| We have audited the accompanying financial standalone statements of
EUROTEX INDUSTRIES & EXPORTS LIMITED ("the Company"), which comprise
the Balance Sheet as at 31st March, 2015, the Statement of Profit and
Loss, Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Stand- alone 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
to the preparation 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 Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This resposibility 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 judgements
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, relevent 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 standalone
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 required
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 the 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 the 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 expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the 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 standalone
financial statements.
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 loss and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Require- ments
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.
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
purposes 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 standalone 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 the 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 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 the aforesaid financial statements - Refer Note
26(1) & 26(3) 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 were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF THE EUROTEX INDUSTRIES AND EXPORTS LIMITED ON STANDALONE
FINANCIAL STATEMENTS
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we state that:
1. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained, the assets have been physically verified by the
management in accordance with the phased programme designed to cover
all the assets over three years. In our opinion, the frequency of
verification is reasonable considering the size of the Company and
nature of its fixed assets. As informed, no major discrepancies were
noticed on such verification.
2. a) The inventory has been physically verified by the management at
reasonable intervals during the year. Inventory-in-transit has been
verified by the management with reference to the relevant documents.
b) The procedures for physical verification of the 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
book records were not material considering the operations of the
Company and have been properly dealt with in the books of account.
3. During the year, the Company has not granted any loans, secured or
unsecured to / from Companies, firms or other parties covered in the
register maintained under Section 189 of the Act.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased and sold are of the special nature and suitable alternative
source does not exist for obtaining comparable quotations, there are
adequate internal control systems commensurate with the size of the
Company and nature of its business for purchase of inventory, fixed
assets and with regard to the sale of goods and services. During the
course of our audit, no major weakness has been noticed in the internal
control system.
5. No deposits within the meaning of directives issued by RBI (Reserve
Bank of India) and Sections 73 to 76 or any other relevant provisions
of the Act and Rules framed thereunder have been accepted by the
Company.
6. On the basis of records produced, we are of the opinion that prima
facie, the cost records and accounts prescribed by the Central
Government under Section 148(1) of the Act have been maintained.
However, we are not required to and thus have not carried out any
detailed examination of such accounts and records, with a view to
ascertain whether these are accurate and complete.
7. (a) The Company is generally regular in depositing undisputed
statutory dues including Provident Fund, Employee's State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of
Excise, Cess and other material statutory dues applicable to the Company
with the appropriate authorities. No undisputed amount payable in
respect of the aforesaid statutory dues were outstanding as at the last
day of the financial year for a period of more than six months from the
date they became payable.
(b) According to the records of the Company, there are no dues of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty
of Excise, Cess which have not been deposited on account of any dispute
except the following:
Name Forum where
of the Nature the dispute is Financial Amount
Statute of Dues pending Year in Rs.
The Custom Cenvat Custom, Excise 2001-02
Act, 1962 Duty & and Service Tax to
Penalty Appellate Tribu- 2003-04 1,74,367
nal (CESTAT), 2005-06 3,56,890
Mumbai. 2006-07 1,31,07,968
The Central Excise Custom, Excise
Excise Act, Duty & and Service Tax 2001-02 30,73,840
1944 Penalty Appellate Tribu- 2005-06 13,39,07,368
nal (CESTAT),
Mumbai.
Supreme Court 2001-02 2,00,827
of India
The Bombay Deputy Commi- 2001-02 51,22,933
Sales Tax ssioner of Sales
Act, 1959 / Sales Tax (Appeal),
Central Sales Tax Kolhapur
Tax Act
1956 Joint Commissi- 2006-07 1,13,28,290
oner of Sales Tax 2009-10 59,00,594
(Appeal) 2007-08 77,51,400
Kolhapur
(c) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
8. The Company has no accumulated losses as at 31st March, 2015 and it
has not incurred any cash losses in the financial year ended on that
date and in the immediately preceding financial year.
9. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks and financial institutions.
10. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
11. Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
12. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing standards in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & COMPANY
Chartered Accountants
(R. P. BARADIYA)
Partner
Place: Mumbai (M. No. 44101)
Date : 23rd May, 2015. Firm Regn. No. 301051E
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