paragraph 4(iii)(b),4(iii)(c),4(iii)(d) are not
applicable
e. The company taken unsecured loans from Two parties covered in the
register maintained under section 301 of the Act. The outstanding
balanceas on 31st march 2011 is Rs7,50,05,291/-and the maximum
outstanding amount during the year was Rs 13,71,31,725/- f. The terms
and conditions of unsecured loans taken by the company are prima facie
not prejudicial to the interest of the company
g. there is no stipulation as to payment of Principle and interest on
such loan
4. In our opinion and according to information and explanation given
to us, there is an adequate internal control system commensurate with
the size of the Company & nature of its business. forthe purchase of
inventory and fixed assets and sale of goods.
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.
5. a. Based on the audit procedures applied by us and according to
the information and explanations given to us, transactions that need to
be entered in the register in pursuance of 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, transactions made in pursuance of contract or arrangement
entered in the register maintained under Section 301 of the Companies
Act, 1956 exceeding an amount of Rs.five lacs have been made at prices
which are reasonable with regard to prevailing market prices.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act andthe rules framed
there under.
7. There is no formal internal audit system in force. However, the
internal control procedures are commensurate with the size of the
Company & nature of the business.
8. We are informed that the provisions of section 209(1)(d) of the
Companies Act, 1956 regarding maintenance of cost records are not
applicable to the Company. On facts, requirements of the clause are not
applicable to the Company.
9. 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 regular in depositing the undisputed statutory dues including
provident fund, investor education and protection fund, employees'
state insurance, income tax, sales tax, wealth tax, service tax,
customs duty, excise duty, cess and other material statutory dues as
applicable with the appropriate authorities.
b. According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of sales
tax, customs duty and cess as at March 31, 2011 which have not been
deposited on account of adispute are as follows:
Name of the Statute Nature Amount Period Forum where
of Dues dispute pending
Income Tax Act, 1961 Income Tax Rs.66,161/- Asst. Year CIT Appeal
2005-2006
10. In our opinion, the accumulated losses as at the end of the
financial year are not more than fifty percent of its net worth and and
it has not incurred cash loss in the financial year ended on that date
or 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 Companyhas not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
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. The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund / society are not applicable to the
Company.
14. The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
15. According to the information and explanations gives to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the
Company has taken term loan during the year and applied the same for
the intended purpose.
17. On the basis of our examination of the books of account and the
information and explanations given to us funds raised on short term
basis have not been used for long term investments.
18. According to the information and explanations given to us, as
required under the revival scheme sanctioned by BIFR, the Company has
made allotment of equity shares to one party covered in the register
maintained under Section 301 of the Act. In our opinion, the prices at
which such shares have been issued are not prejudicial to the interest
of the Company.
19. The Company has not issued any debentures during the year.
20. During the year the Company has not raised any money by public
issue.
21. 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 noticed any instance of fraud
on or by the Company, noticed or reported during the year, nor was any
such instance reported by the Management during the year.
For A.T.Jain & Co.
Chartered Accountants
(Firm No: 103886W)
S.T.Jain
(Partner)
M No : 33809
Mumbai
17th June, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s Arora Fibres
Limited as at 31st March 2010 as also the Profit and Loss Account for
the year ended on that date annexed thereto. These financial statements
are the responsibility of the Companys management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
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, 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 enclose in the Annexure a
statement on the matters specified in paragraph 4 & 5 of the said
order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that::
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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
these 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, the said Balance Sheet and Profit Loss Account
comply with, the Accounting Standards referred to in sub-section (3C)
of section 211 of the Companies Act, 1956.
(e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31s1 March 2010 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
(f) In our opinion, and to the best of our information and according to
the 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 31st March, 2010,
(ii) in the case of the Profit and Loss Account, of the loss incurred
by the company for the year ended on that date, and
(iii) In the case of the cash flow statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors Report Referred to in paragraph 3 of our report
of even date
(i) FIXED ASSETS:
(a) The fixed asset registers maintained by the Company showing full
particulars including quantitative details and situation of fixed
assets are in the process of being updated.
(b) Major items of fixed assets have been verified by the management
during the year but there is a regular programme of verification which
in our opinion is reasonable having regard to the size of the Company
and the nature of its assets. Discrepancies noticed during the
verification were not material and have been properly dealt with in the
books of accounts.
(c) The Company has not disposed off substantial part of fixed assets
during the year.
(ii) INVENTORY:
(a) As explained to us, inventories have been physically verified by
the management, at intervals, which in our opinion are reasonable in
relation to the size of the company and the nature of its business.
(b) The procedure for physical verification of inventories followed by
the management are adequate and reasonable in relation to the size of
the company and nature of its business.
(c) Discrepancies noticed on physical verification as compared to book
records were not material.
(iii) LOANS AND ADVANCES GRANTED/TAKEN FROM CERTAIN ENTITIES:
(a) According to the information and explanations given to us, the
Company has not granted secured or unsecured loans to companies, firms
or other parties covered in the register maintained under Section 301
of the Companies Act, 1956.
(b) In respect of loans taken from Directors, prima facie, the terms
are not prejudicial to the interest of the Company.
(iv) INTERNAL CONTROL SYSTEM:
lln our opinion, the internal control system needs to be strengthened
to make it commensurate with the size of the company and nature of its
business with regard to purchases of inventory, fixed asset and with
regard to sale and services.
(v) CONTRACTS OR ARRANGEMENT REFERRED TO IN THIS SECTION 301 OF THE
COMPANIES ACT, 1956:
(a) Based on audit procedures applied by us, we are of the opinion that
the contracts or arrangements referred to in Section 301 of the Act
have been entered in the register required to be maintained under that
Section.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements entered in the register maintained under
Section 301 and exceeding the value of Rs. 5,00,000/- in respect of any
party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) PUBLIC DEPOSITS:
Based on our examination of the books of account, the Company has not
accepted any deposits from public and hence this clause is not
applicable.
(vii) INTERNAL AUDIT SYSTEM:
During the year the Company has not conducted any internal audit.
However, internal control procedures are commensurate with the size of
the company and the nature of its business.
(viii) COST RECORDS:
We are informed that the provisions of section 209(1 )(d) of the
Companies Act, 1956 regarding maintenance of cost records are not
applicable to the Company. On facts, requirements of this clause are
not applicable to the Company.
(ix) STATUTORY DUES:
(a) Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income tax, Sales tax, Wealth tax, Service tax, Customs duty, Excise
duty, Cess and other material statutory dues applicable to it.
(b) No undisputed amounts payable in respect of Income Tax, Wealth Tax,
Service Tax, Sales Tax, Custom duty, Excise duty and Cess were in
arrears, as on 31st March, 2010 for a period of more than six months
from the date they became payable.
(c) There are no dues of Income Tax, Wealth Tax, Service Tax, Sales
Tax, Custom duty, Excise duty and Cess which have not been deposited.
(x) ACCUMULATED LOSSES:
The accumulated losses at the end of the financial year are more than
50% of its net worth and hence the company continues to be a
potentially sick company. The Company has incurred cash losses during
the financial year covered by our audit and the immediately preceding
financial year.
(xi) DUES TO FINANCIAL INSTITUTIONS, BANKS AND DEBENTURE HOLDERS:
Based on our audit procedures, we are of the opinion that the Company
has not defaulted in the repayment of dues to Financial Institutions
and Banks.
(xii) SECURITY FOR LOANS & ADVANCES GRANTED:
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) SPECIAL STATUTE:
The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/society are not applicable to the
Company.
(xiv) DEALINGS/TRADING IN SHARES, SECURITIES , DEBENTURES AND OTHER
INVESTMENTS:
In our opinion Company is not dealing in or trading in shares,
securities, debentures and other investments.
(xv) GUARANTEES GIVEN:
Company has not given any guarantee for loans taken by others from
banks or financial institutions during the year.
(xvi) TERM LOANS:
On the basis of records examined by us, we state that the Company has,
prima facie, applied the term loans for the purpose for which they were
obtained.
(xvii) UTILISATION OF FUNDS:
On an overall examination of the Balance Sheet and the Cash Flow of the
Company, we report that no funds raised on short-term basis have been
used for long-term investment.
(xviii) PREFERENTIAL ALLOTMENT OF SHARES:
On facts, the Company has made preferential allotment of equity shares
to parties covered in the Register maintained under section 301 of the
companies Act, 1956. The price at which such shares are issues is,
prima facie, not prejudicial to the interests of the Company.
(xix) SECURITY FOR DEBENTURES ISSUED:
Company has issued unsecured debentures during the year.
(xx) PUBLIC ISSUE OF EQUITY SHARES:
During the year Company has not raised any money by public issue.
(xxi) FRAUDS NOTICED:
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 fraud on or by
the Company, noticed or reported during the year, nor have we been
informed of such case by the management.
For A. M. JOSHI & CO.
Chartered Accountants
ANIRUDDHA M. JOSHI
Proprietor
Mumbai, Dated : 21st May, 2010 M. No. 40852