| We have audited the accompanying Financial Statements of Hytone
Texstyles Limited which comprises the Balance Sheet as at 31 st March
2014, the Statement of Profit and Loss and Cash Flow Statement for the
period ended on that date and a summary of Significant Accounting
Policies and other explanatory information.
MANAGEMENT'S RESPONISBILITY 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 flow of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 read
with general circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. 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 the 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 errors. 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 entity'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:
* In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2014;
* In the case of Statement of Profit and Loss, of the profitforthe
period ended on that date; and
* In the case of Cash Flow Statement, of the cash flows f :>r the
period ended on that date. REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
As required by the Companies (Auditor's Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, based upon such checks of the books and records
as we considered appropriate and according to the information and
explanations given to us, we annex herewith a statement on the matters
specified in paragraphs 4 and 5 of the said Order to the extent
applicable to the Company.
As required by section 227(3) of the Act, we report that:
* We have obtained all the information and explanations, which to
the best of our knowledge and belief were necessary for the purpose of
our audit;
* In our opinion, proper books of accounts as required by the law
have been kept by the Company so far as appears from our examination
of those books;
* The Balance Sheet and Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
* In our opinion, the Balance Sheet, the Statement of Profit and
Loss and Cash Flow Statement attached with by this report comply with
the Accounting Standards notified under the Companies Act, 1956 read
with general circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013 to the extent they are applicable to the Company.
* Based on the written representations made by the directors of the
Company we report that none of the Directors are disqualified as on
31st March, 2014 from being appointed as Directors in terms of clause
(g) of Sub-section(1) of Section 274 of the Companies Act, 1956;
Annexure to Independent Auditor's Report
(Referred to in "Report on other legal and regulatory
requirements" of our report of even date of
HYTONE TEXSTYLES LIMITED on the financial statements for the period
ended 31 st March, 2014)
1. Fixed Assets
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) We are informed that these fixed assets are physically verified by
the management during the period and no material discrepancies between
the book records and the physical inventory were noticed on such
verification. In our opinion, the frequency of verification is
reasonable
c) In our opinion and according to the explanations given to us, the
Company has not disposed off any substantial assets during the period.
2. Inventories
During the period under review there is no closing stock. Accordingly,
sub paragraph (a), (b) and (c) of this clause are not applicable.
3. Loans and Advances either granted or taken
a) According to the verification of books and records and the
information and explanation given to us, loans have been granted to
four parties listed in the register maintained under section 301 of
the Companies Act, 1956. The maximum amount involved during the period
is Rs. 15,614/- and period end balance of loans given to such parties
is Rs. NIL.
b) As per the records verified by us, the Company has taken loan from
one party covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the period is
Rs. 1,10,29,443/- and period end balance of loans given to such
parties is Rs. NIL.
c) In our opinion, the rate of interest and other terms and conditions
on which loan is taken from the party listed in the register
maintained under section 301 of the Companies Act, 1956 is not, prima
facie, prejudicial to the interest of the company.
d) Generally no terms of repayment have been stipulated in the case of
unsecured loans. In absence thereof we are unable to comment on
whether the payment of principal and interest are regular.
4. Internal Controls
In our opinion and according to the information and explanations given
to us, the internal control procedures prevailing in the Company need
to be strengthened further to make them fairly commensurate with its
size and the nature of the business with regard to purchase of
inventories and fixed assets and for the sale of goods. During the
course of our audit, we have observed no continuing failure to correct
major weaknesses in the internal controls.
5. Transactions covered by Section 301
a) During the period, the transactions that need to be entered into a
register in pursuance of Section 301 of the Act have been so entered
by the Company.
b) Based on information and explanations given to us, the transactions
of purchase of goods and materials exceeding the value of Rs. 5 lacs
in respect of each party pursuant to such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices and other conditions at the relevant time.
6. Public Deposits
The Company has not invited any deposits from the public with the
purview of Reserve Bank of India and the provisions of Section 58A and
58AA of the Companies Act, 1956 and the Companies (Acceptance of
Deposit) Rules, 1975.
7. Internal Audit
The Company has no formal internal audit system. However, its internal
control procedures and the system of internal checking of financials
&other records are, in our opinion commensurate with the size of the
Company and the nature of its business.
8. Cost Records
During the period under review, there is no manufacturing activity
carried on by the Company, so no cost records as prescribed by the
Central Government under section 209(1 )(d) of the Companies Act, 1956
are needed to be maintain.
9. Statutory Dues
i. According to the information and explanation given to us and based
on the records verified by us, the Company is regular in depositing
undisputed statutory dues in respect of Provident Fund, Employees
State Insurance, Income Tax, Sale Tax, Wealth Tax and any other
statutory dues with appropriate authorities and no dues remain
outstanding for a year of more than six months except:
Name of the Statute Nature of Amount Period to which
the Dues (Rs.) the amount relates
Navi Mumbai Property Tax 1,01,56,767/- From 2005 to 2012
Municipal Corporation
M.I.D.C. Water Tax 1,46,484/- From 2005 to 2011
ii. According to information and explanation given to us and on the
basis of the books and records examined by us, there are no disputed
outstanding dues pending for more than six months.
10. Accumulated Losses
The Company does not have any accumulated losses at the end of
financial year. The Company has not incurred any cash loss in
immediately preceding financial year.
11. Dues to Financial Institutions/Banks
According to the information and explanations given to us on the basis
of our examination of the books of account, there are no defaults in
repayment of dues to financial institutions and banks during the
period.
12. Loans against Pledge of Securities
According to the information and explanations given to us the Company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities during the period of
review.
13. Application of Special Statute
The provisions of any special statute applicable to Chit Fund, Nidhi
and Mutual Benefit Society are not applicable to the Company during
the period under review.
14. Dealing/Trading in Shares/Securities
As per the records verified, the Company has not dealt with or traded
in shares, securities, debentures and other investments during the
period under review. Therefore, the provisions of clause 4(xiv) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
15. Guarantees Given
According to the information and explanations given to us, the Company
has not given any guarantees for loans taken by others from banks and
financial institutions.
16. Application of Funds Raised
According to the information and explanations given to us, as also on
the basis of books and records examined by us, the Company has not
obtained any fresh term loans during the audit period.
17. Financial Management
According to the information and explanation given to us and on the
overall examination of balance sheet of the Company, we report that no
short-term funds have been used for long-term investments.
18. Preferential Allotment
According to the information and explanation given to us; during the
period under review, the Company has not made any preferential
allotment of shares to parties covered in the register maintained
under section 301 of the Companies Act, 1956.
19. Security against Debentures
According to the verification of books and records and the information
and explanations given to us, the Company has not issued any
debentures during the period. Accordingly, the provisions of clause
4(xix) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
20. End use of Public Issue Money
As per information and explanations given to us, the Company, during
the period, has not raised funds by way of public issue. Thus, the
provisions of clause 4(xx) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
21. Frauds
Based on our verification of the books of account and other relevant
records and based on the information and explanations given to us, we
have not noticed or reported any fraud on or by the Company during the
period under review.
For Mulraj D. Gala
Chartered Accountants
Mulraj D. Gala
Navi Mumbai: 21stAugust, 2014 M No. 41206 |