TO THE MEMBERS OF SHRI BHOLANATH CARPETS LIMITED FORMERLY KNOW BIL CONTINENTAL LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of SHRI BHOLANATH CARPETS LIMITEDFORMERLY KNOW BIL CONTINENTAL LTD. which comprise the Balance Sheet as at March 31 2015the Statement of Profit and Loss and the statement of cash flow statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.
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 and financial performance of the company inaccordance with the accounting principles generally accepted in India including AccountingStandards referred to in Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility includes the design im plementation andmaintenance of internal controls 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 theauditors judgment including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal control relevant to the companyspreparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the management as well as evaluating the overallpresentation 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 case of Balance Sheet of the state of affairs of the Company as at March312015; and
b) In the case of the Statement of profit and loss of the profit for the year ended onthat date.
c) In the case of the Statement of cash flow for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1 As required by the Companies (Auditors Report) Order2015 issued by theCentral
Government of India in term of sub-section (11) of section 143 of the CompaniesAct2013 we give in the Annexure a statement on the matters specified in the paragraphs 4and 5 of the order.
2 As required by section 143(3) of the Act we report that:
a) We have obtained all the information and explanation which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b) In our opinion proper books of accounts as required by law have been kept by theCompany so far as appears from our examination of those books and proper returns adequatefor the purposes of our audit have been received from branches not visited by us.
c) The Balance Sheet the statement of Profit & Loss Account and Statement of CashFlow dealt with by this report are in agreement with the books of account.
d) In our opinion the Balance Sheet Profit and Loss Account and Statement of cashflow dealt with by this report comply with the Accounting Standards referred to in Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31ST
MARCH 2015 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31ST MARCH 2015 from being appointed as a director interms of Section 164(2) of the Act;
ANNEXURE TO THE AUDITORS REPORT
1 As pe the Explanation provided by manangement the records of Fixed Assets are underprepration. M/s. SHRI BHOLANATH CARPETS LIMITED FORMERLY KNOW BIL CONTINENTAL LIMITED a)b) The fixed assets have not been physically verified during the year by themanagement c) report that there was no sale of fixed assets during the financial yearended 31st March 2015 substantial orBased on scrutiny of the records of the company andthe information and explanations received by us we
2 a) the frequency of verification is reasonable. The inventory of the company has beenphysically verified during the year by the management. In our opinion
b) In our opinion and according to the information and explanations given by themanagement the procedures followed are reasonable and adequate in relation to size of thecompany and nature of its business.
c) discrepancies were noticed on physical verification of inventory as compared to thebook records. In our opinion the company is maintaining proper records of inventory. Asexplained to us no material
3 Parties covered in the register maintained under Section 189 of the companies act2013;
a. The company has not taken loans.
b. In respect of loan taken / granted by the company the principal is repayable ondemand
There are no overdue amounts in respect of loan taken / granted by the company.
4 In procedures commensurate with the size of the company and the nature of itsbusiness with regard to purchase of our opinion and according to information andexplanations given to us there are adequate internal control inventory & fixedassets.
5 we are of the opinion that there were no transactions during the year that need to beentered in the registerBased on the audit procedures applied by us and the information andexplanations provided by the management maintained under section 189 of the the CompaniesAct 2013.
6 The company has not accepted any deposits from the Public
7 n business. I our opinion the company has an adequate Internal Audit Systemcommensurate with the size and nature of its
8 Companies Act 1956 in respect of products manufactured by the Company. We have beeninformed by the management no cost records have been prescribed under Section 209(I)(d)of the
9 a) undisputed statutory dues including provident fund investor education protectionfund Employee's StateAccording to the records of the company the company is regular indepositing with appropriate authorities applicable to it. Insurance Income tax SalesTax Wealth Tax Custom duty Excise duty cess and other statutory dues
b) income tax wealth tax sales tax custom duty and excise duty were outstanding asat 31ST MARCH 2015 for aAccording to the information and explanations given to us noundisputed amount payable in respect of period of more than six months from the date theybecame payable.
c) excise duty/cess which have not been deposited on account of any dispute. Accordingto the records of the company there are no dues of sales tax income tax customstax/wealth tax
10 applicable. The company has not incurred cash loss in current year and precedingFinancial year so provision of clause is not
11 company has not defaulted in repayment of dues to a financial institution bank ordebenture holders. According to information and explanations given to us and on the basisof our audit we are of the opinion that the
12 security byway of pledge of shares debentures or other securities. According to therecords of the company the company has not granted any loans and advances on the basis of
13 I of the Companies (Auditors') Report Order 2003 as ameded by 2004 is notapplicable. n our opinion company is neither a chit fund nor a nidhi/mutual benefitsociety. Hence in our opinion Para -4(xiii)
14 company has no earned profit As per the records of the company and according toinformation and explanations given to us by the management in delivery based sale &purchase of equity shares of listed companies.
15 the company has not given any guarantee for loans taken by others from bank orfinancial institutions. As per the records of the company and according to information andexplanations given to us by the management
17 Company we are of the opinion that no funds raised on short term basis have beenused for long term investmentAccording to information and explanations given to us and onoverall examination of the Balance Sheet of the by the company.
18 made any preferential allotment of shares to parties and companies covered in theregister maintained underAs per the records of the company and according to informationand explanations given to us the company has not made any preferrential allotment ofshares to parties and companies coverred in the registered maintained under section 301 ofthe act.
19 As per the records of the company has not issued any debenture.
20 The company has not raised any money by public issues during the period coverred byour avdit report.
21 I been noticed or reported during the course of our audit. n our opinion andaccording to information and explanations given to us no fraud on or by the company have
| ||For O.P. TULSYAN & CO. |
|PLACE:VARANASI ||Chartered Accountants |
|DATE: 30/05/2015 ||(PARTNER) |