Mar 31, 2015
We have audited the accompanying financial statements of Sri Lakshmi
Saraswathi Textiles (Arni) Limited, (the company) which comprise the
Balance Sheet as at March 31, 2015, Statement of Profit and Loss & the
Cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements.
The Company's Board of Directors is responsible for the matters stated
in Sec 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 Principals
generally accepted in India, including the Accounting Standards
specified under Sec 133 of the act, read with Rule 7 of the Companies
(Accounts) Rules, 2014. This responsibility 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 judgements and estimates, that
are reasonable and prudent and the design, implementation and
maintenance of adequate 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 Sec
143 (10) of the act. Those standards require that we comply that
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give 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 control
system over financial reporting and operating effectiveness of the such
control. An audit also includes evaluating the appropriateness of
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 qualified audit opinion on the
financial statements.
Qualified 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 March 31, 2015
b) in the case of Statement of Profit and Loss , of the LOSS for the
year ended on that date; and
c) in the case of Cash flow Statement, of the cash flows for the year
ended on that date; Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 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 3 and 4 of the Order.
2. As required by section 143(3) of the Companies Act 2013, 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) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, 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) Except for the effects for the matters described in the Basis for
Qualified Opinion paragraph above, in our opinion, the Balance Sheet,
Statement of Profit and Loss & the Cash flow Statement comply with the
Accounting Standards specified under the Section 133 of the act, read
with rule 7 in Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of of sub-section (2) of section 164
of the act.
f) The qualification relating to the maintenance of accounts and other
matters connected therewith are as stated in the Basis for Qualified
Opinion paragraph above.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
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 its fixed
assets.
(b) The company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
at reasonable intervals by the management. According to the
information and explanations given to us, no material discrepancies
where observed by the management on such verification.
(ii) (a) The stock of inventory has been physically verified by the
management at reasonable intervals during the year. In our opinion the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size and nature of its business.
(c) The company is maintaining proper records of inventory. No material
discrepancy was noticed on such physical verification.
(iii) According to the information and explanations given to us and on
the basis of our examination of the books of accounts, the Company has
not granted any loans, secured or unsecured to companies, firms or
other parties covered in the register maintained under section 189 of
the Companies Act 2013. Consequently the provisions of clause (iii) (a)
(b) and (c) are not applicable to the company.
(iv) In our opinion and according to the 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 for the 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 during
the year.
(vi) Central Government has prescribed maintenance of cost records
under sub- section (1) of section 148 of the Companies Act and such
accounts and records have been prepared and maintained by the company.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the company, amount
deducted or accrued in the books of account in respect of of undisputed
statutory dues including provident fund, income-tax, sales tax, wealth
tax, service tax, value added tax, cess and other material statutory
dues have been regularly deposited by the Company with the appropriate
authorities. As explained to us, the Company did not have any dues on
account of employees' state insurance and duty of excise.
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, 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 provident fund, sales tax, wealth tax, service
tax, value added tax, cess which have not been deposited with the
appropriate authorities on account of any dispute. However, according
to the information and explanations given to us, the following dues of
income tax and employees' state insurance have not been deposited by
the company on account of disputes.
Name of the Nature of dues Amount Period to which the
Statue Rs. amount relates
Income-tax Income tax 12,21,350 Assessment year
Act 1961 1999 - 2000
Income-tax Assessment year
Act 1961 Income tax 33,86,521 2000 - 2001
Total 46,07,871
Employee's Contribution 4,15,356 2000-01
State Employee's
Act 1948 State
Insurance
Corporation
Name of the Forum where dispute
Statue is pending
Income-tax IT Appeals before
Act 1961 ITAT, & High Court
Income-tax IT Appeals before
Act 1961 ITAT, & High Court
Employee's State High Court
Insurance Act 1948
(c) According to the information and explanations given to us, the
amounts which were required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder has been
transferred to such fund within time.
(viii) The Company has accumulated losses as at March 31, 2015 and has
incurred cash loss in the financial year and there was no cash loss in
the immediately preceding financial year.
(ix) The company did not have any outstanding dues to financial
institutions, banks during the year.
(x) In our opinion and according to the information and explanations
given to us the company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xi) The Company did not have any term loans outstanding during the
year.
(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.
17, Bishop Wallers Avenue (West), For M/s S Viswanathan
CIT Colony, Mylapore, Chartered Accountant
Chennai - 600 004. FRN: 004770S
Place: Chennai
Date: May 26, 2015 Chella K Srinivasan
Partner
Membership No: .023305
Mar 31, 2014
Report on the Financial Statements.
We have audited the accompanying financial statements of SRI LAKSHMI
SARASWATHI TEXTILES (ARNI) LIMITED, which comprise the Balance Sheet as
at March 31, 2014, and 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.
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 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, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of 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 Statement of Profit and Loss , of the Profit for the
year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order'') issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of accounts 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 & 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 &
Cash flow statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the Directors
as on 31st March, 2014 and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31st March, 2014 from being
appointed as a Director in terms of Clause(g) of Sub-section(1) of
Section 274 of the Act.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of SRI LAKSHMI SARASWATHI TEXTILES (ARNI) LIMITED . On
the accounts of the company for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Fixed assets have been physically verified by the management during
the year and no material discrepancies were identified on such
verification.
(c) There was no disposal of a substantial part of the fixed assets
during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) As informed, the Company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, sub-clauses (b), (c) and (d) are not applicable.
(e) The Company has taken unsecured loan from a company covered in the
Register maintained under section 301 of the Companies Act, 1956.
However, the terms of Repayment and Interest are not prejudicial to the
interest of the company.
(f) Maximum amount of loan outstanding during the year being
Rs.85,00,000/- while the loan outstanding as on 31st March, 2014 is
Rs.55,00,000/-.
(g) The payment of principal amount and the interest were regular
during the year.
(iv) There is an adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services and
no major weakness has been noticed in the internal control system.
(v) The particulars of contracts and arrangements that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956 have been so entered.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company has not appointed an external agency as internal
auditor during the year under review.
(viii)Central Government has prescribed maintenance of Cost Records
under Section 209(1)(d) of the Act and such accounts and records have
been prepared and maintained.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income-tax, Customs duty, Value Added Tax, wealth-tax, service tax,
cess and other material statutory dues with the appropriate authorities
and there were no undisputed amounts payable which were in arrears as
at 31st March 2014 for a period more than six months from the date they
became payable.
(b) According to the records of the Company, the dues outstanding of
income-tax, sales- tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the Nature of
dues Amount Period to
which the Forum where dispute
Statue Rs. amount
relates is pending
Income-tax
Act 1961 Income
tax 21,52,094 Assessment
year IT Appeals before
ITAT,
1999-2000 & High Court
Income-
tax Act
1961 Income
tax 54,43,989 Assessment
year IT Appeals before
ITAT,
2000-2001 & High Court
Total 75,96,083
Contrib
-ution to
Employee''s
State 4,15,356 2000-01 High Court
Employ
-ee''s
State
Insurance
Act 1948 Insurance
Corpor
-ation
* Excludes interest and penalty.
(x) The Company has accumulated losses at the end of the financial
year, however it has not incurred cash losses in the current and
immediately preceding financial year.
(xi) The Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
society and hence, Clause (xiii) of Paragraph 4 of the Order is not
applicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of
clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 (as
amended) are not applicable to the Company.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) Term loans borrowed by the Company were applied for the purpose
for which the loans were obtained and term loans have been closed at
the end of the year.
(xvii) Funds raised on short-term basis have not been used for
long-term investments.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures and hence, creation of
charge does not arise.
(xx) The Company has not raised any money through public issue and
hence, disclosure and verification of end use of money raised through
public issues does not arise.
(xxi) According to the information and explanation given to us, we
report that no fraud on or by the Company has been noticed or reported
during the course of our audit.
For M/s. S. VISWANATHAN
Chartered Accountants
FRN No.004770S
Place : Chennai
CHELLA K. SRINIVASAN
Date : May 29, 2014 PARTNER
Membership Number: 023305
Mar 31, 2013
Report on the Financial Statements.
We have audited the accompanying financial statements of Sri Lakshmi
Saraswathi Textiles (Arni) Limited, which comprise the Balance Sheet as
at March 31, 2013, and the Statement of Profit or Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information
Director''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. 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 March 31, 2013;
b) in the case of the Profit and Loss Account, of the PROFIT for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the 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
ofaccount.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in Paragraph (3) of our report of even date)
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) According to the information and explanation given to us, the fixed
assets have been physically verified during the year by the management
at reasonable intervals. No material discrepancies were noticed on such
verification.
c) During the year, the Company has not disposed off any major part of
its fixed assets, affecting the going concern.
2. a) Physical verification of stocks of Finished Goods, Stores, Spare
Parts and Raw materials was conducted by the management during the
period, except materials lying with third parties for whom confirmation
certificates have been obtained in some cases. Materials in Bond have
been verified with the respective Bills of Entry. In our opinion, the
frequency of verification was reasonable.
b) The procedures of physical verification of stocks followed by the
management are reasonable and adequate, commensurate to the size of the
company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material and were also
adjusted.
3. a) The Company has not granted any loan to any party covered in the
Register maintained under Section 301 of the Companies Act, 1956.
b) The Company has taken unsecured loan, from a company covered in the
Register maintained under section 301 of the Companies Act 1956.
However, the terms of repayment and interest are not prejudicial to the
interest of the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures,
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and fixed assets and with
regard to sale of goods.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts and arrangements that need to
be entered into the Register maintained under section 301 of the
Companies Act, 1956 have been so entered.
b) The above said transactions have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. As explained to us, the company is complying with the terms of
Section 58A, 58AA and all other relevant provisions of the Companies
Act, 1956, in respect of deposits accepted during the year.
7. The Company does not have a formal internal audit system during the
year under review. However, the internal control procedures involve
adequate internal checking of financial records.
8. Central Government has prescribed the maintenance of Cost Records
under Section 209 (1) (d) of the Companies Act, 1956 and such accounts
and records have been made and maintained.
9. The Company is regular in depositing its undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with
the appropriate authorities.
10. The Company has not defaulted in repayment of dues to Financial
Institutions or Banks.
11. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
12. None of the provisions of any special statute applicable to chit
fund, nidhi or mutual benefit society is applicable to the Company.
13. The Company is not dealing or trading in shares, securities,
debentures and other investment.
14. The company has not given any guarantee for loans taken by others
from banks or financial institution.
15. The term loans have been applied for the purpose for which they
were raised.
16. The funds raised by the Company on short-term basis have not been
used for long-term investments.
17. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
18. The Company has not issued any debentures during the year.
19. The Company has not made any public issue during the year.
20. No fraud on or by the Company has been noticed or reported during
the course of our audit.
21. In our opinion, the company is not dealing in or trading in
Shares, Securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditors'' Report) Order,
2003, as amended by the Companies (Auditors'' Report) (Amendment) Order,
2004 are not applicable to the company.
For M/s. S. VISWANATHAN
Chartered Accountants
Firm NO.004770S
Place : Chennai
Date : May29,2013 Membership Number: 023305
Mar 31, 2012
We have audited the attached Balance Sheet of M/s. Sri Lakshmi
Saraswathi Textiles (Ami) Limited as at 31st Mairch 2012 and also
statement of the Profit and Loss Account of the Company for the year
ended on that date annexed thereto and Cash Flow Statement for the year
ended on that date. These financial statements are the responsibility
of the Company's Management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We have 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 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.
As required by the Companies (Auditors' Report) Order, 2003, as
amended by the Companies (Auditors' Report) (Amendment) Order, 2004,
issued by the Company Law Board in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the annexure a statement of the
matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in Annexure referred to above, we report that;
a) We have obtained all the information and explanation which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the company, so far as appears from our examination of the
books.
c) The balance sheet and profit and loss account dealt with by this
report are in agreement with the books of accounts.
d) In our opinion, the Balance Sheet and Profit and Loss Account read
with Schedules and Notes thereon dealt with by this Report comply with
the Accounting Standards referred to in Sub-Section (3C) of Section 211
of the CompaniesvAct 1956, so far as applicable.
e) On the basis of the written representation received from the
directors as on 31st March 2012 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 subsection <1) of Section 274 of the
Companies Act 1956.
f) In our opinion and to the best of our information and explanation
given to us, the said accounts read with notes thereon give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
i. In the case of Balance Sheet, of the state of affairs of the
Company as at 3151 March 2012 and
ii. In the case of statement of Profit and Loss Account of the LOSS for
the year ended on that date.
iii. In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in Paragraph (3) of our report of even date)
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) According to the information and explanation given to us, the fixed
assets have been physically verified during the year by the management
at reasonable intervals. No material discrepancies were noticed on such
verification. Ã
c) During the year, the Company has not disposed off any major part of
its fixed assets, affecting the going concern.
2. a) Physical verification of stocks of Finished Goods, Stores, Spare
Parts and Raw materials was conducted by the management during the
period, except materials lying with third parties for whom confirmation
certificates have been obtained in some cases. Materials in Bond have
been verified with the respective Bills of Entry. In our opinion, the
frequency of verification was reasonable.
b) The procedures of physical verification of stocks followed by the
management are reasonable and adequate, commensurate to the size of the
company and the nature of its business.
c) On the basis of our examination.of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material and were also
adjusted.
3. a) The Company has not granted any loan to any party covered in the
Register maintained under
Section 301 of the Companies Act, 1956.
b) The Company has taken unsecured loan, from a company covered in the
Register maintained under section 301 of the Companies Act 1956.
However, the terms of repayment and interest are not prejudicial to the
interest of the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures,
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and fixed assets and with
regard to sale of goods.
5. a) Based on the audit procedures applied by us and according to the
information and explanations
provided by the management, we are of the opinion that the particulars
of contracts and arrangements that need to be entered into the Register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
b) The above said transactions have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. As explained to us, the company is complying with the terms of
Section 58A, 58AA and all other relevant provisions of the Companies
Act, 1956, in respect of deposits accepted during the year.
7. The Company does not have a formal internal audit system during the
year under review. However, the internal control procedures involve
adequate internal checking of financial records.
8. Central Government has prescribed the maintenance of Cost Records
under Section 209 (1) (d) of the Companies Act, 1956 and such accounts
and records have been made and maintained.
9. a) The Company is regular in depositing its undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Cess and any other statutory
dues with the appropriate authorities.
b) At the end of the financial year there were no dues of sales Tax,
Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess
which have not been deposited on account of any dispute except as
follows:
Name of
the
statute Nature
of dues Amount Forum where dispute
is pending
Income
tax Income tax Rs. 1,30,76,791 IT Appeals before
ITAT & CIT (A) &
High Court
ESI ESI Rs. 4,15,356 High Court
10. The Company has not defaulted in repayment of dues to Financial
Institutions or Banks.
11. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
12. None of the provisions of any special statute applicable to chit
fund, nidhi or mutual benefit society is applicable to the Company.
13. The Company is not dealing or trading in shares, securities,
debentures and other investment.
14. The company has not given any guarantee for loans taken by others
from banks or financial institution.
15. The term loans have been applied for the purpose for which they
were raised.
16. The funds raised by the Company on short-term basis have not been
used for long-term investments.
17. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
18. The Company has not issued any debentures during the year.
19. The Company has not made any public issue during the year.
20. No fraud on or by the Company has been noticed or reported during
the course of our audit.
21. In our opinion, the company is not dealing in or trading in
Shares, Securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditors' Report)
Order, 2003, as amended by the Companies (Auditors' Report)
(Amendment) Order, 2004 are not applicable to the company.
For M/s. S. VISWANATHAN
Chartered Accountants
Firm No.004770S
Place : Chennai
Date :August08,2012 CHELLA K. SRINIVASAN
PARTNER
Membership Number: 023305
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. Sri Lakshmi
Saraswathi Textiles (Ami) Limited as at 31st March 2010 and also the
Profit and Loss Account of the Company for the year ended on that date
annexed thereto and Cash Flow Statement for the year ended on that
date. These financial statements are the responsibility of the
Companys Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We have 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 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
ouropinion.
As required by the Companies (Auditors Report) Order, 2003, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004, issued by
the Company Law Board in terms of Section 227(4A) of the Companies Act,
1956, we enclose in the annexure a statement of the matters specified
in paragraphs 4 and 5 of the said Order.
Further to our comments in Annexure referred to above, we report that;
a) We have obtained all the information and explanation which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the company, so far as appears from our examination of the
books.
c) The balance sheet and profit and loss account dealt with by this
report are in agreement with the books of accounts.
d) In our opinion, the Balance Sheet and Profit and Loss Account read
with Schedules and Notes thereon dealt with by this Report comply with
the Accounting Standards referred to in Sub-Section (3C) of Section 211
of the Companies Act 1956, so far as applicable.
e) On the basis of the written representation received from the
directors as on 31st March 2010 we report that none of the directors is
disqualified as oh 31s! March 2010 from being appointed as a director
in terms of clause (g) of subsection (1) of Section 274 of the
Companies Act 1956.
f) In our opinion and to the best of our information and explanation
given to us, the said accounts read with notes thereon give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
i. In the case of Balance Sheet, of the state of affairs of the
Company as at 31stMarch 2010 and ii. In the case of Profit and Loss
Account of the LOSS for the year ended on that date. iii. In the case
of Cash Flow Statement, of the cash flows for the year ended on that
date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in Paragraph (3) of our
report of even date)
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) According to the information and explanation given to us, the fixed
assets have been physically verified during the year by the management
at reasonable intervals. No material discrepancies were noticed on such
verification.
c) During the year, the Company has not disposed off any major part of
its fixed assets, affecting the going concern.
2. a) Physical verification of stocks of Finished Goods, Stores, Spare
Parts and Raw materials was conducted by the management during the
period, except materials lying with third parties for whom confirmation
certificates have been obtained in some cases. Materials in Bond have
been verified with the respective Bills of Entry. In our opinion, the
frequency of verification was reasonable.
b) The procedures of physical verification of stocks followed by the
management are reasonable and adequate, commensurate to the size of the
company and the nature of its business.
c} Oh the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material and were also
adjusted.
3. a) The Company has not granted any foan to any party covered in the
Register maintained under Section 301 of the Companies Act, 1956.
b) The Company has taken unsecured loan, from a company covered in the
Register maintained under section 301 of the Companies Act 1956 and
from a Director. However, the terms of repayment and interest are not
prejudicial to the interest of the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures,
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and fixed assets and with
regard to sale of goods.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts and arrangements that need to
be entered into the Register maintained under section 301 of the
Companies Act, 1956 have been so entered.
b) The above said transactions have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. As explained to us, the company is complying with the terms of
Section 58A, 58AA and all other relevant provisions of the Companies
Act, 1956, in respect of deposits accepted during the year.
7. The Company does not have a formal internal audit system during the
year under review. However, the internal control procedures involve
adequate internal checking of financial records.
8. Central Government has prescribed the maintenance of Cost Records
under Section 209 (1) (d) of the Companies Act, 1956 and such accounts
and records have been made and maintained.
9. a) The Company is regular in depositing its undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees State insurance, Income Tax, Sales Tax, Wealth.Tax, Service
Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with
the appropriate authorities.
b) At the end of the financial,year there were no dues of Sales Tax,
Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess
which have not been deposited on account of any dispute except as
follows:
Name of the statue Nature of dues Amount Forum where dispute
is pending
Income tax Income tax Rs. 1,30,76,791 IT Appeals before
ITAT & CIT(A)
& High Court
ESI ESI Rs. 4,15,356 Labour Court
10.The Company does not have accumulated losses. However, the Company
has incurred cash loss during the financial year 2009-10 and in the
previous financial year.
11.The Company has not defaulted in repayment of dues to Financial
Institutions or Banks.
12.The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13.None of the provisions of any special statute applicable to chit
fund, nidhi or mutual benefit society is applicable to the Company.
14.The Company is not dealing or trading in shares, securities,
debentures and other investment.
15.The company has not given any guarantee for loans taken by others
from banks or financial institution.
16.The term loans have been applied for the purpose for which they were
raised.
17.The funds raised by the Company on short-term basis have not been
used for long term investments.
18.The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
19.The Company has not issued any debentures during the year.
20.The Company has not made any public issue during the year.
21.No fraud on or by the Company has been noticed or reported during
the course of our audit.
22.in our opinion, the company is not dealing in or trading in Shares,
Securities, debentures and other investments. Accordingly, the
provisions-of clause 4 (xiv) of the Companies (Auditors Report) Order,
2003, as amended by the Companies (Auditors Report) (Amendment) Order,
2004 are not applicable to the company.
For M/s. S. VISWANATHAN
Chartered Accountants
Firm NO.004770S
CHELLAK.SRINIVASAN
Place : Chennai PARTNER
Date : May 28, 2010 Membership Number:23305