|BSE: N.A.||Sector: N.A.|
|NSE: N.A.||ISIN Code: N.A.|
|BSE 05:30 | 01 Jan|
|NSE 05:30 | 01 Jan|
|BSE: N.A.||Sector: N.A.|
|NSE: N.A.||ISIN Code: N.A.|
|BSE 05:30 | 01 Jan|
|NSE 05:30 | 01 Jan|
NEPC Textiles Limited
Report on the Financial Statements
We have audited the accompanying financial statements of NEPC TEXTILES LIMITED("the Company")which comprise the Balance Sheet as at March 31 2015. thestatement of Profit and Loss the Cash Flow Statement forthe year then ended and asummary of the significant accounting policies andother explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated inSection 134(5)of the Companies Act2013 ("the Act")with respect to thepreparation of thesefinancial statements that give a true and fairview of the financial position financialperformance and cash flows of thecompany in accordance with the accounting principlesgenerally accepted inlndia including the Accounting Standards specified under section 133of theAct read with Rule 7 of the Companies (Accounts) Rules 2014.Thisresponsibilityalso includes maintenance of adequate accounting records inaccordance with the provisionsof the Act for safeguarding the assets of theCompany and for preventing and detectingfrauds and other irregularities;making judgments and estimates that are reasonable andprudent; anddesign implementation and maintenance of adequate internal financialcontrolsthat were operating effectively for ensuring the accuracy andcompleteness of theaccounting records relevant to the preparation .andpresentation of the financialstatements that give a true and fair view and are free from material misstatementswhether 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 Actthe 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 specifiedunderSection 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 misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or errors. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures 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 Company's Directors as well asevaluating 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.
I n 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 March31 2015 and its profit and its cash flows for the year ended on that date subject topoint No. 4 it was not possible for us to obtain external confirmations about accountsreceivables accounts payable loans & advances deposits and balalnce as on 31stMarch 2015.
The sundry creditors and loans & advances figures (including inter companybalances) mainly consist of opening balances brought forward from earlier years which arenot confirmed by the management. The management is in process of reconciliation/ gettingcon firmation of the accounts. We are unable to determine whether any adjustments mighthave been found necessary1 as the result of the above. The impact thereon on profit/lossliabilities cannot be quantified due to non- compliance of reconciliation by themanagement (refer Note 4)
Subject to the baove notes and also subject to the note nos 3(i) to 3 (111) and theirconsequential effect on the respective assets and liabilities nd also on the loss for theyear adn together with the notes and accounting policies in Note-10.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")Issued by the Central Government of India in terms of Section 143( 11) of the Act we givein the
Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order to theextent 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 purposes 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 financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 Of the Companies(Accounts) Rules. 2014.
(e) On the basis of the written representations received from the directors as on March31 2015 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164(2) of theAct.
(f) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014in our opinionand to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT-31 MARCH 2015
(Referred to in our report of even date)
(i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.
b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of three years. Inour opinion this periodicity of physical verificationis reasonable having regard to thesize of the Company and the nature of its assets. No material discrepancies were noticedin respect of assets verified during the year.
(ii) In respect of the inventories of the company (a) As explained to us. theinventories were physically verified during the year by the management at reasonableintervals.
(b) n our opinion and according to theI information and explanation given to us theprocedures of physical verification of inventories followed bt the management werereasonable and adequate in relation to the size of the company and nature of its business.
(c) In our opinion and according to information and explanations given to us thecompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.
(iii) The Company has not granted any loans secured or unsecured to Companies firmsor other parties covered in the register maintainedUnder section 189 of the CompaniesAct.2013 ("the Act").Accordinglyparagraphs 3(iii) (a) and (b) of the Order arenot applicable to the Company .
(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 fixed assets. The nature of operationsof the Company does not involve purchase of inventory' and sale of goods and services. Inour opinion and according to the information and explanations given to us there is nocontinuing failure to correct major weaknesses in internal control system.
(v) In our opinion and according to the information and explanations given to us thecompany has not accepted deposits as per the directives issued by the Reserve Bank ofIndia under the provisions of sections 73 to 76 or any other relevant provisions of theAct and the rules framed there under. Accordingly paragraph 3(v) of the Order is notapplicable to the Company.
(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for the activities carried out by the company. Accordinglyparagraph
3(vi) of the Order is not applicable to the company.
(vii) Statutory Dues:
(a) Based on the records verified by us and as certified by the management the Companyhas been generally regular in depositing undisputed statutory dues arising to the Companyin respect of the Provident Fund Investor Education and Protection Fund Employees StateInsurance Sales Tax Wealth Tax Customs Duty Service Tax Cess and any other StatutoryDues during the period to the appropriate authorities. As at 31st March 2015 except whatis reported below there were no undisputed dues which were outstanding for a period ofmore than six months from the date they became payable:
(b) Following are the details of disputed statutory dues which have not been depositedon account of disputes as listed below:
(viii) The Company has accumulated losses as 31st March 2015 which are not more thanfifty per cent of the networth. The company has also incurred cash losses during thefinancial year.
(ix) The Company did not have any outstanding dues to any financial institution banksor debenture holders during the year.
(x) According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from banks or financial Institutions.
(xi) The Company did not have any term loans outstanding during the year.
(xii) 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 A. Nageswaran
Membership No: 200/2391