| We have audited the accompanying financial statements of M/s RAMGOPAL
POLYTEX LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, and 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 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 ("the Act"). (which continued to be
applicable in respect of Section 133 of Companies Act, 2013 in terms of
general circular 15/2013 of the Ministry of Corporate Affairs) and in
accordance with the accounting principles generally accepted in India.
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 the Statement of Profit and Loss, 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 ("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 said
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 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 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 Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Act;
e) on the basis of written representations received from the Directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31, 2014, from being
appointed as a Director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF 'REPORT ON OTHER LEGAL
AND REGULATORY REQUIREMENTS' OF OUR REPORT OF EVEN DATE FOR THE YEAR
ENDED MARCH 31, 2014.
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) In our opinion and according to information and explanations given
to us, physical verification of fixed assets has been conducted by the
management at reasonable intervals and no material discrepancies were
noticed on such verification.
c) During the year, none of the fixed assets have been disposed off by
the Company.
2. a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to 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 of
the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. According to
information and explanations given to us, the discrepancies noticed on
physical verification of inventory as compared to book records were not
material and the same have been properly dealt with by the Company in
the books of account.
3. a) The Company has granted unsecured loans to a company covered in
the register maintained under Section 301 of the Act. The maximum
amount involved during the year was Rs. 14,98,86,181 and year end
balance of the said loan was Rs. 12,82,36,159. The terms and
conditions of the same are prima facie, not prejudicial to the interest
of the Company. The party is repaying the principal amount, as
stipulated, and is also regular in payment of interest, as applicable.
There is no overdue amount as per the terms of loan granted.
b) The Company has taken unsecured loans from a company covered in the
register maintained under Section 301 of the Act. The maximum amount
involved during the year was Rs. 11,06,27,174 and year end balance of
the said loan was Rs. 6,61,19,335. The terms and conditions of the same
are prima facie, not prejudicial to the interest of the Company. The
Company is regular in repayment of the principal amount and interest
thereon as stipulated.
c) The Company has not taken/granted any loans, secured or unsecured,
loans from/to firms or other parties listed in the said register.
4. There is an adequate internal control system commensurate with the
size of the Company and the nature of its business for purchase of
inventory, fixed assets and with regard to sale of goods. During the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in the internal controls.
5. During the year, the Company has not entered into any contract or
arrangement that was required to be entered in the register required to
be maintained under Section 301 of the Act.
6. The Company has not accepted any deposits from the public as per the
directives issued by the Reserve Bank of India and the provisions of
Sections 58A & 58AA or any other relevant provisions of the Act, and
the rules framed there under.
7. The Company does not have any formal internal audit system. However,
as explained effective internal control is being exercised
departmentally.
8. The Central Government of India has not prescribed the maintenance
of cost records under Section 209(1)(d) of the Act for the business
activities carried out by the Company.
9. a) According to the records of the Company, the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Investors Education and Protection Fund, Employees' State
Insurance, Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues with the
appropriate authorities to the extent applicable. According to the
information and explanations given to us, there are no undisputed
amounts outstanding as at the year end for a period of more than six
months from the date they became payable, except in case of Investors
Education and Protection Fund of Rs. 4,21,377(Since Paid) and Sales Tax
of Rs. 8,29,807.
b) According to the information and explanations given to us, there are
no dues of Income Tax, Wealth Tax, Sales Tax, Service Tax, Customs
Duty, Excise Duty and Cess which have not been deposited on account of
any dispute except for the following:
Name of statute Nature of Amount Period to Forum where
dues Rs. which dispute is
amount pending
pertains
Customs Duty Customs 10,22,337 1993-1994 High Court,
Duty and Mumbai
Penalty
10. The Company's accumulated losses as at the end of the financial
year are less than 50% of its net worth. The Company has not incurred
any cash losses in the current as well as in the immediately preceding
financial year.
11. The Company does not have any borrowings from bank and financial
institution and has not issued any debentures.
12. According to the information and explanations given to us the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. According to the information and explanations given to us, the
Company is not a chit fund or a nidhi/mutual benefit fund/society.
14. The Company is not dealing in or trading in shares, securities,
debentures and other investments.
15. 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.
16. No term loans have been obtained during the year.
17. According to the information and explanations given to us and on an
overall examination of the Cash Flows of the Company, we report that
funds raised on short-term basis have not been used for longterm
investments.
18. The Company has not made any preferential allotment of shares
during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through public issue during
the year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, during the year, no fraud on
or by the Company has been noticed or reported to/by us during the
course of our audit.
For RUNGTA & ASSOCIATES
Chartered Accountants
(Registration No. 108888W)
Sd/-
(PAWANKUMAR RUNGTA)
Place: Mumbai Membership No. 42902
Dated: 30th May, 2014 Proprietor |