The Shareholders of
A. K. SPINTEX LIMITED Bhilwara
Report on the Financial Statements
We have audited the accompanyiny financial statements of A. K. SPINTEX LIMITED("the company") which comprise the Balance Sheet as at March 31 2015 theStatement of Profit and Loss and Cash Flow Statement for the year ended and a summary ofsignificant accounting policies and other explanatory information
Management's Responsibility for the Financial Statements
The company Board of directors is responsible for the. matters in section 134(5) of theCompanies Act. 2013 ("the Act' ) with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the Accounting principles generallyaccepted in india including the Accounting Standards referred to in Section 133 of theCompanies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility includes the design implementation and maintenance of adequate internalcotrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fail view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these standalonefinancial statements based on our audit. We have taken into account the prevision of theAct the accounting and auditing standards and matters which arc required to be includedin the audit report undci the provision of the Act and the Rules made thereunder
We conducted our audit in accordance with the Slanduid. on Auditing specified undersection 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 fr?? from material misstatemenl
An audit involves performing procrdures 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 oveiall 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 lair 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 MarchU 2015;
(b) in the case of the Profit and Loss Account of the profit/ loss forthe year ended on that date and (c) in the case of the Cash Flow Statement of thecash flows 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 Older")issued by the Central Government of India in erms of sub-section (11) Section 143 of theCompanies Act 2013 we give in the Anncxure a statement on the matters specified inparagraphs
3 and 4 of the Order to the extent applicable.
2. As required by section 43(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 purposenf 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account and records
(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 to the extent applicable.
(e). on the basis of written representations received from the directors as or 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) ofthe Act and
(f). with respect to the other matters to be included in the auditor's report inaccordance with Rulc 11 of the Companies (Audit and auditors) Rules. 2014 in cur opinionand to the best of our information and according to the explanations given to us
i Since the Central Government lias not issued any notification an to the rale at whichthe ??ss is to be paid under section 441A ofthe Companies Act I956 nor has ii issued any Rules under the said section prescribingthe manner in which such cess is to be paid no cess is due and payable by the Company.
ii. As the company has not declared any dividend in the past yean & there is nounpaid dividend so there is no requirement of transfer of amount in Investor Education& Protection tiind. (lliPP)
AININKXIIRF. TO THE INDEPENDENT AUDITORS REPORT
(Referred to in ?graphs uuder the heading of Report on OtherLegal and Regulatory Remurements of our report of even date)
On the basis of such checks of the books and records as we consider appropriate and asper the information and explanation given to us during the course of out audit we furtherreport that: -
i(A) The Company has maintained proper records showing full particularx includingquantitative details and situation of fixed assets on the basis of available information.
(B) As explained to us. the fixed assets have been physically verified by themanagement during the year in a phased periodic manner which in our opinion isreasonable having regard to the size of the Company ami nature of its assets No materialdiscrepancies were noticed on such physical verification
ii(A) As explained to us (he inventories have been physically verified by themanagement at reasonable intervals during the year.
(B) In our opinion and according to the information and explanation given to us. theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the Company and nature of its business.
(C) The Company has maintained proper records of inventories As explained to us. nomaterial discrepancies were noticed on physical verification of inventory as compared tothe book recore.
According to the information & explanations given to us and on thebasis of our examination of the books of account the
Company las not granted any loans secured or unsecured to companies firms or otherparties listed in the register maintained under Section 189 of the Companies Act 2013Hence clause (iii) (a) & (b) is not applicable Lo the company as the company has notgranted any such loans
iv. In our opinion and according to the information and explanation given to us. thereis generally an adequate internal control procedure commensurate with the size of the company and the nature of its business forthe purchase of inventories & fixed assets & for sale of goods and service Duringthe course of our audit no major instance of continuing failure to correct any weakness inthe internal control system has been noticed
v The companies has not accepted any loans/deposits from public in our opinion andaccording to the information anil explanation given to us the provision of section 73 and70 of the Companies Act. 2013 and the Rules framed there under wherever applicable arcbeing complied with. No order has been passed by company law board against the company
vi. As pci information and explanations given to us the Central Government has notprescribed maintenance of cost records under section 148(1) of the Companies Act forcompanys produds
a. According to the records of the company undisputed statutory dues includingProvident Fund Employee State Insurance Income Tax. Wealth tax. Custom Duty. Sales TaxExcise duly VAT Cess and other statutory dues have been regularly deposited with theappropriate authorities. According to the information and explanation given to us noundisputed amounts payable in account of any dispute other then the disputed statutorydues aggregating to Rs 110 55 Lac that have not been deposited on account ?f mailers pending before appropriate authorities are as under;
|Name of the Statute ||Financial year to which the matter pertains ||Nature of the dues ||Forum where dispute is pending ||Amount (Rs. in Lac) |
|Textiles Cess Act ||1997-2007 ||TC Cess ||Textile Cess Tribunal. ||46.26 |
|Central Excise Act 1944 ||2002-2003 ||Excise Duty ||Commissioner (Appeals) ||544 |
|Entry Tax Act ||2012-2015 ||Entry Tax ||Company is disputing & challenging the liabilities based on the legal opinion sought by the company. ||58.83 |
b. As the company has not declared any dividend in the past year & there is nounpaid dividend so there is no requirement of transfer of amount in Investor Education& Protection fund (TEPT)
Viii The Company does not have any accumulated losses and has not incurred cash lossesduring the financial year covered by our audit and in the immediately preceding financialyear.
ix. Based on our audit procedures and on the information and explanation given by themanagement we are of the opinion that the company has not defaulted in repayment of duesto financial institution. Banks or debenture holders.
x. In our opinion and according to the information and the explanation given to us. thecompany has not given any guarantee for loans taken by others from hanks or financialinstitution.
xi Based on our audit procedures and on the information & explanations given by themanagement we report that the term loans have been applied for the purpose tor which theywere raised.
xii In our opinion and according to the information & explanations given to us wereport that no material fraud on or by the company has been noticed or reported during theyear nor have we been informed of such case by the management
FOR O.P. DAD & COMPANY
[O.R. DAD] PARTNER M. NOJ5373
DATED: 30th MAY 2015