| We have audited the accompanying financial statements of Sri Lakshmi
Saraswathi Textiles (Arni) Limited, (the company) which comprise the
Balance Sheet as at March 31, 2015, Statement of Profit and Loss & the
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.
The Company's Board of Directors is responsible for the matters stated
in Sec 134(5) of the Companies Act, 2013("the act") with respect to the
preparation and presentation 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 Principals
generally accepted in India, including the Accounting Standards
specified under Sec 133 of the act, read with Rule 7 of the Companies
(Accounts) Rules, 2014. This responsibility includes maintenance of
adequate accounting records in accordance with the provisions of the
act for safeguarding the assets of the company and for preventing and
detecting frauds and other irregularities, selection and application of
appropriate accounting policies making judgements and estimates, that
are reasonable and prudent and the design, implementation and
maintenance of adequate financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation 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 have taken into account, the
provisions of the act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the act and the rules made thereunder. We conducted our
audit in accordance with the standards on Auditing specified under Sec
143 (10) of the act. Those standards require that we comply that
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the company has in place an adequate internal financial control
system over financial reporting and operating effectiveness of the such
control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the Company's Directors, 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 qualified audit opinion on the
financial statements.
Qualified 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 by 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, 2015
b) in the case of Statement of Profit and Loss , of the LOSS 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, 2015(" the
order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Companies Act 2013, we report
that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, proper books of
account as required by law have been kept by the Company 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 statement dealt with by this Report are in agreement with the
books of account.
d) Except for the effects for the matters described in the Basis for
Qualified Opinion paragraph above, in our opinion, the Balance Sheet,
Statement of Profit and Loss & the Cash flow Statement comply with the
Accounting Standards specified under the Section 133 of the act, read
with rule 7 in Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of of sub-section (2) of section 164
of the act.
f) The qualification relating to the maintenance of accounts and other
matters connected therewith are as stated in the Basis for Qualified
Opinion paragraph above.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in Our Independent Auditors' Report to the
members of the company on the financial statements for the year ended
31st March 2015, we report that
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) The company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
at reasonable intervals by the management. According to the
information and explanations given to us, no material discrepancies
where observed by the management on such verification.
(ii) (a) The stock of inventory has been physically verified by the
management at reasonable intervals during the year. In our opinion the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size and nature of its business.
(c) The company is maintaining proper records of inventory. No material
discrepancy was noticed on such physical verification.
(iii) According to the information and explanations given to us and on
the basis of our examination of the books of accounts, the Company has
not granted any loans, secured or unsecured to companies, firms or
other parties covered in the register maintained under section 189 of
the Companies Act 2013. Consequently the provisions of clause (iii) (a)
(b) and (c) are not applicable to the company.
(iv) In our opinion and according to the explanations given to us,
there is an adequate internal control system commensurate with the size
of the Company and the nature of its business, with regard to purchase
of inventory and fixed assets and for the sale of goods and services.
We have not observed any major weakness in the internal control system
during the course of the audit.
(v) The company has not accepted any deposits from the Public during
the year.
(vi) Central Government has prescribed maintenance of cost records
under sub- section (1) of section 148 of the Companies Act and such
accounts and records have been prepared and maintained by the company.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the company, amount
deducted or accrued in the books of account in respect of of undisputed
statutory dues including provident fund, income-tax, sales tax, wealth
tax, service tax, value added tax, cess and other material statutory
dues have been regularly deposited by the Company with the appropriate
authorities. As explained to us, the Company did not have any dues on
account of employees' state insurance and duty of excise.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
sales tax wealth tax, service tax, value added tax, cess and other
material statutory dues were in arrears as at 31st March, 2015 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no material dues of provident fund, sales tax, wealth tax, service
tax, value added tax, cess which have not been deposited with the
appropriate authorities on account of any dispute. However, according
to the information and explanations given to us, the following dues of
income tax and employees' state insurance have not been deposited by
the company on account of disputes.
Name of the Nature of dues Amount Period to which the
Statue Rs. amount relates
Income-tax Income tax 12,21,350 Assessment year
Act 1961 1999 - 2000
Income-tax Assessment year
Act 1961 Income tax 33,86,521 2000 - 2001
Total 46,07,871
Employee's Contribution 4,15,356 2000-01
State Employee's
Act 1948 State
Insurance
Corporation
Name of the Forum where dispute
Statue is pending
Income-tax IT Appeals before
Act 1961 ITAT, & High Court
Income-tax IT Appeals before
Act 1961 ITAT, & High Court
Employee's State High Court
Insurance Act 1948
(c) According to the information and explanations given to us, the
amounts which were required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder has been
transferred to such fund within time.
(viii) The Company has accumulated losses as at March 31, 2015 and has
incurred cash loss in the financial year and there was no cash loss in
the immediately preceding financial year.
(ix) The company did not have any outstanding dues to financial
institutions, banks during the year.
(x) In our opinion and according to the information and explanations
given to us the company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xi) The Company did not have any term loans outstanding during the
year.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported,
during the course of our audit.
17, Bishop Wallers Avenue (West), For M/s S Viswanathan
CIT Colony, Mylapore, Chartered Accountant
Chennai - 600 004. FRN: 004770S
Place: Chennai
Date: May 26, 2015 Chella K Srinivasan
Partner
Membership No: .023305 |