Mar 31, 2015
Report on the Financial Statements
We have audited the accompanying financial statements of Kakatiya
Textiles Limited, which comprise the Balance Sheet as at 31st March
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
The Company's Board of Directors is responsible for the matters in
Section 134(5) of the Companies Act, 2013 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 the assets of the company and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the act and the rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the company's
preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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, 2015;
b) in the case of the Statement of Profit and Loss, of the Loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date. Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 issued
by the Government of India in terms of sub-section (11) of section 143
of the Companies Act, 2013, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
2. As required by section 143(3) of the Act, we report that :
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters to be included in the Auditor's
Report and to the best of our information and according to the
explanations given to us:
i. the company has disclosed the impact of pending litigations on its
financial position in its financial statements;
ii. the company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts; and
iii. there were no amounts which required to be transferred, to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITORS' REPORT OF EVEN DATE
(As required by Companies (Auditor's Report) Order, 2015 & referred to
in our report of even date)
1) (a) As per the information provided by the management, the Company
is maintaining proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) These fixed assets have been physically verified by the management
at reasonable intervals and no material discrepancies were noticed on
such verification.
2) (a) As per the information & explanations given to us, physical
verification of inventory has been conducted by the management at
reasonable intervals during the year.
(b) 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. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3) (a) According to the information and explanations provided to us,
the company has not granted any loans, secured or unsecured, to the
companies, firms and other parties covered in the register maintained
u/s 189 of the Companies Act, 2013.
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 nature of its business
with regard to purchase of inventory, fixed assets and for sale of
goods and services.
Further, on the basis of our examination of the books and records of
the Company and according to the information and explanations given to
us, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control systems.
5) The Company has not accepted any deposits from the public within the
meaning of Section 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed there under.
6) According to the information and explanation given to us, the
maintenance of cost records has not been prescribed by the Central
Government under section 148(1) of the Companies Act, 2013, in respect
of the activities carried on by the company.
7) According to the information and explanations given to us in respect
of the statutory dues:
a) We report that wherever applicable, the company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance, Income Tax,
Service Tax, Sales Tax, Customs Duty, Excise Duty, Value Added Tax,
Cess and any other statutory dues with the appropriate authorities
during the year.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March 2015 for a period of more than six months
from the date they became payable.
b) According to the information and explanations given to us and the
records of the company examined by us, no disputed statutory dues were
outstanding as at March 31, 2015.
c) According to the information and explanations given to us and the
records of the company examined by us, the company is not required to
transfer any amount to Investor Education and Protection Fund in
accordance with the relevant provisions of the act and the rules framed
there under.
8) The company reported is an entity, which has been registered for a
period not less than five years and the company has accumulated losses
at the end of the financial year which is more than fifty percent of
its net worth. The company has incurred cash loss during the financial
year and also in the immediately preceding financial year.
9) According to the records of the company examined by us and on the
basis of information and explanations given to us, the company has not
defaulted in repayment of dues to any financial institution or bank or
debenture holders as at the Balance Sheet date.
10) According to the information and explanations given to us and as
per our examination of relevant records, we are of the opinion that the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
11) According to the information and explanations given to us, no fresh
term loans have been availed by the company during the year.
12) Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud on or by
the company has been noticed / reported during the year.
For S.Murali Dharan & Co
Chartered Accountants
(Firm Regn. No. 009617S)
S.Murali Dharan
Place:Coimbatore Partner
Date :28.05.2015 (M. No. 026554)
Mar 31, 2013
We have audited the accompanying financial statements of Kakatiya
Textiles Limited, which comprise the Balance Sheet as at 31st March
2013, the Statement of Profit and Loss and Cash Flow Statement for the
year ended and a summary of significant accounting policies and other
explanatory information.
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. 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.
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.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at March 31, 2013;
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.
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, 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;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors are disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure to the Auditors'' Report
(As required by Companies (Auditors Report) Order, 2003 and referred to
in Paragraph 3 of our report of even date) On the basis of such checks
as we considered appropriate and according to the information and
explanation given to us during the course of our audit we report that:
1) (a) The Company is maintaining proper
records showing full particulars, including quantitative details and
situation of fixed assets.
(b) These fixed assets have been physically verified by the management
at reasonable intervals and no material discrepancies were noticed on
such verification.
(c) No substantial part of fixed assets has been disposed off during
the year and therefore it has not affected the going concern status of
the company.
2) (a) As explained to us, the inventories have been physically
verified during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of examination of the records, the
Company is generally maintaining proper records of its inventories and
the discrepancies noticed on verification between the physical stocks
and the book records were not material.
3) (a) According to the information and explanations given to us and on
the basis of the examination of the books of account, the Company has
not given any loans, secured or unsecured, to the companies, firms and
other parties covered in the register maintained under section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses (iii)
(b) to (d) of the order are not applicable.
(b) According to the information and explanations given to us and on
the basis of the examination of the books of account, the Company has
taken interest free unsecured loans from the companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956. (No. of Parties - 3 and the amount involved is Rs.
90 Lakhs)
(c) As per the information provided to us, the terms and conditions on
which the loan has been taken are prima facie not prejudicial to the
interest of the company.
(d) No repayment of Principal, against the loan borrowed, has been made
by the Company during the year.
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 nature of its business
with regard to purchase of inventory, fixed assets and for sale of
goods and services.
Further, on the basis of our examination of the books and records of
the Company and according to the information and explanations given to
us, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control systems.
5) (a) Based on the audit procedures applied
by us and according to the information provided by the management and
the documents verified by us, we are of the opinion that the
particulars of contracts or arrangements that need to be entered in the
register maintained under Section 301 of the Act have been so entered
for the year under audit.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 exceeding the value of rupees five lakhs in
respect of any party during the year, have been made at the prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
6) The Company has not accepted any deposits from the public within the
meaning of Section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under.
7) As per the information and explanations given by the management, the
company has an internal audit system which is commensurate with its
size and nature of business.
8) According to the information given and the documents produced before
us, the company has maintained the cost records as prescribed by the
Central Government under section 209(1)(d) of the Companies Act, 1956,
in respect of the activities carried on by the company.
9) According to the information and explanations given to us in respect
of the statutory dues, we report that wherever applicable, the company
is regular in depositing undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs
Duty, Excise Duty, Cess and any other statutory dues with the
appropriate authorities during the year.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March 2013 for a period of more than six months
from the date they become payable.
10) The company reported is an entity, which has been registered for a
period not less than five years and the accumulated losses of the
company at the end of the financial year are more than fifty percent of
its net worth. The company has not incurred cash losses during the
financial year under report, but in the immediately preceding financial
year.
11) According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company has not
defaulted in repayment of dues to any financial institution or bank or
debenture holders as at the Balance Sheet date.
12) Based on our examination and according to the information and
explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13) The Company is not a Chit Fund / Nidhi / Mutual Benefit Fund /
Society. Therefore, the provisions of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14) According to the information and explanations given to us, the
Company has not dealt in securities, debentures and other investments
during the year.
15) According to the information and explanations given to us and as
per our examination of relevant records, we are of the opinion that the
company has not given any guarantee for loans taken from banks.
16) Based on the audit procedures applied by us and the information
given by the management, we report that the company has not raised any
term loans during the year.
17) On the basis of our examination of the books of accounts and the
information and explanations given to us and on an overall examination
of Balance Sheet of the company as at 31st March 2013, we report that
no funds raised on short term basis that have been used for long term
investments and vice versa.
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 during the year under the
report and hence creation of securities in respect of debentures is not
applicable. The company has no outstanding debentures during the year
under audit.
20) The company has not raised any money through public issue during
the year and hence reporting on end use of money raised on public issue
does not arise.
21) Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud on or by
the company has been noticed / reported during the year.
For S MURALI DHARAN & CO
Chartered Accountants
(Firm Registration No.009617S)
S MURALIDHARAN
Coimbatore Partner
25th May, 2013 Membership No. 026554
Mar 31, 2012
We have audited the attached Balance Sheet of KAKATIYA TEXTILES LIMITED
as at 31st March 2012 and also the Profit and Loss Account and 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. We conducted our audit in
accordance with auditing standards generally accepted in India. Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
1. As required by the Companies (Auditors' Report) Order,2003, as
amended by the Companies (Auditor's Report) (Amendment) Order 2005,
issued by the Central Government of India in terms of Section 227(4A)
of the Companies Act,1956 and on the basis of such checks of the books
and records of the Company as we considered appropriate and according
to the information and explanations given to us during the course of
the audit, we enclose in the Annexure statement on the matters
specified in paragraphs 4 and 5 of the said order.
2. Further to our comments in the Annexure referred to above and
subject to the Notes on Accounts, 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 it appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from branches not visited by us.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our Opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with Accounting
Standards referred to in Sub-Section (3C) of Section 211 of the
Companies Act, 1956.
e) On the basis of written representations received from the Directors,
as on 31st March 2012 and taken on record by the Board of Directors, we
report that none of the Directors are disqualified as on 31st March
2012 from being appointed as a Director in terms of clause (g) of Sub-
Section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i. In the case of Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2012;
ii. In the case of the Profit and Loss Account, of the Loss for the
year ended on that date and
iii. In the case of Cash Flow Statement, of the Cash flows for the year
ended on that date.
Annexure to the Auditors' Report
(As required by Companies (Auditors Report) Order, 2003 and referred to
in Paragraph 3 of our report of even date)
1) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) These fixed assets have been physically verified by the management
at reasonable intervals and no material discrepancies were noticed on
such verification.
(c) No substantial part of fixed assets has been disposed off during
the year and therefore it has not affected the going concern status of
the Company.
2) (a) As per information & explanation given to us, the inventory has
been physically verified during the year by the management at
reasonable intervals.
(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) The Company is maintaining proper records of inventory and the
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3) (a) According to the information and explanations given to us, the
Company has not given any loans, secured or unsecured, to the
Companies, firms and other parties covered in the register maintained
u/s. 301 of the Companies Act, 1956. Accordingly, paragraphs 4(iii) (b)
to (d) of the order are not applicable.
(b) According to the information and explanations given to us, the
Company has taken interest free unsecured loans from the companies,
firms or other parties covered in the register maintained u/s.301 of
the Companies Act, 1956. (No. of Parties -1 and the amount involved is
Rs.90 Lakhs)
(c) As per the information provided to us, the terms and conditions on
which the loan has been taken are prima facie not prejudicial to the
interest of the Company.
(d) No repayment of Principal, against the loan borrowed, has been made
by the Company during the year.
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 nature of its business
with regard to purchase of inventory, fixed assets and for sale of
goods and services.
Further, on the basis of our examination of the books and records of
the Company and according to the information and explanations given to
us, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control systems.
5) (a) According to the information provided by the management and the
documents verified by us, we are of the opinion that the particulars of
contracts or arrangements that need to be entered in the register
maintained under Section 301 of the Act have been so entered for the
year under audit.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year, have been made at the prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
6) The Company has not accepted any deposits from the public within the
meaning of Section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under.
7) In our opinion, the Company has an internal audit system, which is
commensurate with its size and nature of business.
8) According to the information given and the documents produced before
us, the Company has maintained the cost records as prescribed by the
Central Government under Section 209(1 )(d) of the Companies Act, 1956,
in respect of the activities carried on by the Company.
9) According to the information and explanations given to us in respect
of the statutory dues, we report that wherever applicable, the Company
is regular in depositing undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs
Duty, Excise Duty, Cess and any other statutory dues with the
appropriate authorities during the year.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March 2012 for a period of more than six months
from the date they become payable.
10) The Company reported is an entity, which has been registered for a
period not less than five years and the accumulated losses of the
Company at the end of the financial year are more than fifty percent of
its networth. The Company has incurred cash losses during the financial
year under report.
11) According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company has not
defaulted in repayment of dues to any financial institution or bank or
debenture holders as at the Balance Sheet date.
12) Based on our examination and according to the information and
explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13) The Company is not a Chit/ Nidhi /Mutual Benefit Fund/ Society;
hence this clause will not be applicable to the Company.
14) According to the information and explanations given to us, the
Company has not dealt in securities, debentures and other investments
during the year.
15) According to the information and explanations given to us, and as
per our examination of , relevant records, we are of the opinion that
the Company has not given any guarantee for loans taken from banks.
16) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
17) On the basis of our examination of the books of accounts and the
information and explanations given to us and on an overall examination
of balance sheet of the Company, we report that no funds raised on
short term basis that have been used for long term investments and vice
versa.
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. Accordingly the provisions of clause 4 (xviii) of the
Companies (Audit Report) Order 2003 are not applicable to the Company.
19) The Company has not issued any debentures during the year under the
report and hence creation of securities in respect of debentures is not
applicable.
20) The Company has not raised any money through a public issue during
the year and hence reporting on end use of money raised on public issue
does not arise.
21) Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed / reported during the year.
For S MURALI DHARAN & CO
Chartered Accountants
Registration No.009617S
S MURALIDHARAN
Coimbatore Partner
24th May, 2012 Membership No. 026554
Mar 31, 2011
We have audited the attached Balance Sheet of your company as at 31st
March 2011 and the Profit and Loss Account and Cash Flow Statement of
the Company annexed thereto for the Twelve-month period ended on that
date. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we annex hereto a statement on the matters specified in
paragraph 4 and 5 of the said order.
2. Further to and subject to our comments in Annexure referred to in
paragraph 1 above, and subject to the notes on accounts, we report
that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account, as required by law have been
kept by the company so far as appears from our examination of those
books.
c) The Balance Sheet, Profit and Loss account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
d) In our opinion, the Profit and Loss Account, Balance Sheet and Cash
Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors,
as on 31st March 2011, and taken on record by the Board of Directors,
we report that none of the directors are 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.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required to give a
true and fair view in conformity with the accounting principles
generally accepted in India.
g) i. In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2011 and
ii. In the case of the Profit and Loss Account, of the profits of the
company as at 31st March 2011 year ended on that date.
iii. In the case of cash flow statement, of the cash flows for the year
ended as on that date
ANNEXURE TO THE AUDITORS REPORT
(As required by Companies (Auditors Report) Order, 2003 and referred to
in Paragraph 3 of our report of even date)
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As per information & explanation given to us, the assets have been
physically verified by the management during the year and there is a
regular program of verification which, in our opinion, is reasonable
having regard to the size of the company and the nature of its assets.
(c) During the year, the company has not disposed any major assets.
(ii) (a) The management has physically verified the inventories during
the year, at regular intervals which are reasonable to the size &
nature of the company.
(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) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii)(a) According to the information and explanations given to us, the
company has not granted any loans during the year, to companies, firms
or other parties as covered in the register maintained under section
301 of the Companies Act, 1956.
(b) The Company had taken loan from a party covered in the register
maintained under section 301 of the Companies Act, 1956.The maximum
amount involved during the year was Rs. 90.08 lakhs and the year end
balance of the loan taken from the party was Rs.90 lakhs and the terms
and conditions are not prejudicial to the interest of the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with 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.
(v) As per information & explanations given to us the company has
entered all the transactions with the parties to be entered in the
register maintained under section 301 of the Companies Act, 1956. In
our opinion and according to the information and explanations given to
us, each of these transactions have been made at prices, which are
reasonable having regard to the prevailing market prices at the
relevant time.
(vi) During the year under audit, The Company has not accepted deposits
from the public.
(vii) During the year, the company had internal audit system
commensurate with its size and nature of its business.
(viii) The company has made & maintains costing records prescribed
under section 209 (1) (d) of the Companies Act, 1956.
(ix) As per information & explanations given to us the company is
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, sales tax and other materia! statutory
dues applicable to it.
(x) In our opinion and as per information and explanations given to us
the company has accumulated loss in excess of fifty percent of its net
worth. The company has not incurred cash loss during the financial
year and also in the immediately preceding financial year.
(xi) 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 or debenture holders.
(xii) In our opinion and as per the information and explanations given
to us, the company has not granted any loans and advances on the basis
of securities by way of pledge of shares, debentures and other
securities.
(xiii) 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.
(xiv) 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.
(xv) According to information and explanations given to us, the company
has not given any guarantee for loans taken by others from banks or
financial institutions.
(xvi) In our opinion and as per the information and explanations
provided to us, the term loans have been applied for the purpose for
which they were raised.
(xvii) 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.
(xviii) During the year 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.
(xix) During the year the company has not issued any debentures.
(xx) The company has not raised any money by public issue during the
year.
(xxi) In our opinion, and 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 S.MURALI DHARAN & CO
Chartered Accountants
Registration No.009617S
S. MURALI DHARAN
Coimbatore Partner
28th May, 2011 Membership No.026554
Mar 31, 2010
We have audited the attached Balance Sheet of your company as at 31st
March 2010 and the Profit and Loss Account and Cash Flow Statement of
the Company annexed thereto for the Twelve-month period ended on that
date. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform
the audit to obtain reasonable assur- ance 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 state- ment
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we annex hereto a statement on the matters specified in
paragraph 4 and 5 of the said order.
2. Further to and subject to our comments in Annexure referred to in
paragraph 1 above, and subject to the notes on accounts, we report
that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account, as required by law have been
kept by the company so far as appears from our examination of those
books.
c) The Balance Sheet, Profit and Loss account and cash flow statement
dealt with by this report are in agreement with the books of accounts.
d) In our opinion the Profit and Loss Account, Balance Sheet and Cash
Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors,
as on 31st March 2010, and taken on record by the Board of Directors,
we report that none of the directors are 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.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required give a
true and fair view in conformity with the accounting principles
generally accepted in India.
g) i. In the case of the Balance Sheet, of the state of affairs of
the company as at 31st March, 2010 and
ii. In the case of the Profit and Loss Account, of the profit of the
company as at 31st March 2010 year ended on that date.
iii. In the case of cash flow statement, of the cash flows for the year
ended as on that date.
Annexure to the Auditors Report
(As required by Companies (Auditors Report) Order, 2003 and referred to
in Paragraph 3 of our report of even date)
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets. However, additional details such as cost, year of purchase
etc., have to be recorded to ensure maintenance of proper records with
full particulars of the assets.
(b) As per information & explanation given to us, the assets have been
physically verified by the management during the year and there is a
regular programme of verification which, in our opinion, is reasonable
having regard to the size of the company and the nature of its assets.
(c) During the year, the company has not disposed any major assets.
(ii) (a) The management has physically verified the inventories during
the year, at regular intervals which are reasonable to size & nature of
the company.
(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) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) According to the information and explanations given to us, the
company had not granted or taken any loans, secured or unsecured, from
companies, firms or other parties as covered in the register maintained
under section 301 of the Companies Act, 1956 and hence the provisions
of clause (iii)(e), clause (iii)(f) and clause (iii)(g) of the said
Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with 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.
(v) As per information & explanation given to us the company has
entered all the transactions with the parties to be entered under 301
register. In our opinion and according to the information and
explanations given to us, each of these transactions have been made at
prices, which are reasonable having regard to the prevailing market
prices at the relevant time.
(vi) During the year under audit, the Company has not accepted deposits
from the public.
(vii) During the year, the company had internal audit system
commensurate with its size and nature of its business.
(viii) The company has made & maintains costing records prescribed
under section 209 (1) (d) of the Companies Act, 1956.
(ix) As per information & explanation given to us the company is
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, sales tax, and other material statutory
dues applicable to it.
(x) In our opinion and as per information & explanation given to us the
company
has accumulated loss in excess of fifty percent of its net worth. The
company has not incurred cash loss during the financial year and in
immediately preceding financial year.
(xi) 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 or debenture
holders.
(xii) In our opinion and as per the information and explanations given
to us, the company has not granted any loans and advances on the basis
of securities by way of pledge of shares, debentures and other
securities.
(xiii) 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.
(xiv) 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.
(xv) According to information and explanations given to us, the company
has not given any guarantee for loans taken by others from banks or
financial institutions.
(xvi) In our opinion and as per the information and explanations
provided to us, the term loans have been applied for the purpose for
which they were raised.
(xvii) 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.
(xvfii) During the year 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.
(xix) During the year the company has not issued any debentures.
(xx) The company has not raised any money by public issue during the
year.
(xxi) In our opinion, and 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 S MURALI DHARAN & CO
Chartered Accountants
Registration No.009617S
S Murali Dharan
Partner
Membership No. 026554
Coimbatore
21st May, 2010
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