To the Members of
Report on the Financial Statements
We have audited the accompanying financial statements of K C Textiles Limited("tke Company") which comprise the Balance Sheet as at March 31 2015 theStatement of Profit and Loss and Cask Flow Statement for the year then ended and asummary of significant accounting policies and - other explanatory information.
Managements' Responsibility for the Standalone Financial Statements
The companys Board of directors is responsible for the matters stated in Section134 (5) of the Companies Act 2013 ("tke Act") with respect to the preparationof these standalone financial statements that give a true and fair view of the financialposition financial performance and cask flows of the Company in accordance with theaccounting principles generally accepted in India including the accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities selection andapplication of appropriate accounting policies making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial 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 have taken into account the provisions of the Act the 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 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 free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures- selected depend on theauditors judgment including ike assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditors consider internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place and adequate internal financialcontrols system over financial reporting and the operating effectiveness of suck controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Companys Directors 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 on the financial statements.
In our opinion and to the best of our information and according to the
explanations given to us the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2015 and its profit and its cask flows for the year ended on thatdate.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors 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 paragraphs3 and 4 of the Order.
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 kooks 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 kooks 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 written representations received from the directors 'as on March31 2015 taken on record by the Board of Directors none of the directors is disqualifiedas oil Marck31 2015 from being appointed as a director in terms of Section 164 (2) ofthe Act.
f) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in 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 having impact on its financialstatements.
ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii) No amounts are required to be transferred to the Investor Education andProtection Fund by the Company.
| ||For JAGDISH SAPRA & CO. |
| ||CHARTERED ACCOUNTANTS |
| ||(FRN 001378N) |
| ||(CA VIPAL KALRA) |
|New Delhi ||PARTNER |
|Dated: 11th August 2015 ||M.NO. 084583 |
Annexure to the Independent Auditors Report
(Referred to in paragraph 1 under Report on other Legal & Regulatory
requirements of our Report of even date)
i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The fixed assets have been physically verified by the management at the year endwhich in our opinion is reasonable having regard to the size of the Company and the natureof its assets. As informed to us no material discrepancies were noticed on suchverification.
ii. The Company does not have any inventories. Hence the provisions ofclauses(ii)(a)(ii )(b)& (ii)(c) of the Order are not applicable.
iii. In respect of unsecured loans granted by the Company to two companies covered inthe register maintained under Section 189 of the Companies Act 2013as th ere is nostipulation relating to the above loans clauses (iii) (a) and (iii)(b) of the' Orderare not applicable.
iv. 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 andnature of its business for the purchase of inventory and fixed assets and for the sale ofgoods. During the course of our audit we have not observed any major weakness in suchinternal control system.
v. As the company has not accepted any deposits from the public other than unsecuredloans from directors the provisions of clause (v) of the Order are not applicable.
vi. The provisions of clause (vi ) of the Order regarding maintenance of cost recordsas prescribed by the Central Government under Section 148 (1) of the Companies Act 2013are not applicable to the company.
vii. a) According to the information and explanations given to us and the records ofthe company examined by us the company has been generally regular in depositingundisputed statutory dues including Provident Fund Employees State InsuranceIncome Tax Sales Tax Wealth Tax Service Tax Duty of Customs Duty of Excise valueAdded Tax Cess and other statutory dues with the appropriate authorities during the year. We are informed that there are no undisputed statutory dues as at the year endoutstanding for a period of more than six months from the date they become payable exceptlisting fees of Rs. 113400/-.
b) There are no dues in respect of income tax sales tax wealth tax service tax dutyof custom duty of excise value added tax and cess that have not been deposited with theappropriate authorities on account of any dispute.
c) No amount is required to he transferred to Investor Education and Protection fund inaccordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rulesmade thereunder.
viii. The Company does not have any accumulated losses at the end of the financialyear. The company has not incurred cash loss during the current year as well as in theimmediately preceding financial year.
ix. According to the records of the Company examined by us and on the basis ofinformation and explanations given to us the Company has not defaulted in repayment ofdues to banks .The Company has not obtained any loans from financial .institutions orborrowings by way of debentures.
x. According to the information and explanations given to us the Company has not givenguarantees for loans taken by others from hanks or financial institutions.
xi. In our opinion and according to the information and explanations given to ustheCompany has not taken any term loans hence the provisions of clause(xi) of the Order arenot applicable to the Company.
xii. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and material fraud on the Company has been noticed orreported during the year.
| ||For JAGDISH SAPRA & CO. |
| ||CHARTERED ACCOUNTANTS |
| ||(FRN 001378N) |
| ||(CAVIPAL KALRA) |
|New Delhi ||PARTNER |
|Dated : 11th August 2015 ||M.NO. 084583 |