| We have audited the accompanying financial statements of BHILWARA
SPINNERS LTD ("the Company"), which comprise the Balance Sheet as at
March 31,2015 and the Statement of Profit and Loss and Cash Flow
Statment 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 Board of Directors of the Company are 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 gives 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 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 judgments and estimates that
are reasonable and prudent; design, implementation and maintenance of
adequate internal financial controls, that are 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 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 audut 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
controls system over financial controls system over financial reporting
and the operating effectiveness of such controls An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Company's
managemment and Board of 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
Opinion
In our opinion and the best of our information and according to the
explanations given to us, the aforesaid financial Statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31st March 2015, its profit and its cash flows for the year ended on
that date
Report on Other Legal and Regulatory Requirements
1. As required by the Commpanies (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 Act. we report that:
a. we have Sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as 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 aforesaid financial sttements comply with the
applicable Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules 2014
e. on the basis of written representations received from the directors
as on March 31,2015, 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 section 164 (2) of the Act
f. In our opinion and to the best of our information and according to
the explanations given to us we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014::
i. The Company have pending litigations which would impact its
financial position :- Refer Note No. 22
ii. The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foressable losses thereon does not arise
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 AUDITORS' REPORT
Referred to in paragraph 1 under the heading of" Report on Other Legal
and Regulatory Requirements" of our report of even date
1. Fixed Assets
i) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
ii) As explained to us, all the fixed assets have been physically
verified by the management in phase periodical manner, which is in our
opinion reasonable. No material discrepancies were noticed on such
verification.
2. i) The Management has conducted physical verification of inventory
at reasonable interval.
ii) The procedure 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.
iii) The company is maintaining proper records of inventory and no
material descrepancies were noticed on physical verification as
compared to book records.
3. The Company has not granted any loans, secured or unsecured,
to/form companies, firms or other parties covered in the Register
maintained under Section 189 of the Companies Act, 2013
4. In our opinion and according to the information and explanations
given to us, there are 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. During the course of our audit, we have not observed any
continuing failure to correct major weakness in the underlying internal
control system.
5. According to the information and explanation given to us the
Company has not accepted any deposits from the public during the year
and, consequently the directives issued by the Reserve Bank of India
and the provision of Section 73 to 76 or any other relevant provisions
of the Companies Act, 2013 and the rules framed there under are not
applicable.
6. According to the information given to us by the management
Maintenance of cost records under section 148 (1) of The companies Act,
2013 are not prescribed for the product & Services of the Company.
7. Taxes and Duties :
i) According to the books and records as examined by us and according
to the information and explanation given to us, in our opinion, the
Company is generally regular in depositing with appropriate
authorities,undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income-tax, sales-tax, wealth-tax, custom duty, excise duty, cess and
other statutory dues applicable to it.
ii) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax wealth tax, sales
tax, customs duty, and excise duty were outstanding, at the year end
for a period of more than six months from the date they become payable.
iii) According to the information and explantions given to us there are
no disputed dues of wealth Tax Sales Tax, Income tax, Income tax Custom
duty Service tax however, following disputed demands of Excise duty has
not been deposited:
Name of the Nature of Amount Forum
Statute Dispute involved where
(Rs. in dispute is
lacs) pending
Excise Custom Duty 58.11 Applellate
Act, 1944 on Conversion authority
of EPCG
licence
8. At the end of the current financial year Company's accumulated
losses have exceeded 50% of its net worth however, the Company has not
incurred any cash losses in the current year and in the immediately
preceding financial year.
9. In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
financial institutions and banks. The Company has not issued any
debenture.
10. According to the information and explantions given to us, in our
opinion the Company has not given any guarantee for loans taken by
others from banks or financial instiutions.
11. Accrding to the information and explanations given to us, and
based on the examination of the records of the company no term loan
taken during the year.
12. To the best of our knowledge and according to the information and
explanation given to us, no fraud by the Company and no material fraud
on the company has been noticed or repoted during the year.
For CLB & ASSOCIATES
Chartered Accountants
F.R. No. 124305W
CA. S. Sarupria
Partner
M.No. - 035783
Place: Bhilwara
Date : 29-5-2015
|