Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of Fairdeal Filaments Ltd., which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information for the year then ended.
Managementâs Responsibilityfor the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with relevant rules thereunder. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial control system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the Ind AS 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, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year then ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. 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 beliefwere 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, Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with relevant rules issued thereunder.
e. On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ.
g. With respect to the other matters to be included in the Auditorâs 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:
i. The Company does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORâS REPORT
The Annexure referred to Paragraph 1 under the heading âReport on Other Legal and Regulatory Requirementsâ of our Independent Auditorâs Report of even date,
(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) We are informed that all the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such physical verification.
(c) The title deeds of immovable properties other than self-constructed immovable property (buildings), as disclosed in fixed assets to the financial statements, are held in the name ofthe company.
(ii) As explained to us, the physical verification of inventories has been conducted at reasonable intervals by the management. No discrepancies were noticed on physical verification.
(iii) The Company has not granted any loan, secured or unsecured, to companies, firms or other parties listed in the Register maintained under Section 189 ofthe Companies Act, 2013 and therefore paragraph 3 (iii) ofthe order is not applicable.
(iv) In our opinion and according to the information and explanations given to us, the company has not advanced any loan or given any guarantee or provided any security or made any investment covered under section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from public within the meaning of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed thereunder. No order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal.
(vi) We have broadly reviewed the books of account and records maintained by the Company pursuant to the rules made by the Central Government for the maintenance of Cost Records under Section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination ofthe records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and the records examined by us, the Company has generally been regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value-added tax, cess and any other statutory dues, wherever applicable. According to the information and explanations given to us, no undisputed amounts payable in respect of outstanding statutory dues were in arrears as at March 31st, 2018 fora period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income Tax or Sales Tax or Wealth Tax or Service Tax or duty of Customs or duty of excise or value added tax or cess wherever applicable on account of any dispute.
(viii) On the basis of the records examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to banks, financial institutions or Government. The Company has not issued debentures during the year.
(ix) To the best of our knowledge and belief and according to the information and explanations given to us, the Company has not raised moneys byway of initial public offer or further public offer. The term loans/working capital loans obtained during the year have been applied for the purpose for which they were raised.
(x) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud by the company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) To the best of our knowledge and belief and according to the information and explanations given to us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) The Company is not a Nidhi Company. Consequently, requirements of clause (xii) of paragraph 3 of the order are not applicable.
(xiii) To the best of our knowledge and belief and according to the information and explanations given to us, all transactions with the related parties are in compliance with section177 and 188 ofCompanies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable Accounting Standards.
(xiv) To the best of our knowledge and belief and according to the information and explanations given to us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Consequently, requirements of clause (xiv) of paragraph 3 of the order are not applicable.
(xv) To the best of our knowledge and belief and according to the information and explanations given to us, the company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the nature of business, the company is not required to be registered under section 45-IAof the Reserve Bank of India Act, 1934.
ANNEXURE A TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF FAIRDEAL FILAMENTS LIMITED.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âtheActâ)
We have audited the internal financial controls over financial reporting of Fairdeal Filaments Limited (âthe Companyâ) as of March 31,2018 in conjunction with our audit of the Ind AS financial statements ofthe Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe internal control overfinancial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls overfinancial reporting, assessing the risk that material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide basis for our audit opinion on the Companyâs internal financial controls system overfinancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
Acompanyâs internal financial control overfinancial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions ofthe assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures ofthe company are being made only in accordance with authorizations of management and directors ofthe company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on âthe internal control overfinancial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ.
For, RANGOONWALA ASSOCIATES
Chartered Accountants
FRN : 108632W
Sd I-
Gajendra T. Rangoonwala
Place : Surat (Proprietor)
Date : 28th May, 2018 Membership No. 035377
Mar 31, 2015
We have audited the accompanying financial statements of Fairdeal
Filaments Limited, which comprise the Balance Sheet as at March
31,2015, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information for the year then ended.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these 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 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
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
issued by the Institute of Chartered Accountants of India. Those
Standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements:
a. Note No. 16.1 to the financial statements which states that the
company has discontinued accounting for further accrual of interest
subsidy claim under TUF, following conservatism.
b. Note No. 24 to the financial statements which shows the amount of
Rs. 51.44 lacs written off during the year as bad debts under 'Selling
& Distribution Expenses' includes the amount of Rs.30.77 lacs relating
to foreign debtors.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. 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 Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
2. 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 financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on 31 st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 st 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:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) We are informed that the physical verification of the fixed assets
has been carried out by the management at reasonable intervals and no
material discrepancies were noticed on such physical verification;
(ii) (a) The inventories have been physically verified by the
management during the year. In our opinion, the frequency of
verification is reasonable;
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of Inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business;
(c) The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventories as compared to the book records.
(iii) As per the information and explanations given to us and the
records produced before us for our verification, the Company has not
granted secured or unsecured loan to companies, firms or other parties
listed in the register maintained under section 189 of the Companies
Act, 2013. Accordingly, paragraph (iii) (a) and (b) of the Order, are
not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regards to the purchases of inventory and fixed assets
and also for the sale of goods and services. During the course of our
audit, we have not come across any major weaknesses in the internal
control system of the Company.
(v) In our opinion and according to the information given to us, the
Company has not accepted any deposits from the public, which come under
the directives issued by the Reserve Bank of India and the provisions
of Section 73 to 76 or any other relevant provisions of the Companies
Act and Rules framed there under.
(vi) We have broadly reviewed the books of account and records
maintained by the Company pursuant to the rules made by the Central
Government for the maintenance of Cost Records under Section 148(1) of
the Companies Act, 2013, and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determine whether they are accurate.
(vii) (a) According to the information and explanations given to us and
the records examined by us, the Company has generally been regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, employees' state insurance, income-tax, sales
tax, value added tax, wealth tax, customs duty, excise duty, service
tax, cess and any other statutory dues wherever applicable. There are
no arrears of statutory dues as at March 31,2015 which are outstanding
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
are no dues of Income Tax or Sales Tax or Wealth Tax or Service Tax or
duty of Customs or duty of excise or value added tax or cess wherever
applicable on account of any dispute.
(c) In our opinion and according to the information and explanations
given to us and according to records of the Company, during the year,
the amount 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 has been
transferred to such fund within time.
(viii) The Company does not have any accumulated losses at the end of
the financial year March 31, 2015. Further, the Company has not
incurred cash losses during the financial year ended March, 31, 2015
and in the immediately preceding financial year.
(ix) On the basis of the records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to banks and financial institutions. The Company has not issued
debentures during the year.
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, no additional term loans availed by the Company during the
year.
(xii) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices, 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, NATVARLALVEPARI & CO.
CHARTERED ACCOUNTANTS
Firm Reg. No. 123626W
Ravindra Vepari
Place : Surat Partner
Date : 29th May, 2015 Membership No. : 006728
Mar 31, 2014
We have audited the accompanying financial statements of Fairdeal
Filaments Limited, which comprise the Balance Sheet as at March
31,2014, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view ofthe financial position,
financial performance and cash flows ofthe Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section
211 ofthe Companies Act, 1956. This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the
auditor''s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness ofthe accounting estimates made by management,
as well as evaluating the overall presentation ofthe financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Profit and Loss Account, the profit for the year
ended on that date;
b) in the case ofthe Balance Sheet, ofthe state of affairs ofthe
Company as at March 31,2014; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 ofthe Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 ofthe Companies Act, 1956;
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 ofthe 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 ofthe CompaniesAct, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said
section, prescribing the manner in which such cess is to be paid, no
cess is due and payable by the Company.
ANNEXURE TO THE AUDITOR''S REPORT
(Statement referred to in Paragraph 3 of the Auditors'' Report of
even date to the Members of Fairdeal Filaments Limited Surat, on the
Accounts for the year ended March 31, 2014)
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) We are informed that the physical verification of the fixed assets
has been carried out by the management at reasonable intervals and no
material discrepancies were noticed on such physical verification;
(c) In our opinion and according to the information and explanations
given to us, the Company has not disposed off a substantial part of
its fixed assets during the year that would affect the going concern
status of the Company.
(ii) (a) The inventories have been physically verified by the
management during the year. In our opinion, the
frequency of verification is reasonable;
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of Inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business;
(c) The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventories as compared to the book records.
(iii) As per the information and explanations given to us and the
records produced to us for our verification, The Company has not taken
or granted secured or unsecured loan from companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, paragraph 4(iii) (e), (f) and (g) of
the Order, are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regards to the purchases of inventory and fixed assets
and also for the sale of goods and services. During the course of our
audit, we have not come across any majorweaknesses in the internal
control system ofthe Company.
(v) (a) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements, that need
to be entered in the register maintained under section 301 of the
Companies Act, 1956 have been so entered;
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect
of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant times.
(vi) The Company has not accepted deposits from the public within the
meaning of Sections 58A, 58AA of the Companies Act, 1956 and the Rules
framed there-under. Therefore, the provisions of Clause 4(vi) of the
Order are not applicable.
(vii) On the basis of the internal audit report broadly reviewed by
us, we are of the opinion that, the Company has an internal audit
system commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account and records
maintained by the Company pursuant to the rules made by the Central
Government for the maintenance of Cost Records under Section 209(1)
(d) of the Companies Act, 1956, and are of the opinion that prima
facie the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination ofthe
records with a view to determine whether they are accurate.
(ix) According to the information and explanations given to us and the
records ofthe 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, VAT, Wealth-Tax,
Service-Tax, Customs Duty, Excise Duty, Cess and other material
statutory dues as applicable with the appropriate authorities.
According to the information and explanation given to us, no disputed
amounts payable, in respect of income tax, sales tax, custom duty,
excise duty and cess, were in arrears, as at March 31,2014 for a
period for more than six months from the date they become payable.
(x) The Company does not have any accumulated losses at the end of the
financial year March 31,2014. Further, the Company has not incurred
cash losses during the financial year ended March, 31,2014 and in the
immediately preceding financial year.
(xi) On the basis of the records examined by us and the information
and explanations given to us, the Company has not defaulted in
repayment of dues to banks and financial institutions. The Company has
not issued debentures during the year.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of
security byway of pledge of shares, debentures and other securities,
accordingly paragraph 4(xii)of the Order is not applicable.
(xiii) According to the information and explanations given to us, the
Company is not a chit fund ora nidhi/ mutual benefit fund/ society,
accordingly paragraph 4 (xiii) ofthe Order is not applicable.
(xiv) According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments, accordingly paragraph 4(xiv) of the Order is
not applicable.
(xv) According to the information and explanations given by the
management, no guarantee has been given by the Company during the
year.
(xvi) In our opinion and according to the information and explanations
given to us, no additional term loans availed by the Company during
the year.
(xvii) As per the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report
that the funds relating to long term basis to short term basis and as
explained they have been deployed to fund core working capital.
(xviii) The Company has not made any preferential allotment of shares
to companies/firms/parties covered in the Register maintained
undersection 301 ofthe Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money by public issue during the
year.
(xxi) During the course of our examination ofthe books and records
ofthe Company, carried out in accordance with the generally accepted
auditing practices, 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.
Forming an Opinion and Reporting on Financial Statements
For NATVARLAL VEPARI & CO.
CHARTERED ACCOUNTANTS
Firm Reg. No. 123626W
Ravindra Vepari
Place : Surat Partner
Date : 28th May, 2014 Membership No. : 006728
Mar 31, 2010
We have audited the attached Balance Sheet of FAIRDEAL FILAMENTS
LIMITED, as at 31 st March 2010, the Profit and Loss Account and Cash
Flow Statement of the Company 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.
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
disclosure in the financial statements. An audit also includes
assessing the accounting principle 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. As required by the Companies (Auditors Report) Order, 2003 (as
amended), issued by the Department of Company Law Affairs in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we annex
hereto Annexure A onihe matters specified in paragraph 4 and 5 of the
said order.
Further to our comments in Annexure referred to in Para (1) 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 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, Profit and Loss Account and cash flow statement
dealt with by this report are in agreement with the books of account.
(d) In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
(e) On the basis of written representation 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 31 st 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.
2. Subject to the matters referred to above, in our opinion and to the
best of our information and according to the explanations given to us,
the said accounts read 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 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 st March, 2010;
ii. in the case of the Profit and Loss Account, of the Profit of 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 A TO THE AUDITORS REPORT : YEAR ENDED 31-3-2010
1) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
Assets.
b) We are informed that all fixed assets have been physically verified
by the management at reasonable intervals. On the basis of information
and explanations given to us, no material discrepancies were noticed on
such verification.
c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status.
2) a) As informed to us, the inventory has been physically verified
during the year by the management at reasonable intervals. In our
opinion, the frequency of verification is reasonable.
b) The procedures of physical verification of the inventories followed
by the management are reasonable and adequate in relation to the size
of the company and nature of the business
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the books records were not material and have been properly dealt with
in the books of accounts.
3) The Company has not taken or granted any loans, secured or unsecured
from companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act ,1956
4) In our opinion and according to information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of the business with regard to
purchase of inventory, fixed assets and with regard to the sale of
goods and services. During the course of audit, we have not observed
any continuing failure to correct major weaknesses in internal control.
5) a) 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.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. five lakhs in
respect of any party during the year have been made at prices which are
reasonable and having regard to prevailing market prices at the
relevant time.
6) The Company has not accepted deposits from the public within the
meaning of Section 58A and 58AA of the Companies Act, 1956, and the
rules made there under.
7) We are of the opinion that, the coverage of internal audit functions
carried out by a Chartered Accountant appointed by the management is
commensurate with the size of the company and the nature of its
business.
8) We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 in respect of the companys products to which the said rules
are made applicable, and are of the opinion that, the prescribed
accounts and records have been made and maintained.
9) a) According to the records of the company wherever applicable, it
has been regular in depositing undisputed statutory dues including
provident fund, investor education protection fund, employees state
insurance, income tax, Value Added Tax sales tax / VAT, wealth tax,
service tax, custom duty, excise duty, cess and other statutory dues
applicable to it with the appropriate authorities.
b) According to the information and explanation given to us, no
disputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at 31st
March 2010 for a period for more than six months from the date they
became payable.
10) The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses, both, in the financial
year under report and the immediately preceding financial year.
11) According to the information and explanation given to us, the
company has not defaulted in repayments of dues to financial
institutions or bank or debenture holders.
12) According to the information and explanation 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.
13) According to the information and explanation given by the
management, in our opinion the terms and conditions of the guarantee
given by the Company for loan taken by others from Bank are not
prejudicial to the interest of the company.
14) In our opinion, the term loans have been applied for the purpose
for which they were raised.
15) According to information and explanation given to us and on an
overall examination of the balance sheet of the company, we report that
the company has used funds relating to long term basis to short term
basis and as explained they have been deployed to fund core working
capital.
16) The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
17) The company has not issued any debentures during the year.
18) During the year covered by our audit report, the company has not
issued any shares to public.
19) According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
20) Considering the nature of activities being carried out, by the
company and also the nature of the matters referred to in the various
clauses of the Companies (Auditors Report) Order, 2003, Clause (xiii)
and (xiv) of paragraph 4 of the aforesaid order is not applicable to
the Company.
For, NATVARLAL VEPARI & CO.
CHARTERED ACCOUNTANTS
Firm Reg. No. 123626W
Ravindra Vepari
Place: Surat Partner
Date : 27.05.2010 Membership No.: 6728
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article