Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of Hisar Spinning
Mills Limited ("the Company") which comprise the Balance Sheet as at
31st March 2014, 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 notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September 2013
of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s 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 accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted
in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
(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, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956 read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013;
(e) on the basis of written representations received from the directors
as on 31st March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act;
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
(Annexure referred to in paragraph 1 under the heading Report on Other
Legal and Regulatory Requirements of our Report of even date to the
members of Hisar Spinning Mills Limited for the year ended 31st March
2014)
1 (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a program for the physical verification of fixed
assets at periodic intervals. In our opinion, the period of
verification is reasonable having regard to the size of the Company and
the nature of its fixed assets. No significant discrepancies were
noticed on such verification.
(c) Based on our scrutiny of the records of the company and the
information and explanations given to us, we report that there was no
sale of fixed assets during the financial year ended 31st March 2014.
substantial or otherwise. Hence, the question of reporting whether the
sale of any substantial part of fixed assets has affected the going
concern of the company does not arise.
2. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) 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) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Accordingly, paragraphs 4(iii)(a) to
4(iii)(d) of the Order are not applicable to the Company.
(b) The Company has taken unsecured loans from two parties covered in
the register maintained under section 301 of the Act. The maximum
amount involved during the year from these parties was Rs. 4236500/-
but there was no year end balance of loans taken from such parties.
(c) In our opinion, the rate of interest and other terms and conditions
on which unsecured loans have been taken from parties covered in the
register maintained under section 301 of the Act are not, prima facie,
prejudicial to the interest of the Company.
(d) The loans accepted by the Company from parties covered in the
register maintained under section 301 of the Act are interest free
loans. There is no amount outstanding as on the balance sheet date
against such loans. Henceforth, paragraph 4(iii){g) of the Order is not
applicable to the Company in respect of regularity of payment of the
principal amount and interest.
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. The
activities of the company do not involve the sale of services. During
the course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control system.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the 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, there are no transactions made in pursuance of such
contracts or arrangements entered in the register maintained under
section 301 of the Act and exceeding the value of five lakh rupees in
respect of any party during the financial year under consideration.
6. The Company has not accepted any deposits from the public within
the meaning of sections 58A, 58AA or any other relevant provisions of
the Act and the rules framed thereunder.
7. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011,
prescribed by the Central Government under Section 209 (1) (d) of the
Act and are of the opinion that prima facie the prescribed cost records
have been maintained. We have, however, not made a detailed examination
of the cost records with a view to determining whether they are
accurate or complete.
9. (a) The Company is generally regular in depositing the undisputed
statutory dues including employees'' state insurance, provident fund,
investor education and protection fund, income tax, sales tax, wealth
tax, service tax, customs duty, excise duty, cess and other material
statutory dues as applicable with the appropriate authorities, though
there has been slight delay in a few cases. No undisputed amounts
payable in respect thereof were outstanding at the year end for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income
tax/sales tax/wealth tax/service tax/custom duty/excise duty/cess which
have not been deposited with the appropriate authorities on account of
any dispute.
10. The Company does not have any accumulated losses as at 31st March
2014 and it has not incurred any cash losses in the financial year
ended on that date or in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank. According to records of the Company, the
Company did not have any outstanding debentures during the year.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund/ nidhi/ mutual benefit
fund/ society.
14. The Company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of
paragraph 4(xiv) of the Order are not applicable to the Company.
15 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.
16. According to the records of the Company, the Company has not
obtained any fresh term loan during the year under consideration.
Hence, comments under para 4 (xvi) of the Companies (Auditor''s Report)
Order, 2003 are not called for.
17. On the basis of an overall examination of the balance sheet of the
Company, in our opinion, there are no funds raised on a short-term
basis which have been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
19. The Company has not issued any debentures.
20. The Company has not raised any money by public issues during the
year.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
for JAIN & ANIL SOOD
Chartered Accountants
Firm Registration No.010505N
(RAJESH KUMAR JAIN)
Place: Chandigarh Partner
Date : 27.05.2014 Membership No. 088447
Mar 31, 2012
1. We have audited the attached balance sheet of Hisar Spinning Mills
Limited (the "company") as at 31st March 2012, the related statement of
profit and loss and cash flow statement for the year ended on that date
annexed thereto, which we have signed under reference to this report.
These financial statements are the responsibility of the company s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the 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 mis-statement. 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 princip es used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor s Report) Order, 2003, as
amended by the Companies (Auditor s Report) (Amendment) Order, 2004
(together the "Order"), issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Companies Act, 1956
(the "Act") and on the basis of such checks of the books and records of
the company as we considered appropriate and sccofiifv1 t/j tho
information given to us, we enclose in the Annsxyrs,
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
(b) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
(c) The balance sheet, statement of profit and toss 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 dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Act;
(ej Oh the basis of written representations renewed.from tt]f directors
as on & taken on record by the board of directors, none of the
directors is disqualified as on 31st March 2012; from being appointed
as a director in terms of clause^) of sob-section (1) df5 gectioh!274
of the Act;
(f) In otir opinion and to the best of our informatidn and according
to, t|ieexp^natioris given,to us, the said financial statements
together with the notes thereon and attached ^hereto,/, 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 (ndia:
(i) in the case of the balance sheet, of the state of affairs or the
company as at 3ist March 2012;
(ii) in the case of the statement of profit and loss, of the profit for
the year ended on that date;
(ii) inthe case of the cash flow statement, of the cash flows for the
year ended on that date
ANNEXURETO THE AUDITORS REPORT
(referred to in paragraph 3 of the Auditor s Report of even date to the
members of Hisar Spinning Mills Limited on the financial statements for
the year ended 31st March 2012)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The company has a program for the physical verification of fixed
assets at perbdic intervals. In our opinion, the period of verification
is reasonable having regard to the size of the company and the nature
of its fixed assets. No significant discrepancies were noticed on such
verification.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) 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) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. (a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Accordingly, paragraphs 4(iii)(a) to
4(iii)(d) of the Order are not applicable to the company.
(b) The company has taken unsecured loans from three parties covered in
the register maintained under section 301 of the Act. The maximum
amount involved during the year from these parties was rupees 6511500/-
and the year end balance of loans taken from such parties was rupees
6511500/-.
(c) In our opinion, the rate of interest and other terms and conditions
on which unsecured loans have been taken from parties covered in the
register maintained under section 301 of the Act are not, prima facie,
prejudicial to the interest of the company.
(d) The loans accepted by the company from parties covered in the
register maintained under section 301 of the Act are interest free
loans. In the case of loans accepted from the parties covered in the
register maintained under section 301 of the Act, no principal amount
was due for payment to the said parties during the financial year under
consideration. Accordingly, paragraph 4(iii)(g) of the Order is not
applicable to the company in respect of regularity of payment of the
principal amount and interest.
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.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
5. According to the information given to us, tftereafe no contracts or
arrangements during the year that need to be entered into a register in
pursuance of section 301 tif the Act. therefore; the provisions of
clause 4 (v) of the Order are not applicable to the company.
6. "The company has hot accepted any depasjts from the public
witninth,e,meaningo^ sections 58A, 58AA or arty dther relevant
provisions of the Act and the rules framed thereunder.
7; In 6Ur opinion, the company has an internal,audjt.system
cqnyriensu[Pate,with the size and the nature of its business.
We haweotooadJyreviewedthe cosffecibi^ maintained by the cbrripa ny
pursuant to the Companies (Cost Accounting Records) Rutes,2flM,pre^ri^
209 (1)
(d) of the Act and are of the opinion that prima facie the prescribed
cost records have maintained we have how ever not made a detailed
examination of the cost records with a view to derermining whether they
are accurate or compete
9. (a) The company is generally regular in depositing the undispted
statutor dues including exployees state insureance provided fund
investor education and protection fund income tax sales tax, wealth
tax, service tax, customs duty, excise duty, cess and other material
statutory dues as applicable with the appropriate authorities though
there has been slight delay in a few cases. No undisputed amounts
payable in respect thereof were outstanding at the year end for a
period of more that six months from the date they become payable How
ever a cheque of rupees 105617/- issued by the company in favour or
Punjab National Bank for payment of custom duty during Judy 2011 was
presented for payment by the bank after the balance sheet date .
(b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues of income
tax/sales tax/wealth tax/service tax/custom duty exorse duty/ cess
which have not been deposited with the appropriate authorities on
account of any-dispute.
10. In our opinion, the accumulated losses of the company are not more
than fifty per cent of its net worth as on 31st March 2012. The company
also has not incurred any cash losses during the financial year covered
by our audit and the immediately preceding financial year. In arriving
at the accumulated losses net worth and cash tosses as above, we have
considered the qualifications, if anyt,whicji,are quantifiable in the
audit reports of the years to which these pertain.
11. In our opinion and according to the information and explanations
given to us, the company has not pdefaulted in repayment of dues to a
financial institution or bank. According to records of the company, the
company did not have any outstanding debentures during the year.
12. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the company is not a chit fund/ nidhi/ mutual benefit
fund/ society.
14. The company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of
paragraph 4(xiv) of the Order are not applicable to the company.
15. According to the information and explanations given to us, the
company has not given any guarantee for bans taken by others from banks
or financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans taken during the year have been applied for
the purpose for which they were obtained.
17. On the basis of an overall examination of the balance sheet of the
company, in our opinion, there are no funds raised on a short-term
basis which have been used for long-term investment
18. The company has not made any preferential albtment of shares to
parlies and companies covered in the register maintained under section
301 of the Act.
19. The company has not issued any debentures.
20. The company has not raised any money by public issues during the
year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
for JAIN & ANIL SOOD
Chartered Accountants
Firm Registration No. 010505N
(RAJESH KUMAR JAIN)
Place: Chandigarh
Date : 30.082012
Partner
Membership No. 088447
Mar 31, 2011
1. We have audited the attached balance sheet of Hisar Spinning Mills
Limited, as at 31st March 2011, the profit and loss account and also
the cash flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
iii) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
iv) 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;
v) On the basis of written representations received from the directors
as on 31st March 2011, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2011 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March 2011;
b) in the case of the profit and loss account, of the profit for the
year ended on that date; and
c) in the case of the cash flow statement of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
(referred to in our report of even date to the members of Hisar
Spinning Mills Limited on accounts for the year ended 31st March 2011)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The company has a program for the physical verification of fixed
assets at periodic intervals. In our opinion, the period of
verification is reasonable having regard to the size of the company and
the nature of its fixed assets. No significant discrepancies were
noticed on such verification.
(c) Based on our scrutiny of the records of the company and the
information and explanations given to us, we report that there was sale
of fixed assets during the year but the fixed assets disposed of did
not constitute a substantial part of the fixed assets of the company.
Hence, the question of reporting whether the sale of any substantial
part of fixed assets has affected the going concern of the company does
not arise.
2. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) 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) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. (a) The company has taken unsecured loan from one party covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year from the said party was Rs.
11000/- and the year end balance of loan taken from such party was Rs.
11000/-. 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.
(b) In our opinion, the rate of interest and other terms and conditions
on which unsecured loan has been taken from party covered in the
register maintained under section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the company.
(c) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest wherever
applicable.
(d) There is no overdue amount of loan taken from party covered in the
register maintained under section 301 of the Companies Act, 1956.
4. 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 regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
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 explanations
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 five lakh rupees in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. Based on our scrutiny of the company's records and according to the
information and explanations given to us, in our opinion, the company
has not accepted any deposits from public which are 'deposits' within
the meaning of the Companies (Acceptance of Deposits) Rules, 1975.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account relating to
materials, labour and other items of cost 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 we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
9. (a) According to the information and explanations given to us and
records of the company examined by us, the company is generally regular
in depositing with the appropriate authorities undisputed statutory dues
including provident fund, employees' state insurance, income-tax, sales-
tax and other material statutory dues applicable to it. Further according
to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, employees' state insurance, income-
tax, sales-tax and other material statutory dues were in arrears as at
31st March 2011 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 sales tax/income-tax/ custom duty/wealth-tax/ excise
duty/ cess which have not been deposited on account of any dispute.
10. In our opinion, the accumulated losses of the company are not more
than fifty per cent of its net worth as on 31st March 2011. The company
also has not incurred any cash losses during the financial year covered
by our audit and the immediately preceding financial year. In arriving
at the accumulated losses, net worth and cash losses as above, we have
considered the qualifications, if any, which are quantifiable in the
audit reports of the years to which these pertain.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank. Further according to records of the
company, the company has not issued any debentures till 31st March
2011.
12. According to the records of the company, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
15. According to the records of the company and the information and
explanations provided by the management, the company has not given any
guarantee for loans taken by others from bank or financial
institutions.
16. According to the records of the company, the company has not
obtained any fresh term loan during the financial year covered by our
report. Hence, comments under the clause are not called for.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment. No long term funds have been used to finance short term
assets except permanent working capital.
18. According to the records of the company and the information and
explanations provided by the management, 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.
19. According to the records of the company, the company has not
issued any debentures.
20. The company has not raised any money by public issues during the
period covered by our audit report.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
for JAIN & ANIL SOOD
Chartered Accountants
Firm Registration No.010505N
Place: Chandigarh (RAJESH KUMAR JAIN)
Date : 31.08.2011 Partner
Membership No. 088447
Mar 31, 2010
1. We have audited the attached balance sheet of Hisar Spinning Mills
Limited, as at 31st March 2010, the profit and loss account and also
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 the 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 mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
iii) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
iv) 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;
v) On the basis of written representations received from the directors
as on 31st March 2010, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March 2010;
b) in the case of the profit and loss account, of the profit for the
year ended on that date; and
c) in the case of the cash flow statement of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(referred to in our report of even date to the members of Hisar
Spinning Mills Limited on accounts for the year ended 31st March 2010)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The company has a program for the physical verification of fixed
assets at periodic intervals. In our opinion, the period of
verification is reasonable having regard to the size of the company and
the nature of its fixed assets. No significant discrepancies were
noticed on such verification.
(c) Based on our scrutiny of the records of the company and the
information and explanations given to us, we report that there was no
sale of fixed assets during the financial year ended 31st March 2010,
substantial or otherwise. Hence, the question of reporting whether the
sale of any substantial part of fixed assets has affected the going
concern of the company does not arise.
2. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) 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) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. (a) The company has taken unsecured loan from one party covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year from the said party was Rs.
11000/- and the year end balance of loan taken from such party was Rs.
11000/-. 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.
(b) In our opinion, the rate of interest and other terms and conditions
on which unsecured loan has been taken from party covered in the
register maintained under section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the company.
(c) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest wherever
applicable.
(d) There is no overdue amount of loan taken from party covered in the
register maintained under section 301 of the Companies Act, 1956.
4. 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 regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
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 explanations
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 five lakh rupees in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. Based on our scrutiny of the companys records and according to the
information and explanations given to us, in our opinion, the company
has not accepted any deposits from public which are deposits within
the meaning of the Companies (Acceptance of Deposits) Rules, 1975.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account relating to
materials, labour and other items of cost 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 we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
9. (a) According to the information and explanations given to us and
records of the company examined by us, the company is generally regular
in depositing with the appropriate authorities undisputed statutory
dues including provident fund, employees state insurance, income-tax,
sales-tax and other material statutory dues applicable to it. Further
according to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees
state insurance, income-tax, sales-tax and other material statutory
dues were in arrears as at 31st March 2010 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 sales tax/income-tax/ custom duty/wealth-tax/ excise
duty/ cess which have not been deposited on account of any dispute.
10. In our opinion, the accumulated losses of the company have
exceeded fifty per cent of its net worth as on 31st March 2010. The
company, however, has not incurred any cash losses in the financial
year under consideration and in the financial year immediately
preceding such financial year. In arriving at the accumulated losses,
net worth and cash losses as above, we have considered the
qualifications, if any, which are quantifiable in the audit reports of
the years to which these pertain.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank. Further according to records of the
company, the company has not issued any debentures till 31st March
2010.
12. According to the records of the company, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
15. According to the records of the company and the information and
explanations provided by the management, the company has not given any
guarantee for loans taken by others from bank or financial
institutions.
16. The term loans obtained by the company have been applied for the
purpose for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment. No long term funds have been used to finance short term
assets except permanent working capital.
18. According to the records of the company and the information and
explanations provided by the management, 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.
19. According to the records of the company, the company has not
issued any debentures.
20. The company has not raised any money by public issues during the
period covered by our audit report.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
for JAIN & ANIL SOOD
Chartered Accountants
Firm Registration No. 010505N
Place: Chandigarh (RAJESH KUMAR JAIN)
Date : 03.09.2010 Partner
Membership No. 088447
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