| We have audited the accompanying financial statements of M/S. SHREE
BHAVYA FABRICS LIMITED (FORMERLY KNOWN AS ANJANI DRAM INDUSTRMS
LIMITED) ("the Company"), which comprise the Balance Sheet as at March
31, 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 Sandalone 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 Anancial 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 responsibi}ity
also includes maintenance of adequate accounting records in accordance
wifn the provisions of Act for safeguarding the assets of the Company
and for preventing and detecting frauds another irregularities,
selection and application of appropriate accounting policies; making
judgements and estimates that are responsible 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 for our audit opinion on the financial
statement.
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 March 2015 and its profit and it 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, 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
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, 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 written representations received from the directors
as on March 31, 2015 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; 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 does not have any pending litigations for which
provision have not been made which would impact its financial position.
ii) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any.
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 Auditor's Report
The Annexure referred to in our Independent Auditor's Report to the
members of the Company on the financial statements for the year ended
31 March 2015, we report that;
(i) In respect of Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) As per the information and explanations given to us, all the assets
have not been physically verified by the management during the year but
there is a regular programme of verification which, in our opinion, is
reasonable having regard to the size of the company and the nature of
its assets. No material discrepancies were noticed on such
verification.
(ii) In respect of Inventory:
(a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals. 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 inventories
followed by the management are reasonable and adequate in relation to
the size of the company and nature. of its business.
(c) The company is maintaining proper records of inventory. As informed
to us there were no material discrepancies noticed on verification
between the physical stocks and the book records and any discrepancies
found has been properly dealt within the books of accounts.
(iii) The company has granted loan, unsecured loan to one company
covered in the register maintained u/s. 189 of the Companies Act :
(a) Receipt of the principal amount and interest are also regular.
(b) In respect of the said loans and interst thereon, there are no
overdue amounts.
iv) In our opinion and according to the information and explanations
given to us, there are an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and sale of services. We have
not observed any major weakness in the internal control system during
the course of our audit.
v) According to the information and explanation given to us, the
company has not accepted any deposit from the public during the year.
Therefore the provisions of clause (v) of paragraph 3 of the order are
not applicable to the company.
vi) The central government has prescribed maintenance of cost records
under section 209(1)(d) of the companies act 1956 in respect of certain
manufacturing activities of the company. Company has obtained cost
audit report for the financial year 2013-14 during the year. We have
broadly reviewed the accounts and records of the company in this
connection and are of the opinion, that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however carried out detailed examination of the same.
vii)
(a) The company is generally regular in depositing the undisputed
statutory dues including Provident Fund, Employees State Insurance,
Income Tax, Wealth Tax, Sales Tax, Custom Duty, Excise Duty, Service
Tax, Value Added Tax, Cess and any other statutory dues with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of afore
mentioned dues were outstanding 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, details
of statutory dues that have not been deposited on account of dispute
and the matters pending before appellate authority are as under:
Sr. Name of The Nature of Dues Amount Forum Where
No. Statute Dispute is
Pending
1. ITAT A. Y. 2009-10 Rs. 3,66,745/- ITAT
Ahmedabad
2. CIT (A) A. Y 2012-13 Rs. 1,87.140/- CIT(A)
Ahmedabad
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us. the company has not defaulted in repayment of dues to
financial institutions or banks. As there are no debentures, the
question of repayment does not arise.
(x) In our opinion and 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.
(xi) In our opinion and according to the information and explanations
given to us. the Term loans have been applied for the purpose for which
they were obtained.
(xii) According to the information and explanation given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
As per our Report of Even Date
For and on Behalf of
For, Nahta Jain & Associates
Chartered Accountants
Firm Regn. No. 106801W
Place : Ahmedabad (CA. I. C. Nahta)
Date : 15/06/2015 Partner
M. No. 070023
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