| We have audited the accompanying financial statements of VALSON
INDUSTRIES LIMITED ("the Company"), which com- prise the Balance Sheet
as at March 31,2015, the Statement of Profit and Loss, the 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 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 accor- dance 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 are operating effectively for the
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 controls 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. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the 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 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 issued
by the Central Government of India in terms of sub-section (11) of
section 143 of the Act (hereinafter referred to the 'Order') and on the
basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
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 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
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 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:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note No. 24.1
(i)
ii. In our opinion and as per the information and explanations provided
to us, the Company has not entered into any long term contracts
including derivative contracts, requiring provision under applicable
laws or accounting standards, for material foreseeable losses; and
iii. There has been no delay in transferring the amounts, required to
be transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 of "Report on Other Legal and Regulatory
Requirements" of our Independent Auditors' Report of even date on the
accounts of VALSON INDUSTRIES LIMITED for the year ended 31st March,
2015)
On the basis of such checks as we considered appropriate and in terms
of information and explanations given to us, we state that: -
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the Management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such verification.
2. (a) The inventory has been physically verified during the year by
the Management. In our opinion, the frequency of verification is
reasonable.
(b) 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 on verification between the physical stocks and
the book records were not material.
3. According to the information and explanation given to us the Company
has not granted any loans to companies, firms or other parties covered
in the Register maintained under Section 189 of the Companies Act,
1956.
(a) As the Company has not granted any loans secured or unsecured the
regularity of receipt of principal and interest does not arise.
(b) As the company has not granted any loans secured or unsecured, the
reporting for overdue amount in excess of rupees one lacs does not
arise.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. In our opinion and according to the information and explanations
given to us, the Company has accepted deposits and the directives
issued by Reserve Bank of India and the provisions of sections 73 to 76
or any other relevant provisions of the Companies Act and the rules
framed there under, where applicable, have been complied with.
6. We have broadly reviewed the Cost records maintained by the company
which have been specified by the Central Government under sub-section
(1) of section 148 of the Companies Act, 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 accounts and records, have
been made and maintained. We have, however, not made a detailed
examination of the records, with a view to determine whether they are
accurate.
7. (a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees' state insurance, income tax, sales tax, wealth tax, custom
duty, excise duty, value added tax, cess and any other statutory dues
with the appropriate authorities
According to the information and explanations given to us, no
undisputed amounts payable in respect of any of the above statutory
dues were in arrears, 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, the
disputed statutory dues aggregating to Rs.1,712.96 lacs that have not
been deposited on account of matters pending before appropriate
authorities are as under:
Name of the Nature of the Forum where
Statute Dues dispute is pending
Textiles Committee Textiles Cess Textiles Committee
Act
Gujarat Vat
Authorities Entry Tax Dy. Commissioner of
Commercial Tax Appeal, Division 05
Gujarat Vat
Authorities Entry Tax Dy. Commissioner of
Commercial Tax Appeal, Division 05
Gujarat Vat
Authorities Entry Tax Dy. Commissioner of
Commercial Tax Appeal, Division 05
Name of the Statute Period to which Amount (Rs. Lacs)
amount relates
Textiles Committee Act
2001-02 to 2005-06 2.39
Gujarat Vat Authorities Financial Year 509.65
2008- 09
Gujarat Vat Authorities Financial Year 625.34
2009- 10
Gujarat Vat Authorities Financial Year 575.58
2010- 11
(c) The amount required to be transferred to Investor Education and
Protection Fund in accordance with section 125 of Companies Act and
rules made there under has been transferred to such fund within time.
8. The Company does not have accumulated losses at the year end and has
not incurred cash losses during the financial year covered by our audit
and the immediately preceding financial year.
9. In our opinion and according to the records of the Company, it has
not defaulted in repayment of dues to the banks and has nothing due to
financial institution or debenture holders.
10. According to the information and explanations given to us the
Company has not given guarantees for loans taken by others from banks
or financial institutions.
11. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
12. During the course of an examination of the books of account carried
out in accordance with the generally accepted auditing practices in
India, no fraud on or by the Company has been noticed or reported
during the year.
For MEHTA CHOKSHI & SHAH
CHARTERED ACCOUNTANTS
A. R. MEHTA
PARTNER
MEMBERSHIP NO. 46088
Place: Mumbai Firm Registration No : 106201W
Date: 22nd May 2015 |