Independent Auditors Report
To the Members of
Dhanlaxmi Cotex Ltd.
REPORT OF THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Dhanlaxmi Cotex Ltd.("the Company") which comprises the Balance Sheet as at 31st March2015 the Statement of Profit and Loss and Cash Flow Statement for year then ended and asummary of significant accounting policies and other explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (the Act) with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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.
Our responsibility is to 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 audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures 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 financial control relevant to the Companyspreparation 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 Companys 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin 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 31stMarch 2015 and its profit/loss and its cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order 2015 (theOrder) issued by the Central Government of India in terms of sub-section(11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.
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 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 financial statements comply with the AccountingStandards specified u/s. 133 of the Act read with the Rule 7 of the Companies (Accounts)Rules 2014;
e. On the basis of the written representations received from the directors as on 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 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 Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations give to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statement Refer Note No.8 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. The Company does not have any amount which required to be transferred to theinvestor Education and Protection Fund by the Company.
| ||For S. G. Kabra & Co. |
| ||Chartered Accountants |
| ||FRN 104507W |
| ||(S. G. Kabra) |
|Place: Mumbai ||Partner |
|Dated: 27th May 2015. ||M No 038867 |
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph (1) under the heading "Report on other Legal andRegulatory Requirements of our report of even date to the members of Dhanlaxmi Cotex Ltd.for the year ended 31st March 2015)
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed Assets.
(b) All the fixed assets have been physically verified by the management during theyear. We are informed that no material discrepancies were noticed on such verification.
(ii) (a) The inventory has 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 inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) The Company is maintaining proper records of inventory. No material discrepancy wasnoticed on such verification.
(iii) The Company has not granted any loans - secured and unsecured to Companies firmsor other parties covered in the register maintained under section 189 of the Companies Act2013. Therefore clause iii (a) & iii (b) of paragraph 3 of the order are notapplicable.
(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 with regard to purchase of inventory and fixed assets and forthe sale of goods and services. We have not observed any major weakness in the internalcontrol system during the course of the audit.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act.
(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Employees State Insurance Income TaxSales-tax Wealth Tax Service Tax Duty of Customs Duty of Excise Value Added Tax cessand other statutory dues applicable to it. According to the information and explanationsgiven to us no undisputed amounts payable in respect of outstanding statutory dues werein arrears as at 31st March 2015 for a period of more than six months from thedate they became payable.
(b) According to the information and explanations given to us there are no materialdues of Sales Tax Wealth Tax Service Tax Duty of Customs Duty of Excise Value AddedTax cess which have not been deposited with the appropriate authorities on account of anydispute. However according to the information and explanations given to us followingamounts have not been deposited as on 31st March 2015 on account of anydispute:
|Name of Statute ||Nature of dispute ||Amount ||Period ||Forum where dispute is pending |
|Income Tax Act 1961 ||Asst. u/s 143(3) ||Rs. 27784310/- ||FY 2011-12 ||Commissioner of (Appeals) Mumbai |
(c) According to the information and explanations given to us there are no amountrequired to be transferred to the investor education and protection fund in accordancewith the relevant provisions of the Companies Act 1956 (1 of 1956) and rules there under.
(viii) The Company does not have any accumulated losses at the end of the financialyear and has not incurred cash losses in the financial year and in the immediatelypreceding financial year.
(ix) The Company did not have any outstanding dues to financial institutions banks ordebenture holders during the year.
(x) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.
(xi) The Company did not have any term loan outstanding during the year.
(xii) According to the information and explanations given to us no material fraud onor by the Company has been noticed or reported during the course of our audit.
| ||For S. G. Kabra & Co. |
| ||Chartered Accountants |
| ||FRN 104507W |
| ||(S. G. Kabra) |
| ||Partner |
| ||M No 038867 |
|Place: Mumbai || |
|Dated: 27th May 2015. || |