| We have audited the accompanying financial statements of The Jamshri
Ranjitsinghji Spinning & Weaving Mills Company Limited ("the Company"),
which comprise the Balance Sheet as at March 31, 2014, the Statement of
Profit and Loss and Cash Flow Statement for the year then ended and a
summary of significant accounting policies and other explanatory
information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956 read with the General Circular 15/2013 dated T3th September,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of
the Companies Act, 2013.This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issue by The Institute of Chartered
Accountants of India. Those standards required that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performance procedures to obtain audit evidence about
the amount and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparations and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required and read the act 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 March 31, 2014;
(b) In the case of Statement of Profit and Loss of the 'Profits' of the
Company for the year ended on that date; and
(c) In the case of Cash Flow Statement, of the cash 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, 2003 ("the
order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge 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 the Company so far as appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with Accounting Standards
notified under the Act read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
(e) On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1 )(g) of
the Companies Act 1956/164(2) of Companies Act, 2013.
ANNEXURETO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date to the members
of TheJamshri Ranjitsinghji Spinning & Weaving Mills Company Limited on
the financial statement for the Year ended March, 31 2014.
(i) In respect of its fixed assets:
(a) The Company is maintaining proper records to show full particulars,
including Quantitative details and situation of all fixed assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable,
having regard to the size of the Company and nature of its assets. No
material discrepancies were noticed on such physical verification.
(c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status. (ii) In respect of
its inventories:
(a) As explained to us, inventories were physically verified by the
management at the end of the year. In our opinion, the frequency of
verification is reasonable.
(b) As per the information given to us, the procedures of physical
verification of inventories followed by management are, in our opinion,
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 stocks and
the book records were not material.
(iii) (a) The Company has granted unsecured loan to a party covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum outstanding amount was Rs 10,00,000 and year end balance
was Rs. NIL
(b) The rate of interest and other terms and conditions of unsecured
loans given by the company are prima facie not prejudicial to the
interest of the company.
(c) The receipt of the principal amount and the interest is as
stipulated and regular.
(d) There is no overdue amount and hence no recovery steps were
required.
(e) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured from Companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, paragraphs 4(iii)
(f) and (g) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods.
Further, on the basis of our examination of the books and records of
the Company, and according to the information and explanations given to
us, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the informed internal
control systems.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered into the Register maintained under section 301
of Act have been entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements entered in register maintained under Section 301 of the
Companies Act 1956, and exceeding the value of rupees five Lakh in
respect of any party during the year, have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public to which
the provisions of sections 58A, 58AA or any other relevant provisions
of the Companies Act, 1956 and the rules framed there under would
apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government, the maintenance of cost records has been prescribed
under section 209(1) (d) of the Act. We are of the opinion, that prima
facie the prescribed accounts and records have been made and
maintained. The contents of these accounts and records have not been
examined by us.
(ix) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the company
is regular in depositing undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty and other statutory dues with the appropriate authorities.
There are no undisputed amounts outstanding in respect of provident
fund, investor education and protection fund, employees state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty and other statutory dues outstanding as at 31st March 2014
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no disputed amounts
outstanding in respect of Income Tax, Sales Tax/ Wealth Tax/ Service
Tax / Custom Duty / Excise Duty as at 31st March 2014.
(x) The accumulated losses at the end of financial year do not exceed
the net worth of the company. The company has earned cash profit during
the year and in the immediately preceding year.
(xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to financial institution or bank.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealer or trader in securities. The
Company has not invested surplus funds in marketable securities and
mutual funds.
(xv) In our opinion, and according to the information and explanation
given to us, the company has not given any guarantee for the loans
taken by others from banks or financial institutions during the year.
(xvi) In our opinion and according to the information and explanations
given to us, the company has not availed any new term loan during the
year.
(xvii) According to the information and explanations given to U6 and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii)The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
(xix) The Company has not issued any debentures; accordingly, the
question of creating a security for such debentures does not arise.
(xx) The Company has not raised any money by public issue during the
year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by management.
For and on Behalf of
MITTAL & ASSOCIATES
Chartered Accountants
(Firm Registration No. 106456W)
M. Mehta
Partner
M. No. 42990
Place: Mumbai,
Dated: 28th May, 2014 |