| We have audited the accompanying financial statement of Blue Pearl
Texspin Ltd (Formely E-Wha Foam (India) Ltd) ("the Company"), which
comprise the Balance Sheet as at March 31, 2014, and the statement of
Profit & Loss and Cash Flow Statement for the period ended, and the
summary of significant accounting policies and other explanatory
information.
Management's Responsibility for the Financial Statement
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 issues by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirement 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 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 fare
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, 2014;
(b) In the case of Profit & Loss Account, of the profit of the Company
for the period ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
period ended on that date.
Report on Other Legal and regulatory Requirements
1. As required by required by the Companies (Auditor's Report)
Order,2003 ("the Order") issued by 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 paragraph 4 & 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 Account and Cash
Flow Statement dealt with this report are in agreement with the books
of Accounts;
(d) In our opinion, Balance Sheet, Statement of Profit and Loss Account
and Cash Flow Statement comply with the accounting standards referred
to in Sub-Section 3(C) of sec-211 of Companies Act,1956.
(e) On the basis of written representation received from the directors
as on March 31, 2014 and taken onrecord by by the Board of Directors,
none of the directors is disqualified as on March 31, 2014 from being
appointed as the directors in terms of sec-274(1) (g) 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.
Annexure attached to and forming part of our report of even date as
referred to in paragraph (1)
1. The company has maintained proper records showing full particulars
including quantitative details and location of all its fixed assets.
During the period the management has physically verified all the fixed
assets and no material discrepancies have been noticed on such
verification. During the period, the company has not disposed off
substantial part of its fixed assets.
2. The Company does not hold any inventory and hence the question of
physical verification etc does not arise.
3. The company has not granted loans during the period to parties
covered in the registered maintained under section 301 of the Companies
Act, 1956. The Company has not taken unsecured Loans during the period
from parties covered in registered maintained u/s 301 of the Act.
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 the nature of its
business with regard to the purchase of inventory, fixed assets and
with regard to the sale of goods. During the course of our audit, no
major weakness has been noticed in the internal controls.
5. As explained to us, during the period, any transaction required to
be entered in the register maintained under section 301 of Companies
Act, 1956, has been entered.
6. The company has not accepted deposits from the public and hence the
provisions of Sec-58A & 58AA of the Companies Act,1956, and the rules
framed there under are not applicable. In company's case no order has
been passed by the Company Law Board.
7. In our opinion the company does not have any formal internal
control system during the period.
8. The central government has not prescribed maintenance of cost
records under section 209(1)(d) of theCompanies Act,1956.
9. According to the information and explanations given to us and on
basis of our examination of the books of accounts, the company has been
generally regular in depositing undisputed statutory dues including
Provident fund, Investor Education and protection fund, Employee's
state insurance, Income Tax, sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, cess and other statutory dues during the period with
the appropriate authorities. As at 31.03.2014, there were no undisputed
dues payable for a period of more than six months from the date they
become payable.
10. The Company does have accumulated losses exceeding 50% of its net
worth and it has not incurred cash losses during the financial period
covered by our audit and in the immediately preceding financial period.
11. Based on our audit procedure and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to the financial
institution or bank.
12. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The company is not a chit fund/nidhi/mutual benefit fund/ society.
14. According to the information and explanations given to us, the
Company did not deal in or trade in shares, securities, debentures or
other investments. The shares and other investments acquired by the
company by way of investments are held by the company in its own name.
15. According to the information and explanations given to us , the
company has not given any guarantee for loans taken by others from bank
and financial institutions.
16. The company had not taken any fresh term loan during the period.
17. According to information and explanations given to us, funds
raised on short term basis have, prima facie, not been used during the
period for long term investments and vice versa.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act,1956 during the period.
19. No Security is required to be created since the company has not
issue any debentures.
20. The company has not raised any money by public issues during the
period.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
period.
For C.P.Jaria & Co
Chartered Accountants
Sd/-
Date :30/05/2014 (P.K.Jain)
Place :Mumbai Partner
M.No 112020 FRN : 104058W |