| We have audited the accompanying financial statements of Padam Cotton
Yarns Limited ("the company"), which comprise the Balance Sheet as at
31 March 2015, the 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 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 the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, 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 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 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 true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by 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 financial
statements.
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, 2015, 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 appears from our examination of those
books
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Row
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 written representations received from the directors
as on 31 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.
f) With respect to the other matters included in the Auditor's Report
and to our best of our information and according to the explanations
given to us :
i. The Company has disclosed the impact of pending litigations on its
financial position in is financial statements -Refer Note 2.14 to the
financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
The Annexure referred to in Paragraph of the Our Report of even date to
the members of M/s Padam Cotton Yarns Limited, on the accounts of the
company for the year ended 31S March, 2015.
(i) (a) Not Applicable as the company is not having any fixed assets as
on 31.03.2015.
(b) Not Applicable.
(ii) (a) The stocks of Finished Goods, spare parts and raw materials
have been physically verified during the year by the management at
reasonable intervals.
(b) The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of is business.
(c) The company has maintained proper records of inventory and the
discrepancies noticed on verification between the physical stocks and
the book records were not material
(iii) (a) The Company has granted loans, secured or unsecured, to
companies firm or other parties covered in the register maintained 189
of the Companies Act, 2013. The number of parties is one and amount
involved is Rs. 1,76,95,000.00 According to the information and
explanations given to us no principal as well as interest was due to
the company which was to be paid.
(b) According to the information and explanations given to us there is
no overdue amount of more than one lakh owed by the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory and fixed assets and for
the sale of goods and services. According to the information and
explanations given to us there is no visible continuing failure to
correct major weaknesses in internal control system.
(v) The company has not accepted the deposits and in our opinion and
according to the information and explanation given to us, the
provisions of sections 73 to 76 or any other relevant provisions of the
Companies Act 2013 and the rules framed there under, where applicable,
have been complied with.
(vi) According to information and explanations given to us the Central
Government has not specified maintenance of cost records under
sub-section (1) of section 148 of the Companies Act in case of Company.
(vii) (a) According to the records of the company, the company has
generally complied with in depositing undisputed statutory dues
including 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 during, the year
(b) According to the records of the company there is no dues of income
tax or sales tax or wealth tax or service tax or duty of customs or
duty of excise or value added tax or cess etc in disputes.
(c) According to the information's and explanations given to us and
records of the company the company is not required to be transfer any
funds to investor education and protection fund in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and rules
made there under during the year.
(viii) According to the records of the company, the company has not
incurred any cash loss during the current financial year or its
proceeding year. Further the company has no accumulated losses.
(x) According to the records of the company and information's and
explanations given to us, the company has not given any guarantee for
loans taken by others from bank or financial institutions.
(xi) The company has applied the term loans taken for the purpose for
which the loans were obtained;
(xii) According to the information and explanations given to us, the
company has not noticed or reported any fraud on or by the company
during the year
FOR VINEY GOEL & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Reg. No. 012188N
Sd-
(VINEYA GOEL)
PLACE : KARNAL PARTNER
DATED : 29.05.2015 M. No. 090739 |