| We have audited the accompanying financial statements of Golden Carpets
Limited ("the Company"), which comprises the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss and Cash Flow statement
for the year ended, and summary of significant accounting policies and
other explanatory information.
Management 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 of the Company in accordance with Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act") read with the General Circular 15/2013
dated 13th September, 2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India. This
responsibility includes the design, implementation and maintenance of
internal controls 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 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, but not for the
purpose of expressing an opinion on the effectiveness of the company's
internal control. 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 fair
view in conformity with the accounting principles generally accepted in
India.
(a) In the case of Balance Sheet, of the state affairs of the Company
as at March 31, 2014
(b) In the case of the Statement of Profit and Loss, of theLoss for the
year ended on that date; and
(c) In the case of Cash Flow statement, the cash flows of the company
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
sub-section (4A) of section 227 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;
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 dealt with by this
report are in agreement with the books of account
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting standards referred
to in sub-section (3c) of section 211 of the Companies Act, 1956read
with the General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013.
e. On the basis of written representations received from the directors
as on 31st March 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2014 from being
appointed as a director in terms of clause (g) of sub-section(1) of
section 274 of the Companies Act, 1956.
f. Since the central Government has not issued any notification as to
the rate at which cess is to be paid under section 441A of 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 to the Auditors' Report
(referred to in paragraph 1 of our Report of even date to the Members
of "GOLDEN CARPETS LIMITED" for the year ended March 31, 2014)
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that,
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets of the company have been physically verified by
the Management during the year and no material discrepancies have been
noticed on such verification. In our opinion, the periodicity of
physical verification is reasonable having regard to the size of the
company and the nature of its assets.
(c) In our opinion, and according to the information and explanation
given to us, the company has not disposed off any fixed asset during
the year.
(ii) (a) As explained to us, inventories have been physically verified
by the Management at regular intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion, the company has maintained proper records of
inventories and as explained to us there was no material discrepancies
were noticed on physical verification.
(iii) (a) In our opinion and according to the information and
explanations given to us, the company didn'tgrantany loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Therefore,
requirements of clauses (b),(c),(d),of paragraph 4(iii) of the order
are not applicable.
(e) According to the information and explanations given to us, during
the current year the company had not taken any loan from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956 and the unsecured loans taken in
previous years from its Managing Director is outstanding for an amount
of Rs. 4,49,94,579/- (Rs Four Crores Forty Nine Lakhs Ninety Four
Thousand Five hundred and Seventy Nine).
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loan were not prima facie prejudicial to the interest of the
company.
g) In our opinion and according to the information and explanations
given to us, the company is in regular in payment of principal and
interest for the above said loans.
(iv) On the basis of checks carried out during the course of the audit
and as per the explanations given to us, we are of the opinion that
there are adequate internal control systems commensurate with the size
of the company and the nature of its business, with regard to payment
of expenses. During the course of audit no major weaknesses in the
internal controls are noticed.
(v) According to the information and explanations given to us, the
particulars of contracts or arrangements during the year that need to
be entered into a register in pursuance of section 301 of the Companies
Act. 1956 have been so entered.
(vi) In our opinion and according to the explanations given to us, the
company has not accepted any deposits within the meaning of Sections
58A and 58AA of the Companies Act and Companies (Acceptance of
Deposits) Rules, 1975.
(vii) As per information and explanations given by the management, the
company has an internal audit system commensurate with its size and
nature of its business.
(viii) According to the information and explanations given to us,
maintenance of cost records has not been prescribed by the central
government under the clause (d) of sub-section (1) to Section 209 of
the Act.
(ix) (a) According to the information and explanation given to us, the
company is regular in depositing undisputed statutory dues including
income-tax, cess and other statutory dues with the appropriate
authorities. According to the information and explanation given to us,
there were no arrears of undisputed statutory dues as at 31st March
2014, which were outstanding for a period of more than six months from
the date they become payable.
(b) According to the information and explanation given to us, there are
no dues of income- tax, wealth- tax, sales-tax and cess which have not
been deposited on account of any dispute.
(x) The company has accumulated losses as at the end of the financial
year and it accumulated losses are not less than fifty percent of its
net worth and the company has not incurred anycash losses during the
current financial year covered by our audit and it has incurred cash
losses in the immediately preceding financial year.
(xi) According to the records of the company and as per the
explanations given to us the company has not taken any loans from a
financial institution or bank and the company was not raised any
debentures during the year. Accordingly, clause 4 (xi) of the order is
not applicable.
(xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund or nidhi / mutual benefit fund /
society. Therefore, the provisions of clause 4 (xiii) of the said Order
are not applicable to the company.
(xiv) According to the information given to us, the company is not
dealing in or trading in shares, securities, debentures and other
instruments, accordingly the provisions of clause 4 (xiv) of the order
is not applicable.
(xv) 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.
(xvi) According to the information and explanations given to us, no
term loans were raised during the year.
(xvii) According to the information and explanation given to us, and on
an overall examination of the balance sheet, we report that the company
was not raised any funds on short term basis during the year.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Act during the year.
(xix) The company has not issued any debentures during the year.
Accordingly, question of creating securities or charge does not arise.
(xx) The company has not raised any money by public issue during the
year.
(xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the company has been noticed or reported during the course of our
audit.
For Ramasamy Koteswara Rao & Co.,
Chartered Accountants
Firm Regn No: 010396S
Sd/-
Place: Hyderabad (C.V.Koteswara Rao)
Date: 29-05-2014. Partner
Membership No: 028353. |