| We have audited the accompanying financial statements of NB Footwear
Limited (the Company) which comprise the Balance Sheet as at 31st March
2015 and the Statement of Profit and Loss for the year then ended, Cash
Flow Statement and a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the 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 of these standalone financial statements that give a
true and fair view of the financial position and financial performance
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 ensuing 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 standalone
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 jwith Standards On Auditing
specified under Section 143(10) of the Act. Those standards reqbire
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.
We conducted our audit in accordance with 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 disclosures in the financial statements. The procedure
selected depend on the auditor's judgment including the assessment of
rules 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 financial controls system
over financial reporting and the operating effectiveness such controls.
An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of accounting estimates made by
the Company's Directors as wed 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 financial
statements.
The Company has also been declared sick by the Board for Industrial and
Financial Reconstruction (BIFR) on 21/05/2001. The Company is facing
severe liquidity problems and continuing losses, as operations have
been discontinued for the past ten years.
These facts raise substantial doubts about the Company's ability to
continue as a going concern In the foreseeable future. Consequently,
adjustments may be required to the recoverability and classification of
asset carrying amounts, or classification of liabilities that might be
necessary should the Company be unable to continue as a going concern,
the impact of which is not ascertained.
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 accountingprinciples
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015 and its loss and the cash flows for the year ended
on that date.
Report on other Laoaland Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order, 2015 ("the
Order") issued by 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 said 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
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, 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 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 written representations received from the Directors
as on 31st 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.
f) 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, 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 which would Impact
its financial position;
ii) The Company did not have any long-term contracts Including
derivative contracts for which there were any material foreseeable
losses;
iil) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITORS' REPORT
(RefemSCrto in our report of even date)
With reference to the Annexure referred to in paragraph 5(1) of our
report to the Natatory Auditors on the accounts for the year ended 31st
March 2015, we report that
(i) As per information and explanations furnished to us, the Company
does not have fixed assets; hence details are not required to be
maintained.
(ii) As per the information and explanations given, the Company does
not have Inventories; hence physical verification is not applicable.
(iii) According to the information and explanations given to us by the
Management and records produced, the Company has not granted any loans
secured/unsecured to Companies firms or other parties covered in the
register maintained under Section 189 of the Companies Act 2013;
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories and fixed assets and with regard to sale of
goods and services. We have neither come across nor have been informed
of any major weakness jn internal control system.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public;
hence directives of RBI and provisions of Section 73 to 76, and any
other relevaht provisions of the Companies Act, 2013 need not be
complied with.
(vi) Since the Company has not carried Out commercial production during
the financial year, maintenance of cost records under Section 148(1)(d)
of the Companies Act, 2013 does notarise.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the book of account, the Company has
been generally regular in depositing undisputed statutory dues
including Provident Fund, Employees" State Insurance, Income Tax, Sales
Tax, Value Added Tax, Service Tax, Excise Duty, Cess and other
statutory dues with the appropriate authorities. There are no
undisputed dues payable for a period of more than six months from the
date they became payable as bn 31.03.2015.
(b)AcoorcHng to the information and explanation given to us, the
following are the particulars of disputed dues as on 31.03.20T5 on
account of excise duty and sales tax that have not been deposited with
the authorities concerned. :
Name of the Nature of Amount of Period to Forum where
Statute dues Demand dispute is which it
(Rs.) pending relates
Central Excise Customs Duty 57,429/- 1999-2000 Commissioner
Act, 1944 of Central
Excise
(Appeals)
Sales Tax Law Sales Tax 1,71,533/- 1995-1996 Appellate
Assistant
Commissioner
(viii) The accumulated losses of the Company at the end of the
financial year are more than fifty percent of its net worth. T1H
Company has Incurred cash losses during the financial year and in the
immediately pneoedlng financial year.
(ix) The Company has not defaulted on any dues to a Financial
Institution or Bank and does not have any outstanding debentures.
(x) The Company has net given any guarantee for loans taken by others
from bank and financial Institutions. Hence the Reporting on terms and
conditions prejudicial to the Company does not arise.
(xi) According to the information and explanations given to us, the
Company has not obtained any term loans during the year.
(xii) According to the information and explanations given to us, to the
best of our knowledge end belief and based on our audit procedures
performed, we have net noticed ear has the Company reported any fraud
on or by the Company during the year.
For J V RAMANUJAMM & CO -
Chartered Accountants
FRN . 002947S
(J VEDANTMA RAMANUJAM)
Partner
Membership No. 022188
Place: Chennai
Date : 29th May, 2015
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