| 1. We have audited the accompanying standalone financial statements of
ARORA FIBRES LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March, 2015 , the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
2. 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 standalone 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.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these standalone
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.
4. 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.
5. 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.
6. 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
7. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone 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 and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor's Report) Order, 2015 ('the
Order'), issued by the Central Government of India in exercise of
powers conferred by sub-section 11 of section 143 of the Act, we
enclose in the Annexure a statement on the matters specified in
paragraphs 3 and 4 of the Order.
9. 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 standalone 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 M a r c h , 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 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:
a. The Company does not have any pending litigations which would
impact its financial position
b. The Company does not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
c. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
(Referred to in paragraph 8 under "Report on other Legal and Regulatory
Requirements' section of our report of even date on the accounts of
ARORA FIBRES Limited ("the company") for the year ended 31st March 2015
(i) (a) the company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets;
(b) The fixed assets are being physically verified by the management
under a phased programme of verification, which in our opinion is
reasonable having regard to the nature and value of its assets.
However, no material discrepancies were noticed on such verification.
(ii) (a) The stock of inventory has been physically verified by the
Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedure for physical verification of inventory
followed by the Management is 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 inventory records, in our
opinion, the company is maintaining proper records of Inventory. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the accounts.
(iii) The company has not granted loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
(iv) In our opinion and according to information and explanation given
to us, there is an adequate internal control system commensurate with
the size of the company & nature of its business, with regards to fixed
assets and for 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 aforesaid internal control system.
(v) the company has not accepted deposits within the meaning of the
provisions of sections 73 to 76 or any other relevant provisions of the
Companies Act and the rules framed there under.
(vi) The Central Government has not prescribed the maintenance of cost
records under sub-section (1) of section 148 of the Companies Act for
any of the services rendered by the Company.
(vii) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty, cess and
other material statutory dues were in arrears as at 31st March 2015 for
a period of more than six month 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, in our opinion there are no
disputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty, cess and
other material statutory dues as applicable with the appropriate
authorities.
(c) According to the information and explanations given to us and the
records of the Company examined by us, there were no amounts which were
required to be transferred to the Investor Education and Protection
Fund in accordance with the relevant provisions of the Companies Act,
1956 (1 of 1956) and rules made there under.
(viii) In our opinion, the accumulated losses as at the end of the
financial year are not more than fifty percent of its net worth and it
has not incurred cash loss in the financial year ended on that date.
The company has not incurred cash loss in the immediately preceding
financial year.
(ix) 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 any financial institution or bank or debenture
holders during the year.
(x) According to the records of the Company examined by us and the
information and explanations given to us, the company has not given any
guarantee for loans taken by others from bank or financial
institutions.
(xi) In our opinion and according to the information and explanations
given to us, on an overall basis the term loans have been applied for
the purposes for which they were obtained.
(xii) According to the information and explanations given to us, we
have neither noticed any instance of fraud on or by the Company,
noticed or reported during the year, nor was any such instance reported
by the Management during the year
For Vinay Gudi & Associates
Chartered Accountants
Firm's Registration No. 129032W
CA. Vinay Gudi
Proprietor
Membership No. 129349
Place of Signature: Mumbai
Date : 27th May, 2015 | 