| We have audited the accompanying financial statements of Bhilwara
Tex-Fin Limited, which comprise the Balance Sheet as at March 31, 2015,
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
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to 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 the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal 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.
AUDITORS' 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
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
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 misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the 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. An audit also includes evaluating the
appropriateness of the 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 audit opinion on the standalone
financial statements.
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, of the state of affairs of the Company as
at 31st March, 2015, and its profit/loss and its cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
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 Companies Act, 2013, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
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 best of our knowledge and belief were necessary for the
purposes of our audit.
(b) 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) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act, 2013.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) There is no pending litigation which would have its impact on
financial statement of the company.
(ii) The Company has made provision, where ever required as required
under the applicable law or accounting standards, for material
foreseeable losses, if any, on the long term contract and company has
not entered in any derivative contracts under audit.
(iii) There are no amounts required to be transfer to the Investor
Education and Protection Fund by the company.
Annexure to the Auditors' Report
The Annexure referred to in our report to the members of Bhilwara
Tex-Fin Limited, for the year Ended 31st March, 2015. We report that:
S.No. Particulars Auditors Remark
(i) (a) whether the company is maintaining proper
records showing full particulars, including NA
quantitative details and situation of fixed
assets;
(b) whether these fixed assets have been
physically verified by the management at NA
reasonable intervals; whether any material
discrepancies were noticed on such
verification and if so, whether
the same have been properly dealt with
in the books of account;
(ii) (a) whether physical verification of
inventory has been conducted NA
at reasonable intervals by the management;
(b) are the procedures of physical
verification of inventory followed by NA
the management reasonable and adequate in
relation to the size of the company and
the nature of its business. If not, the
inadequacies in such procedures should be
reported;
(c) whether the company is maintaining
proper records of inventory and NA
whether any material discrepancies were
noticed on physical verification and if
so, whether the same have been
properly dealt with in the books of
account;
(iii Whether the company has granted any
loans, secured or unsecured to companies, Yes
firms or other parties covered in the
register maintained under section 189 of
the Companies Act. If so,
(a) whether receipt of the principal
amount and interest are also Yes
regular; and
(b) if overdue amount is more than
rupees one lakh, whether reasonable steps Yes
have been taken by the company for
recovery of the principal and interest;
(iv) is there an adequate internal control
system commensurate with the Yes, There are no
size of the company and the nature of its weaknesses in
business. Whether there is internal
a continuing failure to correct major control
weaknesses in internal control.
system.
(v) in case the company has accepted deposits,
whether the directives issued by the NA
Reserve Bank of India and the provisions of
sections 73 to 76 or any other relevant
provisions of the Companies Act and
the rules framed there under, where
applicable, have been complied with? If not,
the nature of contraventions should be
stated; If an order has been passed by
Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any
court or any other tribunal, whether the
same has been complied
with or not?
(vi) where maintenance of cost records has been
specified by the Central Government under NA
sub-section (1) of section 148 of the
Companies Act, whether such accounts and
records have been made and maintained;
vii) (a) is the company regular in depositing
undisputed statutory dues including Yes
provident fund, employees' state insurance,
income-tax, sales-tax, wealth tax, service
tax, duty of customs, duty of excise,
value added tax, cess and any other statutory
dues with the appropriate authorities and if
not, the extent of the arrears of
outstanding statutory dues as at the last
day of the financial year concerned for a
period of more than six months from the date
they became payable, shall be indicated by
the auditor.
(b) in case dues of income tax or sales
tax or wealth tax or service NA
tax or duty of customs or duty of excise or
value added tax or cess have not been
deposited on account of any dispute, then the
amounts involved and the forum where dispute
is pending shall be mentioned. (A mere
representation to the concerned Department
shall not constitute a dispute).
(c) whether the amount required to be No amount is
transferred to investor required to
education and protection fund in accordance be transfer.
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 whether in case of a company which has The accumulated
been registered for a period not less than losses of the
five years, its accumulated losses at the company are not
end of the financial year are not less more than fifty
than fifty per cent of its net worth percent of its
and whether it has incurred cash losses net worth,
in such financial year and in the further companies
immediately preceding financial year; has not incurred
cash loss in
current financial
year and
immediately
preceding
financial year.
(ix) Whether the company has defaulted NA, as the company
in repayment of dues to a does not have any
financial institution or bank or loan from bank or
debenture holders? If yes, the financial
period and amount of default to institution or
be reported; debenture holders.
(x) whether the company has given No, the Company has not
any guarantee for loans taken by provided guarantee of
others from bank or financial any type of loans taken
institutions, the terms and by others.
conditions whereof are prejudicial
to the interest of the company;
(xi) whether term loans were applied The company has not
for the purpose for which the obtained any term loan.
loans were obtained;
(xii) whether any fraud on or by the No fraud has been noticed.
company has been noticed or
reported during the year; If yes,
the nature and the amount
involved is to be indicated.
For Nagar Goel & Chawla
Chartered Accountants
Firm Regn No.:- 009933N
Sd/-
Dharmender Singhal
(Partner) Place: New Delhi
M. No.: 515984 Date: May 23, 2015
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