PACIFIC COTSPIN LIMITED
ANNUAL REPORT 2006-2007
The Members of
Pacific Cotspin Limited
1. We have audited the attached balance sheet of Pacific Cotspin Limited as
at 31st March 2007, 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. Those 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 lest 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 (As Amended)
issued by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act,1956, we enclose in the Annexure statement
on the matters specified in paragraphs 4 and 5 of the said Order.
4. further to our comments in the Annexure referred to above, we report
(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
(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 sub-section (3C) of section 2t I of the Companies Act, 1956;
(v) On the basis of written representation received from the directors, as
on 31st March 2007 and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March 2007 from being
appointed as a director in terms of clause (g) of sub-section (I) of
section 274 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 together with Holes thereon,
give the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) In the case of the balance sheet, of the state of affairs of the
company as at 31st March 2007;
(b) In the case of the profit and loss account, of the profit for the year
ended on that date; and
(c) In the case of the cash flow statement, of the cash flows for the year
ended on that date.
For AGARWAL & MODI
Place: Kolkata Partner
Date : 1st September, 2007 Membership No.: 60223
ANNEXURE TO AUDITORS' REPORT
(Referred to in Paragraph 3 of our report of even date)
(i)(a)The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b)All of the fixed assets have not been physically verified by the
management during the year but there is a regular programme 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, there is no substantial disposal of fixed assets which
would affect the going status of the company.
(ii) (a) The inventory has been physically verified during the year by the
management, in our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by the
management arc 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. The
discrepancies noticed on verification between the physical stock and the
book records were not material.
(iii) (a) The company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained under
Section 30 i of the Companies Act, 1956.
(b) In view of clause (iii) (a), clause (iii) (b) is not applicable.
(c) In view of clause (iii) (a), clause (iii)