To the Members of Oswal Yarns Limited.
Report on the Financial Statements
We have audited the accompanying financial statements of Oswal Yarns Limited (theCompany) which comprise the Balance Sheet as at March 312015 the Statement ofProfit and Loss and Cash flow for the year then ended and a summary of significantaccounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Standards notified under the Companies Act 1956(the Act) read with the General Circular 15/2013 dated 13thSeptember 2013 of the Ministry of Corporate Affairs in respect of section 133 of theCompanies Act 2013. This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of thefinancial 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 conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment 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 management 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.
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:
a) in the case of the Balance Sheet of the state of affairs of the Company as at March312015;
b) in the case of the Statement of Profit and Loss of the Loss for the year ended onthat date; and
c) in the case of Cash Flow Statement cash flow for the year ended on that date.
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 by order dated April 10th 2015 byMinistry of Corporate Affairs in terms of sub-section (4A) of section 143 of the Act wegive in the Annexure a statement on the matters specified in paragraphs 3 and 4 of theOrder.
2. As required by section 143(3) of the Act we report that:
a) we have obtained all the information and explanations which to the best of ourknowledge 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 Statement dealt with by thisReport are in agreement with the books of account.
d) in our opinion the Balance Sheet the Statement of Profit and Loss and the CashFlow Statement comply with the Accounting Standards notified under the Companies Act 1956read with the General Circular 15/2013 dated 13th September 2013 of theMinistry of Corporate Affairs in respect of section 133 of the Companies Act 2013:
e) on the basis of written representations received from the directors as on March 312015 and 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 sub-section (2) ofsection 164 of the Companies Act 2013.
f) the company has adequate internal financial controls system in place and suchcontrols are effectively in operation.
| ||For Subash Vipan & Co. |
| ||Chartered Accountants |
| ||Sd/- |
|Place : Ludhiana ||(Subhash Jain) |
|Dated : 30.05.2015 ||Partner |
| ||M. No.085224 |
Annexure to Independent Auditors' Report
Referred to in Paragraph 1 under the heading of "report on other legal andregulatory requirements" of our report of even date
1. In respect of its fixed assets:
a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.
(b) As explained to us fixed assets have been physically verified by the management ina phased periodical manner which in our opinion is reasonable having regard to the sizeof the Company and nature of its assets. No material discrepancies were noticed on suchphysical verification.
(c) In our opinion the Company has not disposed off the substantial part of its fixedassets during the year and the going concern status of the Company is not affected.
2. In respect of its inventories:
(a) The inventories have been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(c) The Company has maintained proper records of inventories. As explained to us therewere no material discrepancies noticed on physical verification of inventories by themanagement as compared to the book records.
3. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained underSection 189 of the Companies Act 2013. Consequently the provisions of clauses iii (a)and iii (b) of the order are not applicable to the Company.
4. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the company and thenature of its business for the purchase of inventory & fixed assets and for sale ofgoods & services. During the course of our audit we have not observed any continuingfailure to correct major weaknesses in the internal control system.
5. According to the information and explanations given to us the Company has notaccepted any deposits from the public. Therefore the provisions of Clause (v) ofparagraph 3 of the Order are not applicable to the Company.
6. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Accounting Records) Rules 2011 prescribed by the Central Government undersub section (1) of Section 148 of the Companies Act 2013 and are of the opinion thatprima facie the prescribed cost records have been maintained. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.
7. In respect of statutory dues
(a) According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty cess and otherstatutory dues have been generally regularly deposited with the appropriate authoritiesthough there has been a slight delay in a few cases. According to the information andexplanations given to us no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at 31st of March 2015 for a period of more than six monthsfrom the date of becoming payable.
(b) According to the information and explanations given to us there is no amountspayable in respect of income tax wealth tax service tax sales tax customs duty andexcise duty which have not been deposited on account of any disputes.
(c) According to the records of the Company there are no amounts that are due to betransferred to the Investor Education and Protection Fund in accordance with the relevantprovisions of the Companies Act 1956 (1 of 1956) and rules made there under.
8. The accumulated losses of the company at the end of the financial year was Rs. 18.16lacs.. The Company has not incurred cash losses during the financial year covered by theaudit and in the immediately preceding financial year.
9. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment ofdues to financial institutions banks or debenture holders.
10. According to the information and explanations given to us the Company has notgiven guarantees for loan taken by others from a bank or financial institutions.
11. Based on our audit procedures and on the information given by the management wereport that the Company has not raised any term loans during the year.
12. In our opinion and according to the information and explanations given to us nomaterial fraud on or by the Company has been noticed or reported during the year.
| ||FOR SUBASH VIPAN & CO. |
| ||CHARTERED ACCOUNTANTS |
| ||Sd/- |
|Place : Ludhiana ||(SUBHASH JAIN) |
|Dated :30.05.2015 ||PARTNER |
| ||M. No. 85224 |
| ||F.R. No. 012898N |