| We have audited the accompanying financial statements of EVERGREEN
TEXTILES LIMITED (the Company), which comprise the Balance Sheet as at
31st March, 2014, the Statement of Profit & Loss and the 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 Financial Statements
The Company's 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') read with
the General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
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 mis-statement, 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material mis-statement.
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 judgement, including the
assessment of the risks of material mis-statement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the 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 Entity's internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the 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 Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(ii) in the case of the Statement of Profit and Loss, of the Loss of
the Company for the year ended on that date, and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date
Report on other Legal and Regulatory requirements
As required by the Companies (Auditor's Report) Order, 2003 ('The
Order") (as amended), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956, 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 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:
b) Since the company does not have any branches, the report on the
accounts of the branch offices audited by the other auditor under
section 228(3)(c) of the Companies Act, 1956 is not applicable.
c) The Balance Sheet, Statement of Profit & Loss, and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
Sub Section (3C) of Section 211 of Companies Act. 1956 read with the
General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
e) On the basis of the written representations received from the
Directors as on 31st March, 2014, and taken on record by the Board of
Directors, none of the Directors are 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;
ANNEXURE REFERRED IN AUDITOR'S REPORT TO THE MEMBERS OF EVERGREEN
TEXTILES LIMITED IN PARAGRAPH 1 IN THE REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS FOR THE YEAR ENDED 31ST MARCH 2014.
I. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
b) As explained to us, all the fixed assets have been physically
verified by the management during the year. Which in our opinion is
reasonable, having regard to the size of the company and the nature of
its assets. No material discrepancies were noticed on such physical
verification.
c) In our Opinion, the Company has not disposed a substantial part of
its fixed assets during the year and the going concern status of the
Company is not affected.
2. As informed, the Company does not have any inventory and hence,
clause 4(ii) (a) (b) & (c) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable.
3. a) The Company has not given any loans during the year to the
Companies, Firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956, hence clause 4(iii)(a) to
(c ) of the Companies (Auditor's Report) Order,2003 (as amended) are
not applicable.
b) The Company has not taken any loans during the year from the
Companies, Firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956, hence clause 4(iii)(e) to
(g) of the Companies (Auditor's Report) Order,2003 (as amended) are not
applicable.
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 regard
to the purchase of inventory, and fixed assets and for the sale of
goods & services, if any. During the course of our audit, we have not
observed any major weaknesses in the internal control systems of the
company.
5. a) According to the information and explanations given to us, and
based on the audit procedures applied by us, we have not found any
transactions that needed to be entered in the register maintained Under
Section 301 of the Companies Act, 1956.
b) There are no transactions made for purchase or sale of goods and
services exceeding the value of five lakh rupees in respect of any
party listed in the register maintained under section 301 of the
Companies Act, 1956.
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the Public within the
meaning of Section 58A and 58AA of the Companies Act, 1956, hence
clause 4(vi) of the Companies (Auditor's Report) Order, 2003 (as
amended) are not applicable.
7. While the Company has no formal internal audit system during the
year under review the Directors of the company have always kept
adequate vigilance over the day to day transactions of the company and
over the proper maintenance of the basic records and Books of Accounts
of the company.
8. According to the information and explanations given to us, The
Central Government has not prescribed the maintenance of cost records
under clause (d) of sub section (1) of section 209 of the Act for any
of the products of the company.
9. a) According to the information and explanations given to us and
according to the records examined by us, in our opinion the Company is
regular in depositing all its undisputed statutory dues relating to
Provident fund, Investor Education & Protection fund, Employees State
Insurance, Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom duty,
Excise duty, and Other material Statutory dues as applicable with
appropriate authorities except Excise duty of Rs.5,35,24,282
b) The details of disputed dues of Sales Tax, Service Tax, Income Tax,
Wealth Tax, custom Duty, Excise duty and Cess, which have not been
deposited, are as under :
Name of the Statute Forum where As at As at
dispute is 31.03.14 31.03.13
pending (Rs in Lacs) (Rs in Lacs)
1 Central Excise Appellate Tribunal 428.26 428.26
2 Sales Tax Sales Tax Tribunal 18.45 18.45
10. The Company's accumulated losses at the end of the financial year
31.03.2014, are more than fifty percent of its net worth. The company
has incurred cash losses in the current year and has also incurred cash
losses in the immediately preceeding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, since the Company has no
borrowings from financial institutions / banks I or debenture holders,
hence clause 4(xi) of the Companies (Auditor's Report) Order,2003 (as
amended) are not applicable.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities:
hence clause 4(xii) of the Companies (Auditor's Report) Order, 2003 (as
amended) are not applicable.
13. In our opinion and according to the explanation available the
Company is not a chit fund/ nidhi/ mutual benefit fund / society, hence
clause 4(xiii) of the Companies (Auditors Report) Order, 2003 (as
amended) are not applicable.
14. In our opinion the Company has maintained proper records of
transactions and contracts relating to dealing or trading in shares,
securities, debentures and other investments during the year and timely
entries have been made therein. Further such securities have been held
by the Company in its own name or in the process of transfer in its
name.
15. 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 banks or financial institutions, during the year. Hence
clause 4(xv) of the Companies (Auditor's Report) Order, 2003 (as
amended) are not applicable.
16. The Company has not obtained any term loans during the year, hence
clause 4(xvi) of the Companies (Auditor's Report) Order, 2003 (as
amended) are not applicable.
17. According to the information and explanations given to us and on an
overall examination of the Financial Statement of the company, there
are no funds raised on short term basis which have been used for long
term Investment, hence clause 4(xvii) of the Companies (Auditor's
Report) Order,2003 (as amended) are not applicable.
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 Act during the year, hence clause 4(xviii) of the Companies
(Auditors Report) Order, 2003 (as amended) are not applicable.
19. The company has not issued any debentures during the year, and does
not have any debentures outstanding as at the year end, hence clause
4(xix) of the Companies (Auditor's Report) Order, 2003 (as amended) are
not applicable.
20. The company has not raised any money by public issues during the
year, hence clause 4(xx) of the Companies (Auditor's Report) Order,
2003 (as amended) are not applicable.
21. During the course of our examinations of the books and records of
the company, carried out in accordance with generally accepted auditing
practices in India; and according to the information and explanations
given to us by the management, we have neither come across any instance
of fraud on or by the company, noticed or reported during the year nor
have been informed of any such case by the management.
For S.K.BHAGERIA & ASSOCIATES
Chartered Accountants
(Firm Registration No: 112882W)
(S.K.BHAGERIA)
PARTNER
Membership No 41404
PLACE: MUMBAI
DATE: 30.05.2014
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