| We have audited the accompanying standalone financial statements of
KHATOR FIBRE AND FABRICS LIMITED('the Company'), which comprise the
Balance Sheet as at 31 March 2015, the 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 Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134 of the Companies Act, 2013 ("the Act") with respect to
the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position and
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 standalone
financial statements.
Opinion In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at 31 March 2015 and its profit 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 the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
(c) The balance sheet, the statement of profit and loss and Cash flow
statement that dealt with by this Report are in agreement with the
books of accounts;
(d) in our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 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) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regards to the size of the company and
nature of its Assets. No material discrepancies were noticed on such
physical verification.
ii). (a) As explained to us, physical verification of inventory of
finished goods, stores, spare parts and materials has been conducted at
reasonable intervals by the management, which in our opinion is
reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on such physical verification.
iii). According to the information and explanation given to us, 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. Therefore, paragraph 3 (iii) of the
order is not applicable.
iv) . In our opinion and according to the information and explanations
given to us there is adequate internal control procedure commensurate
with the size of the company and nature of its business, for the
purchase of inventory, purchase of 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 audit.
v) . As informed to us, the Company has not accepted any deposit from
the public during the year within the meaning of section 73 or 76 of
the Companies Act 2013 and the rules framed there under. Therefore, the
directives issued by the reserve bank of India or any other relevant
provisions of the Companies Act and the rules framed there under, are
not applicable.
vi). As per information and explanations given to us, the cost records
as prescribed by the Central Government u/s 148(1) of the Companies Act
2013 in respect of process house are being made and maintained. We
have, however not made a detailed examination of the said records with
a view to determine whether they are accurate or complete.
vii) (a) The company is regular in depositing undisputed statutory dues
with appropriate authorities applicable to it.
(b) According to the information and explanation given to us, there are
no dues in respect of Income tax, wealth tax, service tax, custom duty,
excise duty, cess that have not been deposited with the appropriate
authorities on account of any dispute.
(c ) As per information and explanations given to us there is no such
amount that is required to be transferred to investor education and
protection fund in accordance with the relevant provision of the
Companies Act,1956(1 of 1956) .
viii) The company does not have accumulated losses; therefore paragraph
3(viii) of the order is not applicable & the company has not incurred
any cash losses during the year.
ix) . The company has not defaulted in repayment of dues to a
financial institution or bank. The company has not issued any type of
debenture during the year.
x) . According to the information and explanation given to us, the
terms and conditions on which the company has given guarantees for
loans taken by others from banks or financial institutions are not
prima facie prejudicial to the interest of company.
xi) . The company has raised term loans during the year, and the same
were applied for the purpose for which the loans were obtained.
xii). According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
FOR S.R. GOYAL & CO.
CHARTERED ACCOUNTANTS
FRNo-001537C
Sd/-
Place: Mumbai (Anil Goyal)
Dated: 30/05/2015 Partner
M.No.71158
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