The Members of Bhilwara Spinners Ltd.
Report on the Financial Statements
We have audited the accompanying financial statements of BHILWARA SPINNERS LTD("the Company") which comprise the Balance Sheet as at March 312015 and theStatement of Profit and Loss and Cash Flow Statment for the year then ended and a summaryof significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Board of Directors of the Company are responsible for the matters stated in Section134 (5) of the Companies Act 2013 ('the act') with respect to the preparation of thesefinancial statements that gives a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with rule 7 of Companies (Accounts) Rules 2014 This responsibilityincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; design implementation andmaintenance of adequate internal financial controls that are operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error
our responsibility is express an opinion on these financial statements based on ouraudit.
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 there under.
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 audut involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sJudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial controls system over financial reporting and the operating effectiveness ofsuch controls An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of the accounting estimates made by the Company's managemmentand Board of Directors as well as evaluating the overall presentation of the financialstatements
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion
In our opinion and the best of our information and according to the explanations givento us the aforesaid financial Statements give the information required by the Act in themanner 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 31stMarch 2015 its profit and its cash flows for the year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Commpanies (Auditor's Report) Order2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 of the 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 purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books
c. the Balance sheet statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account
d. in our opinion the aforesaid financial sttements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014
e. on the basis of written representations received from the directors as on March312015 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2015 from being appointed as a director in terms of section164 (2) of the Act
f. In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014::
i. The Company have pending litigations which would impact its financial position :-Refer Note No. 22
ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foressable losses thereon does not arise
iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and protection Fund by the company.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 1 under the heading of" Report on Other Legal andRegulatory Requirements" of our report of even date
1. Fixed Assets
i) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
ii) As explained to us all the fixed assets have been physically verified by themanagement in phase periodical manner which is in our opinion reasonable. No materialdiscrepancies were noticed on such verification.
2. i) The Management has conducted physical verification of inventory at reasonableinterval.
ii) The procedure of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
iii) The company is maintaining proper records of inventory and no materialdescrepancies were noticed on physical verification as compared to book records.
3. The Company has not granted any loans secured or unsecured to/form companiesfirms or other parties covered in the Register maintained under Section 189 of theCompanies Act 2013
4. In our opinion and according to the information and explanations given to us thereare adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods.and services. During the course of our audit we have not observed any continuingfailure to correct major weakness in the underlying internal control system.
5. According to the information and explanation given to us the Company has notaccepted any deposits from the public during the year and consequently the directivesissued by the Reserve Bank of India and the provision of Section 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under are notapplicable.
6. According to the information given to us by the management Maintenance of costrecords under section 148 (1) of The companies Act 2013 are not prescribed for theproduct & Services of the Company.
7. Taxes and Duties :
i) According to the books and records as examined by us and according to theinformation and explanation given to us in our opinion the Company is generally regularin depositing with appropriate authoritiesundisputed statutory dues including providentfund investor education and protection fund employees state insurance income-taxsales-tax wealth-tax custom duty excise duty cess and other statutory dues applicableto it.
ii) According to the information and explanations given to us no undisputed amountspayable in respect of income tax wealth tax sales tax customs duty and excise duty wereoutstanding at the year end for a period of more than six months from the date theybecome payable.
iii) According to the information and explantions given to us there are no disputeddues of wealth Tax Sales Tax Income tax Income tax Custom duty Service tax howeverfollowing disputed demands of Excise duty has not been deposited:
|Name of the Statute ||Nature of Dispute ||Amount involved (Rs. in lacs) ||Forum where dispute is pending |
|Excise Act 1944 ||Custom Duty on Conversion ofEPCG licence ||58.11 ||Applellate authority |
8. At the end of the current financial yearCompany's accumulated losses have exceeded50% of its net worth however the Company has not incurred any cash losses in the currentyear and in the immediately preceding financial year.
9. In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of dues to financial institutions and banks. TheCompany has not issued any debenture.
10. According to the information and explantions given to us in our opinion theCompany has not given any guarantee for loans taken by others from banks or financialinstiutions.
11. Accrding to the information and explanations given to us and based on theexamination of the records of the company no term loan taken during the year.
12. To the best of our knowledge and according to the information and explanation givento us no fraud by the Company and no material fraud on the company has been noticed orrepoted during the year.
| ||For CLB & ASSOCIATES |
| ||Chartered Accountants |
| ||F.R. No. 124305W |
| ||CA. S. Sarupria |
|Place: Bhilwara ||Partner |
|Date : 29-5-2015 ||M.No. - 035783 |