| We have audited the accompanying standalone financial statements of
Dhanlaxmi Fabrics Ltd ("the Company"), which comprise the Balance Sheet
as at March 31, 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 Responsibility for the Financial Statements:-
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
of the preparation and presentation of these standalone 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 sub-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 preventing and detecting frauds and other
irregularities, selection and application of appropriate accounting
policies, 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.
Auditors 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
thereunder.
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 a true and fair view
in order to design audit procedures that are appropriate in the
circumstances. but not for the purpose of financial controls system
over financial reporting and the operating effectiveness of such
controls. 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.
Opinion:-
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as
at 31st March 2015 and its profit and its 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 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, 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
c) The Balance Sheet, 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 standalone financial statements comply
with the Accounting Standards specified u/s. 133 of the Act, and read
with the Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations 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 Section164 (2) of the Companies Act
and
f) With respect to the matters to be included in the Auditor's Report
in accordance with Rule 11 of the Companies (Audit and Auditor's)
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 28
"Contingent Liability" to the financial statements,
ii) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses,
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
THE ANNEXURE TO INDEPENDENT AUDITORS' REPORT.
(Referred to in paragraph 1 under the heading of " Report on other
Legal and Regulatory Requirements" of report of even date.)
(i) In respect of its Fixed assets:-
(a) The company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
(b) All the fixed assets were physically verified by the management
during the year. We are informed that no material discrepancies were
noticed on such verification.
(ii) In respect of its inventories:-
(a) The inventories have 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. No material
discrepancies were noticed on verification.
(iii) The Company has not granted any loans, secured or unsecured, to
Companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013. Consequently, requirement
of clauses (iii, a), and iii(b) of paragraph 3 of the order are not
applicable.
(iv) 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
regard to purchase of inventory, fixed assets and for the sale of goods
and services. We have not observed any major weaknesses in the internal
control system during the course of the audit.
(v) According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore, the
provisions of Clause (v) of paragraph 3 of the CARO 2015 are not
applicable to the Company.
(vi) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act.
(vii) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Duty of Customs, Duty of Excise, Value Added Tax,cess and other
statutory dues applicable to it. According to the information and
explanations given to us,no undisputed accounts payable in respect of
outstanding 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 give to us, there are
no material dues of Sales Tax, Wealth Tax, Service Tax, Duty of Customs,
Duty of Excise, Value Added Tax,cess which have not been deposited with
the appropriate authorities on account of any dispute. However,
according to information and explanation given to us, the following
dues of income Tax have not been deposited by the Company on account of
disputes.
Period to which the
Name of the Statute Nature of Dues Amount (Rs.)
amount relates (FY)
Income Tax
Assessment 190,54,500/- 2009-2010
Income Tax
Income Tax
Assessment 50,61,160/- 2010-2011
Act, 1961
Income Tax
Assessment 4,95,180/- 2011-2012
Name of the Statute Period to
which
the amount Forum where disputes is pending
relates(FY)
Income Tax Act,1961 2009-2010 Commissioner of Income Tax (Appeal)
2010-2011 Commissioner of Income Tax (Appeal)
2011-2012 Commissioner of Income Tax (Appeal)
(c) According to information & explanations given to us, the amount
required to be transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
to1956) and rules made thereunder has been transferred to such fund
within time.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(ix) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial
institutions, banks or debentures holders.
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from a banks or financial institutions.
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion the term loans
obtained during the year were, prima facie, applied by the Company for
the purpose for which they were obtained, other than temporary
deployment pending application.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For S.G.Kabra & Co.
Chartered Accountants
FR No. 104507 W
S. G. Kabra
Partner
M. No. 38867
Place : Mumbai
Date : 27th May, 2015
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