Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS Financial Statements of M/s. LOYAL TEXTILE MILLS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2018, the statement of Profi t and Loss (including other comprehensive income), the statement of cash f ows and the statement of changes in equity for the year then ended and a summary of Signifi cant Accounting Policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these Standalone Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS Financial Statements based on our audit.
We have taken into account the provisions of the Act, the Accounting and Auditing Standards and matters which are required to be included in the audit report under the provisions of the Act, the order and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specifi ed 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Ind AS, of the state of affairs of the Company as at 31stMarch 2018, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the Balance Sheet, the Statement of Profi t and Loss, the Statement of Cash fl ows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with relevant rule issued thereunder;
(e) on the basis of the written representations received from the Directors as on 31stMarch 2018 and taken on record by the Board of Directors, none of the Directors is disqualified as on 31stMarch 2018 from being appointed as a Director in terms of Section 164(2) of the Act; and
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ.
(g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No. 32 to the financial statements;
(ii) the Company did not have any long-term contracts, including derivative contracts; and
(iii) there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the Annexure B, a statement on the matters specified in the paragraph 3 and 4 of the order, to the extent applicable.
Report on the Internal Financial Controls under Clause (i) of Sub-section (3) of Section 143 of the Companies Act, 2013 ("the Actâ)
We have audited the internal financial controls over financial reporting of Loyal Textile Mills Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Standalone Ind AS Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the Auditorâs judgement, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that:
(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and Directors of the company; and
(iii) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
The Annexure referred to in Paragraph 2under the headingâReport on Other Legal and Regulatory Requirementsâ of our Report on the standalone Ind AS financial statements of even date, we report that:
(i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
b) The Company has a programme of periodic physical verifi cation of fixed assets at all locations by which during the year, the Company has verified fixed assets at selected locations in a phased manner and we were informed that no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and based on the, the title deeds of immovable properties, as disclosed in Note No. 6.2 to the Standalone Ind AS Financial Statements, are held in the name of the Company, except for the following:
Particulars |
Free hold (Rs. in Lakhs) |
Lease hold (Rs. in Lakhs) |
Remarks |
Gross Block as |
Nil |
161.90 |
SIPCOT |
at 31st March |
Lease |
||
2018 |
hold Land |
(ii) As explained to us, the inventories at all locations have been physically verified by the Management at regular intervals during the year.The discrepancies noticed on physical verification of stocks, as compared to book records were not material and the same have been properly dealt with in the books of account.
(iii) In our opinion and according to the information and explanations given to us, the Company has not granted any loan, secured or unsecured to the companies, fi rms, limited liability partnership or other parties listed in the register maintained under section 189 of the Companies Act, 2013.
(iv) The Company has not granted any loan or provided any guarantee or security to the parties covered under Sections 185 and 186 of the Act. In respect of investment in securities, the company has complied with the provisions of section 186 of the Act.
(v) The Company has not accepted any deposits from the public during the year as per the provisions of section 73 and 76 of the Companies Act 2013. The company has accepted/taken interest free inter corporate deposit from a company.
(vi) We have broadly reviewed the cost records maintained by the company, as prescribed by the Central Government under Sub-section (1) of Section 148 of the Companies Act, 2013 and are of the opinion that, prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us,the Company has been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other Statutory Dues to the appropriate authorities. In respect of undisputed Statutory dues payable in respect of above which are outstanding as at 31st March 2018 for a period of more than six months from the date they became payable is given below:
Nature of dues |
Amount (Rs. In Lakhs) |
Advance Licensing |
175.90 |
(b) According to the information and explanations given to us, there are no dues of income tax, service tax, duty of customs, duty of excise, value added tax which have not been deposited on account of any dispute. In respect of sales tax which are pending payment on account of dispute, the information of which is given below :
Name of the Statute |
Amount (Rs. in lakhs) |
Period to which the dues belong |
Forum where the dispute is pending |
Sales Tax |
243.54 |
Asst Year 2002-03, 2003-04, 2005-06, 2007-08, 2008-09, 2009-10 |
Addl. Dy. Commissioner/ Sales Tax Appellate Tribunal |
VAT |
770.10 |
Asst year 200708, 2008-09, 2009-10, 2010-11, 2011-12, 2012-13 |
Addl. Dy Commissioner / Joint Commissioner, Madurai Bench of Madras High Court |
Central Excise |
96.75 |
2008-09 |
Madurai Bench of Madras High Court |
Service Tax |
112.90 |
2008-09, 2010-11, 2011-12 |
Service Tax Appellate Tribunal |
(viii) According to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions or banks or Government. The company has not issued any debenture.
(ix) The Company did not raise any moneys by way of initial public offer or further public offer (including debt instruments) during the year. The term loans taken during the year are applied for the purposes for which the term loans were obtained.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its Officers or employees or reported during the year.
(xi) According to the information and explanations given to us and based on our examination of the records of the company, the company has paid or provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197, read with Schedule V to the Companies Act.
(xii) The Company not being a Nidhi Company the requirements of paragraph 3(xii) of the order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, the transactions with the related parties are in compliance with Sections 177 and 188 of Companies Act, 2013, where applicable and the details of such transactions have been disclosed in the Financial Statements as required by the applicable Accounting Standards.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the company has not entered into any noncash transactions with Directors or persons connected with him.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For Ganesh Prasad,
Chartered Accountants
Firm Registration No. 000872S
S. Natanagopal
Place: Chennai Partner
Date: 25.05.2018 Membership No. 022841
Mar 31, 2015
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of
LOYAL TEXTILE MILLS LIMITED, KOVILPATTI, which comprise the Balance
Sheet as at 31st March, 2015, the Profit and Loss Statement and Cash
Flow Statement for the year then ended and a summary of significant
accounting policies and other explanatory informationÂs.
Management's Responsibility for the Standalone Financial Statements
2. The company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
3. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgements 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
4. Our responsibility is to express an opinion on these Standalone
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, the order 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.
5. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgement, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the company's preparation of the Financial Statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing
an opinion on whether the company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the company's Directors, as well as
evaluating the overall presentation of the financial statements.
6. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
Standalone Financial Statements.
Opinion
7. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid Standalone Financial
Statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the company as at 31st March 2015 and its profit and its
cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to following matters in the Notes Accompanying
Financial Statements:
a) Note No. 9 to the Financial Statements regarding the carrying amount
of the assets whose useful life is lapsed is adjusted in the opening
balance of retained earnings.
b) Note No.39 to the Financial Statements regarding the letter received
from BSE requiring the company to restate the financial statements of
year ended 31-3-2013 giving effect to the qualification in our Audit
Report for the year then ended.
c) Note No. 23 to the Financial Statements regarding the payment of
remuneration to the Whole Time Director from 11th February 2015 of a
sum of Rs. 1.84 Lakhs is subject to approval of the Members at the
Annual General Meeting.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section 11 of section 143 of the Act, we give in the annexure a
statement on the matters specified in paragraph 3 and 4 of the Order,
to the extent applicable.
9. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
(b) In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books;
(c) The Balance Sheet, Profit and Loss Statement and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the aforesaid Standalone 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 the written representation received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The company does not have any pending litigations which would impact
its financial position.
ii. The company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses OR the company in its Financial Statements,
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
company.
(i) a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) According to the information and explanations given to us, the fixed
assets at all locations have been physically verified by the management
during the year at reasonable intervals and no material discrepancies
were noticed on such verification.
(ii) a) As explained to us, the inventories have been physically
verified by the management at regular intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) The company has maintained proper records of inventory. As explained
to us, the discrepancies noticed on physical verification of stocks, as
compared to book records were not material and the same have been
properly dealt with in the books of account.
(iii) In our opinion and according to the information and explanations
given to us, the company has not granted any loan, secured or unsecured
to the companies, firms or other parties listed in the register
maintained under Section 189 of the Companies Act, 2013.
(iv) According to the information and explanations given to us, there
are adequate internal control system commensurate with the size of the
company and the nature of its business, for the purchase of inventory
and fixed assets and for the sale of goods and services. According to
the information and explanations given to us, there is no major
weakness in internal control system which requires correction.
(v) The company has not accepted any deposit from public during the
year. The company has repaid all the outstanding deposits before the
year end. As per information furnished, the company has not received
any order from Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any court or any other Tribunal.
(vi) We have broadly reviewed the cost records maintained by the
company, as prescribed by the Central Government under sub section (1)
of section 148 of the Companies Act, 2013 and are of the opinion that,
prima facie the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
(vii) a) According to the information and explanations given to us, the
company has been regular in depositing, undisputed statutory dues
including provident fund, employees' state insurance, income-tax,
sales-tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues with the appropriate
authorities. In respect of undisputed statutory dues payable in respect
of above which are outstanding as at 31st March 2015 for a period of
more than six months from the dates they became payable is given below:
Nature of Dues Amount (Rs. in lakhs)
Advance Licensing 165
b) According to the information and explanations furnished to us, there
are no dues of income tax, sales tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax or Cess which have not been
deposited on account of any dispute. In respect of income tax and sales
tax which are pending payment on account of dispute, the information of
which is given below :
Name Unpaid Period to Forum where
of the Disputed which the dispute is pending
Statute/ Liability amount
Dues (Rs.) relates
Income 10,88,64,000 A.Y 2010-11 Commissioner
Tax
34,12,600 A.Y 2011-12 of Income Tax (Appeals)
83,74,000 A.Y 2012-13 Assessing Officer
9,50,000 A.Y 2013-14 Assessing Officer
Sales Tax A.Y 2002-03,
2003-04,
2005-06, Additional Deputy
46,66,083 2007-08, Commissioner of
2010-11, Sales Tax
2013-14,
2014-15
c) According to the information and explanations furnished to us, the
amount required to be transferred to investor education and protection
fund in accordance with the relevant provisions of the Companies Act,
1956 (1 of 1956) and rules made there under has been transferred to
such fund within time.
(viii) The company has neither any accumulated losses nor has incurred
any cash losses in the financial year or in the immediately preceding
financial year.
(ix) According to the information and explanations given to us the
company has not defaulted in repayment of dues to financial
institutions or banks. The company has not issued any debenture.
(x) As per the information and explanations given to us, the company
has not given any guarantee for loans taken by others from any bank or
financial institutions. Hence, reporting on terms and conditions of any
such guarantee does not arise.
(xi) As per information and explanations given to us, term loans were
applied for the purpose for which loans were obtained.
(xii) According to the information and explanations given to us, a
fraud on or by the company has not been noticed or reported during the
year.
For Suri & Co.
Chartered Accountants
Firm Regn. No. 004283S
R.Krishnamoorthy
Place: Chennai Partner
Date : 28th May 2015 M.No.20695
Mar 31, 2014
We have audited the accompanying financial statements of LOYAL TEXTILE
MILLS LIMITED, KOVILPATTI which comprise the Balance Sheet as at 31st
March, 2014, and the Profit and Loss Statement and the cash flow
statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management,s Resposibility 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 statement 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 procedure to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor,s judgement, 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 purposes of expressing an opinion on the
effectiveness of the entity,s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
resonableness 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.
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:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014.
ii) In the case of the profit and Loss Account, of the PROFIT 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.
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, Profit and Loss Statement 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 Statement and
Cash Flow Statement comply with the Accounting Standards notified under
Companies Act, 1956 read with the general circular 15/2013 dated 13th
September,2013 of the Ministry of Company 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'' we report that 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;
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 Act
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 INDEPENDENT AUDITOR,S REPORT
The Annexure referred to in our report to the members of Loyal Textile
Mills Limited ("the Company") for the year ended 31st March, 2014 we
further report that:
1. a. The Company has maintained proper records to show full
particulars including quantitative details and situation of Fixed
Assets.
b. According to the information and explanations given to us, the
fixed assets of all locations have been physically verified by the
management during the year at reasonable intervals and no material
discrepancies were noticed on such verification.
c. No substantial part of fixed assets have been disposed off during
the year.
2. a. As explained to us, the inventories have been physically
verified by the management at regular intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The company has maintained proper records of inventory. As
explained to us, the discrepancies noticed on physical verification of
stocks, as compared to book records were not material and the same have
been properly dealt with in the books of accounts.
3. a. In our opinion and according to the information and explanations
given to us, the Company has not granted any loan, secured or unsecured
to the companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956.
b. In our opinion and according to the information and explanations
given to us, the Company has not taken loans, secured or unsecured from
companies, firms and other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
4. Accounting 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 for the purchase of
inventory, fixed assets and for the sale of goods and services. In our
opinion and according to the information and explanations given to us,
there is no major weakness in internal control which requires
correction.
5. a. The particulars of contracts or arrangements referred to in
section 301 of the Act have been entered in the register required to be
maintained in pursuance of section 301 of the Act.
b. As explained to us there have been transactions made in pursuance
of such contracts or arrangements in respect of each such party entered
in the register maintained under Section 301 of the Companies Act, 1956
during the year and the same have been made at prices which are
reasonable having regard to the prevailing market prices.
6. In our opinion, and according to the information and explanations
given to us, the Company has complied with directives of Reserve Bank
of India and the provisions of Sections 58A and 58 AA of the Companies
Act, 1956 and the rules framed there under or any other relevant
provisions of the Act with regard to the deposits accepted from the
public. As per information furnished, the company has not received any
order from the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal.
7. In our opinion, the Company has an internal audit system which is
commensurate with the size of the company and the nature of its
business.
8. We have broadly reviewed the cost records maintained by the company
in respect of products where pursuant to the Rules made by the Central
Government, the maintenance of cost records under Section 209(1)(d) of
the Companies Act, 1956 and are of the opinion that, prima facie the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. a) According to the information and explanations given to us, the
company has been regular in depositing undisputed statutory dues
including Provident Fund, Employee''s State Insurance, Income-tax,
Sales-tax, Customs Duty, Wealth Tax, Service Tax, Excise Duty, Cess and
other material statutory dues with the appropriate authorities during
the year.
b) According to the information and explanations given to us, there are
no undisputed statutory dues payable in respect of above which are
outstanding as at 31st March 2014 for a period of more than six months
from the dates they became payable.
c) According to the information and explanations furnished to us there
are no dues of Custom Duty, Wealth Tax, Service Tax, Excise Duty and
Cess which have not been deposited with appropriate authorities on
account of any dispute. In respect of income tax and sales tax which
are pending payment on account of dispute, the information of which is
given below :
10. The company has neither any accumulated losses nor has incurred
any cash losses in the financial year or in the immediately preceding
financial year.
11. According to the information and explanations given to us the
company has not defaulted in repayment of dues to financial
institutions or banks. The Company has no outstanding debentures.
12. The company has not granted any loans / advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The company not being a Chit fund, Nidhi or Mutual Benefit
Society, the requirements of item (xiii) of paragraph 4 of the Order is
not applicable to the company.
14. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments. In respect of shares held as investments, the same
are held in the name of 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 a
bank or financial institution.
16. As per information and explanations given to us, term loans were
applied for the purpose of which loans were obtained.
17. According to the information and explanations given to us, no fund
raised on short-term basis has been used for long-term investment.
18. The company has not made any allotment of shares during the year.
19. The company has not issued debentures. Hence the requirements of
clause (xix) of paragraph 4 of the Order regarding creation of
securities for debentures issued are not applicable to the company.
20. The Company has not raised any amount by public issues.
21. According to the information and explanations given to us, a fraud
on or by the Company has not been noticed or reported during the year.
ANNEXURE TO REPORT OF THE AUDITORS FOR THE YEAR ENDED 31st MARCH 2014
STATEMENT OF UNPAID DISPUTED DUES
Unpaid Disputed
Name of Liabiility Period to which the
Statue / Dues (Rs.) amount relates
37,45,000 2004 - 05
Income Tax 10,86,00,000 2010 - 11
34,12,600 2011 - 12
Sales Tax - CST 2,02,04,493 2002 - 03, 2003 - 04
2005 - 06,
2007 - 08, 2010 - 11,
2013 - 14
Name of Forum where dispute
Statue / Dues is pending
Commissioner of Income Tax (Appeals)
Income Tax Commissioner of Income Tax (Appeals)
Before Assistant Commissioner Tuticorin.
Sales Tax - CST Additional Deputy Commissioner of
Sales Tax
FOR SURI & CO.
CHARTERED ACCOUNTANTS
Firm Regn No:. 004283S
(R.KRISHNAMOORTHY)
PARTNER
M. No: 20695
Place : Chennai
Date :23rd May, 2014.
Mar 31, 2013
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of LOYAL TEXTILE
MILLS LIMITED, KOVILPATTI which comprise the Balance Sheet as at 31st
March, 2013, and the Profit and Loss Statement and the cash flow
statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Resposibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the Accounting Standards referred to in subsection (3C) of section 211
of the Companies Act, 1956 (" the Act,"). This resposibility 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 obtion
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedure to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, 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 pollicies used
and the resonableness 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.
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 subject to the
revision in the rate of charging depreciation on the windmills, as
referred to in Note no. 29 to this Financial Statements, the profit for
the year/related assets/reserves of the Company stand increased by Rs.
8.65 Crores give a true and fair view in conformity with the accounting
principles generally accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013.
ii) In the case of the profit and Loss Account, of the PROFIT 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. 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, Profit and Loss Statement 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 Statement and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Act;
e. On the basis of written representations received from the
Directors, as on 31st March, 2013, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2013 from being appointed as a director in terms of clause
(g) of sub - section(1) of section 274 of the Act;
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 Act
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 INDEPENDENT AUDITOR''S REPORT
The Annexure referred to in our report to the members of Loyal Textile
Mills Limited ("the Company") for the year ended 31st March, 2013 we
further report that:
1. a. The Company has maintained proper records to show full
particulars including quantitative details and situation of Fixed
Assets.
b. According to the information and explanations given to us, the
fixed assets have been physically verified by the management during the
year at reasonable intervals and no material discrepancies were noticed
on such verification.
c. No substantial part of fixed assets have been disposed off during
the year.
2. a. As explained to us, the inventories have been physically
verified by the management at regular intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The company has maintained proper records of inventory. As
explained to us, the discrepancies noticed on physical verification of
stocks, as compared to book records were not material and the same have
been properly dealt with in the books of accounts.
3. a. In our opinion and according to the information and explanations
given to us, the Company has not granted any loan, secured or unsecured
to the companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956.
b. In our opinion and according to the information and explanations
given to us, the Company has not taken loans, secured or unsecured from
companies, firms and other parties 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 for the purchase of inventory, fixed assets and for the sale
of goods and services. In our opinion and according to the information
and explanations given to us, there is no major weakness in internal
control which requires correction.
5. a. The particulars of contracts or arrangements referred to in
section 301 of the Act have been entered in the register required to be
maintained in pursuance of section 301 of the Act.
b. As explained to us there have been transactions made in pursuance
of such contracts or arrangements in respect of each such party entered
in the register maintained under Section 301 of the Companies Act, 1956
during the year and the same have been made at prices which are
reasonable having regard to the prevailing market prices.
6. In our opinion, and according to the information and explanations
given to us, the Company has complied with directives of Reserve Bank
of India and the provisions of Sections 58A and 58 AA of the Companies
Act, 1956 and the rules framed there under or any other relevant
provisions of the Act with regard to the deposits accepted from the
public. As per information furnished, the company has not received any
order from the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal.
7. In our opinion, the Company has an internal audit system which is
commensurate with the size of the company and the nature of its
business.
8. We have broadly reviewed the cost records maintained by the company
in respect of products where pursuant to the Rules made by the Central
Government, the maintenance of cost records under Section 209(1)(d) of
the Companies Act, 1956 and are of the opinion that, prima facie the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. a) According to the information and explanations given to us, the
company has been regular in depositing undisputed statutory dues
including Provident Fund, Employee''s State Insurance, Income-tax,
Sales-tax, Customs Duty, Wealth Tax, Service Tax, Excise Duty, Cess and
other material statutory dues with the appropriate authorities during
the year.
b) According to the information and explanations given to us, there are
no undisputed statutory dues payable in respect of above which are
outstanding as at 31-3-2013 for a period of more than six months from
the dates they became payable.
c) According to the information and explanations furnished to us there
are no dues of Custom Duty, Wealth Tax, Service Tax, Excise Duty and
Cess which have not been deposited with appropriate authorities on
account of any dispute. In respect of income tax and sales tax which
are pending payment on account of dispute, the information of which is
given below :
10. The company has neither any accumulated losses nor has incurred
any cash losses in the financial year or in the immediately preceding
financial year.
11. According to the information and explanations given to us the
company has not defaulted in repayment of dues to financial
institutions or banks. The Company has no outstanding debentures.
12. The company has not granted any loans / advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The company not being a Chit fund, Nidhi or Mutual Benefit
Society, the requirements of item (xiii) of paragraph 4 of the Order is
not applicable to the company.
14. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments. In respect of shares held as investments, the same
are held in the name of 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 a
bank or financial institution.
16. As per information and explanations given to us, term loans were
applied for the purpose of which loans were obtained.
17. According to the information and explanations given to us, no fund
raised on short-term basis has been used for long-term investment.
18. The company has not made any allotment of shares during the year.
19. The company has not issued debentures. Hence the requirements of
clause (xix) of paragraph 4 of the Order regarding creation of
securities for debentures issued are not applicable to the company.
20. The Company has not raised any amount by public issues.
21. According to the information and explanations given to us, a fraud
on or by the Company has not been noticed or reported during the year.
ANNEXURE TO REPORT OF THE AUDITORS FOR THE YEAR ENDED 31st MARCH 2013
STATEMENT OF UNPAID DISPUTED DUES
Unpaid
Disputed
Name of Period to
which the Forum where dispute
Liabiility
Statute/Dues amount relates is pending
(Rs. in ''000s)
Income Tax 1124 2004 - 05 Commissioner of Income Tax
(Appeals)
Sales Tax
- CST 6,06 2002 - 03 Appellate Assistant
Commissioner of Sales Tax
Service Tax
- 8,30 2009 - 10 High Court - Madurai Bench
FOR SURI & CO.
CHARTERED ACCOUNTANTS
Firm Regn No:. 004283S
(R.KRISHNAMOORTHY)
PARTNER
M. No: 20695
Place : Chennai
Date : 24th May, 2013.
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. Loyal Textile
Mills Limited, Kovilpatti as at 31st March, 2012 and also the Profit
and Loss Account for the year ended on that date annexed thereto and
the cash flow statement for the year ended on that date.
2. 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.
3. 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.
4. 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.
5. 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.
6. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
7. 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.
8. 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 is 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.
9. In our opinion and to the best of our information and according to
the explanations given to us, they 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 the 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.
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, and on the basis of such checks as we
considered appropriate, we further state that:
10.a) The Company has maintained proper records to show full
particulars including quantitative details and situation of Fixed
Assets.
b) According to the information and explanations given to us, the fixed
assets have been physically verified by the management during the year
at reasonable intervals and no material discrepancies were noticed on
such verification.
c) No substantial part of fixed assets have been disposed off during
the year.
11.a) As explained to us, the inventories have been physically verified
by the management at regular intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The company has maintained proper records of inventory. As
explained to us, the discrepancies noticed on physical verification of
stocks, as compared to book records were not material and the same have
been properly dealt with in the books of accounts.
12.a) In our opinion and according to the information and explanations
given to us, the Company has not granted any loan, secured or unsecured
to the companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956.
b) In our opinion and according to the information and explanations
given to us, the Company has not taken loans, secured or unsecured from
companies, firms and other parties covered in the register maintained
under section 301 of the Companies Act, 1956
13. 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 for the purchase of inventory, fixed assets and for the sale
of goods and services. In our opinion and according to the information
and explanations given to us, there is no major weakness in internal
control which requires correction.
14.a) The particulars of contracts or arrangements referred to in
section 301 of the Act have been entered in the register required to be
maintained in pursuance of section 301 of the Act.
b) As explained to us there have been transactions made in pursuance of
such contracts or arrangements in respect of each such party entered in
the register maintained under Section 301 of the Companies Act, 1956
during the year and the same have been made at prices which are
reasonable having regard to the prevailing market prices.
15. In our opinion and according to the information and explanations
given to us, the Company has complied with directives of Reserve Bank
of India and the provisions of Sections 58A and 58 AA of the Companies
Act, 1956 and the rules framed there under or any other relevant
provisions of the Act with regard to the deposits accepted from the
public. As per information furnished, the company has not received any
order from the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal.
16. In our opinion, the Company has an Internal Audit system which is
commensurate with the size of the company and the nature of its
business.
17. We have broadly reviewed the cost records maintained by the
company in respect of products where pursuant to the Rules made by the
Central Government, the maintenance of cost records under Section
209(1)(d) of the Companies Act, 1956 and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. We have however, not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
18.a) According to the information and explanations given to us, the
company has been regular in depositing undisputed statutory dues
including Provident Fund, Employee's State Insurance, Income-tax,
Sales-tax, Customs Duty, Wealth Tax, Service Tax, Excise Duty, Cess and
any other material statutory dues with the appropriate authorities
during the year.
b) According to the information and explanations given to us, there are
no undisputed statutory dues payable in respect of above which are
outstanding as at 31-3-2012 for a period of more than six months from
the dates they became payable.
c) According to the information and explanations furnished to us there
are no dues of Custom Duty, Wealth Tax, Service Tax, Excise Duty and
Cess which have not been deposited with appropriate authorities on
account of any dispute. In respect of income tax and sales tax which
are pending payment on account of dispute, the information of which is
given below :
19. The company has neither any accumulated losses nor has incurred
any cash losses in the financial year or in the immediately preceding
financial year.
20. According to the information and explanations given to us the
company has not defaulted in repayment of dues to financial
institutions or banks. The Company has no outstanding debentures.
21. The company has not granted any loans / advances on the basis of
security by way of pledge of shares, debentures and other securities.
22. The company not being a Chit fund, Nidhi or mutual benefit
Society, the requirements of item (xiii) of paragraph 4 of the Order is
not applicable to the company.
23. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments. In respect of shares held as investments, the same
are held in the name of the Company.
24. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others, from a
bank or financial institution.
25. As per information and explanations given to us, term loans were
applied for the purpose of which loans were obtained.
26. According to the information and explanations given to us, no fund
raised on short-term basis has been used for long- term investment,
27. The company has not made any allotment of shares during the year
except for the shares allotted to the shareholders of amalgamated
Company as per the order High Court of Madras.
28. The company has not issued debentures. Hence the requirements of
clause (xix) of paragraph 4 of the Order regarding creation of
securities for debentures issued are not applicable to the company.
29. The Company has not raised any amount by public issues.
30. According to the information and explanations given to us, a fraud
on or by the Company has not been noticed or reported during the year.
ANNEXURE TO REPORT OF THE AUDITORS FOR THE YEAR ENDED 31st MARCH 2012
STATEMENT OF UNPAID DISPUTED DUES
Unpaid Disputed
Name Forum where dispute
Liability Period
Statute / Dues (Rs. in '000s) is pending
Sales Tax - TNGST 8,09 2002 - 2003 Appellate Assistant
Commissioner of
Sales Tax
Sales Tax - 6,06 2002 - 2003 Appellate Assistant
CST 20,37 2003 - 2004 Commissioner of
Sales Tax
Service Tax 8,54 2009 - 2010 High Court
Madurai Bench
19,26 2009 - 2010
9,71 2010 - 2011
5,57 2011 - 2012 Tribunal
77 2010 - 2011
67,10 2011 - 2012 Commissioner Appeals
Total 145,47
FOR SURI & CO.,
CHARTERED ACCOUNTANTS
Firm Regn. No.: 004283S
(R.KRISHNAMOORTHY)
Place : CHENNAI PARTNER
Date : 11th May 2012 M.No. 20695
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s. Loyal Textile
Mills Limited, Kovilpatti as at 31st March, 2010 and also the Profit
and Loss Account for the year ended on that date annexed thereto and
the cash flow statement for the year ended on that date.
2. 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.
3. 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.
4. 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.
5. 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.
6. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
7. 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.
8. 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.
9. As per information furnished, pending notification from the Central
Government, the company is not required to pay any cess under Section
441A of the Companies Act 1956, as on the date of Balance Sheet.
10. 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 the Balance Sheet, of
the state of affairs of the Company as at 31st March, 2010. ii) In the
case of the profit and Loss Account, of the PROFIT 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. 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, and on the basis of such checks as we considered appropriate, we
further state that:
11.a) The Company has maintained proper records to show full
particulars including quantitative details and situation of Fixed
Assets.
b) According to the information and explanations given to us, the fixed
assets have been physically verified by the management during the year
at reasonable intervals and no material discrepancies were noticed on
such verification.
c) No substantial part of fixed assets have been disposed off during
the year.
12.a) As explained to us, the inventories except for the inventory in
transit, have been physically verified by the management at regular
intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The company has maintained proper records of inventory. As
explained to us, the discrepancies noticed on physical verification of
stocks, as compared to book records were not material and the same have
been properly dealt with in the books of accounts.
13.a) In our opinion and according to the information and explanations
given to us, the Company has not granted any loan, secured or unsecured
to the companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956.
b) In our opinion and according to the information and explanations
given to us, the Company has not taken loans, secured or unsecured from
companies, firms and other parties covered in the register maintained
under section 301 of the Companies Act, 1956
14. 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 for the purchase of inventory, fixed assets and for the sale
of goods and services. In our opinion and according to the information
and explanations given to us, there is no major weakness in internal
control which requires correction.
15.a) The particulars of contracts or arrangements referred to in
section 301 of the Act have been entered in the register required to be
maintained in pursuance of section 301 of the Act.
b) As explained to us there have been transactions made in pursuance of
such contracts or arrangements in respect of each such party entered in
the register maintained under Section 301 of the Companies Act, 1956
during the year and the same have been made at prices which are
reasonable having regard to the prevailing market prices.
16. In our opinion and according to the information and explanations
given to us, the Company has complied with directives of Reserve Bank
of India and the provisions of Sections 58A and 58 AA of the Companies
Act, 1956 and the rules framed thereunder or any other relevant
provisions of the Act with regard to the deposits accepted from the
public.
As per information furnished, the company has not received any order
from the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal.
17. In our opinion, the Company has an Internal Audit system which is
commensurate with the size of the company and the nature of its
business.
18. We have broadly reviewed the cost records maintained by the
company in respect of products where pursuant to the Rules made by the
Central Government, the maintenance of cost records under Section
209(1)(d) of the Companies Act, 1956 and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. We have however, not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
19.a) According to the information and explanations given to us, the
company has been regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income-tax,
Sales-tax, Customs Duty, Wealth Tax, Service Tax, Excise Duty, Cess and
any other material statutory dues with the appropriate authorities
during the year.
b) According to the information and explanations given to us, there are
no undisputed statutory dues payable in respect of above which are
outstanding as at 31-3-2010 for a period of more than six months from
the dates they became payable.
c) According to the information and explanations furnished to us there
are no dues of Custom Duty, Wealth Tax, Service Tax, Excise Duty and
Cess which have not been deposited with appropriate authorities on
account of any dispute. In respect of income tax and sales tax which
are pending payment on account of dispute, the information of which is
given below :
20. The company has neither any accumulated losses nor has incurred
any cash losses in the financial year or in the immediately preceeding
financial year.
21. According to the information and explanations given to us the
company has not defaulted in repayment of dues to financial
institutions or banks. The Company has no outstanding debentures.
22. The company has not granted any loans / advances on the basis of
security by way of pledge of shares, debentures and other securities.
23. The company not being a Chit fund, Nidhi or mutual benefit
Society, the requirements of item (xiii) of paragraph 4 of the Order is
not applicable to the company.
24. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments. In respect of shares held as investments, the same
are held in the name of the Company.
25. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others, from a
bank or financial institution.
26. As per information and explanations given to us, term loans were
applied for the purpose of which loans were obtained.
27. According to the information and explanations given to us, no fund
raised on short-term basis has been used for long-term investment.
28. The company has not made any allotment of shares during the year.
29. The company has not issued debentures. Hence the requirements of
clause (xix) of paragraph 4 of the Order regarding creation of
securities for debentures issued are not applicable to the company.
30. The Company has not raised any amount by public issues.
31. According to the information and explanations given to us, a fraud
on or by the Company has not been noticed or reported during the year.
ANNEXURE TO REPORT OF THE AUDITORS FOR THE YEAR ENDED 31st MARCH 2010
STATEMENT OF UNPAID DISPUTED DUES
Unpaid
Disputed
Name Period to which Forum where dispute
Liability
Statute/
Dues the amount relates is pending
(Rs. in
Ã000s)
Income Tax 1,05,69 2002-03, 2003- 04 Commissioner of
and 2004 -05 Income Tax (Appeals)
Sales Tax-
TNGST 16,34 2002 -2003 Appellate Assistant
Commissioner of Sales Tax
Sales Tax-
CST 6,06 2002-2003 Appellate Assistant
Commissioner of Sales Tax
Service Tax 65.59 01-07-2003 to High Court
30-11-06 Madurai Bench.
FOR SURI & CO.,
Total 1,93,68
(R.KRISHNAMOORTHY)
Place : CHENNAI
PARTNER
Date:24th May 2010 CHARTERED ACCOUNTANTS
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