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Integral Knit Company Ltd.

BSE: 514298 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Integral Knit Company Ltd
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Integral Knit Company Ltd. (INTEGRALKNITCO) - Auditors Report

Company auditors report

INTEGRAL KNIT COMPANY LIMITED ANNUAL REPORT 2007-2008 AUDITORS' REPORT 1. We have audited the attached Balance Sheet of M/s. INTEGRAL KNIT CO. LIMITED as at 31st March, 2008 the Profit & Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto,These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on, our Audit. 2. We conducted our Audit in accordance with the Auditing Standards generally accepted in India, These standards require that we plan and perform the audit to obtain reasonable assurance about whether the Financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditor's Report) Order 2003, issued by the Central Government of India in terms of Section 227 (4A) of The Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraph 4 & 5 of the said order. 4. Further to our comments in the Annexure referred to above, we report that:- (i) We have obtained all the information and explanations, which to the best of our knowledge 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 the Company so far as appears from our examination of those Books; (iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the Books of Account; (iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956. (v) On the basis of written representations received from the Directors, as on 31st March 2008 and taken on the record by the Board of Directors, we report that none of the Directors is disqualified as on that date from being appointed as a Director in terms of Section 274 (1) (g) of the Companies Act, 1956. (vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and true and fair view subject to Notes on Accounts in general and in particular Note No.3,4,8,10,15, 16 in conformity with the generally accepted accounting principles in India (a) In the case of Balance Sheet, of the state of affairs of the Company as at 31.03.2008: (b) In the case of the Profit and Loss Account, of the Loss for the year ended on that date; and (c) In the case of Cash Flow Statement, of the Cash Flow for the year ended on that date. ANNEXURE TO AUDITORS' REPORT (Refered to in Paragraph 1 of our report of even date) i)(a) Record showing full particulars including quantitative details and situation of Fixed Assets are incomplete as the Fixed Assets Register is not maintained. However, such records ate kept on computer, The fixed assets were physically verified by the Management in phased manner. (b) All the Assets have not been physically verified by the Management in a phased manner during the year but there is a Regular Program of Verification, which, in our opinion, is reasonable having regard to the size of the Company and the Nature of its Fixed Assets. No Material Discrepancies were noticed on such verification. (c) During the year, the Company has not disposed off a major or substantial part of the Fixed Assets so as to affect the going concern status of the Company. ii)(a) The Inventory has been physically verified by the Management during the year. The frequency of verification is reasonable. (b) The procedures of physical verification of Inventories followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its Business. (c) The Company is maintaining proper records of Inventory and there are no discrepancies noticed on physical verification of stocks having regard to the size of the Company's operation. iii)(a) During the year, the Company had not granted any Loans, Secured or Unsecured to Companies, Firms or Other Parties covered in the Register maintained under section 301 of the Companies Act, 1956. (b) Hence the provisions as to whether the rate of interest and other terms & Conditions of Loans given or taken by the Company, Secured or 'Unsecured are Prima Facie Prejudicial to the Interest of the Company are not applicable. (c) So also the provisions as to whether the payment of the principal and interest are also regular are not applicable. (d) So also the provisions as to the overdue amount is more than Rs.1,00,000/- are not applicable. (e) During the year the Company has not taken any Loans, secured or unsecured from the Companies, firms or other parties covered in the register maintained under section 301 of the Act. (f) Hence the provision as to whether the Rate of interest and other Terms & Conditions of Loans, taken by the Company, Secured or Unsecured are Prima Facie Prejudical to the Interest of the Company are not applicable. (g) So also the provisions as to whether the payment of the Principal and Interest are also regular are not applicable. iv) The Internal Control Procedures is commensurate with the size of the Company and the nature of its Business with regard to the Purchases of Inventory, Fixed Assets and Sale of Fixed Assets and Sale of Goods & Services. During the course of our audit, we have not observed any accounting failure to correct major weakness in internal controls. v)(a) No particulars of contract or arrangements referred to in section 301 of the Act are needed to be entered into the register maintained under the section. (b) The provisions whether each of these transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to prevailing Market Prices at the relevant time are not applicable to the Company. vi) As the Company has not accepted any deposit from the Public; the provision as to whether the Directives issued by Reserve Bank of India and provision of Section 58A and 58AA or any other relevant provisions of the Act and Rules framed there under, where applicable,have been complied with and in case of non-compliance, stating of nature of contraventions and whether the company has complied with the Company Law Board or National Tribunal or Reserve Bank of India or any Court or any other Tribunal are not applicable. vii) The Company did not have any internal audit system during the year viii) The Maintenance of Cost Records has not been prescribed by the Central Government under Section 209 (1) (d) of the Companies Act, 1956. ix)(a) The Company is regular in depositing with Appropriate Authorities Undisputed Statutory Dues including Provident Fund, Investor Education & Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other Material Statutory Dues applicable to it. i (b) No Undisputed Amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom Duty Excise Duty and Cess were in arrears, as on 31st March, 2008, for a period of more than E (six) months from the date they became-payable. (c) There are no dues of Sales Tax, Income Tax, Wealth Tax, Service Tax, Excise Duty and Cess, which have not been deposited on account of any dispute. x) The Accumulated Losses of -the Company have exceeded 50% (Fifty Per Cent) of its Net Worth as at 31.03.08. The Company has incurred Cash Loss of Rs36,81,919/- in the current financial year and Rs. 27,10,326/- cash profit in the immediately preceding financial year. In arriving at the accumulated losses and net worth as above, we have considered the qualifications which are quantifiable in the audit reports of the year to which these losses pertain. xi) The Company has defaulted in repayment of dues to the following Financial Institution/s and/or Bank/s and/or Debenture holders in respect of the following amounts and the period mentioned there against:- Sr. Name of Bank/Financial Principal Interest Period No. Institutions Amount Amount 1. IARC (BOB) 7,58,52,912 7,89,76,301 Since June 1998 2. SASF (IDBI) 8,37,38,620 12,58,60,853 Since June 1998 3. SCB (ICICI) 1,04,83,032 1,78,86,555 Since June 1998 xii) The Company has not granted any Loans & Advances on the basis of Security by way of Pledge of Shares, Debentures and other Securities. Hence the Provisions as , to whether the Adequate Documents and Records are maintained and to point out the deficiencies, if any in this regard are not applicable. xiii) The Company is not a Chit Fund or a Nidhi/Mutual Benefit Fund/Society. Hence, the Provisions of Clause 4 (xiii) of the Companies (Auditor's Report) Order 2003 are not applicable to the Company. xiv) The Company is not dealing in or trading in' Shares, Securities, Debentures and other investments. Hence, the Provisions of Clause 4 (xiv) of the Companies (Auditor's Report) Order 2003 are not applicable to the Company. xv) The Company has not given any Guarantee for Loans taken by others from Banks or Financial Institutions. Accordingly the Provisions as to whether the terms & Conditions in respect thereof are prejudicial to the interest of the Company are not applicable to the Company. xvi) There are no Term Loans obtained and hence whether they .have been applied for the purpose for which they were obtained/raised is not applicable. xvii) There have been no fund raised during the year and hence the question as to whether the Fund raised on short term basis has been used for Long Term Investments does not arise. xviii) The Company has not made any Preferential Allotment of Shares to Parties and .Companies covered in the Register maintained under Section 301 of the Companies Act, 1956. Hence the Provisions as to whether the price at which shares have been issued is prejudicial to the Interest of the Company are not applicable. xix) As there are no Debentures, the Provisions relating to securities or charge been created in respect of debentures issued is not applicable. As there are no Debentures, the Provisions relating to securities or charge been created in respect of debentures issued is not applicable. xx) The Company has not raised any money by Public Issues. Hence the Provisions as to whether the Management has disclosed on the end use of money raised by Public Issues and whether the same has been verified are not applicable. xxi) No Fraud on or by the Company has been Noticed or Reported during the course of our Audit. For P.M. TURAKHIA & COMPANY Chartered Accountants Place: Mumbai Dated: 27th June, 2008. M.D. TURAKHIA (Proprietor)