| Report on the Financial Statements
We have audited the accompanying financial statements of
KNITWORTH EXPORTS LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2013, the Statement of Profit and Loss, 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
Management is responsible for die preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of thie Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). 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 die 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 to 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 accounts give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principle* generally accepted in
India:
(a) In the case of balance Sheet, of the state of affairs of the
Company as at 31s' March, 2013;
(b) In the case of Statement of Profit and Loss, of the Profit of the
company for the year ended on that date;
AND
(c) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by tne^Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4 A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order,
2. As required by section 227(3) of the Act, we report that:
i. We have obtained all {he information and explanation which to die
best of our knowledge and belief were necessary for the purpose of our
audit;
ii. 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;
iii. Ihe Balance Sheet Statement of Profit and Loss and cash flow
statement dealt with by this Report are in agreement with the books of
account;
iv. In our opinion, the Balance Sheet and Statement of Profit and Loss
and cash flow statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of die Companies Act 1956;
v. On the basis of written representations received from the directors
as on 31s' March, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
vi. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company,
The Annexure referred to in Paragraph I under the heading "Report on
Other Legal and Regulatory Requirements" of Our Report oF even date to
the members of Knihvorth Exports Limited on the accounts of the company
for the year ended 31st March, 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we- report that;
(1) Since the company has no fixed assets as on date therefore, the
Provisions of top clause 4 (i) of the Order are not applicable to the
Company,
Since the Company has no inventory as on date therefore, the Provisions
of clause 4 (ii) of the order is not applicable to the Company.
(3) According to the information and explanations given to us, there
are no contracts or arrangements referred to in section 301 of the
Companies Act, 1956 during the year that need to have been entered in
the register maintained under that section.
(4) 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 nature of its business
for the Investments made by the Company. There is no continuing failure
to correct major weaknesses in internal control.
(5) The Company has neither taken nor given any secured or unsecured
loan from/ to companies, firm or other parties covered in the register
maintained under section 301 of the companies Act 1956,
(6) The company has not accepted any deposits from the public and
consequently, the Directions issued by Reserve Bank of India and the
provision of section 58A and 58AA of the Companies Act, 1956 and the
rules framed there under are not applicable.
(7) In our opinion and explanation given to us, the Company has own
internal audit system commensurate with the size and nature of its
business.
(8) In our opinion and according to the information and explanations
given to us, the Central Government lias not prescribed for maintenance
of the Cost Records under Clause-(d) of subsection-(l) of Section-209
of the Companies Act 1956 in respect of products of the company,
(9) a) According to the information and explanations given to us and on
basis of our examination of the books of account, the company has been
generally regular in depositing undisputed statutory dues including
Income Tax and any other material statutory dues with the appropriate
authorities during the year.
b) There were no undisputed amounts payable in respect of Income Tax,
Sales Tax, Wealth Tax, Service Tax and other statutory dues in arrears
as at 31st March, 2013 for a period exceeding six months from the date
they became applicable,
c) According to the information and explanation given to us, there are
no dues of income tax, sales tan, wealth tax, service tax, customs duty
and excise duty which have not been deposited on account of any
dispute.
(10) The company has accumulated losses at the end of the financial
year which does not exceed fifty percent of its net worth. The Company
has not incurred cash losses during the current financial year but has
incurred cash losses in the immediately preceding financial year.
(11) In our opinion and according to the information and explanations
given to us, die Company has not defaulted in repayment of dues to a
financial institution or bank.
(12) In our opinion and according to the explanations given to us and
based on the information ^available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
(13) In our opinion and according to die information and explanations
given to us, the Company is not a Ch.it fund/ Nidhi/Mutual benefit
fund/society, Therefore, the provisions of clause (xiii) of paragraph 4
of the Order are not applicable to the Company.
{14) The Company has maintained proper records of the transactions and
contracts in respect of deab'ng or trading in shares, securities,
debentures and other in vestments and timely entries liave been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
(15) According to the information and explanations given to us, the
company has not given any guarantee for loan taken by other from banks
or financial institution.
(16) According to the information and explanations given to us and on
the basis of examination, the Company has not taken term loan during
the period.
(17) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short term basis that
have been used for long term investments.
(18) The Company has not made any preferential allotment of share to
companies/firm/parties covered in the register maintained under
section-301 of the Companies Act, 1956,
(19) The Company has not issued debenture during the financial year.
(20) The Company has not raised any money by way of public issues
during the year.
(21) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the period.
For J,B.S. &. Company
Chartered Accountants
FRN:323734E
Pankaj Bhushan Bhattachatya
(Partner)
Membership Number: 015416
Place: Kolkata
Date: 28.05,2013
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