| Report on the Financial Statements
We have audited the accompanying financial statements of Kakatiya
Textiles Limited, which comprise the Balance Sheet as at 31st March
2015, 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
The Company's Board of Directors is responsible for the matters in
Section 134(5) of the Companies Act, 2013 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. 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
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
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, 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 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.
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 assessments, the auditor
considers internal financial control relevant to the company's
preparation of the financial statements that give true and fair view 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 Company's Directors, 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 on the financial
statements.
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 31, 2015;
b) in the case of the Statement of Profit and Loss, of the Loss 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 issued
by the Government of India in terms of sub-section (11) of section 143
of the Companies Act, 2013, 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 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
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 and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
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 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 written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 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 and to the best of our information and according to the
explanations given to us:
i. the company has disclosed the impact of pending litigations on its
financial position in its financial statements;
ii. the company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts; and
iii. there were no amounts which required to be transferred, to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITORS' REPORT OF EVEN DATE
(As required by Companies (Auditor's Report) Order, 2015 & referred to
in our report of even date)
1) (a) As per the information provided by the management, the Company
is maintaining proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) These fixed assets have been physically verified by the management
at reasonable intervals and no material discrepancies were noticed on
such verification.
2) (a) As per the information & explanations given to us, physical
verification of inventory has been conducted by the management at
reasonable intervals during the year.
(b) The procedures of physical verification of inventory 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 on verification between the physical stocks and
the book records were not material.
3) (a) According to the information and explanations provided to us,
the company has not granted any loans, secured or unsecured, to the
companies, firms and other parties covered in the register maintained
u/s 189 of the Companies Act, 2013.
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
with regard to purchase of inventory, fixed assets and for sale of
goods and services.
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 systems.
5) The Company has not accepted any deposits from the public within the
meaning of Section 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed there under.
6) According to the information and explanation given to us, the
maintenance of cost records has not been prescribed by the Central
Government under section 148(1) of the Companies Act, 2013, in respect
of the activities carried on by the company.
7) According to the information and explanations given to us in respect
of the statutory dues:
a) We report that wherever applicable, the company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance, Income Tax,
Service Tax, Sales Tax, Customs Duty, Excise Duty, Value Added Tax,
Cess and any other statutory dues with the appropriate authorities
during the year.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March 2015 for a period of more than six months
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, no disputed statutory dues were
outstanding as at March 31, 2015.
c) According to the information and explanations given to us and the
records of the company examined by us, the company is not required to
transfer any amount to Investor Education and Protection Fund in
accordance with the relevant provisions of the act and the rules framed
there under.
8) The company reported is an entity, which has been registered for a
period not less than five years and the company has accumulated losses
at the end of the financial year which is more than fifty percent of
its net worth. The company has incurred cash loss during the financial
year and also in the immediately preceding financial year.
9) According to the records of the company examined by us and on the
basis of information and explanations given to us, the company has not
defaulted in repayment of dues to any financial institution or bank or
debenture holders as at the Balance Sheet date.
10) According to the information and explanations given to us and as
per our examination of relevant records, we are of the opinion that the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
11) According to the information and explanations given to us, no fresh
term loans have been availed by the company during the year.
12) Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud on or by
the company has been noticed / reported during the year.
For S.Murali Dharan & Co
Chartered Accountants
(Firm Regn. No. 009617S)
S.Murali Dharan
Place:Coimbatore Partner
Date :28.05.2015 (M. No. 026554) |