Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of PBM POLYTEX LIMITED (âthe Companyâ) which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as âStandalone Ind AS Financial Statementsâ).
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these 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) prescribed 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 and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements 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 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, of the state of affairs of the Company as at March 31, 2018, and its profit, total 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 the Companies (Auditors report) Order, 2016 (âThe Orderâ) issued by the Central Government of India in terms of subsection 11 of section 143 of the Act, we give in the Annexure âAâ statement on the matter specified in paragraphs 3 & 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act, read with relevant rules issued thereunder.
e. On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and operating effectiveness of such controls, refer to our separate report in Annexure âBâ.
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 best of our information and according to the explanation given to us :
1) The Company has disclosed the impact of pending litigation on its financial position in its standalone Ind AS financial statements. Refer to Note 38 to the standalone Ind AS financial statements.
2) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
3) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
âANNEXURE Aâ TO THE INDEPENDENT AUDITORSâ REPORT
(Referred to in paragraph 1 under the heading âReport on Other Legal & Regulatory Requirementsâ of our report of even date to the standalone Ind AS financial statements of the Company for the year ended March 31, 2018)
1. In respect of Fixed Assets :
(a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of five years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. According to information and explanation given to us, no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the company.
2. In respect of Inventories:
According to information and explanation given to us, Physical verification of inventories has been conducted in reasonable interval by the Management and no material discrepancies were noticed on physical verification during the year.
3. According to information and explanation given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company and hence not commented upon.
4. In our opinion and according to the information and explanations given to us, the company has not granted loan or made investments or given guarantee or provided security as provided in the section 185 and 186 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security.
5. According to information and explanation given to us, the Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6. The Central Government has prescribed maintenance of Cost Records under section 148(1) of the Companies Act, 2013 in respect of manufacturing activities of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
7. According to information and explanations given to us in respect of statutory dues and on the basis of our examination of the books of account, and records,
(a) the Company has been generally 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 with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2018 for a period of more than six months from the date on when they become payable.
b) According to the information and explanations given to us, there are no material dues of income tax, sales tax, and service tax value added tax, duty of customs and Cess which have not been deposited with the appropriate authorities on account of any dispute, except in respect to income tax, the following dues have not been deposited by the Company on account of disputes according to information and explanations given to us :
Name of the Statute |
Nature of dues |
Amount |
Period to which the |
Forum where the dispute is |
(in lakh) |
amount relates |
pending |
||
Entry Tax |
Assessment dues |
2.16 |
--do-- |
Commercial Tax Authorities |
8. The company has not defaulted in repayment of dues to Financial Institutions or banks or debenture holders.
9. According to the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans during the year. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company.
10. According to the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11. According to the information and explanations given by the management, the managerial remuneration has been paid or provided in due compliance of section 197 read with Schedule V to the Companies Act;
12. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13. In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. According to the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
15. According to the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16. In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORSâ REPORT
Report on the Internal Financial Controls under Clause (1) of Sub-section 3 of Sec.143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of PBM Polytex Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone 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. 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 Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, 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 systems 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 auditorsâ Judgment, including the assessment of the risks of material misstatement of the 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 companyâs 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 purpose in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company.
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles , and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company, and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies of procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting was operating effectively as on March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reports issued by the Institute of Chartered Accountants of India.
For and on behalf of
Chandulal M. Shah & Co.
Chartered Accountants
Firm Registration No. 101698W
CA. B. M. Zinzuvadia
Place: Ahmedabad Partner
Date: 30/05/2018 Membership No. 109606
Mar 31, 2016
To the Members of
PBM POLYTEX Limited
Report on the Financial Statements
We have audited the accompanying financial statements of PBM Polytex Limited (âthe Companyâ) which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these 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.
Auditorâs 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 the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs 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 Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 31 March 2016 and its profit and its cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. the Balance Sheet, 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, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
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 disclose the impact of pending litigations on its financial position in its financial statements, Refer to Note 2 of Part II of 29 of Notes to accounts to the financial statement.
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
(iii) There were no amounts, which were required to be transferred to the Investor Education and Protection Fund by the Company.
"Annexure A" to the Independent Auditors'' Report
Referred to in paragraph 1 under the heading âReport on Other Legal & Regulatory Requirementsâ of our report of even date to the financial statements of the Company for the year ended March 31, 2016:
1. In respect of Fixed Assets :
(a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of five years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. According to information and explanation given to us, no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the company.
2. In respect of Inventories:
According to information and explanation given to us, Physical verification of inventories has been conducted in reasonable interval by the Management and no material discrepancies were noticed on physical verification during the year.
3. According to information and explanation given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company and hence not commented upon.
4. In our opinion and according to the information and explanations given to us, the company has not granted loan or given guarantee or provided security as provided in the section 185 and I86 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security.
5. According to information and explanation given to us, the Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6. The Central Government has prescribed maintenance of Cost Records under section 148(1) of the Companies Act,2013 in respect of manufacturing activities of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
7. According to information and explanations given to us in respect of statutory dues and on the basis of our examination of the books of account, and records,
(a) the Company has been generally 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 with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2016 for a period of more than six months from the date on when they become payable.
(b) According to the information and explanations given to us, there are no material dues of income tax, sales tax, and service tax value added tax, duty of customs and Cess which have not been deposited with the appropriate authorities on account of any dispute, except in respect to income tax, the following dues have not been deposited by the Company on account of disputes according to information and explanations given to us, :
Name of the Statute |
Nature of dues |
Amount (in lacs) |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax |
Tax demands on disallowances under Asstt. orders |
4.89 4.19 |
F. Y. 2011-12 F. Y. 2012-13 |
CIT (Appeals) CIT (Appeals) |
8. The company has not defaulted in repayment of dues to Financial Institutions or banks or debenture holders.
9. According to the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans during the year. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company.
10. According to the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11. According to the information and explanations given by the management, the managerial remuneration has been paid or provided in due compliance of section 197 read with Schedule V to the Companies Act;
12. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13. In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. According to the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
15. According to the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16. In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
âAnnexure Bâ Annexure to the Independent Auditor''s report of even date on the Standalone financial statements of PBM Polytex Limited
Report on the Internal Financial Controls under Clause (1) of Sub-section 3 of Sec.143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of PBM Polytex Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone 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. 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 Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, 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 systems 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 Judgment, including the assessment of the risks of material misstatement of the 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 companyâs 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 purpose in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company. (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles , and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company, and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies of procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting was operating effectively as on March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reports issued by the Institute of Chartered Accountants of India.
For and on behalf of
Mahendra N. Shah & Co
Chartered Accountants
FRN 105775W
Place : Ahmedabad Mahendra N. Shah (Partner)
Date : 30.05.2016 Mem. No. F 003969
Mar 31, 2015
We have audited the accompanying financial statements of PBM Polytex
Limited ('the Company'), which comprise the balance sheet as at
31st March, 2015 the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ('the Act") with
respect to the preparation and presentation 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.
Auditors' 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 thereunder.
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 the disclosures in the financial statements. The
procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial 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.
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
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, 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. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' 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 the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
(c) the balance sheet, the statement of profit and loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account;
(d) in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations 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 Auditors'
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. 28 II
Sub Note 2 (C) of to the financial statements;
ii. the Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses; and
Hi. there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31st March, 2015 we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
(ii) (a) Inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(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 has maintained proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) The Company has not granted loans to bodies corporate covered in
the register maintained under section 189 of the Companies Act, 2013
('the Act').
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and sale of goods and
services. We have not observed any major weakness in the internal
control system during the course of the audit.
(v) The Company has not accepted any deposits from the public.
(vi) The Company is not required to maintained cost records as per
Section 148 (1) of the Act.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, ESIC, income tax, sales tax,
wealth tax, Excise service tax, duty of customs, value added tax, cess
and other material statutory dues have been regularly deposited during
the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
sales tax, wealth tax, service tax, duty of customs, value added tax,
cess and other material statutory dues were in arrears 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 there are
no material dues of wealth tax, duty of customs and cess which have not
been deposited with the appropriate authorit ,s on account of any
dispute. However, according to information and explanations given to
us, the following dues of income tax, sales tax, service tax and value
added tax have not been deposited by the Company on account o,
disputes:
Name of the Nature of dues Amount Period to which the Forum where
Statute (in iacs) amount relates the dispute
is pending
Income Tax Tax demands on 7.02 F.Y. 2010-11 and CIT(Appeals)
disallowances 2011-12
under Asstt.
orders
TDS Alleged demand of 12.71 F.Y. 2008-09 CIT (TDS)
TDS difference
According to the information and explanations given to us the amounts
which were required to be transferred to the investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 2013 and rules there under has been transferred to such
fund within time.
(viii) The Company does not have any accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
(ix) The Company is regular in repayment of dues to bank and there is
no default in repayment of dues.
(x) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xi) In our opinion and according to the information and explanation
given to us the Company has applied the term loans prima facie for the
purpose for which the loans were obtained.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For Mahendra N. Shah & Co.
Chartered Accountants
Firm's registration number: 105775W
Date : 25th May 2015 Chirag M. Shah
Place : Ahmedabad Partner
Membership number: F 045706
Mar 31, 2014
We have audited the accompanying financial statements of PBM Polytex
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management Responsibility for the Financial Statements:
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the ompanies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors'' Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of hartered
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 ompany''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.
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, 2014;
b) in the case of the Statement of Profit and Loss of the Profit for
the year ended on that date; and
c) in the case of the ash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal & Regulatory Requirements:
1. As required by the ompanies (Auditor''s Report) Order, 2003 ("the
Order") issued by the entral 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) Subject to sub Note No.9 in part II of Note 27 regarding non
availability of Qualified ompany secretary resulting into non
compliance of section 215,383(A) and other provisions of the Act in our
opinion proper books of account as required by law have been kept by
the ompany so far as appears from our examination of those books
c) the Balance Sheet, Statement of Profit and Loss, and ash 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 (3) of section 211 of the ompanies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 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
ompanies 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 ompany.
ANNEXURE TO AUDITORS'' REPORT Re: PBM POLYTEX LIMITED Refered to in
paragraph 3 of our report of even date
(i.) (a) The Company has maintained proper records showing ful
particulars including Quantitative details and situation of fixed
assets.
(b) The Companies program of physical verification of al its fixed
assets over a period of three years is in our opinion, reasonable
having regards to the size of the Company and the nature of its fixed
assets. As informed, no material discrepancies were noticed on such
verification.
(c) In our opinion, the Company has not disposed off substantial part
of the Fixed Assets during the year.
(ii.) (a) The inventory has been physicaly verified by the management.
In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories folowed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on verification of stocks as
compared to book records.
(iii.) (a) The Company has not granted any loans secured or unsecured
to companies, firms or other parties covered in the register maintained
under Section 301 of the Act. (b) The company has not taken any loan /
deposit from the firms, companies or other parties listed in the
register maintained under section 301 of the Act.
(iv,) In our opinion and according to the information and explanations
given to us, there is adequate internal control procedure commensurate
with the size of the Company and the nature of its business with regard
to purchase of Inventory, fixed assets and with regard to sale of
goods. Further on the basis of our examination of the books and records
of the Company, caried out in accordance with the generaly accepted
auditing practices in India, We have neither come across nor have been
informed of any continuing failure to corect major weaknesses in the
aforesaid internal control procedures.
(v.) (a) According to the information and the explanations given to us,
we are of the opinion that the transactions that need to be entered
into the register maintained under section 301 of the Act, have been so
entered. (b) In our opinion and according to the information and
explanations given to us, the transactions made in pursuance of
contracts, arangements entered in the register maintained under Section
301 of the Act, and exceeding the value of Rs. 5.00 (Five) Lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi.) The Company has not accepted deposits from public and therefore,
the directives issued by the Reserve Bank of India and provision of
Section 58 - A and 58 - AA of the Companies (Acceptance of Deposits)
Rules 1975, do not apply to the Company.
(vii.) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii.) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the Rules made by the Central Government for maintenance of
cost records under section 209(1) (d) of the Act and we are of the
opinion that prima facie the prescribed accounts and records have been
made and maintained. We have not, however, made a detailed examination
of the records.
(ix.) (a) The company is generaly regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investors Education Fund, Employees'' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues as applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
/ Value Added Tax, Custom Duty, Excise Duty and Cess were in arears, as
at 31st March, 2014 for a period of more than six months from the date
they became payable.
(x.) The Company does not have accumulated losses as at 31.03.2014. The
company has not incured cash losses during the financial year covered
by our audit and 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.
(xii.) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares and other securities.
(xiii.) In our opinion, the company is not a chit fund or a nidhi,
mutual fund / society.
Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company.
(xiv.) The Company has maintained proper records of transactions and
contracts in respect of trading in securities and other investments and
timely entries have been made therein. Al securities and other
investments have been held by the company in its own name.
(xv.) According to the information and explanation given to us and
shown by the records examined by us, the company has not given any
guarantees for loans taken by others from banks or other financial
institutions during the year.
(xvi.) In our opinion, 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 overal examination of the balance sheet and Cash Flow Statement of
the company, we report that no funds raised on short - term basis have
been used for long term investment.
(xviii.) According to the information and explanations given to us the
company has not made any preferential alotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Act.
(xix.) The company has not issued any debentures.
(xx.) The company has not raised any money by public issue during the
year.
(xxi.) During the course of our examination of the books and records of
the company caried out in accordance with the generaly accepted
auditing practices in India, we have neither come across any instances
of fraud on or by the company noticed or reported during the year, nor
have we been informed of such case by the management.
For Mahendra N. Shah & Co.
Chartered Accountants
(FRN 105775W)
Place : Ahmedabad Mahendra N. Shah
Date : 24th May 2014 Partner
Membership No. 3969
Mar 31, 2013
1. We have audted the attached balance sheet of PBM POLYTEX LIMITED as
at 31st March 2013 and also the statement of proft and loss and the
cash flow statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsblity of the
Company''s management. Our responsblity s to express an opnon on these
fnancial statements based on our audt.
2. We conducted our audt n accordance wth the Audtng Standards
generaly accepted n Inda. Those standards requre that we plan and
perform the audt to obtan reasonable assurance about whether the
fnancial statements are free of materal msstatement. An audt ncludes
examnng, on a test bass, evidence supportng the amounts and dsclosures
the fnancial statements. An audt also ncludes assessng the accountng
prnciples used and sgnfcant estmate made by management, as wel as
evaluatng the overal fnancial statement presentaton. We believe that
our audt provides a reasonable bass for our opnon.
3. As requred by the Company''s (Audtors'' Report) Order, 2003 ("the
Order") as amended by the Companes (Audtor''s Report) (Amendment) Order,
2004 ssued by the Central Government of Inda n terms of Sub-Section
(4A) of section 227 of the Act, 1956, (referred to as " the Act") and
on the basis of such checks as we consdered necessary and accordng to
the nformaton and explanatons given to us, we enclose n the Annexure, a
statement on the matters specifed n paragraphs 4 and 5 of the sad
order.
4. Further to our comments n the Annexure referred to above, we report
that :-
() We have obtaned al the nformaton and explanatons, whch to the best
of our knowledge and belief were necessary for the purpose of our audt.
() Subject to Sub note No. 8 n Part II of Note 27 regardng
non-avalablity of qualified Company Secretary resulting nto
non-compliance of Sections 215, 383(A) and other provisons of the
Companes Act, n our opnon, proper books of account as requred by law
have been kept by the company so far as appears from our examnaton of
those books.
() The Balance Sheet and statement of Proft & Loss and Cash Flow
statement dealt wth by ths report are n agreement wth the books of
account.
(v) In our opnon, the Balance Sheet statement of Proft & Loss and Cash
Flow statement dealt wth by ths report complies wth the Accountng
Standards referred to n sub- section (3C) of section 211 of the Act.
(v) Based on the representations made by al the drectors of the Company
and accordng to the nformaton and explanatons as made avalable and
taken on record by Board of Drectors, We report that none of the
Drectors s dsqualified as on 31st March, 2013 from beng apponted as a
Drector n terms of clause (g) of secton 274 (1) of the Act.
(vi) In our opnon and to the best of our nformaton and accordng to the
explanatons given to us, the sad accounts read together wth Sgnfcant
Accountng Policies and other notes thereon give the nformaton requred
by the Act, n the manner so requred and give a true and far view, n
conformty wth the accountng prnciples generaly accepted n Inda:
(a.) n the case of the Balance Sheet, of the state of affars of the
Company as at 31st March, 2013,
(b.) n the case of the statement of Proft & Loss of the Profit of the
Company for the year ended on that date and,
(c.) In the case of the Cash Flow statement of the cash flows for the
year on that date.
ANNEXURE TO AUDITORS'' REPORT
Re: PBM POLYTEX LIMITED
Referred to n paragraph 3 of our report of even date
(a) The Company has mantaned proper records showng ful partculars
ncludng Quanttatve detals and stuaton of fxed assets.
(b) The Companes program of physical verfcaton of al its fxed assets
over a perod of three years s n our opnon, reasonable having regards to
the sze of the Company and the nature of ts fxed assets. As nformed, no
materal dscrepancies were notced on such verfcaton.
(c) In our opnon, the Company has not dsposed off substantal part of
the Fxed Assets durng the year.
(a) The nventory has been physcaly verfed by the management. In our
opnon, the frequency of verfcaton s reasonable.
(b) The procedures of physcal verfcaton of nventores folowed by the
management are reasonable and adequate n relaton to the sze of the
Company and nature of ts busness.
(c) The company s mantanng proper records of nventory and no materal
dscrepancies were notced on verfcaton of stocks as compared to book
records.
(a) The Company has not granted any loans secured or unsecured to
companes, frms or other partes covered n the register mantaned under
Section 301 of the Act. (b) The company has not taken any loan /
depost from the frms, companes or other partes listed n the register
mantaned under secton 301 of the Act.
(v,) In our opnon and accordng to the nformaton and explanatons given
to us, there s adequate nternal control procedure commensurate wth the
sze of the Company and the nature of ts busness wth regard to purchase
of Inventory, fxed assets and wth regard to sale of goods. Further on
the bass of our examnaton of the books and records of the Company,
carred out n accordance wth the generaly accepted audtng practices n
Inda, We have nether come across nor have been nformed of any contnung
falure to correct major weaknesses n the aforesad nternal control
procedures.
(v.) (a) Accordng to the nformaton and the explanatons given to us, we
are of the opnon that the transactions that need to be entered nto the
register mantaned under section 301 of the Act, have been so entered.
(b) In our opnon and accordng to the nformaton and explanatons given to
us, the transactions made n pursuance of contracts, arrangements
entered n the register mantaned under Section 301 of the Act, and
exceedng the value of Rs. 5.00 (Fve) Lacs n respect of any party durng
the year have been made at prces whch are reasonable having regard to
prevaling market prces at the relevant tme.
(vi.) The Company has not accepted deposts from public and therefore,
the drectves ssued by the Reserve Bank of Inda and provison of Section
58 - A and 58 - AA of the Companes (Acceptance of Deposts) Rules 1975,
do not apply to the Company.
(vii.) In our opnon, the Company has an nternal audt system
commensurate wth ts sze and nature of ts busness.
(vii.) We have broadly reviewed the books of account relatng to
materals, labour and other tems of cost mantaned by the Company
pursuant to the Rules made by the Central Government for mantenance of
cost records under section 209(1) (d) of the Act and we are of the
opnon that prma facie the prescrbed accounts and records have been made
and mantaned. We have not, however, made a detaled examnaton of the
records. (x.) (a) The company s generaly regular n depostng wth
approprate authortes undsputed statutory dues ncludng Provident Fund,
Investors Educaton Fund, Employees'' State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
materal statutory dues as applicable to t.
(b) Accordng to the nformaton and explanatons given to us, no undsputed
amounts payable n respect of Income Tax, Wealth Tax, Sales / Value
Added Tax, Custom Duty, Excise Duty and Cess were n arrears, as at 31st
March, 2013 for a perod of more than sx months from the date they
became payable except Income Tax / penalty demand Rs. 15,00,305/-, Rs.
66,576/- and Rs. 89,936/- for the years 2003-04, 2005-06 and 2006 - 07
respectively, appeal for whch has been preferred before the approprate
authortes.
(x.) The Company does not have accumulated losses as at 31.03.2012. The
company has not ncurred cash losses durng the fnancial year covered by
our audt and the mmedately precedng fnancial year.
(xi.) In our opnon and accordng to the nformaton and explanatons given
to us, the Company has not defaulted n repayment of dues to a fnancial
instituton or bank.
(xii.) The Company has not granted any loans and advances on the basis
of securty by way of pledge of shares and other securtes.
(xii.) In our opnon, the company s not a cht fund or a ndh, mutual fund
/ society. Therefore, the provisons of clause 4(xii) of the Companes
(Audtor''s Report) Order, 2003 are not applicable to the Company.
(xiv.) The Company has mantaned proper records of transactions and
contracts n respect of tradng n securtes and other nvestments and tmely
entres have been made theren. Al securtes and other nvestments have
been held by the company n ts own name.
(xv.) Accordng to the nformaton and explanaton given to us and shown by
the records examned by us, the company has not given any guarantees for
loans taken by others from banks or other fnancial insttutons durng the
year.
(xvi.) In our opnon, the term loans have been applied for the purpose
for whch they were rased.
(xvii.) Accordng to the nformaton and explanatons given to us and on
overal examnaton of the balance sheet and Cash Flow Statement of the
company, we report that no funds rased on short - term bass have been
used for long term nvestment.
(xvii.) Accordng to the nformation and explanatons given to us the
company has not made any preferental alotment of shares to partes and
companes covered n the register mantaned under Secton 301 of the Act.
(xix.) The company has not ssued any debentures.
(xx.) The company has not rased any money by public issue durng the
year.
(xxi.) Durng the course of our examnaton of the books and records of
the company carred out n accordance wth the generaly accepted audtng
practices n Inda, we have nether come across any nstances of fraud on
or by the company notced or reported durng the year, nor have we been
nformed of such case by the management.
For Mahendra N. Shah & Co.
Chartered Accountants
(FRN 105775W)
Place : Ahmedabad Mahendra N. Shah
Date : 17th May 2013 Partner
Membershp No. 3969
Mar 31, 2012
1. We have audited the attached balance sheet of PBM POLYTEX LIMITED
as at 31st March 2012 and also the statement of profit and loss and the
cash flow statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimate made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Company's (Auditors' Report) Order, 2003 ("the
Order") as amended by the Companies (Auditor's Report) (Amendment)
Order, 2004 issued by the Central Government of India in terms of
Sub-Section (4A) of section 227 of the Act, 1956, (referred to as "
the Act") and on the basis of such checks as we considered necessary
and according to the information and explanations given to us, we
enclose in the Annexure, a statement on the matters specified in
paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that :-
(i) We have obtained all the information and explanations , which to
the best of our knowledge and belief were necessary for the purpose of
our audit.
(ii) Subject to Sub note No. 9 in Part II of Note 28 regarding
non-availability of qualified Company Secretary resulting into
non-compliance of Sections 215, 383(A) and other provisions of the
Companies Act,
In our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books .
(iii) The Balance Sheet, and statement of Profit & Loss and Cash Flow
statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet statement of Profit & Loss and
Cash Flow statement dealt with by this report complies with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Act.
(v) Based on the representations made by all the directors of the
Company and according to the information and explanations as made
available and taken on record by 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 section 274 (1) of
the Act.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant Accounting Policies and other notes thereon give the
information required by the Act, in the manner so required and give a
true and fair view, in conformity with the accounting principles
generally accepted in India:
(a.) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012, (b.) in the case of the statement of
Profit & Loss of the Profit of the Company for the year ended on that
date and,
(c.) In the case of the Cash Flow statement of the cash flows for the
year on that date.
ANNEXURE TO AUDITORS' REPORT
Re: PBM POLYTEX LIMITED
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) The Companies program of physical verification of all its fixed
assets over a period of three years is in our opinion, reasonable
having regards to the size of the Company and the nature of its fixed
assets. As informed, no material discrepancies were noticed on such
verification.
(c) In our opinion, the Company has not disposed off substantial part
of the Fixed Assets during the year.
(ii.) (a) The inventory has been physically verified by the management.
In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on verification of stocks as
compared to book records.
(iii.) (a) The Company has not granted any loans secured or unsecured
to companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(b) The company has not taken any loan / deposit from the firms,
companies or other parties listed in the register maintained under
section 301 of the Act.
(iv,) In our opinion and according to the information and explanations
given to us, there is adequate internal control procedure commensurate
with the size of the Company and the nature of its business with regard
to purchase of Inventory, fixed assets and with regard to sale of
goods. Further on the basis of our examination of the books and records
of the Company, carried out in accordance with the generally accepted
auditing practices in India, We have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
(v.) (a) According to the information and the explanations given to us,
we are of the opinion that the transactions that need to be entered
into the register maintained under section 301 of the Act, have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts,
arrangements entered in the register maintained under Section 301 of
the Act, and exceeding the value of Rs. 5.00 (Five) Lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi.) The Company has not accepted deposits from public and therefore,
the directives issued by the Reserve Bank of India and provision of
Section 58 - A and 58 - AA of the Companies (Acceptance of Deposits)
Rules 1975, do not apply to the Company.
(vii.) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii.) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the Rules made by the Central Government for maintenance of
cost records under section 209(1) (d) of the Act and we are of the
opinion that prima facie the prescribed accounts and records have been
made and maintained. We have not, however, made a detailed examination
of the records.
(ix.) (a) The company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investors Education Fund, Employees' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues as applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
/ Value Added Tax, Custom Duty, Excise Duty and Cess were in arrears ,
as at 31st March, 2012 for a period of more than six months from the
date they became payable except Income Tax demand Rs . 4,61,471/- and
Rs . 66,576/- for the years 2003-04 and 2005-06 respectively, appeal
for which has been preferred before the appropriate authorities.
(x.) The Company does not have accumulated losses as at 31.03.2012. The
company has not incurred cash losses during the financial year covered
by our audit and 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.
(xii.) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares and other securities.
(xiii.) In our opinion, the company is not a chit fund or a nidhi,
mutual fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
(xiv.) The Company has maintained proper records of transactions and
contracts in respect of trading in securities and other investments and
timely entries have been made therein. All securities and other
investments have been held by the company in its own name.
(xv.) According to the information and explanation given to us and
shown by the records examined by us, the company has not given any
guarantees for loans taken by others from banks or other financial
institutions during the year.
(xvi.) In our opinion, 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 overall examination of the balance sheet and Cash Flow Statement of
the company, we report that no funds raised on short - term basis have
been used for long term investment.
(xviii.) According to the information and explanations given to us the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act.
(xix.) The company has not issued any debentures.
(xx.) The company has not raised any money by public issue during the
year.
(xxi.) During the course of our examination of the books and records of
the company carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instances
of fraud on or by the company noticed or reported during the year, nor
have we been informed of such case by the management.
For Mahendra N. Shah & Co.
Chartered Accountants
(FRN 105775W)
Place : Ahmedabad Mahendra N. Shah
Date : 9th August 2012 Partner
Membership No. 3969
Mar 31, 2011
1. We have audited the attached balance sheet of PBM POLYTEX LIMITED
as at 31st March 2011 and also the profit and loss account and the cash
flow statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Company's (Auditors' Report) Order, 2003 ("the
Order") as amended by the Companies (Auditor's Report) (Amendment)
Order, 2004 issued by the Central Government of India in terms of
Sub-Section (4A) of section 227 of the Act, 1956, (referred to as " the
Act") and on the basis of such checks as we considered necessary and
according to the information and explanations given to us, we enclose
in the Annexure, a statement on the matters specified in paragraphs 4
and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that :-
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(ii) Subject to Note No. 10 in Part II of Schedule XX regarding
non-availability of qualified Company Secretary resulting into
non-compliance of Sections 215, 383(A) and other provisions of the
Companies Act in our opinion, proper books of account as required by
law have been kept by the company so far as appears from our
examination of those books.
(iii) The Balance Sheet, Profit & Loss account and Cash Flow statement
dealt with by this report are in agreement with the books of account.
(iv) In our opinion, the Balance Sheet, Profit & Loss account and Cash
Flow statement dealt with by this report complies with the Accounting
Standards referred to in sub- section (3C) of section 211 of the Act.
(v) Based on the representations made by all the directors of the
Company and according to the information and explanations as made
available and taken on record by Board of Directors, We report that
none of the Directors is disqualified as on 31st March, 2011 from being
appointed as a Director in terms of clause (g) of section 274 (1) of
the Act.
(vi) In our opinion and to the best of our information and
according to the explanations given to us, the said accounts read
together with Significant Accounting Policies and other notes thereon
give the information required by the Act, in the manner so required and
give a true and fair view, in conformity with the accounting principles
generally accepted in India:
(a.) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011,
(b.) in the case of the Profit and Loss Account of the Profit of the
Company for the year ended on that date and,
(c.) in the case of the Cash Flow statement of the cash flows for the
year on that date.
ANNEXURE TO AUDITORS' REPORT
Re: PBM Polytex Limited
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) The Companies programme of physical verification of all its fixed
assets over a period of three years is in our opinion, reasonable
having regards to the size of the Company and the nature of its fixed
assets. As informed, no material discrepancies were noticed on such
verification.
(c) In our opinion, the Company has not disposed off substantial part
of the Fixed Assets during the year.
(ii.) (a) The inventory has been physically verified by the management.
In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on verification of stocks as
compared to book records.
(iii.) (a) The Company has not granted any loans secured or unsecured
to companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(b) The company has not taken any loan / deposit from the firms,
companies or other parties listed in the register maintained under
section 301 of the Act.
(iv,) In our opinion and according to the information and explanations
given to us, there is adequate internal control procedure commensurate
with the size of the Company and the nature of its business with regard
to purchase of Inventory, fixed assets and with regard to sale of
goods. Further on the basis of our examination of the books and records
of the Company, carried out in accordance with the generally accepted
auditing practices in India, We have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
(v.) (a) According to the information and the explanations given to us,
we are of the opinion that the transactions that need to be entered
into the register maintained under section 301 of the Act, have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts,
arrangements entered in the register maintained under Section 301 of
the Act, and exceeding the value of Rs. 5.00 (Five) Lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi.) The Company has not accepted deposits from public and therefore,
the directives issued by the Reserve Bank of India and provision of
Section 58 - A and 58 - AA of the Companies (Acceptance of Deposits)
Rules 1975, do not apply to the Company.
(vii.) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii.) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the Rules made by the Central Government for maintenance of
cost records under section 209(1) (d) of the Act and we are of the
opinion that prima facie the prescribed accounts and records have been
made and maintained. We have not, however, made a detailed examination
of the records.
(ix.) (a) The company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investors Education Fund, Employees' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues as applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
/ Value Added Tax, Custom Duty, Excise Duty and Cess were in arrears,
as at 31st March, 2011 for a period of more than six months from the
date they became payable except Income Tax Demand of Rs.4, 78,152/- for
Accounting Year 2004-05 and 2005-06 against which the company has
preferred appeals.
(x.) The Company does not have accumulated losses as at 31.03.2011. The
company has not incurred cash losses during the financial year covered
by our audit and 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.
(xii.) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares and other securities.
(xiii.) In our opinion, the company is not a chit fund or a nidhi,
mutual fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
(xiv.) The Company has maintained proper records of transactions and
contracts in respect of trading in securities and other investments and
timely entries have been made therein. All securities and other
investments have been held by the company in its own name.
(xv.) According to the information and explanation given to us and
shown by the records examined by us, the company has not given any
guarantees for loans taken by others from banks or other financial
institutions during the year.
(xvi.) In our opinion, 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 overall examination of the balance sheet and Cash Flow Statement of
the company, we report that no funds raised on short à term basis have
been used for long term investment.
(xviii.) According to the information and explanations given to us the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act.
(xix.) The company has not issued any debentures, hence question of
creating security does not arise.
(xx.) The company has not raised any money by public issue during the
year.
(xxi.) During the course of our examination of the books and records of
the company carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instances
of fraud on or by the company noticed or reported during the year, nor
have we been informed of such case by the management.
For Mahendra N. Shah & Co.
Chartered Accountants
(FRN 105775W)
Place : Ahmedabad Mahendra N. Shah
Date : 25th July 2011 Partner
Membership No. 3969
Mar 31, 2010
1. We have audited the attached balance sheet of PBM POLYTEX LIMITED
as at 31st March 2010 and also the profit and loss account and the cash
flow statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the Auditing Standards
generally accepted in India. Those standards require that we plan &
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companys (Auditors Report) Order, 2003 ("the
Order") as amended by the Companies (Auditors Report) (Amendment)
Order, 2004 issued by the Central Government of India in terms of
Sub-Section (4A) of section 227 of the Act, 1956, (referred to as " the
Act") and on the basis of such checks as we considered and according to
the information and explanations given to us, we enclose in the
Annexure, a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Further to our comments in the Annexure referred to above, we
report that :-
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(ii) Subject to Note No. 10 in Part II of Schedule XX regarding
non-availability of qualified Company Secretary resulting into
non-compliance of Sections 215, 383(A) and other provisions of the
Companies Act in our opinion, proper books of account as required by
law have been kept by the company so far as appears from our
examination of those books.
(iii) The Balance Sheet, Profit & Loss account and Cash Flow statement
dealt with by this report are in agreement with the books of account.
(iv) In our opinion, the Balance Sheet, Profit & Loss account and Cash
Flow statement dealt with by this report complies with the Accounting
Standards referred to in sub-section (3C) of section 211 of the Act.
(v) Based on the representations made by all the directors of the
Company and according to the information and explanations as made
available and taken on record by 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 section 274 (1) of
the Act.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant Accounting Policies and other notes thereon give the
information required by the Act, in the manner so required and give a
true and fair view, in conformity with the accounting principles
generally accepted in India:
(a.) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010,
(b.) in the case of the Profit and Loss Account of the Profit of the
Company for the year ended on that date and,
(c.) in the case of the Cash Flow statement of the cash flows for the
year on that date.
ANNEXURE TO AUDITORS REPORT Re: PBM Polytex Limited 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) The Companies programme of physical verification of all its fixed
assets over a period of three years is in our opinion, reasonable
having regards to the size of the Company and the nature of its fixed
assets. As informed, no material discrepancies were noticed on such
verification.
(c) In our opinion, the Company has not disposed off substantial part
of the Fixed Assets during the year.
(ii.) (a) The inventory has been physically verified by the management.
In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on verification of stocks as
compared to book records.
(iii.) (a) The Company has not granted any loans secured or unsecured
to companies, firms or other parties covered in the registered
maintained under Section 301 of the Act.
(b) The company has not taken any loan / deposit from the firms,
companies or other parties listed in the register maintained under
section 301 of the Act.
(iv,) In our opinion and according to the information and explanations
given to us, there
is adequate internal control procedure commensurate with the size of
the Company and the nature of its business with regard to purchase of
Inventory, fixed assets and with regard to sale of goods. Further on
the basis of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing
practices in India, We have neither come across nor have been informed
of any continuing failure to correct major weaknesses in the aforesaid
internal control procedures.
(v.) (a) According to the information and the explanations given to us,
we are of the opinion that the transactions that need to be entered
into the register maintained under section 301 of the Act, have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts,
arrangements entered in the register maintained under Section 301 of
the Act, and exceeding the value of Rs. 5.00 (Five) Lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi.) The Company has not accepted deposits from public and therefore,
the directives
issued by the Reserve Bank of India and provision of Section 58 - A and
58 - AA of the Companies (Acceptance of Deposits) Rules 1975, do not
apply to the Company.
(vii.) In our opinion, the Company has an internal audit system
commensurate with its
size and nature of its business.
(viii.) We have been broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the Rules made by the Central Government for maintenance of
cost records under section 209(1) (d) of the Act and we are of the
opinion that prima facie the prescribed accounts and records have been
made and maintained. We have not, however, made a detailed examination
of the records.
(ix.) (a) The company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investors Education Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues as applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
/ Value Added Tax, Custom Duty, Excise Duty and Cess were in arrears,
as at 31st March, 2010 for a period of more than six months from the
date they became payable except Income Tax Demand of Rs.4,78,152/- for
Accounting Year 2004-05 and 2005-06 against which the company has
preferred appeal.
(x.) The Company does not have accumulated losses as at 31.03.2010. The
company has not incurred cash losses during the financial year covered
by our audit and 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.
(xii.) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares and other securities.
(xiii.) In our opinion, the company is not a chit fund or a nidhi,
mutual fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
(xiv.) The Company has maintained proper records of transactions and
contracts in respect of trading in securities and other investments and
timely entries have been made therein. All securities and other
investments have been held by the company in its own name.
(xv.) According to the information and explanation given to us and
shown by the records examined by us, the company has not given any
guarantees for loans taken by others from banks or other financial
institutions during the year.
(xvi.) In our opinion, 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 overall examination of the balance sheet and Cash Flow Statement of
the company, we report that no funds raised on short à term basis have
been used for long term investment.
(xviii.) According to the information and explanations given to us the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act.
(xix.) The company has not issued any debentures, hence question of
creating security does not arise.
(xx.) The company has not raised any money by public issue during the
year.
(xxi.) During the course of our examination of the books and records of
the company carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instances
of fraud on or by the company noticed or reported during the year, nor
have we been informed of such case by the management.
For Mahendra N. Shah & Co.
Chartered Accountants
(FRN 105775W)
Place : Ahmedabad Mahendra N. Shah
Date : 27th July 2010 Partner
Membership No. 3969