| We have audited the accompanying financial statements of INTEGRA
GARMENTS AND TEXTILES LIMITED (FORMERLY KNOWN AS FIVE STAR MERCANTILE
LIMITED)("the Company"), which comprise the Balance Sheet as at
31/03/2015, the statement of Profit and Loss, the cash fl ow statement
for the year then ended, and a summary of the 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 of these financial statements that give a true and
fair view of the financial position, financial performance and cash
fl ows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards specifi
es 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 of the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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. 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, of the state of affairs of the Company as
at 31/03/2015, and its Loss and it's cash fl ows for the year ended on
that date.
Emphasis of Matter
Without qualifying our opinion, we draw attention to the fact that the
company has suffered loss of R1,73,18,276/- during the current year and
the accumulated losses are R19,65,88,375/- under Reserve & Surplus.
There was no business operation during the year. In view of the same,
we are unable to express our opinion on Going Concern Status of the
Company.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors' Report) Order,2015 ("the
Order") issued by the Central Government of India in terms of sub
section (11) of section 143 of the Companies Act, 2013. We give in the
Annexure A statements on the matters specified in paragraphs 3 and 4
of the order, to the extent applicable.
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
fl ow 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 specifies 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 31/03/2015 taken on record by the Board of Directors,
none of the directors is disqualified as 31/03/2015 from being
appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report 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.
ii. The Company has made provisions, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
(1) In Respect of Fixed Assets
(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.
(2) In Respect of Inventory
(a) Physical verification of inventory has been conducted at
reasonable intervals by the management.
(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) Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification.
(3) Loans and advances to parties covered under section 189
As informed to us, the Company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained us 189 of the Act, so sub clause (a) and (b) of this clause
are not applicable.
(a) N.A.
(b) There is no overdue amount of any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act
(4) Internal Control in reference to Purchase of Inventory and Fixed
Assets and whether there is continue failure of Internal control There
are adequate internal control systems 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. During the
course of our audit no major weakness has been noticed in the internal
control system.
(5) Rules followed while accepting Deposits
No deposits within the meaning of Sections 73 to 76 or any other
relevant provision of the Act and rules farmed there under have been
accepted by the Company.
(6) Maintenance of cost records
The Company is not required to maintain cost records pursuant to the
Rules made by the Central Government for the maintenance of cost
records under sub-section (I) of section 148 of the Companies Act.
(7) According to the information and explanations given to us in
respect of statutory dues
(a) The company is regular in depositing the undisputed statutory dues
including provident fund, employees' state insurance, income-tax,
sales-tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax or cess and any other statutory dues with the
appropriate authorities. No undisputed amounts payable in respect of
the aforesaid statutory dues were outstanding as at the last day of the
financial year for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income-tax, sales-tax, wealth tax, service tax, duty
of customs, duty of excise, value added tax or cess and any other
statutory dues with the appropriate authorities were in arrears, as at
31st March, 2015 for a period of more than six months from the date
they became payable.
(c) No
(8) Company which has been registered for a period less than five
years and accumulated losses are more than 50% of Net worth, Reporting
of cash Losses
The company's accumulated losses at the end of the financial year are
more than Fifty percent of its net worth. The company has incurred cash
loss of R22,36,161/- during the year. In the immediately preceding fi
nancial year the company had incurred cash loss of R1,00,59,269/-.
(9) Default in Repayment of Loans taken from Bank or Financial
Institutions
The company has not defaulted in repayment of dues to financial
institution or bank.
(10) Terms for Loans and Advances from Banks or Financial Institutions
prejudicial to the interest of the company On the basis of records
examined by us and information provided by the management, we are of
the opinion that the company has not given guarantees for loans taken
by other from banks or financial institutions.
(11) Application versus purpose for which Loan Granted
The company did not have any term loans outstanding during the year.
(12) Reporting of Fraud During the Year Nature and Amount
According to the information and explanation given to us, no fraud on
or by the company has been noticed or reported during the year.
FOR D. DADHEECH & CO.
Chartered Accountants
Firm Registration No. 101981W
DEVESH H DADHEECH
PROPRIETOR
Membership No: 033909
Place : Mumbai
Date : 27th May, 2015
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