TO THE MEMBERS OF BINAYAK TEX PROCESSORS LIMITED
Report on the financial statements
We have audited the accompanying financial statements of Binayak Tex Processors Limited(the company) which comprise the balance sheet as at 31 March 2014 and the statement ofprofit and loss and cash flow statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Managements responsibility for the financial statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of thecompany in accordance with the accounting principles generally accepted in Indiaincluding accounting standards referred to in sub-section (3C) of section 211 of theCompanies Act 1956 ("the Act"). This responsibility includes the designimplementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors 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 control relevant to the companys preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the companys internal control. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements subject to Note No.28 regarding non provisionof gratuity and leave encashment liability give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:
a. In the case of the balance sheet of the state of affairs of the company as at 31March 2014. b. In the case of the statement of profit and loss of the profit for the yearended on that date and c. In the case of the cash flow statement of the cash flows forthe year ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditors Report) Order 2003 ("theOrder") issued by the Central Government of India in terms of sub-section (4A) ofsection 227 of the Act we give in the Annexure a statement on the matters specified inparagraphs 4 and 5 of the 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 ourknowledge 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 balance sheet statement of profit and loss and cash flowstatement comply with the accounting standards referred to in sub-section (3C) of section211 of the Companies Act 1956 except as referred in Note No. 28 regarding nonprovision of gratuity and leave encashment liability as per Accounting Standard 15 on"Employees Benefits".
e. On the basis of written representations received from the directors as on 31 March2014 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act 1956.
| ||FOR: SUNDARLAL DESAI & KANODIA |
| ||CHARTERED ACCOUNTANTS |
| ||Registration Number 110560W |
|PLACE: MUMBAI ||MUKUL B. DESAI |
|DATE: ||PARTNER |
| ||MEM. NO. 33978 |
Annexure referred to in paragraph 1 under the heading "Report on other legal andregulatory requirements" of our report of even date
Re: Binayak Tex processors Limited (the company)
1. a) The company has maintained proper records showing full particulars includingquantitative details and situations of fixed assets. The fixed assets have been physicallyverified by the management during the year. We are informed that the management on suchverification has noticed no material discrepancies.
b) As explained to us all the assets have been physically verified by the managementduring the year. Having regard to the size of the operations and on the basis ofexplanations received in our opinion no serious discrepancies have been noticed.
c) The company has not disposed of any substantial part of its fixed assets so as toaffect its going concern.
2. a) The inventories have been physically verified during the year by the management.In our opinion the frequency of verification is reasonable.
b) The procedures of physical verification of stocks followed by the management arereasonable and adequate in relation to size of the company and the nature of its business.
c) The company is maintaining proper records of the inventory. As explained to usthere is no material discrepancies noticed on physical verification of inventory ascompared to book records.
3. a) The company has granted unsecured loans to two parties including interest freeloan to one party entered in the register maintained u/s 301 of the Companies Act 1956.The amount involved in the transaction was Rs. 96360453/- and closing balance as onbalance sheet date was Rs. 96360453/-.
b) In our opinion and according to the information and explanation given to us therate of interest whenever charged and other terms and conditions of said loans are notstipulated hence we do not have any further comment for Para 4(iii)(b) (c) & (d). c)In our opinion and according to the information and explanation given to us the companyhas not taken any loan secured or unsecured from any party entered in the registermaintained u/s 301 of the Companies Act 1956 and hence we do not have any comment forPara 4(iii) (f) & (g).
4. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the company and thenature of its business with regards to purchase of goods and fixed assets and with regardsto sale of goods and services. During the course of our audit we have not observed anycontinuing failure to correct major weakness in internal controls.
5. a) According to the information and explanation given to us we are in opinion thatthe transaction made in pursuance of contracts or arrangements that needed to be enteredin the register maintained U/s 301 of the companies Act 1956 have been so entered.
b) In our opinion and according to the information and explanation given to us thetransactions in pursuance of contracts or arrangements entered in the register maintainedU/s 301 of the companies Act 1956 and are exceeding the value of rupees Five Lakhs inrespect of any party during the year have been made at prices which are reasonable havingregard to prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposit from public.
7. According to information & explanation given to us the company is developing aninternal audit system commensurate with its size and nature of the business.
8. We have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the company pursuant to the Rules made by the CentralGovernment for the maintenance of any cost records u/s 209 (1) (d) of the Companies Act1956 and we are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have not however made a detailed examination of the same.
9. a) According to the records of the company undisputed statutory dues includingprovident fund investor education and protection fund employees state insurance incometax service tax sales tax wealth tax custom duty excise duty cess and other materialstatutory dues applicable to it have generally been regularly deposited with theappropriate authorities.
b) According to the information and explanations given to us no undisputed amountspayable in respect of income tax wealth tax service tax sales tax custom duty andexcise duty were outstanding as at 31st March 2014 for a period of more than six monthsfrom the date they became payable.
c) According to the information and explanation given to us there are no dues ofincome tax wealth tax sales tax custom duty excise duty and cess which have not beendeposited on account of any dispute except as referred below:-
|Asst. Year ||Act under which demand is pending ||Nature of Dues ||Amount ||Forum where appeal is pending |
|2011-12 ||Income Tax act 1961 ||Income Tax ||1529.050 ||CIT Appeal |
10. The company has no accumulated losses and the company has not incurred any cashlosses during the financial year covered under audit or in the immediately precedingfinancial year.
11. Based on our audit procedure and according to the information and explanation givento us we are of the opinion that the company has not defaulted in repayment of dues tofinancial institutions banks and debenture holders.
12. The company has not granted loans and advances on the basis of security by way ofpledge of shares debentures and other securities.
13. In our opinion the company is not a chit fund or a nidhi/ mutual benefit fund/society. Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company.
14. In our opinion the company is not dealing in or trading in shares securitiesdebentures and other investments.
15. In our opinion the company has not given guarantees for loans taken by others frombanks or financial institutions.
16. In our opinion the term loans have been applied for the purpose for which theywere raised.
17. According to the information and explanations given to us and on an overallexamination of the balance sheet of the company we report that the funds raised onshort-term basis have not been used for long-term investment.
18. According to the information and explanations given to us the company has not madepreferential allotment of shares to parties and companies covered in the registermaintained under section 301 of the Act.
19. According to the information and explanations given to us during the year coveredby our audit report of the company have not issued any debentures.
20. According to the information and explanations given to us the company has notraised any money by public issue during the period covered by our audit report.
21. According to the information and explanations given to us no fraud on or by thecompany has been noticed or reported during the course of our audit.
| ||FOR : SUNDARLAL DESAI & KANODIA |
| ||CHARTERED ACCOUNTANTS |
| ||Registration Number 110560W |
|PLACE : MUMBAI ||MUKUL B. DESAI |
|DATE : ||PARTNER |
| ||MEM. NO. 33978 |