| (i) We have audited the financial statements of Jayatma Spinners
Limited ("the Company") which comprise the Balance Sheet as at 31st
March, 2015 and Profit and Loss Account and the Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information on that date annexed thereto.
(ii) 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 financial statements that give 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 the assets of the Company and
for preventing and detecting fraud 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 accounting records, relevant to the preparation and
presentation of the financial statements that give true and fair view
and are free from material misstatement, whether due to fraud or error.
(iii) Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, 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 there under. 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.
(iv) 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
assessment, the auditor considers internal financial 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
whether the Company has in place adequate internal financial controls
system over financial reporting and the operating effectiveness of such
controls. An audit includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the Company's Director, as well as evaluating the
overall presentation of the financial statements.
(v) 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.
(vi)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 31st March, 2015 ; and
(b) in the case of the Profit and Loss Account, of the loss for the
year ended on that date ; and
(c) In the case of Cash Flow statement, of the cash flows for the year
ended on that date.
(vii) 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 Companies Act, 2013 we hereby
provide the details as required in the paragraph 3 and 4 of the said
Order in Annexure to Independent Auditor's Report.
(vii)As required by section 143(3) of the Act, we further report that:
1. We have sought and obtained all the information and explanations,
which to the best of our knowledge and belief were necessary for the
purpose of our audit ;
2. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
3. The Balance Sheet, Statement of Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
4. In our opinion, the aforesaid financial statements comply with
applicable Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies ( Accounts ) Rules, 2014;
5. On the basis of written representation received from the directors,
as on 31st March 2015 and 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 sub-section (2) of section 164 of
the Act;
6. 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 has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
26(A) to the financial statements.
(b) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required on long term contracts including derivative contracts.
(c) There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
Annexure to the Auditors' report
(Referred to in paragraph 6 of the Auditors' Report of even date to the
members of Jayatma Spinners Limited on the financial statements for the
year ended 31st March, 2015.)
1. (a). The Company has maintained records showing full particulars
including quantitative details and situation of its fixed assets.
(b). As explained to us, a substantial portion of the fixed assets have
been physically verified by the management during the year and no
material discrepancies have been noticed on such verification.
2. (a). As per information and explanation given to us, inventory of
traded goods/spares and consumables has been physically verified by the
management at the year end. In our opinion the frequency of
verification is reasonable. There is no closing inventory.
(b) . In our opinion the procedures of physical verification of
inventory of goods/spares and consumables followed by the management
are reasonable and adequate in relation to the size of the company and
the nature of its business.
(c) . On the basis of our examination of the inventory records produced
before us and in our opinion the Company is maintaining proper records
of inventory. The discrepancies noticed on physical verification of
inventory as compared to book records were not material and have been
properly dealt with in books of accounts.
3. (a) The company has not granted loans secured or unsecured to
Companies or firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013. Hence, para 3(b) and 3(c)
of the order are not applicable.
4. In Our opinion and according to the information and explanations
given to us there exists adequate Internal Control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of components, plant and machinery,
equipments and other assets and with regard to service provided by the
Company, Further on the basis of our examination of the books and
records of the Company, carried out in accordance with the auditing
standards generally accepted in India, we have not observed any
continuing failure to correct major weaknesses in the aforesaid
internal control procedures.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted Deposits during the year and
consequently directives issued by Reserve Bank of India and the
provisions of Section 73 to 76 or any other relevant provision of the
Companies Act and rules framed there under are not applicable to the
Company.
6. We are informed that maintenance of cost records as prescribed by
the Central Government of India under subsection (1) of Section 148 of
the Companies Act, 2013 in respect of the Company products are not
applicable. Hence, the provisions of Clause (vi) of paragraph 3 of the
Order are not applicable to the Company.
7. (a). According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally 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, custom
duty, excise duty, cess and other material statutory dues to the extent
applicable with the appropriate authorities in India. However, in case
of delays in few instances the same has been deposited along with
interest due thereon.
(b). According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income tax,
wealth tax, sales tax, custom duty, excise duty and cess which have not
been deposited on account of any dispute.
(c ). In our opinion and according to the information and explanations
given to us, there is no amount which is required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 ( 1 of 1956 ) and rules made
there under.
8. The Company has accumulated losses of Rs.15789499/-as at 31st
March, 2015 and has not incurred any cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
9. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institution/bank/debenture holders.
10. In our opinion and according to information and explanation given
to us, the Company has not given guarantee for any loan taken by others
from any bank/ Financial Institutions which are prejudicial to the
interest of the Company.
11. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the term
loans & other facilities obtained during the year were, applied by the
Company for the purpose for which they were obtained.
12. During the course of our examination of the books and records of
the Company, carried out in accordance with the auditing standards
generally accepted in India, 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 such case by the management.
FOR AND ON BEHALF OF
JAYESH M. SHAH & COMPANY
CHARTERED ACCOUNTANT
F.R.N. 104173W
SD/-
PLACE : AHMEDABAD JAYESH M. SHAH
DATE: 25th MAY, 2015 [PROPRIETOR]
M. NO. 30638
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