The Member's of
M/S INDIA POLYSPIN LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/S INDIA POLYSPIN LIMITED(the company) which comprise the Balance Sheet as at 31-3-2014 and the Statement ofProfit & Loss for the year then ended and a summary of significant accountingpolicies and other explanatory information.
Management 's Respnsibility for the Financial Statements
Management is responsible for the prepration of these financial statements that give atrue and fair veiw of the financial position financial performance and cash flow of theCompany in accordance with the accounting standards reffered to in subsection(3C) ofsection 211 of the Companies Act 1956 ("the Act"). this respnsibility includesdesign implementation and maintainance of internal control relevant to the prepration andfair presentation of the financial statements that are free from material misstatementwhether 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 Standards on Auditing issued by the ICAI.Those standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements.The procedures selected depend on the auditor'sjudgement 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 control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by the managementas well as evaluating the overall presentation of the financial statements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide basisfor our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the said accounts give the information required by the Companies Act 1956in the manner so required and give a true and fair view in conformity with the accountingprincipals generally accepted in India;
a) In the Case of the Balance Sheet of the state of affairs of the Company as at31-03-2014 and
b) In the case of the Statement of Profit & Loss Account of the Loss for the yearended on that date.
c) In the case of the Cash Flow Statement of the Cash Flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor's Report) Order 2003 as amended by companies(amendment) order 2004
2 As required under [provisions of section 227(3) of the Compmiies Actb 1956 wereport that:-
(i) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit;
(ii) 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;
(iii) The Balance Sheet Statement of Profit and Loss Account and Cash flow statementdealt with by this report are in agreement with the books of account;
(iv) In our opinion the Balance Sheet Statement of Profit and Loss Account and Cashflow statement dealt with by this report comply with the accounting standards referred toin sub-section (3C) of Section 211 of the Companies Act 1956;
(v) On this basis of written representations received from the directors as on31-3-2014 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31-3-2014 from being appointed as a director in terms ofclause (g) of sub-section (1) of section 274 of the Companies Act 1956;")
For SONI JHAWAR & CO.
FIRM REG. NO: 110386W
25th May 2014
ANNEXURE TO THE AUDITORS' REPORT AS REFERRED TO IN PARA 3 OF THE SAID REPORT OF EVENDATE
(i) The company does not have any Fixed Assets hence clause (i) (a) (b) and (c) arenot applicable to the company during the year under audit.
(ii) The company does not have any inventories hence clause (ii) (a) (b) and (c) arenot applicable to the company during the year under audit.
(iii) (a) The company has granted loans to companies firms and other parties coveredunder the Register maintained under Sec 301 of the Companies Act1956 aggregatingRs.450000/- to one such parties.
(b) In our opinion the rate of interest and other terms and conditions on which thesaid loans have been given are not prima facie prejudicial to the interest of thecompany.
(c) As explained to us the receipts of payment of principal amounts and Interest ifany are as per the terms of the said loan.
(d) As explained to us there is no overdue amount.
(e) The company has taken unsecured loans from companies firms and other partiescovered in the Register maintained under Section 301 of the Companies Act 1956 amountingRs. 16966636/- from 7 such parties.
(f) In our opinion the rate of interest and other terms and conditions on which thesaid loans have been taken are not prima facie prejudicial to the interest of thecompany
(g) As explained to us the company is regular in payment of principal amounts andinterest if any as per the terms of the said loan.
(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of the companyand the nature of its business. During the course of our audit we have not observed anycontinuing failure to correct major weaknesses in internal controls.
(v) (a) Based on audit procedures applied by us and according to the information andexplanations provided by the management we are of the opinion that the transactions thatneed to be entered into the register maintained under section 301 of Companies Act 1956have been so entered.
(b) In our opinion and according to the information and explanations given to us theContract or arrangemants entered in the register maintained under Section 301 andexceeding the value of five lakh rupees in respect of any party during the year have beenmade at prices which are reasonable having regard to prevailing market prices at therelevant time.
(vi) In our opinion and according to the information and explanation given to us thecompany has not accepted any deposits from the public within the meaning of Sec.58A and58AA of the Companies Act 1956.
(vii) The company does not have a formal Internal Audit System. However in ouropinion there are adequate internal control procedures commensurate with the size of thecompany and the nature of its business.
(viii) According to the information and explanation given to us the company is notrequired to maintain cost records under section 209(l)(d) of the Companies Act 1956.
(ix) (a) According to the information and explanation given to us the company isgenerally regular in depositing with appropriate authorities undisputed statutory dueincluding provident fund investor education protection fund employees' state insuranceincome tax sales tax wealth tax custom duty excise duty cess and other materialstatutory dues applicable to it.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of income-tax wealth tax sales tax custom duty excise duty and cesswere in arrears as at 31/03/2014 for a period of more than six months from the date theybecame payable.
(c) According to the information and explanation given to us there are no dues ofsales tax custom duty wealth tax excise duty and cess that have not been deposited onaccount of any dispute.
(x) The accumulated losses of the company are more than fifty percent of its net worth.The company has also incurred cash losses during the financial year covered by our auditand also incurred cash loss in the immediately preceding financial year.
(xi) Based on the audit procedures and on the information and explanations given by themanagement we are of the opinion that the company has not defaulted in repayment of duesif any to any financial institution bank or debenture holder.
(xii) Based on the audit procedures and as per information and explanation given by themanagement the company has not granted loans and advances on the basis of security by wayof pledge of shares debentures and other securities.
(xiii) In our opinion the company is not a chit fund or nidhi mutual benefitfund/society. Therefore the provisions of clause 4(xiii) of the Companief(Auditors-Report) Order 2003 (As Amended) are not applicable to the company.
(xiv) In our opinion the company is not dealing in or trading in shares securitiesdebentures and other investments. Accordingly the provisions of clause 4(xiv) of theCompanies (Auditor's Report) Order 2003 (As Amended) are not applicable to the company.
(xv) As informed to us the company has not given any guarantees for loans taken byothers from banks or financial institutions.
(xvi) On the basis of our examination of the books of a/c and the information andexplanation given to us in our opinion the term loans taken have been applied for thepurpose for which they were raised.
(xvii) On the basis of our examination of the books of a/c and the information andexplanation given to us in our opinion the funds raised on short term basis have notbeen used for long term investment.
(xviii) The company has not issued any Bonus shares during the year.
(xix) The company has not issued any Debentures during the year.
(xx) The company has not made any preferential allotment of shares to the parties andcompanies covered in the register maintained under section 301 of the Companies Act 1956during the year.
(xxi) During the year under audit the company has not issued debentures.
(xxii) The company has not raised any money by public issue during the year.
(xxiii) Based upon the audit procedures performed and information and explanation givenby the management we report that no fraud on or by the company has been noticed orreported during the course of our audit.
For SONI JHAWAR & CO.
M.NO. : 071689
FIRM REG. NO: 110386W
DATE : 25th May 2014