Mar 31, 2015
We have audited the accompanying financial statements of Citizen Yarns
Limited, which comprise the Balance Sheet as at 31 March 2015, the
Statement of Profit and Loss, the Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
- Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 201 4. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
- Auditor's Responsibility
(1) Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
(2) 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.
(3) An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give true
and fair view in order to design audit procedures that are appropriate
in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Company's Directors, as well as
evaluating the overall presentation of the financial statements.
(4) We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the fi
nancial statements.
- Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India;
1. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
2. In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
3. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
- Report on other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015 ("the
Order) issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters Specified in Paragraph 3 and 4 of the Order.
As required by section 143(3) of the Act, we report that:
- 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.
- 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 [and proper returns
o d) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account. [And the
o e) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
o g) On the basis of written representations received from the
directors as on 31 March, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2015,
from being appointed as a director in terms of Section 164(2) of the
Act.
o h) In our Opinion and to the best of our information and according to
the explanation given to us, we report as under with respect to the
other matters included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit & Auditors) Rule 2014 :
1. The company does not have any pending litigations which would
impact its financial statement.
2. The company did not have any long term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
3. There has not been an occasion in case of the company during the
year under report to transfer any sums to the Investors Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
The Annexure referred to in our report to the members of CITIZEN YARNS
LIMITED for the year ended 31st March, 2015.
On the basis of the information and explanation given to us during the
course of our audit, we report that:
1. (a) There is no Fixed Assets, Hence Not Applicable.
(b) N.A.
2. (a) There is No Inventory at the end of the Year, hence Not
Applicable.
(b) N.A.
(c) N.A.
3. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 189 of
the Companies Act. Thus sub clauses (a) & (b) are not applicable to the
company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. In our opinion and according to the information and explanations
given to us company hasn't accepted any deposits, from the directives
issued by the Reserve Bank of India and as per the provisions of
sections 73 to 76 or any other relevant provisions of the Companies Act
6. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 148 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
7. (a) According to the records of the company, undisputed statutory
dues including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, cess to the extent applicable and any other
statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2015 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
(c) In our opinion company has transferred the amount which is required
to be transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and rules made thereunder within time.
8. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
9. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
10 According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
11. In our opinion Terms Loans were applied for the purpose for which
loans were obtained
12. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
for , D.A. Rupawala & Associates
Chartered Accountants
Sd/-
(Dawoodi Rupawala)
Place : Ahmedabad Proprietor
Date : 29th May, 2015 M.No. 37674
FRN No. : 108902w
Mar 31, 2014
1. We have audited the accompanying Financial Statements of Citizen
Yarns Limited which comprise the Balance Sheet as at 31st March 2014,
Profit and Loss Account for the year then ended, and other explanatory
information.
Management''s Responsibility for the Financial Statements:
2. Management of the Branch is responsible for the preparation of
these Financial Statements that give true and fair view of the
financial position and financial performance of the Branch in
accordance with the Banking Regulation Act, complying with Reserve
Bank of India Guidelines from time to time. This responsibility
includes the design, implementation and maintenance of internal
control relevant to the preparation and fair presentation of the
financial statements that are free from material misstatement, whether
due to fraud or error.
Auditors'' Responsibility :
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
Procedures selected depend on the auditors'' judgement, including the
assessment of the risks of material misstatement of the financial
statement, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity''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 ofthe 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 explanation given to us, read with the Memorandum of Changes
mentioned in paragraph 11 below, the financial statements 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
Branch as at March 31, 2014; and
(b) in the case of Profit and Loss Account, of the Profit for the year
ended on that date;
Report on Other Legal and Regulatory Requirements
7. The Balance Sheet and the Profit and Loss Account have been drawn
lip in * accordance with Section 29 of the Banking Regulation Act,
1949;
8. Subject to the limitations of the audit as indicated in Paragraphs
3 to 5 above and paragraph 10 below, we report that:
We further report that:
* The Balance Sheet and Profit and Loss account dealt with by this
report are in agreement with the books of account and returns;
* We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
* In our Opinion, the Balance Sheet and Statement of Profit & Loss
Account comply with the Accounting Standards referred to in subsection
(3C) of section 211 of the companies Act, 1956. .
* In our opinion, proper books of account as required by law have been
kept by the branch so far as appears from our examination of those
books;
* We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of the
audit and have found them to be satisfactory.
* On the basis of written representation received from the directors
as on March, 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.
* Since Central Government has not issued any notification as to the
rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said
section, prescribing the manner in which such cess is to be paid, no
cess is due and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Citizen Yarns Limited, on the accounts of the
company for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of
our audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the * management at reasonable intervals; no material discrepancies
were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its
inventories. No material discrepancy was noticed on physical
verification of stocks by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the
Company. - 3,71,868/-
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company. - 13,96,020/-
4. In our opinion and according to the information and explanations
given to us, there is generally no an adequate internal control
procedure commensurate with the size of the company and the nature of
its business, for the purchase of inventories 8i fixed assets and
payment for expenses 8i for sale of goods. But during the course of
our audit, no major instance of continuing failure to correct any
weaknesses in the internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of 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) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions does not
arises.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company has not an internal audit system commensurate with its size
and the nature of its business.
8. As per information 8i explanation given by the management, No
maintenance of cost records has been prescribed by the Central
Government under clause^
(d) of sub-section (1) of section 209 of the Act and we are of the
opinion'' that prima facie the prescribed accounts and records have not
been made and maintained.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2014 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there
is no amounts payable in respect of wealth tax, service tax, sales
tax, customs duty and excise duty which have not been deposited on
account of any disputes.
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has defaulted in repayment of dues to a financial institution,
bank or debenture holders as under. Company has default in Repayment
of Loan of Rs. 66.57 of Bank of Baroda, 5.46 of GSFC. The detail is
mentioned in the notes of Accounts attached herewith.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is trading in Shares, Mutual funds 8i other Investments. Proper
records & timely entries have been maintained in this regard & further
investments specified are held in their own name. ''
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the
Company has not made any preferential allotment of shares during the
year. ''
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been
informed of such case by the management.
For, D.A.Rupawala & Associates.
Chartered Accountants
FRN: 108902W
SD/-
Dawoodi Rupawala
Place: Ahmedabad Proprietor
Date: May 14th, 2014 Membership No. : 37674
Mar 31, 2013
Report on Financial-Statements
1. We have audited the audited the accompanying financial statements
of citizen yarns limited which comprise the Balance Sheet as at 31st
March 2013, Profit and loss Account for the year then ended, and other
explanatory information.
Management''s Responsibility for them Financial Statement*;
2. Management of the Branch is responsible for the preparation of
these Financial Statements that give true and fair view of the
financial position and financial performance , of the Branch in
accordance with the Banking Regulation Act, complying with Reserve Bank
of India Guidelines from time to time. This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and fair presentation of the financial statements that
are free from material misstatement, whether due to fraud or error. -
Auditors'' Responsibility:
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements'' end plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
Procedures selected depend on the auditors'' judgment, including the
Assent hunt of the risks of material misstatement of the financial
statement, whether due to fraud or error. In making those risk
assessments,
the. auditor considers internal control relevant to the entity''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 m*de
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 explanation given to us, read with the Memorandum of Changes
mentioned in paragraph 11 below; the '' financial statements 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
Branch as at March 31, 2013; and
(b) in the case of Profit and Loss Account, of the Profit for the year
ended on that Report on Other Legal and Regulatory Requirement
7. The Balance Sheeting the Profit and Loss Account have been drawn up
in accordance with section 29 of the Banking Regulation Act 1949;
8. Subject to the of the audit as indicated tot Paragraphs 3 to 5
above and paragraph 10below we report that;
We further report that:
- The Balance Sheet and Profit and loss account dealt with, by this
report are in agreement with the books of account and returns;
- We have obtained aH the information and explanation which to the best
of our knowledge and belief were necessary for the purpose four audit;
- in our Opinion, the Balance Sheet and Statement of Profit & Loss
Account comply with the Accounting Standards referred to in subsection
(3C) of section 211 of the -companies Act, 1956. .
In our opinion, proper books of account as required by law have been
kept by the branch so far as appeals from our examination of those
books; ''
- We have obtained the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of the
audit, and have found them to'' be satisfactory.
- On the basis of written representation received (Horn die directors
as on March, 20l3 and taken on record by the Board of Directors, none
of the directors is as on March 31,2013, from being
appointed as a director in terms of clause (g) of sub section (1) of
section 274 of the Companies Act, 1956. ;"
- Since Central Government has not issued any notification as to the rate
at which the cess is to be paid under section 42A the Companies has
it issued any Rules under the said section, prancing the manner fen
which such cess Is to be paid, no cess is due and payable by the
Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Citizen Yarns Limited, on the accounts of the company
for the year ended 31st March, 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
- NIL/-
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company. - NIL/- ___
4. In our opinion and according to the information and explanations
given to us, there is generally not an adequate internal control
procedure commensurate with the size of the company and the nature of
its business, for the purchase of inventories & fixed assets and
payment for expenses & for sale of goods. But during the course of our
audit, no major instance of continuing failure to correct any
weaknesses in the internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of 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) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the
Act does not exceeds five lacs rupees in a financial year therefore
requirement - of reasonableness of transactions does not arises. 6.
The Company has not accepted any deposits from the public covered under
section 58A if Kasbah of the Companies Act* 1956,
7. As per information & explanations given by the management, the
Company has not an internal audit system commensurate with its size and
the nature of its business. .
S. As per information & explanation given by the management, No
maintenance of cost records net been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facet the prescribed accounts
and records have not been made and maintained.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' state insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities.
According to the information and explanations given to us there were
no outstanding statutory dues as on 31* of March, 2013 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of wealth tax, service tax, sales tax,
customs duty and excise duty which have not been deposited on account
of any disputes. -
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the Immediately preceding financial year. .
11. Based on our audit procedures and on the information and
explanations given '' by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
Institution, bank or debenture holders.
12. According to the information and {Catenations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13.The Company is not a chit fund a nidhi /mutual benefit
fund/society.
Therefore, the provision of this clause of/the Companies (Auditor''s
Report) Order, 2003 (as amended) is not app Mctibie to the Company.
14. According to information and explanations given to us, the Company
is trading in Shares, Mutual funds & other Investments. Proper records
& timely entries have been maintained in this regard & further
investments specified.
are held in their own name*
15. According to the information and explanations given to us, die
Company has not given any guarantees for loan taken by otters from a
bank or financial , institution.
16. Based on our audit on the information given by the v management,
we report that the company has not rated any term loans during the
year.
17. Based on the and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31*
March, 2013, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18.Based on the audit procedures performed and the information''.-and
explanations given to us by the management, we report that the
company has not made any preferential allotment of shares during the
year.
19. The Company hibs3.o outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the
Company has . been noticed or reported during the year, nor have we
been informed of such case by the management.
For, P.A.Rupawata It Associates.
Chartered Accountants
FRN: 108902W
sd/-
(Dawoodi Roopawala)
Place: Ahmedabad Proprietor
2013 Membership No: 37674
Mar 31, 2012
We have audited the attached Balance Sheet of CITIZEN YARNS LIMITED as
at 31st March 2012 and also the annexed Profit and Loss Account of the
Company for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An Audit includes
examining, on a test basis, evidence supporting the amount and
disclosures in financial principles used and significant estimates made
by the management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As per the Companies (Auditors report) order, 2003 issued by the
Central Government of India in terms of Section 227 (4-A) of the
Companies Act, 1956, we do hereby state that the company is exempted
under the Companies (Auditors report) order, 2003, on the matter
specified paragraph 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that:
1. 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
2. In our opinion, proper books of accounts as required by Law have
been kept by the Company so far as appears from our examination of the
books.
3. The Balance Sheet & Profit & Loss Account dealt with by this report
is in agreement with the books of accounts and comply with the
Accounting Standards referred to in Sub- Section 3(C) of section 211 of
the Companies Act, 1956.
4. According to information and explanations given to us and on the
basis of written representations from the , directors of the Company,
none of the Director is disqualified from being appointed as a director
of the Company under section 274(1) (g) of the Companies Act, 1956.
5. In our opinion and to the best of our information and according to
the explanation given to us, the said Balance Sheet and the Profit and
Loss Account, together with the 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 the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2012 and
b) In the case of the Profit & Loss Account of the Profit for the year
ended on that date.
ANNEXURE
(Referred to in paragraph 1 of our report of even date)
i.
(a) The Company has maintained proper records showing full particulars
including quantities details and situation of Fixed Assets.
(b) All the Assets have not been physically verified by the management
during the year, moreover there is no regular program of Verification
which, in our opinion, is reasonable having regard to the size of the
company and the nature of its assets. No material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanation
given to us the company has not disposed off substantial part of fixed
assets during the year. Moreover In Previous Year Depreciation on the
Fixed provided, but we not provided Depreciation on the Fixed Assets
for the Particular Financial Year. On the value of the last audited
Balance Sheet.
ii)
(a) In our opinion, physical verification of inventory has been
conducted by Management at reasonable intervals.
(b) The procedure of Physical Verification of inventory not followed by
the management.
iii) (a) As informed to us, the company has not granted loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 301 of the Act. The year end Balance
of Loan is NIL.
(b) Not Applicable.
(c) Not Applicable.
(d) The aforesaid loan is received on demand & therefore the question
of overdue amount does not arise.
(e) The company had taken loan, secured or unsecured from companies,
firms or others parties covered in the register maintained under
section 301 of the Act. and the year end balance of loans taken to such
parties was Rs. 1196020/-
(f) In our opinion the rate of interest and other terms and conditions
on which loans have been taken from companies, firms or other parties
listed in the register maintained under section 301 of the companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
company.
(g) In respect of the aforesaid loans, the amount is payable on demand,
the company is repaying the principal amount as & when demanded & has
not been paying any interest.
(h) The aforesaid loan is repayable on demand & therefore the question
of overdue amount does not arise.
iv. In our opinion and according to information & explanations given to
us, there is adequate internal control procedures commensurate with the
size of the company and the nature of its business for the purchase of
inventory and Fixed assets and for the sale of goods. During the course
of audit, no major weakness has been noticed in these internal
controls.
v. According to the information and explanations given to us, we are of
the opinion that the transactions that need to be entered into the
register maintained under section 301 of the companies Act, 1956 have
been so entered.
vi. In our opinion, according to the information and explanations given
to us, the company has not taken any deposit from the public during the
year.
vii. In our opinion the company has no an internal audit system
commensurate with its size and nature of its business.
viii. As informed to us, the Central Government has not prescribed
maintenance of cost records under section 209(1) (d) of the products of
the company.
ix. (a) The company is generally regular in depositing with the
appropriate authorities, undisputed statutory dues including Provident
Fund, Income tax, Sales-tax, Excise Duty, investors education and
protection fund, wealth Tax, Custom Duty, Cess and other material
Statutory dues applicable to it except Income Tax Liability of Rs.
NIL/-. There were no arrears for a period of more than six month from
the date they became payable as at 31st March, 2011.
x. As on 31-03-2011 undisputed amount of Secured Loan were outstanding
for a period of more than six month from the date they became payable
in respect of Sales Tax, Central Sales Tax, and Turnover Tax
Respectively,
xi. The accumulated losses of the company are not more than 50% of its
Net Worth. The company has not incurred any cash losses in current
year.
xii. According to the information and explanations given to us, the
company has defaulted in repayment of dues of loan of taken from AS PER
NOTE " C " OF THE BALANCE SHEET, i.e. Rs. 66,57 of Bank of Baroda, Rs.
5.46 of GSFC. The details are mentioned at Schedule 14. Notes forming
part of Accounts given at Audited Annual Accounts of the Financial Year
2010-11.
xiii. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of Shares, debentures and other securities.
xiv. 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 is not applicable to the
company.
xv. According to the information and explanations given to us, the
company is dealing or trading in Shares, Securities, debentures and
other investments. Accordingly, the provisions of clause 4 (xiv) of the
Companies (Auditor's Report) Order 2003 is applicable to the company.
xvi. In our opinion, the terms and condition on which the company has
given guarantees for loans taken by others from Bank or Financial
Institutions are, prima facie, not prejudicial to the interest of the
company.
xvii. According to the information and explanations given to us in
this year there is no term loan during the loan.
xviii. 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.
xix. The company has not made preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act.
xx. According to the information and explanations given to us, no
debentures and/or preference shares have been issued during the year.
xxi. The company has not raised any money through a public issue.
xxii. Based upon the audit procedures performed and information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit
For, D. A. Rupawaia & Associates
Chartered Accountants
Sd/-
(Dawoodi Rupawala)
Proprietor
Firm No. 108902W
Membership : 37674
PLACE: AHMEDABAD
Date : April 09, 2012.
Mar 31, 2010
We have audited the attached BALANCE SHEET of CITIZEN YARNS LIMITED as
at 31.03.2010, the Profit & Loss Account for the period ended on that
date annexed thereto. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material 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.
(1) (a) As required by the Companies (Auditor's Report) Order, 2003
issued
by the Central Government of India in terms of sub-section (4 A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
(2) Further to our comments in the Annexure referred to above, we
report that:-
(a) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion proper books of accounts as required by law have
been kept by the company so far as appears from our examination of such
books.
(c) The Balance Sheet and the Profit and Loss Account dealt with by
this report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, and Profit & Loss Account dealt
with by this report 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
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2010 from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act,1956.Given 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 31.03.2010 and;
(ii) In case of Profit and Loss Account of the Profit for the period
ended on that date;
ANNEXURE
(Referred to in paragraph 1 of our report of even date)
i. 1.The Company has maintained proper records showing full particulars
including quantities details and situation of Fixed Assets.
2. All the Assets have not been physically verified by the management
during the year but there is regular program of Verification which, in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. No material discrepancies were noticed on
such verification.
3. In our opinion and according to the information and explanation
given to us the company has not disposed off substantial part of fixed
assets during the year. Moreover In Previous Year Depreciation on the
Fixed provided, but we not provided Depreciation on the Fixed Assets
for the Particular Financial Year. On the value of the last audited
Balance Sheet. Because as per management given explanation to us the
company has not done any Business during the year.
ii.
1.In our opinion, physical verification of inventory has not been
conducted by Management at reasonable intervals. 2. The procedure of
Physical Verification of inventory not followed by the management.
iii.
1. As informed to us, the company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 301 of the Act. However, year end
Balance of Loan taken from relatives of director is Rs NIL-
2. The company had no taken loan from any other companies covered in
the register maintained under section 301 of the Companies Act,1956.
And the year end balance of loans taken from such parties was Rs. NIL
There are to firms covered in the register maintained under section 301
of the Companies Act, 1956 to which the company has granted loans..
3. In our opinion the rate of interest and other terms and conditions
on which loans have been taken from/ granted to companies, firms or
other parties listed in the register maintained under section 301 of
the companies Act,1956 are not, prima facie, prejudicial to the
interest of the company.
4. In respect of the aforesaid loans, the amount is payable on demand,
the company is repaying the principal amount as & when demanded & has
not been paying any interest.
5. The aforesaid loan is repayable on demand & therefore the question
of overdue amount does not arise.
iv. In our opinion and according to information & explanations given to
us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business for the purchase
of inventory and Fixed assets and for the sale of goods. During the
course of audit, no major weakness has been noticed in these internal
controls.
v. According to the information and explanations given to us, we are of
the opinion that the transactions that need to be entered into the
register maintained under section 301 of the companies Act, 1956 have
been so entered.
vi. In our opinion, according to the information and explanations given
to us, the company has not taken any deposit from the public during the
year.
vii. In our opinion the company has an internal audit system
commensurate with
its size and nature of its business. viii. As informed to us, the
Central Government has not prescribed maintenance of cost records under
section 209(1) (d) of the products of the company.
ix. (a) The company is generally regular in depositing with the
appropriate authorities, undisputed statutory dues including Provident
Fund, Income tax,Sales-tax, Excise Duty, investors education and
protection fund, wealth Tax, Custom Duty, Cess and other material
Statutory dues applicable to it except Income Tax Liability of
Rs.NIL/-. There were no arrears for a period of more than six month
from the date they became payable as at 31st March 2010.
x. According to the information and explanation given to us, there are
no cases of non-deposits with the appropriate authorities of disputed
dues of sales tax /excise duty /custom duty / wealth tax / cess.
xi. The accumulated losses of the company are not more than 50% of its
Net Worth. The company has not incurred any cash losses in current year
xii. According to the information and explanations given to us, the
company has defaulted in repayment of dues of loan of taken from AS PER
SCHEDULE " C " OF THE BALANCE SHEET. i.e. GIDC, GSFC, BANK OF INDIA
CASH CREDIT, The details are mentioned at Schedule M. Notes forming
part of Accounts given at Audited Annual Accounts of the Financial Year
2009-10.
xiii. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of Shares, debentures and other securities.
xiv. 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 is not applicable to the company.
xv. According to the information and explanations given to us, the
company is not dealing or trading in Shares, Securities, debentures and
other investments. Accordingly, the provisions of clause 4 (xiv) of the
Companies (Auditor's Report) Order 2003 is not applicable to the
company.
xvi. In our opinion, the terms and condition on which the company has
given guarantees for loans taken by others from Bank or Financial
Institutions are, prima facie, not prejudicial to the interest of the
company.
xvii. According to the information and explanations given to us in this
year there is no term loan during the loan.
xviii. 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.
xix. The company has not made preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act.
xx. According to the information and explanations given to us, no
debentures and/or preference shares have been issued during the year.
xxi. The company has not raised any money through a public issue.
xxii. Based upon the audit procedures performed and information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit
For, Niranjan Jain & Co.
Chartered Accountants
Sd/- (Niranjan Jain)
Proprietor
M. No.47811
Date : 01.09.2010
Place : Ahmedabad