Mar 31, 2015
1. We have audited the accompanying financial statements of M/s
Gangotri Textiles Limited (the Company), which comprise the Balance
Sheet as at March 31,2015, the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
2. 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 financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the Accounting principles
generally accepted in India, including the Accounting Standards
specified under section 133 of the Act read with Rule 7 of the
Companies (Accounts) Rules, 2014.. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
AUDITORS' RESPONSIBILITY
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. We have taken in to account the provisions of the Act and the Rules
made there under including the accounting standardsand matters which are
required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements 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.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Basis for Qualified Opinion
1. In our opinion, there prevails material uncertainty related to
events /conditions which individually / collectively cast significant
doubts on going concern assumption.
2. The Debtors and Loans & Advances are subject to confirmation. As at
advance of Rs.423 lakhs continues to be doubtful of recovery, the same
has been provided for in the accounts of the company during year ended
31.03.2014. However, repeated reminders are being received from
lenders for the recovery of the same.
3. The interest provisions for all loans from Banks have been worked
based on the then prevailing CDR Package and not on the original
sanction/revised floating rates. Consequent to the company's non
compliance with CDR package and reverting back to the original
sanction, the differentials interest that ought to have been provided
for in the accounts is estimated at Rs 103.00 Crores (from 01.07.2008
to 31.03.2015) cumulatively for the above periods. The estimated loss
due to the above is understated to the extent of Rs. 18 crores for the
year ended 31.3.2015.
4. On examination of the books of accounts and the information and
explanations given to us, the internal control system continue to be
not commensurate considering the nature of company's business.
5. The Company has been adopting the method of Accounting for also
NETTING of balance when transactions are made with the same party. For
the year ended 31.03.2015 the company has NETTED the debit and credit
balances of the same party. Hence, Debtors and Creditors have got
reduced by Rs. 37.59 Crores each as on 31.03.2015.
6. The State Bank of India vide its letter dated the 24.04.15 has
declared company as willful defaulters and has given an opportunity to
the company to submit its representation.
7. The balances shown under Secured Loans and Balances with bank,
conlirmation of balance is yet to be given by the Bankers. Hence, the
balances reflected under these two heads are as per the books of
account of the company.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter described
in the Basis for qualified opinion paragragh, 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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2015;
(ii) in the case of the statement of profit and loss, of the loss 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.
Other Matters
The Ministry of Corporate Affairs had on 1st April 2014, vide its
General Circular No.07/2014, Dissemination of Information with Regards
to the Provisions of the Companies Act, 2013, as Notified Till date vis
a vis corresponding Provisions of the Companies Act, 1956, identified
such sections of the Companies Act, 1956 that would cease/continue to
have effect from 1st April 2014. Accordingly, in terms of the aforesaid
Circular, our reporting in respect of Section 227 (3)(f) of the
Companies Act, 1956, and clauses (iii), (v)(a) and (b), (vi), (viii),
(xiv), (xviii) of the Companies (Auditor's Report) Order, 2003 (dealing
with Sections 49, 58A, 58AA, 209(1)(d) and 301 of the Companies Act,
1956) is only for the period beginning from 1.4.2004 till 31st March
2015 since as per the aforementioned MCA Circular these Sections have
ceased to have effect from 1st April 2014.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of sub-section (11) of
section 143 of the Act (hereinafter referred to as the 'Order') and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
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
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 it 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 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.
e. on the basis of written representations received from the directors
as on 31 March 2015, and 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) Act..
f. With respect to the other matters to be included in the Auditors'
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules 2014, in our opinion and to the best of our knowledge and belief
and according to the information and explanation given to us.
i. The Company has disclosed the impact of pending litigations as at
March 31,2015 on its financial position in its financial statements.
ii. The Company has made provision as at March 31,2015 as required
under the applicable law or accounting standards for material
foreseeable losses, if any, on long term contracts including derivative
contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended 31 March 2015.
Annexure to the Auditors' Report
Referred to In paragraph 9 of the Independent Auditors Report of even
date to the members of M/s Gangotri Textiles Limited on the financial
statements as of and for the year ended 31 March 2015.
I) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
II) (a) As explained to us, inventories of the company at all its
location have been physically verified at reasonable intervals by the
management during the year.
(b) In our opinion, the Procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business
(c) The Company is maintaining proper records of inventory and material
discrepancies, noticed on physical verification have been properly
dealt with in the books of account.
III) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the registered maintained
under section 189 of the Companies Act, 2013.
IV) On examination of the books of accounts and the information and
explanation given to us, the internal control systems continous to be
not commensurate considering the nature of its business.
(V) The company has not accepted any deposit from the public during the
year.
(VI) We have broadly reviewed the regards maintained by the company
pursuant the Rules made by the Central Government for the maintenance
of the cost records under 148(1) of the Companies Act. We are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view of determining whether they are
accurate or complete.
(VII) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Income-tax, Sales-tax, Wealth tax, Service tax and
other material statutory dues have been regularly deposited during the
year by the Company with the appropriate authorities. As explained to
us, the Company did not have any dues on account of Employees' State
Insurance, Customs duty and Excise duty except the following.
Particulars 31.03.2015 (in Rs.Lakhs) 31.03.2014 (in Rs. Lakhs)
Name of the Amount
Statue Year Nature of Dues in lakhs
TamilNadu Additional 1996-97 Additional
Sales Tax Act, 1970 Sales Tax 20 07
CST Acts 2002-03 TNGST,Surcharge 1.82
AST, Penalty
TNGST, CST Acts 2003-04 TNGST, Surcharge 13.54
AST, Penalty
Income Tax Act, 2004-05 Interest U/S 5.85
1961 234B/234C
Name of the Forum Provided in the Amount
Statue where dispute books of in lakhs
TamilNadu Additional Supreme Court of yes 20 07
Sales Tax Act, 1970 India
CST Acts STAT Coimbatore No 1.82
TNGST, CST Acts STAT Coimbatore No 13.54
Income Tax Act, ITAT Chennai No 5.85
1961
(b) According to the records of the Company, there are no Statutory
dues, which have not been deposited in account of any disputes.
c) There has been no delay in transfering unpaid divident amount,
required to be trasnsfer to the Investor's Education and Protection
Fund by the Company.
(viii) The units of the company has acumulated losses at the end of
financial year. The company has incurred cash losses during the
financial year and also the during the immediately preceding financial
year
(ix) The company has defaulted in repayment of interest and principal
to bank and financial institutions.
(x) During the year the company has not given any guarantee for loan
taken from others rom bank or financial institution
(xi) The company has not optained any term loan during this year.
(xii) To the best of our knowledge and belief and according to the
information explanation given to us, no fraud or by the company was
noticed or reported during the year.
For THAKKER & SANGHANI
Firm Registration No:004351S
Coimbatore Chartered Accountants
28-5-2015 Aswin.C
Partner
Membership No:22204
Mar 31, 2014
We have audited the accompanying financial statements of M/s Gangotri
Textiles Limited (the Company), which comprise the Balance Sheet as at
March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th
September. 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements. We
believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Basis for Qualified Opinion
1. The exceptional item of Rs.423.00 lakhs represents an advance given
to one party in 2006 remains doubtful and, now provided lor.
2. The interest provisions for all terms loans have been worked out
based on the then prevailing CDR package rates, and not on the original
sanction/revised floating rates. Consequent to the company being out of
CDR package and reverting back to the original sanction, the
differential interest that ought to have been provided for in the
accounts is estimated at Rs.85 Crores (from 1.7.2008 to 31.03.2014).
Since the same has not been provided for the loss has been understated
to the above extent.
3. Notices to treat the Company as willful defaulter from certain
lenders have been served on the Company and the management.
4. The Company has changed the method of Accounting for NETTING of
balance when transactions are made with the same party. Hitherto the
company was not netting the debit and credit balances of the same
party. However, for the year ended 31.03.2014 the company has NETTED
the debit and credit balances of the same party. Hence, Debtors and
Creditors have got reduced by Rs. 60.45 Crores each as on 31.03.2014.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
(b) In the case of the Statement of Profit and Loss, Loss of the
Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, 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 Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with Accounting Standards
notified under the Act read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
e. On the basis of the written representations received from the
directors as on March 31,2014, 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 Section 274(1 )(g) of
the Act.
ANNEXURE TO THE AUDITORS'' REPORT
The Annexure referred to in our report to the members of Gangotri
Textiles Limited (''the Company'') for the year ended 31 March 2014. We
report that:
(I) (a) The Company is in the process of updating the records showing
full particulars, including quantitative details and situation
of fixed assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
(c) Fixed assets disposed off during the year were not substantial and
therefore, do not affect the going concern assumption. And, it is
noted that according to the management, these assets will not be
replaced in the foreseeable future The Company has provided for
impairment of all its assets during the year under review.
(d) As explained to us, inventories of the company at all its location
have been physically verified at reasonable intervals
(II) (a) by the management during the year.
In our opinion, the Procedures of physical verification of inventory
followed by the management are reasonable and
(b) adequate in relation to the size of the Company and the nature of
its business
The Company is maintaining proper records of inventory and material
discrepancies, noticed on physical
(c) verification have been properly dealt with in the books of account.
According to the information and explanations given to us, The Company
has not granted any loans, secured or unsecured
(III) (a) to the companies firms or other parties covered in the
register maintained under Section 301 of the Companies Act,
1956.Accordingly, the provisions stated in para 4 (iii) (b) (c) and (d)
of the order are not applicable.
(b) The Company has taken unsecured interest free loan from two parties
involving an amount of Rs.11.50 crores, and the transaction during the
year is Nil and accordingly year end balance remain the same.
The terms and conditions in respect of the above loan taken by the
Company are, prima facie, not prejudicial to the interest
(c) of the Company.
(iv) In our opinion and according to the information and explanations
given to us, the internal control system is not commensurate with the
size of the Company and the nature of its business with regard to
purchase and sale of goods and services.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (v)(a) above and exceeding the value of Rs
5 lakh with any party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
(vi) In our opinion and according to the explanations given to us, the
company has complied with the directives issued by the Reserve Bank of
India, and also provisions of the Section 58A and Section 58AA of the
Companies Act, 1956 and the rules framed there under, in respect of
deposits accepted by it. No order has been passed by the Company Law
Board and the Company has not accepted any deposit under 58A and 58AA
of the Companies Act, 1956.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the records maintained by the company
pursuant to the rules made by the Central Government for the
maintenance of the cost records u/s 209 (1) (d), of the Act. We are of
the opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view of determining whether they are
accurate or complete.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Income-tax, Sales - tax, Wealth tax, Service tax and
other material statutory dues have been regularly deposited during the
year by the Company with the appropriate authorities. As explained to
us, the Company did not have any dues on account of Employees'' State
Insurance, Customs duty and Excise duty.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Income - tax, Sales - tax, Wealth tax,
Service tax and other material statutory dues were in arrears as at 31
March 2014 for a period of more than six months from the date they
became payable.
(b) At the end of the Financial year there were no dues of Sales Tax,
Customs Duty, Wealth Tax, Excise Duty, Cess which have not been paid
for a period of more than 6 months from the date they become payable
except as detailed below:
Name of the Year Amount
Statute Nature of Dues in Lakhs
TamilNadu Additional 1996-97 Additional
Sales Tax Act, 1970 Sales Tax 20.07
CST Acts 2002-03 TNGST Surcharge
ASt Penalty 1.82
TNGST, CSTActs 2003-04 TNGST, Surcharge 13.54
AST, Penalty
Income Tax Act, 2004-05 Interest U/S 5.85
1961 234B/234C
Name of the Statute Forum Provided in the
where dispute books of
is pending accounts
Tamil Nadu Additional Sales Tax Supreme Court of Yes
Act, 1970 India
CST Acts TNGST, CSTActs STAT Coimbatore No
Income Tax Act, 1961 STAT Coimbatore No
Income Tax Act 1961 ITAT Chennai No
x) There are accumulated losses at the end of the financial year ended
31.03.2014. In our opinion the accumulated losses of the Company as on
31.03.2014 are more than 100% of its networth and the company has
become a sick company within the definition of Section 3(1) (0) of the
SICA (Special Provisions) Act, 1905. The Company has incurred cash loss
during the financial year covered by our audit.
xi) The Company has defaulted in repayment of dues, both principal and
interest to lenders. The principal default of Rs. 266.65 crores is from
April 2011 and interest default of Rs. 71.24 crores from October 2011,
based on CDR Package.
xii) During the year the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities According to the information and explanations given to
us.
xiii) In our opinion, the provisions of special statue applicable to
Chit Fund, N id hi/Mutual Benefit Fund / societies are not applicable
to the company.
xiv) The company is not dealing or trading in shares, securities,
debentures and other investments.
xv) In our opinion and according to the information an explanations
given to us, the company has not given any guarantee for loans taken by
offers from banks or financial institutions.
xvi) According to the information and explanations given to us, the
company has utilized term loans for the purpose for which the loans
were obtained.
xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short-term
basis, which have been used for long - term investments by the Company.
xviii)According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies oared in the register maintained under Section 301 of the
Act.
xix) During the year the Company has not issued any debentures.
xx) According to the information and explanations given to us, during
the year the Company has not raised money by public issue.
xxi) To the best of our knowledge the belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
For THAKKER & sanghani
Firm Registration no:004351S
Coimbatore Chartered Accountants
28-5-2014 Aswin C
Partner
Membership No:22204
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Gangotri
Textiles Limited (''the Company'') which comprise the balance sheet
as at 31 March 2013, the statement of profit and loss and 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). 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 of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
BASIS FOR QUALIFIED OPINION
1. The Debtors and Loans and advances are subject to confirmation and
an advance of Rs.423 lakhs is doubtful of recovery which has not been
provided for in the accounts of the company.
2. The Management has not obtained concurrence of the lenders with
regard to transactions related to job work at Unit,3,4 and 9 for the
year ended 31.03.2013 which has resulted in a loss of Rs.133 lakhs. In
the event of the denial of concurrence by the lenders, the loss would
have been overstated to the above extent. Further, the management has
not complied with the advice of the lenders to make good the above
loss.
3. The interest provisions for all terms loans have been worked based
on the then prevailing CDR package rates, and not on the original
sanction/revised floating rates. Consequent to the company being out of
CDR package and reverting back to the original sanction, the
differential interest that ought to have been provided for in the
accounts is estimated at Rs.5700 lakhs (from 1.7.2008 to 31.03.2013).
Since the same has not been provided for the loss has been understated
to the above extent.
4. Notices to treat the Company as willful defaulter from certain
lenders have been served on the Company and the management.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for qualified opinion paragraph, 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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2013;
(ii) in the case of the statement of profit and loss, of the loss 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.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order"), as amended, issued by the Central Government of
India in terms of sub-section (4A) of section 227 of the Act, we give
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; and
e. on the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
The Annexure referred to in our report to the members of Gangotri
Textiles Limited (''the Company'') for the year ended 31 March 2013.
We report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
(c) Fixed assets disposed off during the year were not substantial but
for some non-core assets (Sulaikal Land), and therefore, do not affect
the going concern assumption. And, it is noted that according to the
management, these assets will not be replaced in the foreseeable future
(d) The Company has provided for impairment of all its assets during
the year under review.
(ii) (a) As explained to us, inventories of the company at all its
location have been physically verified at reasonable intervals by the
management during the year.
(b) In our opinion, the Procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business
(c) The Company is maintaining proper records of inventory and material
discrepancies, noticed on physical verification have been properly
dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
The Company has not granted any loans, secured or unsecured to the
companies firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.Accordingly, the
provisions stated in para 4 (iii) (b) (c) and (d) of the order are not
applicable.
(b) The Company has taken unsecured interest free loan from two parties
involving an amount of Rs.11.50 crores, and the transaction during the
year is Nil and accordingly yearend balance remain the same.
(c) The terms and conditions in respect of the above loan taken by the
Company are, prima facie, not prejudicial to the interest of the
Company.
(iv) In our opinion and according to the information and explanations
given to us, the internal control system is not commensurate with the
size of the Company and the nature of its business with regard to
purchase and sale of goods and services.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (v)(a) above and exceeding the value of Rs
5 lakh with any party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
(vi) In our opinion and according to the explanations given to us, the
company has complied with the directives issued by the Reserve Bank of
India, and also provisions of the Section 58A and Section 58AA of the
Companies Act, 1956 and the rules framed there under, in respect of
deposits accepted by it. No order has been passed by the Company Law
Board and the Company has not accepted any deposit under 58A and 58AA
of the Companies Act, 1956.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the records maintained by the company
pursuant to the rules made by the Central Government for the
maintenance of the cost records u/s 209 (1) (d), of the Act. We are of
the opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view of determining whether they are
accurate or complete.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Income-tax, Sales - tax, Wealth tax, Service tax and
other material statutory dues have been regularly deposited during the
year by the Company with the appropriate authorities. As explained to
us, the Company did not have any dues on account of Employees'' State
Insurance, Customs duty and Excise duty.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Income - tax, Sales - tax, Wealth tax,
Service tax and other material statutory dues were in arrears as at 31
March 2013 for a period of more than six months from the date they
became payable.
(b) At the end of the Financial year there were no dues of Sales Tax,
Customs Duty, Wealth Tax, Excise Duty, Cess which have not been paid
for a period of more than 6 months from the date they become payable
except as detailed below:
Name of the Amount Forum provided
Statute Year Nature of in the
Dues in Lakhs where books of
is pen
ding accounts
Tamil Nadu
Additional 1996 97 Additional 20.07 Supreme
Court of yes
Sales Tax
Act, 1970 1996-97 Sales Tax India
CST Acts 2002-03 TNGST,
Surcharge 1.82 STAT Coim
batore No
AST,
Penalty
TNGST,
CST Acts 2003-04 TNGST
Surcharge 13.54 STAT Coim
batore No
AST,
Penalty
Income
Tax Act, 2004-05 Interest
U/S 5.35 ITAT
Chennai No
1961 234B /234C
x) There are accumulated losses at the end of the financial year ended
31.03.2013. In our opinion the accumulated losses of the Company as on
31.03.2013 are more than 100% of its net worth and the company has
become a sick company within the definition of Section 3(1) (o) of the
SICA (Special Provisions) Act, 1985. The Company has incurred cash loss
during the financial year covered by our audit but has not incurred
cash loss in the immediately preceding financial year.
xi) The Company has defaulted in repayment of dues, both principal and
interest to lenders. The principal default of Rs. 256.64 crores is from
April 2011 and interest default of Rs. 44.16 crores from October 2011,
based on CDR Package.
xii) During the year the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities According to the information and explanations given to
us.
xiii) In our opinion, the provisions of special statue applicable to
Chit Fund, Nidhi/Mutual Benefit Fund / societies are not applicable to
the company.
xiv) The company is not dealing or trading in shares, securities,
debentures and other investments.
xv) In our opinion and according to the information an explanations
given to us, the company has not given any guarantee for loans taken by
offers from banks or financial institutions.
xvi) According to the information and explanations given to us, the
company has utilized term loans for the purpose for which the loans
were obtained.
xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short-term
basis, which have been used for long - term investments by the Company.
xviii)According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies oared in the register maintained under Section 301 of the
Act.
xix) During the year the Company has not issued any debentures.
xx) According to the information and explanations given to us, during
the year the Company has not raised money by public issue.
xxi) To the best of our knowledge the belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
For THAKKER & SANGHANI
Firm Registration No:004351S
Chartered Accountants
Coimbatore AswinC
23.05.2013 Partner
23-05-2013 Membership No:22204
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s.GANGOTRI TEXTILES
LIMITED, Coimbatore as at 31 st Marchà 2012 and also the Profit and
Loss Account and the Cash flow statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the CompanyÃs management. Our responsibility is to express an
opinion of these financial statements based on our audit
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An Audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion. We report that -
3. As required by the Companies (AuditorÃs Report) Order, 2003, as
amended, issued by the Government of India in terms of Section 227(4A)
of the Companies Act, 1956 and on the basis of such checks as we
considered appropriate and according to the information and
explanations given to us, we enclose in the Annexure, a statement on
the matters specified in paragraphs 4 and 5 of the said order to the
extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above.
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
referred to in this report are in agreement with the books of Accounts.
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
Accounting standards referred to in Section 211 (3C) of the Companies
Act,1956.
e. On the basis of the written representations received from all the
directors as on March,31, 2012 and taken on record by the Board of
Directors, We report that none of the Directors of the Company are
disqualified as on March,31 2012 from being appointed as a director
under clause (g) of sub section (1) of section 274 of the Companies
Act, 1956.
f. In our opinion and to the best of our information and according to
the explanation given to us, the Balance Sheet and Profit and Loss
Account together with the notes thereon, and attached thereto given in
the prescribed manner the information required by the Companies Act,
1956 and together with the Cash Flow Statement a true and fair view in
conformity with the accounting principles generally accepted in India
(i) In the case of Balance sheet, of the state of CompanyÃs affairs as
on 31 st MarchÃ2012. (ii) In the case of Profit and Loss Account , of
the Loss for the Year ended on that date and (iii) In case of the Cash
Flow statement, of the cash flow for the year ended on that date.
ANNEXURE TO THE AUDITORSÃ REPORT
(Referred to in paragraph 3 of our report of even date)
On the basis of such checks as we considered appropriate in terms of
information and explanations given to us, we state that:-
i) a) The Company has maintained proper records showing full
particulars, including Quantitative details and situation of fixed
assets
b) The Fixed assets of the Company have been physically verified by the
management at reasonable intervals. No material discrepancies were
noticed on such verification
c) No substantial part of fixed assets of the Company has been disposed
off during the year affecting the status of the company as a going
concern, other than certain non-core assets (Three windmills and Vacant
land at Kalapatti and at Munduvelampatti). And, it is noted that
according to the management, these assets will not be replaced in the
foreseeable future.
d) The Company has provided for impairment of the Power General Plant
(Furnace oil based) at Udumalpet for Rs.380.75 Lakhs, during the year
under reveiw.
ii) a) As explained to us, inventories of the company at all its
location have been physically verified at reasonable intervals by the
management during the year.
b) In our opinion, the Procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business
c) The Company is maintaining proper records of inventory and material
discrepancies, noticed on physical verification have been properly
dealt with in the books of account.
iii) a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to the
companies firms or other parties covered in the register maintained
under Section 301 of the Companies Act,1956. Accordingly, the
provisions stated in para 4(iii) (b) (c) and (d) of the order are not
applicable.
b) The Company has taken unsecured interest free loan from two parties
involving an amount of Rs.11.50 crores, and the transaction during the
year is Nil and accordingly year end balance remain the same.
c) The terms and conditions in respect of the above loan taken by the
company are, prima facie, not prejudicial to the interest of the
Company.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Futher, on the basis of our examination of the books and
records of the company and according to the information and
explanations given to us, no major weakness have been noticed or
reported.
v) a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the contracts and agreements that need to be entered in the register
maintained u/s 301 of the Companies Act, 1956 have been so entered;
b) In our opinion and according to the explanations given to us, the
transactions made in pursuance of contract or arrangements to be
entered in the Register maintained under Section 301 of the Companies
Act 1956, and exceeding the value of Rs.5 lakhs in respect of any party
during the year have been made at prices which are reasonable having
regard to the market prices prevailing at that time.
vi) In our opinion and according to the explanations given to us, the
company has complied with the directives issued by the Reserve Bank of
India, and also provisions of the Section 58A and Section 58AA of the
Companies Act, 1956 and the rules framed there under, in respect of
deposits accepted by it. No order has been passed by the Company Law
Board and the Company has not accepted any deposit under 58A and 58AA
of the Companies Act,1956.
vii) In our opinion the company has an internal audit system
commensurate with its size and nature of its business
viii) We have broadly reviewed the records maintained by the company
pursuant to the rules made by the Central Government for the
maintenance of the cost records u/s 209 (1)(d), of the Act. We are of
the opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view of determining whether they are
accurate or complete.
ix) a) According to the records of the Company, it has been regular in
depositing undisputed statutory dues, including Provident Fund,
investor Education and Production Fund, Employees State Insurance,
Income Tax, Sales Tax, WealthTax Service Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues with the appropriate
authorities during the year.
b) At the end of the Financial year there were no dues of Sales Tax,
Customs Duty, Wealth Tax, Excise Duty, Cess which have not been paid
for a period of more than 6 months from the date they become payable
except as detailed below:
Name of the Statute Amount
Year Nature of Dues
in Lakhs
TamilNadu
Additional
Additional Sales 1996-97 20.07
Sales Tax
Tax Act, 1970
TNGST, Surcharge
CST Acts 2002-03 1.82
AST, Penalty
TNGST, Surcharge
TNGST, CST Acts 2003-04 13.54
AST, Penalty
Income Tax Act, Interest u/s
2004-05 5.85
1961 234B / 234C
Name of the Statute Forum where dispute Provided in the
is pending books of accounts
TamilNadu Supreme Court of
Additional Sales Yes
Tax Act, 1970 India
CST Acts STAT No
Coimbatore
STAT No
TNGST, CST Acts Coimbatore
Income Tax Act, 1961 ITAT
Chennai No
x) There are accumulated losses at the end of the financial year ended
31.03.2012. In our opinion the accumulated losses of the Company as on
31.03.2012 are more than 50% of its networth. The Company has incurred
cash loss during the financial year covered by our audit but has not
incurred cash loss in the immediately preceeding financial year.
xi) The Company has defaulted in repayment of dues, both principal and
interest to lenders. The Principal default of Rs. 227.28 Crores is from
April 2011 and the Interest default of Rs.13.31 Crores is from October
2011.
xii) During the year the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities According to the information and explanations given to
us.
xiii) In our opinion, the provisions of special statue applicable to
Chit Fund, Nidhi/Mutual Benefit Fund/ societies are not applicable to
the company.
xiv) The company is not dealing or trading in shares, securities,
debentures and other investments. xv) In our opinion and according to
the information an explanations given to us, the company has not given
any guarantee for loans taken by offers from banks or financial
institutions.
xvi) According to the information and explanations given to us, the
company has utilized term loans for the purpose for which the loans
were obtained.
xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short-term
basis, which have been used for long - term investments by the Company.
xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies oared in the register maintained under Section 301 of the
Act.
xix) During the year the Company has not issued any debentures.
xx) According to the information and explanations given to us, during
the year the Company has not raised money by public issue.
xxi) To the best of our knowledge the belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
For THAKKER & SANGHANI
Firm Registration No:004351S
Chartered Accountants
Aswin.C
Coimbatore Partner
29.05.2012
Membership No:22204
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s. GANGOTRI
TEXTILES LIMITED, Coimbatore, as at 31st March 2010 and also the Profit
and Loss Account and the cash flow statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion. We report that -
3. As required by the Companies (Auditors Report) Order, 2003, as
amended, issued by the Government of India in terms of Section 227(4A)
of the Companies Act, 1956 and on the basis of such checks as we
considered appropriate and according to the information and
explanations given to us, we enclose in the Annexure, a statement on
the matters specified in paragraphs 4 and 5 of the said order to the
extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above;
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
referred to in this report are in agreement with the books of Accounts.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
Accounting standards referred to in Section 211 (3C) of the Companies
Act, 1956.
e) On the basis of the written representations received from all the
directors as on March 31,2010 and taken on record by the Board of
Directors, we report that none of the Directors of the Company are
disqualified as on March 31, 2010 from being appointed as a director
under clause (g) of sub section (1) of Section 274 of the Companies
Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet and Profit and Loss
Account together with the notes thereon, and attached thereto given in
the prescribed manner the information required by the Companies Act,
1956 and together with the Cash Flow Statement also give a true and
fair view in conformity with the accounting principles generally
accepted in India:
(i) In the case of Balance Sheet, of the state of Companys affairs as
on 31st March 2010 (ii) In the case of Profit and Loss Account, of the
Loss for the year ended on that date, and (iii) In case of the Cash
flow statement, of the cash flow for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our
report of even date)
On the basis of such checks as we considered appropriate in terms of
information and explanations given to us, we state that:-
1. a) The Company has maintained proper records showing full
particulars, including Quantitative details and situation of fixed
assets;
b) The Fixed assets of the Company have been physically verified by the
management at reasonable intervals. No material discrepancies were
noticed on such verification;
c) No substantial part of fixed assets of the company has been disposed
off during the year affecting the status of the company as a going
concern.
2. a) As explained to us, inventories of the Company at all its
locations have been Physically verified at reasonable intervals by the
management during the year.
b) In our opinion, the Procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business;
c) The Company is maintaining proper records of inventory and material
discrepancies, if any, noticed on physical verification have been
properly dealt with in the books of account;
3. a) According to the information and explanations
given 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 Companies Act, 1956, where the rate
of interest and other terms and conditions are prima facie prejudicial
to the interest of the Company. b) The company has not taken any loans
secured or unsecured from companies, firms or other parties covered in
the register maintained under Section 301 of the Companies Act, 1956,
except for unsecured loan from a relative of a Director/Shareholder at
a rate of interest and terms & conditions which are not prima facie
prejudice to the interest of the Company.Therefore the clauses (f) and
(g) of para (iii) of the Companies (Auditors Report) Order 2003 are not
applicable, except to the extent stated above
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. In our opinion and according to information and explanations
given to us, there has been no continuing failure to correct major
weakness in internal control system during the year.
5. a) To the best of our knowledge and belief and according
to the information and explanations given to us, we are of the opinion
that the contracts and agreements that need to be entered in the
register maintained u/s 301 of the Companies Act, 1956 have been so
entered; b) In our opinion and according to the explanations given to
us, the transactions made in pursuance of contract or arrangements to
be entered in the Register maintained under Section 301 of the
Companies Act 1956, and exceeding the value of Rs. 5 lakhs in respect
of any party during the year have been made at prices which are
reasonable having regard to the market prices prevailing at that time.
6. In our opinion and according to the explanations given to us, the
Company has complied with the directives issued by the Reserve Bank of
India, and also provision of the Section 58A and Section 58AA of the
Companies Act, 1956 and the rules framed there under, in respect of
deposits accepted by it.
7. In our opinion the company has an internal audit system
commensurate with its size and nature of its business;
8. We have broadly reviewed the records maintained by the Company
pursuant to the rules made by the Central Government for the
maintenance of the cost records u/s 209(1) (d), of the Act. We are of
the opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determining whether they are
accurate or complete.
9. a) According to the records of the Company, it has been
regular in depositing undisputed statutory dues, including Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues with the
appropriate authorities during the year.
b) At the end of the Financial year there were no dues of Sales Tax,
Customs Duty, Wealth Tax, Excise Duty, Cess which have not been paid
for a period of more than 6 months from the date they become payable
except as detailed below:
Name of the Amount
Statute Year Nature of Dues in Lacs Rs.
TamilNadu
Additional Sales 1996-97 Additional 20.07
Tax Act, 1970 sales Tax
TNGST,CST TNGST, Surcharge 3.88
Acts 2003-04 AST, Penalty
Income Tax Act, Interest u/s
1961 2004-05 234B/234C 5.85
Name of the
Statute Forum Provided in the
where dispute books of
is pending accounts
TamilNadu
Additional Sales
Tax Act, 1970 Supreme Court Yes
of India
TNGST, CST
Acts STAT No
Coimbatore
Income Tax Act,
1961 ITAT
Chennai No
10. There are accumulated losses at the end of the financial year
ending 31.03.2010. In our opinion, the accumulated losses of the
Company as on 31.03.2010 are not more than fifty percent of its net
worth. As on 31.03.2010 the Company has incurred cash loss during the
financial year covered by our Audit and had also incurred cash
loss in the immediately preceding financial year;
11. The Company has not defaulted in repayment of dues to financial
institution or bank considering the reliefs in the CDR package
sanctioned.
12. During the year the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities, according to the information and explanation given to
us.
13. In our opinion, the provisions of special statue applicable to
Chit Fund, Nidhi/ Mutual Benefit Fund/ Societies are not applicable to
the company;
14. The Company is not dealing or trading in shares, securities,
debentures and other investments.
15. In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions.
16. According to the information and explanation given to us, the
company has utilized term loans for the purpose for which the loans
were obtained.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to information and explanations
given to us, there are no funds raised on short-term basis, which have
been used for any long-term investments by the Company.
18. According to the information and explanation given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act.
19. During the year the Company has not issued any debentures.
20. According to the information and explanation given to us, during
the year the Company has not raised money by public issue.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
ForTHAKKER & SANGHANI
Firm Registration No. 004351S
Chartered Accountants
Aswin C
Coimbatore
Partner
19.5.2010 Membership No.22204
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