The Members of
DHANLAXMI FABRICS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of DHANLAXMIFABRICS LIMITED"the Company") which comprise the Balance Sheet as at March31 2016 the Statement of Profit and Loss Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone 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 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.
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 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. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Companys Directors as well as evaluating theoverall 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
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 March 31 2016 and its Profit and its Cash Flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("theOrder") as amended issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Act we give in the "Annexure B" astatement on the matters specified in paragraphs 3 and 4 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 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 written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2016 from being appointed as a director in terms of Section 164 (2) of theAct.
f). With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A".
g). 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 given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note No. 29 Contingent Liabilities tothe financial statements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For S. G. Kabra & Co
FRN : 104507W
(S. G. Kabra)
M No : 038867
Place : Mumbai
Date: 30th May 2016
"ANNEXURE A" TO THE INDEPENDENT AUDITORS
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") .
We have audited the internal financial controls over financial reporting of DHANLAXMIFABRICS LIMITED ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to companys policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompanys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For S. G. Kabra & Co
FRN : 104507W
(S. G. Kabra)
M No : 038867
Place : Mumbai
Date: 30th May2016
"Annexure B" 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 FABRICSLIMITED for the year ended 31st March 2016)
i) (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets;
(b) All the fixed assets were physically verified by the management at reasonableintervals during the year. We are informed that no material discrepancies were noticed onsuch verification.
(c) The title deeds of the Land in the immovable property are not held in the name ofthe company.
ii The management has conducted the physical verification of inventory atreasonable intervals. We are informed that no material discrepancies were noticed onphysical verification of the inventory
iii) The Company has not granted any loans secured or unsecured to companiesfirms Limited Liability partnerships or other parties covered in the Register maintainedunder section 189 of the Act. Accordingly the provisions of paragraph 3 (iii) (a) to (c)of the Order is not applicable to the Company and hence not commented upon.
iv) In our opinion and according to the information and explanations given to usthe company has complied with the provisions of section 185 and I86 of the Companies Act2013 in respect of loans investments guarantees and security.
v) The Company has not accepted any deposits from the public.
vi) We have broadly reviewed the cost records maintained by the company pursuant tothe rules prescribed by the Central Government under sub section 1 of section 148 of theCompanies Act 2013 and are of the opinion that prime facie the prescribed accounts andcost records have been maintained.
vii) a) The Company is regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund Employees State InsuranceIncome Tax Sales-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 2016 for a period of more than six months from thedate they became payable.
b) According to the information and explanation given to us there are no dues of salestax service tax duty of customs duty of excise value added tax outstanding on accountof any dispute. However according to information and explanations given to us thefollowing dues of Income Tax have not been deposited by the Company on account of dispute:
|Name of the Statute ||Nature of Dues ||Amount (Rs.) ||Period to which the amount relates (FY) ||Forum where disputes is pending |
|Income Tax Act 1961 ||Income Tax Assessment ||9054500/- ||2009-2010 ||Commissioner of Income Tax (Appeal) |
| ||Income Tax Assessment ||561160/- ||2010-2011 ||Commissioner of Income Tax (Appeal) |
| ||Income Tax Assessment ||95180/- ||2011-2012 ||Commissioner of Income Tax (Appeal) |
viii ) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to banks. The Company has not takenany loan either from financial institutions or from the government and has not issued anydebentures.
ix) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of paragraph 3 (ix) of the Order is not applicable to the Company.
x) Based upon the audit procedures performed and the information and explanations givenby the management we report that no material fraud by the Company or on the company byits officers or employees has been noticed or reported during the year.
xi) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;
xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofparagraph 3 (xii) of the Order is not applicable to the Company.
xiii) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
xiv) According to the information and explanation given to us and based on ourexamination of the record of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
xv) According to the information and explanations given to us and our examination ofthe records of Company the Company has not entered into non- cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of Order is notapplicable.
xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For S. G. Kabra & Co
FRN : 104507W
(S. G. Kabra)
M No : 038867
Place : Mumbai
Date: 30th May 2016