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Aarvee Denims & Exports Ltd.

BSE: 514274 Sector: Industrials
NSE: AARVEEDEN ISIN Code: INE273D01019
BSE LIVE 12:49 | 06 Dec 82.00 -0.70
(-0.85%)
OPEN

82.05

HIGH

82.05

LOW

82.00

NSE LIVE 12:54 | 06 Dec 82.50 0.60
(0.73%)
OPEN

81.25

HIGH

83.75

LOW

81.00

OPEN 82.05
PREVIOUS CLOSE 82.70
VOLUME 202
52-Week high 110.90
52-Week low 47.00
P/E 10.72
Mkt Cap.(Rs cr) 192.37
Buy Price 81.90
Buy Qty 50.00
Sell Price 82.00
Sell Qty 298.00
OPEN 82.05
CLOSE 82.70
VOLUME 202
52-Week high 110.90
52-Week low 47.00
P/E 10.72
Mkt Cap.(Rs cr) 192.37
Buy Price 81.90
Buy Qty 50.00
Sell Price 82.00
Sell Qty 298.00

Aarvee Denims & Exports Ltd. (AARVEEDEN) - Auditors Report

Company auditors report

TO THE MEMBERS OF AARVEE DENIMS AND EXPORTS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of AARVEE DENIMSAND EXPORTS LIMITED ("the Company") which comprise the Balance Sheetas at 31st March 2015 the Statement of Profit and Loss the Cash FlowStatement for the year then ended and a summary of the significant accounting policiesand other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2015 and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to the Note 32 to the financial statements which descirbes that onMarch 1 2015 there was a fire in the packing department of Vijay Farm Unit of theCompany resulting into a loss of finished goods Work in Progress Plant & MachineryFactory Building Furniture & Fixtures and other Miscellaneous items. The Company hasthe insurance policies of all the affected assets so the Company has lodged claims withthe insurance companies which claims include claim towards loss of the above stated assetsand the Management believes that the amount of the claim has been ascertained as per theterms of the insurance policies and is certain about recovery of the claim based on itsunderstanding of the terms of the insurance policies and related discussions with therepresentatives of the insurance companies at the time of putting up the claim. Thecarrying value of the assets destroyed in fire is estimated by the management at Rs.1732.21 lacs. The loss has been accounted for in the books of the Company and the amountof the insurance claims of Rs. 1477.64 lacs has been recognized as revenue in theStatement of Profit & Loss.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 ("theOrder")issued by the Central Government of India in terms of Section 143(11) of theAct we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 ofthe 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 bestof 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 theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the other matters to be included in the Auditor’s Report inaccordance with

Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 29 to the financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandrards for matererial losses on long term contracts including derivative contracts– Refer Note 7 to the financial statements;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For N. C. SHAH & ASSOCIATES For DELOITTE HASKINS & SELLS
Chartered Accountants Chartered Accountants
(Firm’s Registration No. 109692W) (Firm’s Registration No. 117365W)
(Nitin C. Shah) (Gaurav J. Shah)
(Proprietor) (Partner)
(Membership No. 34633) (Membership No. 35701)
AHMEDABAD 29th May 2015 AHMEDABAD 29th May 2015

ANNEXURE TO THE AUDITORS’ REPORT

(Referred to in paragraph 1under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date)

Having regard to the nature of the Company’s business / activities during theyear clause (vi) of paragraph 3 of the Order is not applicable to the Company.

(i) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

(ii) In respect of its inventories:

(a) As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.

(iii) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the Register maintained under Section 189 of the CompaniesAct 2013.

(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business for the purchase of inventory and fixed assets and for the saleof goods and services and during the course of our audit we have not observed any majorweakness in such internal control system.

(v) In our opinion and according to information and explanations given to us theCompany complied with the provisions of sections 73 to 76 or any other relevant provisionsof the Companies Act 2013 and the Companies (Acceptance of Deposits) Rules 2014 withregard to the Deposits accepted from the public. According to the information andexplanations given to us no order has been passed by the Company Law Board or theNational Company Law Tribunal or the Reserve Bank of India or any Court or any othertribunal.

(vi) According to the information and explanations given to us in respect of statutorydues:

a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income-tax Sales Tax WealthTax Service Tax Customs Duty Excise Duty Value Added Tax Cess and other materialstatutory dues applicable to it with the appropriate authorities.

b) There were no undisputed amounts payable in respect of Provident FundEmployees’ State Insurance Income-tax Sales Tax Wealth Tax Service Tax CustomsDuty Excise Duty Value Added Tax Cess and other material statutory dues in arrears asat March 31 2015 for a period of more than six months from the date they became payable.

c) Details of dues of Income-tax Sales Tax Wealth Tax Service Tax Customs DutyExcise Duty Value Added Tax and Cess which have not been deposited as on March 31 2015on account of disputes are given below:

Name of Statute Nature of Dues Forum where Dispute is pending Period to which the amount relates Amount involved ( Rs. in Lacs)
Central Excise Act 1944. Service Tax Customs Excise & Service Tax Appellate Tribunal Ahmedabad. April 2006 to March 2008 55.44
Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals) Ahmedabad 2011-12 412.39

d) There are no amounts that are due to be transferred to the Investor Education andProtection Fund in accordance with the relevant provisions of the Companies Act 1956 (1of 1956) and Rules made thereunder.

(vii) The Company does not have accumulated losses at the end of financial year and theCompany has not incurred cash losses during the financial year covered by our audit and inthe immediately preceding financial year.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to financial institutions and banks

(ix) According to the information and explanations given to us the Company has notgiven guarantees for loans taken by others from banks and financial institutions.

(x) In our opinion and according to the information and explanations given to us theterm loans have been applied by the Company during the year for the purposes for whichthey were obtained.

(xi) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company has been noticedor reported during the year.

For N. C. SHAH & ASSOCIATES For DELOITTE HASKINS & SELLS
Chartered Accountants Chartered Accountants
(Firm’s Registration No. 109692W) (Firm’s Registration No. 117365W)
(Nitin C. Shah) (Gaurav J. Shah)
(Proprietor) (Partner)
(Membership No. 34633) (Membership No. 35701)
AHMEDABAD 29th May 2015 AHMEDABAD 29th May 2015

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