| We have audited the accompanying financial statements of MEWAR POLYTEX
LIMITED ( the Company), comprising of 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 Financial Statements
The Company's Board of Directors is responsible for the preparation of
these financial statements in terms of the requirements of the
Companies Act, 2013 (hereinafter referred to as "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. The Board of Directors of the company
are responsible for 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; the selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and the 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, which have been used for
the purpose of preparation of the consolidated financial statements by
the Directors of the Company, as aforesaid.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. While conducting the 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 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 but not for the purpose of expressing
an opinion on whether the Company has an adequate internal financial
control system over financial reporting in place and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Board of Directors,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence obtained by us is sufficient and
appropriate to provide a basis for our audit opinion on the 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,
a) in the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2015,
b) in the case of 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 (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,
to the extent applicable.
2. As required by Section 143(3) of the Act, we report, to the extent
applicable, 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 of the aforesaid financial statements.
(b) In our opinion, proper books of account as required by law relating
to preparation of the aforesaid financial statements have been kept 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
relevant books of account maintained for the purpose of preparation of
the financial statements.
(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 of the Company as on 31st March, 2015 taken on record by the
Board of Directors of the Company, none of the directors of the company
is disqualified as on 31st March, 2015,
(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
Auditor's) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
i. The financial statements disclose the impact of pending litigations
on the financial position of the Company.
ii. Provision has been made in the financial statements, as required
under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative
contracts.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company,
ANNEXURE TO THE AUDITOR'S REPORT
[Referred to in Paragraph (1) of the Auditors' Report of even date to
the members of Mewar Polytex Limited for the period ended 31.03.2015]
i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets. b) Physical verification of fixed assets has been carried out
by the management according to the program of physical verification in
phased manner and no material discrepancies were noticed from such
verification. ii) Physical verification of inventories has been
conducted by the management once during the period under audit. In
respect of inventories lying with third parties, if any, these have
substantially been confirmed by them. In our opinion frequency of
verification is reasonable.
a) The procedure of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
b) The Company is maintaining proper records of inventory and material
discrepancies noticed on physical verification have been properly dealt
with in the books of accounts.
(iii) The Company has not granted any loans secured or unsecured to
Companies, firms or other parties covered in the registered maintained
u/s 189 of the Act and accordingly the provisions of paragraph
4(iii)(a) and (b) are not applicable.
iv) The Company has an adequate internal control system commensurate to
the size of the Company and nature of its business for the purchase of
inventory and fixed assets and for sale of goods & services and no
major weaknesses in internal control system has been noticed.
v) The Company has not accepted any deposits from public within the
meaning of the directives issued by the Reserve Bank of India and under
the provisions of section 73 to 76 or any other relevant provisions of
the Act and the Rules framed there under. As informed to us no order
has been passed by the Company Law Board or National Law Tribunal or
Reserve Bank of India or any court or any other tribunal in this
regard.
vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of cost records under section 148(1) of the Companies Act,
2013 in respect of the Company's products to which the said rules are
made applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained.. We have not, however, made a
detailed examination of the said records with a view to determine
whether they are accurate.
vii) a) According to the records of the Company and information and
explanations given to us, the Company is regular in depositing
undisputed statutory dues, including Provident Fund, Employees Estate
Insurance, Entry Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise, VAT, Cess and other material Statutory dues with the
appropriate authorities to the extent applicable. There are no material
statutory dues payable for a period of more than six months from the
date they became payable as at 31st March, 2015.
b) According to the records and information and explanations given to
us there are following dues under various taxes which has not been
deposited on account of any dispute and the amounts involved and the
forum where dispute is pending are given below: -
Name of Period to which
Name of the Statute the Dues Amount Relates
The Rajasthan Value Sales Tax 15th Jan. 1999 to
Added Tax Act, 2003 14th Jan. 2006
Income Tax Act, 1961 Trading Assessment
Disallowance Year 2012-13
Name of the Statute Forum where Amount
dispute is pending (in Rs.)
The Rajasthan Value Honourable High Court 12,65,151
Added Tax Act,2003 of Rajasthan
Income Tax Act,1961 Commissioner of Income 32,140
Tax (Appeals), Udaipur
c) The Company does not have any amount which are required to be
transferred to investor education and protection fund in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956).
viii) The Company' has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding year.
ix) On the basis of records made available and information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institutions, banks etc.
x) 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) On the basis of information and explanations given to us, the term
loan has been applied for the purpose for which they were obtained.
xii) Based on the audit procedures performed and on the basis of
information and explanations provided by the management which have been
relied upon by us, no fraud on or by the Company has been noticed or
reported during the course of our audit or have been informed by the
management.
For Om Prakash S Chaplot & Co.
Chartered Accountants
(Firm Reg. No. 000127C)
Place : Udaipur
Date : 26.05.2015 sd/-
(O P Chaplot)
Partner
M. No. 010184 | 