| We have audited the accompanying financial statements of Jagjanani
Textiles Limited which comprise of the Balance Sheet as at March 31,
2014, and the Statement of Profit & 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 Section 211(3C) of the
Companies Act,1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and fair 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 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
1. 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
Organization as at March 31, 2014;
B. In the case of the Statement of Profit and Loss Account, of the
profit for the year ended on that date; and 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 Section
227(4A) 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; In our opinion, proper books of accounts as required by law have
been kept by the organization so far as appears from our examination of
those books.
B .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.
C. In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in section 211(3C) of the Act;
D. On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the Directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
Annexure to Independent Auditors' Report
Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date:
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of the fixed assets. All
the fixed assets have been physically verified during the year by the
Management. Further, we are informed that no material discrepancies
were noted during such verification. None of the fixed assets of the
Company have been revalued during the year.
2. Inventory:-
a) The Company has maintained records pertaining to finished goods,
stores, spares, raw material, purchases, sale of goods, by-products,
scrap and book debts.
b) Inventories have been physically verified by the management during
the year and in our opinion the frequency of verification is reasonable
to the extent clarified to us.
c) 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.
d) The discrepancies noticed on physical verification of stocks as
compared to book records which were not material, have been properly
dealt with in the books of accounts.
e) In our opinion the valuation of stock is fair and proper and in
accordance with generally accepted accounting principles.
3. The Company has not taken any loan from companies, firms and other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 and / or Companies under the same management as
defined under sub-section (1B) of section 370 of the Companies Act,
1956. The Company has not granted any loan to companies, firms and
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 and / or Companies under the same management as
defined under sub-section (1B) of section 370 of the Companies Act,
1956. According to the information and explanation given to us, no
loans and advances in the nature of loans have been given to the
parties including the employees.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business with
regards to purchases of stores, raw material including components,
plant and machinery, equipment and other assets and for the sale of
goods.
5. We are informed that there are no transactions with any party for
the purchase of goods and materials and sale of goods, materials and
services made in pursuance of contracts or arrangements entered in the
Register maintained under Section 301 of the Companies Act, 1956 during
the year under review.
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the public during the year.
Accordingly the clause 4(vi) of the order is not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the company
in respect of products where, pursuant to the Companies (Cost
Accounting Records) Rules,2011 made by the Central Government, the
maintenance of cost records has been prescribed under Section 209(1)
(d) of the Companies Act, 1956. We are of the opinion that prima facie
the prescribed accounts and records have been maintained and are being
made up. We have not, however, made a detailed examination of records
with a view to determining whether they are accurate or complete.
9. The Company has been regular paying dues under the E.S.I. Act with
the appropriate authorities. According to the books and records
examined by us and the information and explanation given to us, no
undisputed amount payable in respect of income tax, wealth tax, sales
tax, VAT, custom duty, service tax, excise duty cess & other material
statutory dues applicable to it were in arrears as at 31st March, 2014
for a period of more than six months from the date they became payable.
However, ' 15,71,772/-pertaining to TDS remained unpaid for a period of
more than six months from the date they became payable.
10. The Company has accumulated losses of Rs. 1856.12 Lacs as at 31st
March, 2014. The company has earned profit of Rs. 451.27 Lacs in the
financial year 2013-14 under report and has not incurred any cash loss
in the immediately preceding financial year 2012-13.
11. The Company has settled loan accounts of UCO Bank, by Assignment of
Debt to an Asset Reconstruction Company
12. According to the information and explanations given to us and based
on the documents and records produced to us, Company has not granted
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities. Accordingly, clause 4(xii) of the
order is not applicable.
13. In our opinion, the Company is not a chit fund or a Nidhi /mutual
benefit fund/society. Accordingly, clause 4(xiii) of the order is not
applicable.
14. In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, clause
4(xiv) of the order is not applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 4(xv) of the order
is not applicable.
16. On the basis of information and explanation given to us term loan
raised during the year has been applied for the purpose for which they
were raised.
17. According to the information and explanations given to us and on an
overall examination of balance sheet of the company, we report that no
funds raised on short term basis have been used for long term
investment by the Company or vice versa.
18. During the year the company has not made any preferential allotment
of share. Accordingly, clause 4 (xviii) of the order is not applicable.
19. The Company has not issued any debenture so far. Accordingly,
clause 4(xix) of the order is not applicable.
20. The Company has not raised any money through public issue during
the year. Accordingly, clause 4(xx) of the order is not applicable.
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
was noticed or reported during the year that causes the financial
statements to be materially misstated.
For G. Dutta & Co.
Chartered Accountants
F.R. No.: 002136C
(Gopal Dutta)
Partner
M.No. 071312
Jaipur
04-09-2014 |