| Report on the Fmancial Statements
We have audited the accompanying financial statements of Arvind
International Limited ("the Company"), which comprise the Balance Sheet
as at March 3 1,2013, and 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's Responsibility for the 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 and cash flows of the 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 ancf 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
aboutthe 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. 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 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 3 1,2013;
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 (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) 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:
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, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; Except that
no amortization was made for Leasehold Land taken for 99 years for Rs.
1 8.47 Lakh with effect from 19th August 199,4 as a result the value of
fixed assets has been shown excess by Rs.3.55 Lakh and loss for the
year has been shown less to that extent.
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 3 1, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
f) 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.
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets. -
(b) We were informed that the Company has a phased programme of
physical verification ofall its fixed assets which, in ouropinion, is
reasonable having regard to the size of the Company and the nature of
its assets. In accordance with this programme, fixed assets were
physically verified by management during the period under review and no
material discrepancies were noticed on such verification.
(c) Fixed assets disposed off during the year under review were not
substantial and therefore do not affect the going concern status of the
company.
(ii) (a) During the year inventories have been physically verified by
the management at reasonable intervals. In ouropinion, the frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business. ,
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed during the physical verification of inventories
as compared to book records were not material and have been properly
dealt with in the books of account.
(iii)In our opinion and according to the information and explanations
given to us, the company has not granted or taken loans, Secured or
Unsecured, to/from the companies, firm or other parties covered in the
Register maintained under section 301 of the Companies Act, 1956
consequently sub clause (a) to (g) of clause 4 (iii) of the order is
not applicable to the company.
(iv)In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to the sale of goods and services. No major weakness in
internal control system was observed.
(v) (a) According to the information and explanations given to us, we
are of the opinion that particulars of all the transactions made in
pursuance of contracts or arrangements referred to in section 301 of
the Companies Act, 1956 have been entered in the register required to
be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding value of rupees five lacs in
respect of each party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
and consequently, the directives issued by the Reserve Bank of India
and the provisions of Section 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the rules framed there under
are not applicable to the Company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed accounts and records have been maintained. We have not,
however, carried out a detailed examination of such records with a view
to determine whether they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, in our
opinion, the Company has been not regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other
material statutory dues with appropriate authorities during the year
under review.
The Central Government has not notified the date of levy and collection
of cesS under Rehabilitation & Revival fund as per section 441 A of the
Companies act, 1956.
(b)Accoi;ding to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Sales Tax, wealth
Tax, Service Tax, Custom duty and Excise duty were in arrear as at 31
st March, 2013, for a period of more than six months from the date they
became payable.
(c)According to the information and explanations given to us and the
records of the company examined by us, there were no dues in respect of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty and Cess that have not been deposited with the appropriate
authorities on account of any dispute other than those as mentioned
here-in-below:
Name of the Nature of Dues Amount Period to which Forum where
statute (Rs./
Lacs) the amount disputes are
Relates pending
RST Act Sales tax 1.35 F.Yr.2001-02 Additional
Commissioner
(Appeals)
(x) The Company has accumulated losses at the year ended 31st March,
2013 and has incurred cash losses during the year under review but in
the immediately preceding financial year. There was no cash less. -
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
banks or to any financial institutions or debenture holders.
(xii) According to the explanations given to us and based on the
information available, the Company has not granted loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
(xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund / nidhi / mutual benefit
fund / society. Therefore, the provisions of clause (xiii) of paragraph
4 of the order are not applicable to the company.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. The investments have been held by the company in its
own name except to the extent of exemption granted under section 49 of
the Companies Act, 1956
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions, on the basis of which the
Company has given guarantees for loans taken by the subsidiary
companies from banks or financial institutions, are not as such prima
facie prejudicial to the interests ofthe Company.
(xvi) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the books of
account, the term loans were applied for the purpose for which such
loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of . the balance sheet of the Company, we
report that no funds raised on short-term basis have been used for
longterm investment.
(xviii) The company has not allotted shares on preferential basis.
(xix) The company has not raised any money by public issues during the
year under review.
(xx) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For N.C.Banerjee & Co.
Chartered Accountants
(Firm's Registration No. : 302081E)
B Basu
(Partner)
Membership No. 12748
Place : Kolkata
Dated : 30th May, 2013 |