Mar 31, 2015
We have audited the accompanying financial statements of Simplex Mills
Company Limited ('the Company'), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made 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 auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give 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 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,
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
b) in the case of the Statement of Profit and Loss, of the Loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements:
1. During the year, the Company has accumulated losses and its net
worth has been fully eroded. This situation, along with other matters
set forth in Note no. 26, indicate the existence of an uncertainty that
may cast doubt about the Company's ability to continue as a going
concern. However, the financial statements of the Company have been
prepared on a going concern basis for the reason stated in the said
note.
Our opinion is not modified in respect of the aforesaid matter.
Report on Other Legal and Regulatory Requirements
2. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in Paragraphs 4 and 5 of the Order.
3. 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 Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - refer note 24 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;
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
The Annexure referred to in our 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. According to information and explanation given to us, during the
year, the management conducted physical verification of certain fixed
assets in accordance with its policy of physical verification in a
phased manner. In our opinion, such frequency is reasonable having
regard to the size of the Company and the nature of its fixed assets.
As explained to us, the discrepancies noticed on physical verification
as compared to book records maintained, were not material and have been
properly dealt with in the books of account.
ii. a. As explained to us,management conducted physical verification of
stocks of raw materials, finished goods and stores and spares at
reasonable intervals during the year, as also as at the balance sheet
date.
b. In our opinion and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory during the year, are reasonable and adequate
in relation to the size of the Company and nature of its business.
c. On the basis of our examination of inventory records, we are of the
opinion that the Company has maintained proper records of inventory.
Discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
iii. The Company has not granted loans to any parties covered in the
register maintained under section 189 of the Companies Act, 2013 ('the
Act'). Accordingly, paragraph 3(iii)(a&b) of the Order is not
applicable to the Company in respect of receipt of the principal amount
and interest.
iv. In our opinion and according to information and explanation given
to us, during the year under report, there are adequate internal
control procedures commensurate with the size of the Company and the
nature of its business for the purchase of inventory and fixed assets,
and for the sale of goods. Further, on the basis of our examination of
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public,
to which the directives issued by the Reserve Bank of India and the
provisions of Section 73 to 76 or any other relevant provisions of the
Companies Act, 2013 or the rules framed there under apply.
vi. As per information and explanation given to us, by the management,
the provisions for maintenance of the cost records under Section 148(1)
of the Act are not applicable to the Company as there is no
manufacturing activity during the year under review.
vii. a. According to the information and explanations given to us, the
Company was regular during the year in depositing undisputed statutory
dues including Provident Fund, Income tax, Sales tax, Customs duty and
Excise duty with the appropriate authorities. According to the
information and explanation given to us, as at the balance sheet date,
the Company has no undisputed statutory dues of a material nature which
remained unpaid for a period exceeding six months from the date on
which they were payable.
b. According to the information and explanation given to us, as at the
balance sheet date, the Company has not deposited dues of excise duty
aggregating to Rs. 3,03,04,158/- on account of the following disputes
pending before authorities:
Period to which Pending before (Rs. )
dues relate
1984-85 and Assistant Commissioner 49,13,695
1995 to 1996
1981-84,1981-95, CESTAT 1,52,86,878
and 2004
1981 to 1984 High Court 59,53,030
2002-2003 Supreme Court 41,50,555
Total 3,03,04,158
c. According to the information and explanations given to us, there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules there
under.
viii. The accumulated losses of the Company have exceeded fifty
percent of its net worth as at the end of the year covered by our
audit. The Company has incurred cash losses during the year as well as
in the immediately preceding year.
ix. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders during the year.
x. 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 as at the Balance sheet date.
xi. According to the information and the explanations given to us, the
Company has not taken any term loan during the year.
xii. To the best of our knowledge and belief and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year under
report.
For Vijay Rungta & Co.
Chartered Accountants
(Firm Registration No.111427W)
Ajay J. Rungta
Partner
Mumbai, 27th May, 2015 Membership No.F- 40333
Mar 31, 2014
We have audited the accompanying financial statements of Simplex Mills
Company Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 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''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in Sub-Section (3C) of Section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. 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 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956 read
with the General Circular 15/2013 dated 13th September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013;
e. On the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
[Referred to in Paragraph 1 of our report of even date to the members
of Simplex Mills Company Limited on the financial statements for the
year ended 31st March, 2014]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) According to information and explanation given to us, during the
year, the management conducted physical verification of certain fixed
assets in accordance with its policy of physical verification in a
phased manner. In our opinion, such frequency is reasonable having
regard to the size of the Company and the nature of its fixed assets.
As explained to us, the discrepancies noticed on physical verification
as compared to book records maintained, were not material and have been
properly dealt with in the books of account.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off by the Company during the year.
(ii) (a) As explained to us, management conducted physical verification
of stocks of raw materials, finished goods and stores and spares at
reasonable intervals during the year, as also as at the balance sheet
date.
(b) In our opinion and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory during the year, are reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of inventory records, we are of the
opinion that the Company has maintained proper records of inventory.
Discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
(iii) The Company has not granted / taken any loans, secured or
unsecured to/from companies, firms or parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to information and explanation given
to us, during the year under report, there are adequate internal
control procedures commensurate with the size of the Company and the
nature of its business for the purchase of inventory and fixed assets,
and for the sale of goods. Further, on the basis of our examination of
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
(v) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in Section 301
of the Act have been entered in the register required to be maintained
under that Section.
(b) In our opinion and according to the information and explanations
given to us, transactions (other than those already dealt with in
paragraph (iii) above) made pursuant to contracts or arrangements
referred to in (v)(a) above and exceeding the value of Rs. five hundred
thousand in respect of each party during the year, have been made at
prices which are reasonable having regard to the market prices
prevailing at that time, where available.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public,
to which the directives issued by the Reserve Bank of India and the
provisions of Sections 58A, 58AA or any other provisions of the
Companies Act, 1956 or the rules framed there under apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company relating to the manufacture of cotton textile products,
pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Act, 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 records with a view to determining whether they are
accurate and complete.
(ix) (a) According to the information and explanations given to us, the
Company was regular during the year in depositing undisputed statutory
dues including Provident Fund, Income tax, Sales tax, Customs duty and
Excise duty with the appropriate authorities. According to the
information and explanation given to us, as at the balance sheet date,
the Company has no undisputed statutory dues of a material nature which
remained unpaid for a period exceeding six months from the date on
which they were payable.
(b) According to the information and explanation given to us, as at the
balance sheet date, the Company has not deposited dues of excise duty
aggregating to Rs.3,03,04,158/- on account of the following disputes
pending before authorities:
(x) As at the balance sheet date, the Company''s accumulated losses does
not exceed fifty percent of its net worth within the meaning of Section
2(29A) of the Companies Act, 1956. The Company has incurred cash losses
during the year under report. However, the Company has not incurred
cash loss in the immediately preceding year.
(xi) According to the information and explanations given to us, the
Company has not committed default in repayment of dues in respect of
its bank borrowings. The Company did not have any borrowings from
financial institutions.
(xii) In our opinion and according to the information and explanations
given to us, during the year under report, the Company has not granted
any loans or advances against security by way of pledge of shares and
securities; accordingly, the provisions of clause (xii) of paragraph 4
of the said Order are not applicable.
(xiii) The Company is not a chit fund/nidhi/mutual benefit fund /
society and accordingly, the provisions of clause (xiii) of paragraph 4
of the said Order are not applicable.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities and other
investments as its principal business, and accordingly, the provisions
of clause (xiv) of paragraph 4 of the said Order are not applicable to
the Company.
(xv) According to the information and explanations given to us, as at
the balance sheet date, the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the Company did not avail any term loans during the year
under report. Accordingly, the provisions of clause (xvi) of paragraph
4 of the said Order are not applicable.
(xvii) In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
Company, prima facie, funds raised on a short-term basis have not been
used for long- term investments.
(xviii) According to the information and explanations given to us,
during the year under report, the Company did not make any preferential
allotment of shares to parties listed in the register maintained under
Section 301 of the Act.
(xix) The Company has not issued any debentures during the year under
report.
(xx) During the year under report, the company did not raise any money
through a public issue; consequently, the provisions of clause (xx) of
paragraph 4 of the Order are not applicable.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year under
report.
For Vijay Rungta & Co.
Chartered Accountants
(Firm Registration No.111427W)
Ajay Rungta
Partner
Mumbai, 15th May, 2014 Membership No.F- 40333
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Simplex Mills
Company Limited (the Company), which comprise the Balance Sheet as at
31st March, 2013, 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''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (the Act). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on 31st March, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITORS'' REPORT
[Referred to in Paragraph 1 of our report of even date to the members
of Simplex Mills Company Limited on the financial statements for the
year ended 31st March, 2013]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and
situation of fixed assets.
(b) According to information and explanation given to us, during the
year, the management conducted physical verification of certain fixed
assets in accordance with its policy of physical verification in a
phased manner. In our opinion, such frequency is reasonable having
regard to the size of the Company and the nature of its fixed assets.
As explained to us, the discrepancies noticed on physical verification
as compared to book records maintained, were not material and have been
properly dealt with in the books of account.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off by the Company during the year.
(ii) (a) As explained to us, management conducted physical verification
of stocks of raw materials, finished
goods and stores and spares at reasonable intervals during the year, as
also as at the balance sheet date.
(b) In our opinion, and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory during the year, are reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of inventory records, we are of the
opinion that the Company has maintained proper records of inventory.
Discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
(iii) The Company has not granted / taken any loans, secured or
unsecured to / from companies, firms or parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
(iv) In our opinion and according to information and explanation given
to us, during the year under report, there are
adequate internal control procedures commensurate with the size of the
Company and the nature of its business for the purchase of inventory
and fixed assets, and for the sale of goods. Further, on the basis of
our examination of books and records of the Company, and according to
the information and explanations given to us, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control procedures.
(v) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in Section 301
of the Act have been entered in the register required to be maintained
under that Section.
(b) In our opinion and according to the information and explanations
given to us, transactions (other than those already dealt with in
paragraph (iii) above) made pursuant to contracts or arrangements
referred to in (v)(a) above and exceeding the value of Rs. five hundred
thousand in respect of each party during the year, have been made at
prices which are reasonable having regard to the market prices
prevailing at that time, where available.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public,
to which the directives issued by the Reserve Bank of India and the
provisions of Section 58A, 58AA or any other provisions of the
Companies Act, 1956 or the rules framed there under apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company relating to the manufacture of cotton textile products,
pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Act, 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 records with a view to determining whether they are
accurate and complete.
(ix) (a) According to the information and explanations given to us, the
Company was regular during the year in depositing undisputed statutory
dues including Provident fund, Income tax, Sales tax, Customs duty and
Excise duty with the appropriate authorities. According to the
information and explanation given to us, as at the balance sheet date,
the Company has no undisputed statutory dues of a material nature which
remained unpaid for a period exceeding six months from the date on
which they were payable.
(b) According to the information and explanation given to us, as at the
balance sheet date, the Company has not deposited dues of Excise duty
aggregating to f 5,51,42,947/- on account of the following disputes
pending before authorities:
(x) As at the balance sheet date, the Company''s accumulated losses does
not exceed fifty percent of its net worth within the meaning of Section
2(29A) of the Companies Act, 1956. The Company has not incurred cash
losses during the year under report. However, the Company has incurred
cash loss in the immediately preceding year.
(xi) According to the information and explanations given to us, the
Company has not committed default in repayment of dues in respect of
its bank borrowings. The Company did not have any borrowings from
financial institutions.
(xii) In our opinion, and according to the information and explanations
given to us, during the year under report, the Company has not granted
any loans or advances against security by way of pledge of shares and
securities; accordingly, the provisions of clause (xii) of paragraph 4
of the said Order are not applicable.
(xiii) The Company is not a chit fund/nidhi/mutual benefit fund /
society and accordingly, the provisions of clause (xiii) of paragraph 4
of the said Order are not applicable.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities and other
investments as its principal business, and accordingly, the provisions
of clause (xiv) of paragraph 4 of the said Order are not applicable to
the Company.
(xv) According to the information and explanations given to us, as at
the balance sheet date, the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the Company did not avail any term loans during the year
under report. Accordingly, the provisions of clause (xvi) of paragraph
4 of the said Order are not applicable.
(xvii) In our opinion, and according to the information and
explanations given to us, and on an overall examination of the balance
sheet of the Company, prima facie, funds raised on a short-term basis
have not been used for long- term investments.
(xviii) According to the information and explanations given to us,
during the year under report, the Company did not make any preferential
allotment of shares to parties listed in the register maintained under
section 301 of the Act.
(xix) The Company has not issued any debentures during the year under
report.
(xx) During the year under report, the Company did not raise any money
through a public issue; consequently, the provisions of clause (xx) of
paragraph 4 of the Order are not applicable.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year under
report.
For Vijay Rungta & Co.
Chartered Accountants
(Firm Registration No.111427W)
Ajay Rungta
Partner
Mumbai, 15th May, 2013 Membership No.F- 40333
Mar 31, 2012
1. We have audited the attached Balance Sheet of Simplex Mills Company
Limited ('the Company') 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 (all together referred to as
'financial statements'). 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 auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 ('the Act'), and on the basis of such checks of the
books and records as we considered necessary and appropriate and
according to the information and explanations given to us during the
course of the audit, 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:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to Section 211(3C) of the Act;
e. on the basis of written representations received by the Company
from its directors and taken on record by the Board of Directors, we
report that none of the directors are disqualified as at 31st March,
2012 from being appointed as directors in terms of clause (g) of
subsection (1) of Section 274 of the Act;
f. in our opinion and to the best of our information and according to
the explanations given to us, the said financial statements give the
information required by the Act, in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii. in the case of the Statement of Profit and Loss, of the loss of
the Company for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT
[Referred to in paragraph 3 of our report of even date to the members
of Simplex Mills Company Limited on the financial statements for the
year ended 31st March, 2012]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) According to information and explanation given to us, during the
year, the management conducted physical verification of certain fixed
assets in accordance with its policy of physical verification in a
phased manner. In our opinion, such frequency is reasonable having
regard to the size of the Company and the nature of its fixed assets.
As explained to us, the discrepancies noticed on physical verification
as compared to book records maintained, were not material and have been
properly dealt with in the books of account.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off by the Company during the year.
(ii) (a) As explained to us, management conducted physical verification
of stocks of raw materials, finished goods and stores and spares at
reasonable intervals during the year, as also as at the balance sheet
date.
(b) In our opinion, and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory during the year, are reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of inventory records, we are of the
opinion that the Company has maintained proper records of inventory.
Discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
(iii) The Company has not granted / taken any loans, secured or
unsecured to companies, firms or parties covered in the register
maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to information and explanation given
to us, during the year under report, there are adequate internal
control procedures commensurate with the size of the Company and the
nature of its business for the purchase of inventory and fixed assets,
and for the sale of goods. Further, on the basis of our examination of
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
(v) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in Section 301
of the Act that are required to be entered in the register maintained
under that section, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, transactions (other than those already dealt with in
paragraph (iii) above) made pursuant to contracts or arrangements
referred to in (v) (a) above and exceeding the value of Rupees five
hundred thousand in respect of each party during the year, have been
made at prices which are reasonable having regard to the market prices
prevailing at that time, where available.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public,
to which the directives issued by the Reserve Bank of India and the
provisions of Section 58A, 58AA or any other provisions of the
Companies Act, 1956 or the rules framed there under apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company relating to the manufacture of cotton textile products,
pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Act, 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 records with a view to determining whether they are
accurate and complete.
(ix) (a) According to the information and explanations given to us, the
Company was regular during the year in depositing undisputed statutory
dues including Provident Fund, Income tax, Sales tax, Customs duty and
Excise duty with the appropriate authorities. According to the
information and explanation given to us, as at the balance sheet date,
the Company has no undisputed statutory dues of a material nature which
remained unpaid for a period exceeding six months from the date on
which they were payable.
(b) According to the information and explanation given to us, as at the
balance sheet date, the Company has not deposited dues of excise duty
aggregating to Rs 5,51,42,947/-, on account of the following disputes
pending before authorities:
Period to which dues
relate Pending before (In Rs)
1984-85 and 1995-96 Assistant Commissioner 49,13,695
1994 to 1996 Commissioner (Appeals) 2,48,38,789
1981-84,1981-95 and 2004 CESTAT 1,59,12,647
1981 to 1984 High Court 53,27,261
2002- 03 Supreme Court 41,50,555
Total 5,51,42,947
(x) As at the balance sheet date, the Company's accumulated losses does
not exceed fifty percent of its net worth within the meaning of Section
2(29A) of the Companies Act, 1956. The Company has incurred cash losses
during the year under report.
(xi) According to the information and explanations given to us, the
Company has not committed default in repayment of dues in respect of
its bank borrowings. The Company did not have any borrowings from
financial institutions.
(xii) In our opinion, and according to the information and explanations
given to us, during the year under report, the Company has not granted
any loans or advances against security by way of pledge of shares and
securities; accordingly, the provisions of clause (xii) of paragraph 4
of the said Order are not applicable.
(xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
society and accordingly, the provisions of clause
(xiii) of paragraph 4 of the said Order are not applicable.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities and other
investments as its principal business, and accordingly the provisions
of clause (xiv) of paragraph 4 of the said Order are not applicable to
the Company.
(xv) According to the information and explanations given to us, as at
the balance sheet date, the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the Company did not avail any term loans during the year
under report. Accordingly, the provisions of clause (xvi) of paragraph
4 of the said Order are not applicable.
(xvii) In our opinion, and according to the information and
explanations given to us, and on an overall examination of the balance
sheet of the Company, prima facie, funds raised on a short-term basis
have not been used for long- term investments.
(xviii) According to the information and explanations given to us,
during the year under report, the Company did not make any preferential
allotment of shares to parties listed in the register maintained under
section 301 of the Act.
(xix) The Company has not issued any debentures during the year under
report.
(xx) During the year under report, the company did not raise any money
through a public issue; consequently, the provisions of clause (xx) of
paragraph 4 of the Order are not applicable.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year under
report.
For Vijay Rungta & Co.
Chartered Accountants
(Firm Registration No. 111427W)
Ajay Rungta
Partner
Mumbai, 14th May, 2012 Membership No: F- 40333
Mar 31, 2011
1. We have audited the attached Balance Sheet of Simplex Mills Company
Limited ('the Company') as at March 31,2011 and also the Profit and
Loss Account and the Cash Flow Statement of the Company for the year
ended on that date, annexed thereto (all together referred to as
'financial statements'). These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on ouv audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 ('the Act'), and on the basis of such checks of the
books and records as we considered necessary and appropriate and
according to the information and explanations given to us during the
course of the audit, 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:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books;
c. the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. in our opinion', the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to Section 211 (3C) of the Act;
e. on the basis of written representations received by the Company
from its directors and taken on record by the Board of Directors, we
report that none of the directors is disqualified as at March 31, 2011
from being appointed as a director in terms of clause (g) of subsection
(1) of Section 274 of the Act;
f. in our opinion and to the best of our information and according to
the explanations given to us, the said financial statements give the
information required by the Act, in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2011;
ii. in the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date;
and
iii. in the case of the Cash Flow Statement, of the cash flows of- the
Company for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT
[Referred to in paragraph 3 of our report of even date to the members
of Simplex Mills Company Limited on the financial statements for the
year ended March 31,2011 ]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) According to information and explanation given to us, during the
year, the management conducted physical verification of certain fixed
assets in accordance with its policy of physical verification in a
phased manner. In our opinion, such frequency is reasonable having
regard to the size of the Company and the nature of its fixed assets.
As explained to us, the discrepancies noticed on physical verification
as compared to book records maintained, were not material and have been
properly dealt with in the books of account.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off by the company during the year.
(ii) (a) As explained to us, management conducted physical verification
of stocks of raw materials, finished goods and stores and spares at
reasonable intervals during the year, as also as at the balance sheet
date.
(b) In our opinion, and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory during the year, are reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of inventory records, we are of the
opinion that the Company has maintained proper records of inventory.
Discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
(iii) (a) The Company has granted interest free advance to one company
which is covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year
amounted to Rs. 0.19 lacs.
(b) In our opinion, other terms and conditions on which the Company has
given loans are not, prima facie, prejudicial to the interest of the
Company.
(c) The Company is recovering the principal amounts as stipulated and
is also regular in recovery of interest, where applicable.
(d) There are no overdue amounts of more than Rupees one lakh in
respect of loan given.
(e) The Company has not taken any loan from any Company covered in the
Register maintained under section 301 of the Companies Act,1956. Hence
Clause (iii) (f) and (iii) (g) of Paragraph 4 of the Order are not
applicable to the Company.
(iv) In our opinion and according to information and explanation given
to us, during the year under report, there are adequate internal
control procedures commensurate with the size of the Company and the
nature of its business for the purchase of inventory and fixed assets,
and for the sale of goods. Further, on the basis of our examination of
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
(v) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in Section 301
of the Act that are required to be entered in the register maintained
under that section, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, transactions (other than those already dealt with in
paragraph (iii) above) made pursuant to contracts or arrangements
referred to in (v) (a) above and exceeding the value of Rupees five
hundred thousand in respect of each party during the year, have been
made at prices which are reasonable having regard to the market prices
prevailing at that time, where available.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public,
to which the directives issued by the Reserve Bank of India and the
provisions of Section 58A, 58AAor any other provisions of the Companies
Act, 1956 or the rules framed there under apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company relating to the manufacture of cotton textile products,
pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(1 )(d) of the Act, 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 records with a view to determining whether
they are accurate and complete.
(ix) (a) According to the information and explanations given to us, the
Company was regular during the year in depositing undisputed statutory
dues including Provident Fund, Income tax, Sales tax, Customs duty and
Excise duty with the appropriate authorities. According to the
information and explanation given to us, as at the balance sheet date,
the Company has no undisputed statutory dues of a material nature which
remained unpaid for a period exceeding six months from the date on
which they were payable.
(b) According to the information and explanation given to us, as at the
balance sheet date, the Company has not deposited dues of excise duty
aggregating to Rs. 551.43 lacs, on account of the following disputes
pending before authorities:
Period to which dues relate Pending before Rs. In lacs.
1984-85 and 1995-96 Assistant Commissioner 49.13
1994 to 1996 Commissioner (Appeals) 248.39
1981-84,1981-95, and 2004 CESTAT 159.13
1981 to 1984 High Court 53.27
2002-03 Supreme Court 41.51
Total 551.43
(x) As at the balance sheet date, the Company's accumulated losses does
not exceed fifty percent of its net worth within the meaning of Section
2(29A) of the Companies Act, 1956. The Company has not incurred any
cash losses during the year under report.
(xi) According to the information and explanations given to us, the
Company has not committed default in repayment of dues in respect of
its bank borrowings. The Company did not have any borrowings from
financial institutions.
(xii) In our opinion, and according to the information and explanations
given to us, during the year under report, the Company has not granted
any loans or advances against security by way of pledge of shares and
securities; accordingly, the provisions of clause (xii) of paragraph 4
of the said Order are not applicable.
(xiii) The Company is not a chit fund/nidhi/mutual benefit fund/society
and accordingly, the provisions of clause (xiii) of paragraph 4 of the
said Order are not applicable.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities and other
investments as its principal business, and accordingly the provisions
of clause (xiv) of paragraph 4 of the said Order are not applicable to
the Company.
(xv) According to the information and explanations given to us, as at
the balance sheet date, the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
(xvii)ln our opinion and according to the information and explanations
given to us, the Company did not avail any term loans during the year
under report. Accordingly, the provisions of clause (xvi) of paragraph
4 of the said Order are not applicable.
(xvii) In our opinion, and according to the information and
explanations given to us, and on an overall examination of the balance
sheet of the Company, prima facie, funds raised on a short-term basis
have not been used for long- term investments
(xviii)According to the information and explanations given to us,
during the year under report, the Company did not make any preferential
allotment of shares to parties listed in the register maintained under
section 301 of the Act.
(xix) The Company has not issued any debentures during the year under
report.
(xx) During the year under report, the company did not raise any money
through a public issue; consequently, the provisions of clause (xx) of
paragraph 4 of the Order are not applicable.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year under
report.
For Vijay Rungta & Co.
Chartered Accountants
(Firm Registration No. 111427W)
Ajay Rungta
Partner
Membership No: F- 40333
Mumbai, May 14, 2011
Mar 31, 2010
1. We have audited the attached Balance of Simplex Mills Limited (the
Company) as at March 31.2010 and also the Profit and Loss Account and
the Cash Flow Statement of the company for the year ended on the date,
annexed there to (all together referred to as financial statements).
These finacial statement are the responsibilit of the Companys
management. Our responsibility is to express an opinion on these
finacial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining. on a test basis, evidence supporting the amoints
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluting the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3.As required by the Companies (Auditoss Report) Order, 2003 issued by
the central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 (the Act), and on the basis of such checks of the
books and record we considered necessary and appropriate and according
to the information and explanations given to us during the course of
the audit, 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:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
c. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. in our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report compl with the accounting
standards referred to Section 211 (3C0 of the Act;
e. on the basis of written representations received by the Company from
is directors and taken on record by the Board of Directors, we report
none of the directors is disqualified as at March 31,2010 from being
appointed as a director in terms of clause (g) of subsection (1) of
Section 274 of the Act;
f. in our opinion and to the best of our information and according to
the explanations giben to us, the said financial statements give the
information required by the Act, in the manner so required and give a
true and fair view in conformit with the accounting principles
generally accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2010;
ii. in the case of the Profit and Loss Account, of the profit of the
Company forthe year ended on that date; and iii. in case of the Cash
Flow Statement, of the cash flows of the Company for the year ended on
that date.
ANNEXURE TO AUDITORS REPORT
[Referred to in paragraph 3 of our report of even date to the members
of Simplex Mills Company Limited on the financial statements for the
year ended March 31,2010]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) According to information and explanation given to us, during the
year, the management conducted physical verification of certain fixed
assets in accordance with its policy of physical verification in a
phased manner. In our opinion, such frequency is reasonable having
regard to the size of the Company and the nature of its fixed assets.
As explained to us, the discrepancies noticed on physical verification
as compared to book records maintained, were not material and have been
properly dealt with in the books of account.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off by the company during the year.
(ii) (a) As explained to us, management conducted physical verification
of stocks of raw materials, finished goods and stores and spares at
reasonable intervals during the year, as also as at the balance sheet
date. In respect of stocks with third parties as at the balance sheet
date, the management has received written confirmations for a
substantial quantity.
(b) In our opinion, and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory during the year, are reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of inventory records, we are of the
opinion that the Company has maintained proper records of inventory.
Discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
(iii) (a) In our opinion and according to the information and
explanations given to us, the Company has not granted any loans,
secured and unsecured to companies, firms or other parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
Consequently, the provisions of sub-clauses (b), (c) and (d) of clause
(iii)ofparagraph4oftheOrderarenotapplicable.
(b) In our opinion and according to the information and explanations
given to us, the Company has not availed any loans, secured and
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the Act. Consequently, the
provisions of sub-clauses (f) and (g) of the clause (iii) of paragraph
4 of the orderare not applicable.
(iv) In our opinion and according to information and explanation given
to us, during the year under report, there are adequate internal
control procedures commensurate with the size of the Company and the
nature of its business for the purchase of inventory and fixed assets,
and for the sale of goods. Further, on the basis of our examination of
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
(v) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in Section 301
of the Act that are required to be entered in the register maintained
under that section, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, transactions (other than those already dealt with in
paragraph (iii) above) made pursuant to contracts or arrangements
referred to in (v) (a) above and exceeding the value of Rupees five
hundred thousand in respect of each party during the year, have been
made at prices which are reasonable having regard to the market prices
prevailing at that time, where available.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public,
to which the directives issued by the Reserve Bank of India and the
provisions of Section 58A, 58AAor any other provisions of the Companies
Act, 1956 or the rules framed there under apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company relating to the manufacture of cotton textile products,
pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(1 )(d) of the Act, 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 records with a view to determining whether
they are accurate and complete.
(ix) (a) According to the information and explanations given to us, the
Company was regular during the year in depositing undisputed statutory
dues including Provident Fund, Income tax, Sales tax, Customs duty and
Excise duty with the appropriate authorities. According to the
information and explanation given to us, as at the balance sheet date,
the Company has no undisputed statutory dues of a material nature which
remained unpaid for a period exceeding six months from the date on
which they were payable.
(b) According to the information and explanation given to us, as at the
balance sheet date, the Company has not deposited dues of excise duty
and Income tax aggregating to Rs. 551.43 lacs, on account of the
following disputes pending before authorities:
Period to which dues relate Pending before Rs. In lacs.
1984-85 and 1995-96 Assistant Commissioner 49.13
1994 to 1996 Commissioner (Appeals) 248.39
1981-84,1981-95, and 2004 CESTAT 159.13
1981 to 1984 High Court 53.27
2002-03 Supreme Court 41.51
Total 551.43
(x) As at the balance sheet date, the Companys accumulated losses does
not exceed fifty percent of its net worth within the meaning of Section
2(29A) of the Companies Act, 1956. The Company has not incurred any
cash losses during the year under report. It has incurred cash losses
in the preceding financial year of Rs. 100.74 lacs.
(xi) According to the information and explanations given to us, the
Company has not committed default in repayment of dues in respect of
its bank borrowings. The Company did not have any borrowings from
financial institutions.
(xii) In our opinion, and according to the information and explanations
given to us, during the year under report, the Company has not granted
any loans or advances against security by way of pledge of shares and
securities; accordingly, the provisions of clause (xii) of paragraph 4
of the said Order are not applicable.
(xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
society and accordingly, the provisions of clause (xiii)
ofparagraph4ofthesaidOrderarenotapplicable.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities and other
investments as its principal business, and accordingly the provisions
of clause (xiv) of paragraph 4 of the said Order are not applicable to
the Company.
(xv) According to the information and explanations given to us, as at
the balance sheet date, the Company has not given any guarantees for
loans taken by others from banks orfinancial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the Company did not avail any term loans during the year
under report. Accordingly, the provisions of clause (xvi) of paragraph
4 of the said Order are not applicable.
(xvii)ln our opinion, and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
Company, prima facie, funds raised on a short-term basis have not been
used for long- term investments
(xviii)According to the information and explanations given to us,
during the year under report, the Company did not make any preferential
allotment of shares to parties listed in the register maintained under
section 301 of the Act.
(xix) The Company has not issued any debentures during the year under
report.
(xx) During the year under report, the company did not raise any money
through a public issue; consequently, the provisions of clause (xx) of
paragraph 4 of the Orderare not applicable.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year under
report.
For Vijay Rungta & Co.
Chartered Accountants
(Firm Registration N0.111427W)
Ajay Rungta
Partner
Membership No: F-40333
Mumbai,May21,2010
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