| We have audited the accompanying financial statements of KAJAL
SYNTHETICS AND SILK MILLS 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 Responsibility for 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 of the Company in accordance with the Accounting
Standards notified under the Companies Act, 1956 ("the Act") read with
the General Circular 15 / 2013 dated September 13, 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 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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 control relevant to the Company's preparation 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 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 said 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 31,2014; and
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the 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 (Auditors' Report) Order, 2003 issued
by the Central Government of India in terms of section 227 (4A) of the
Companies Act, 1956 (the Act) and on the basis of such checks as we
consider appropriate and according to the information and explanations
given to us, we set out in the Annexure a statement on the matters
specified in paragraphs 4 & 5 of the said 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, statement of profit and loss, and cash flow
statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the balance sheet and statement of profit and loss,
and cash flow statement comply with the Accounting Standards notified
under the Companies Act, 1956 ("the Act") read with the General
Circular 15/2013 dated September,13 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013
e) On the basis of written representations received from the directors
as on March 31, 2014, and 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 clause (g) of sub-section (1) of
Section 274 of the Act.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
(Referred to in Paragraph 1 of the Independent Auditor's Report of even
date to the members of Kajal Synthetics And Silk Mills Limited, on the
accounts for the year ended March 31, 2014)
1. As the Company does not own any fixed asset, Clause 4(i)(a) of the
Order relating to maintenance of records showing full particulars
including quantitative details and situation of fixed assets, clause
4(i)(b) relating to physical verification thereof and clause 4(i)(c)
relating to disposal of substantial part of the fixed assets and effect
thereof, are not applicable.
2. (a) The Securities held as investments have been physically
verified by the Management / confirmed with the statements of holdings
provided by the various mutual funds and other depository participants
at the financial year end. In our opinion, the frequency of
verification / confirmation is reasonable.
(b) In our opinion, the procedures of physical verification /
confirmation of securities held as investments followed by the
Management are reasonable and adequate in relation to the size of the
Company and nature of its business.
(c) On the basis of our examination of the records of the Company
relating to securities held as investments, in our opinion the Company
has maintained proper records of investments and no material
discrepancies between the book records and the physical inventory have
been noticed.
3. The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, firms or other parties covered in the
Register maintained under section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business in respect
of purchase and sale of securities held as investments. Further on the
basis of our examination of the books of accounts and according to the
information and explanations given to us, we have not come across nor
have been informed of any instance of major weaknesses in internal
control system.
5. In our opinion and according to the information and explanations
given to us,
a. The particulars of contracts or arrangements referred to in Section
301 of the Act have been entered in the register required to be
maintained under Section 301 of the Act.
b. During the year under review the Company has not entered in any
transaction made in pursuance of contracts or arrangement that need to
be entered in the register maintained under section 301 of the Act.
6. The Company has not accepted any deposits from the public during
the year.
7. The Company does not have formal system of internal audit but there
are adequate checks and controls at all levels, which are broadly
commensurate with the size of the Company and nature of its business.
8. We are informed that the central Government has not prescribed
maintenance of cost records under section 209(1) of the Act in respect
of the Company's activities.
a) According to the books of account and records as produced and
examined by us, in accordance with generally accepted auditing
practices in India and also Management representations, in our opinion,
the Company is generally regular in depositing undisputed statutory
dues in respect of Income-tax, Service tax, Cess and other material
statutory dues as applicable with the appropriate authorities in India.
b) There were no undisputed amounts payable in respect of Income-tax,
Service Tax, Cess and other material statutory dues in arrears as at
31st March, 2014 for a period of more than six months from the date
they became payable.
c) According to the information and explanations given to us as at 31st
March 2014 there are no dues which have not been deposited on account
of any dispute in respect of Income tax, Service tax and Cess.
10. The Company does not have any accumulated losses as at March 31,
2014 and it has not incurred any cash losses during the financial year
ended on that date and in the immediately preceding financial year.
11. According to the information and explanations given to us and
according to the books and records as produced and examined by us,
there are no borrowings from financial institutions or bank and no
debentures have been issued by the Company. Hence, the question of
default in repayment of dues does not arise.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion the Company is not a chit fund or a nidhi / mutual
benefit fund / society. In view of the nature of activities carried on
by the Company during the year, the provisions of any special statue
applicable to chit fund or a nidhi / mutual benefit fund / society are
not applicable to the Company.
14. According to the information and explanation given to us the
Company is having investment in share and units of mutual funds. The
Company has maintained proper records of the transactions and contracts
and timely entries have been made therein. All the shares and units of
mutual funds have been held by the Company in its own name.
15. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. The Company has not taken any term loans during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet and Cash Flow Statement of the
Company, in our opinion there are no funds raised on short term basis
which have been used for long term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. During the course of our examination of the books of accounts
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 instance of fraud on or by
the Company, noticed or reported during the year, nor have we been
informed of any such cases by the management.
For S. S. RATHI & CO.
Chartered Accountants
Firm Registration No. 108726W;
KEYUR P.PAREKH
Partner
Membership No.: 154489
Place: Mumbai
Date: 30/06/2014
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