| We have audited the accompanying financial statements of SUBHASH SILK
MILLS LIMITED ("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's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
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 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 responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, 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.
Auditor's 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 true and fair view 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
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 financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Statement of Profit and Loss, of the Loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matters
In our opinion and the best of our information and according to the
explanation given to us, there is no matter which may have an adverse
effect on the functioning of the company.
Report on other Legal and Regulatory Requirements 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 appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid 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 written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report
and to our best of our information and according to the explanations
given to us :
i. The Company did not have any pending litigations which would impact
its financial position.
ii. The Company did not have any long term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There were no amounts which required to be transferred to Investor
Education and Protection Fund by the Company.
(Annexure to Auditor's Report)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The Company has physically verified certain assets during the year
in accordance with a programme of verification, which in our opinion
provides for physical verification of the fixed assets at reasonable
intervals. According to the information and explanations given to no
material discrepancies were noticed on such verification.
In our opinion fixed assets have been properly dealt with in the books
of accounts
(ii) In respect of its Inventories:
(a) In our opinion, the management at reasonable intervals has
physically verified the inventories and the frequency of verification
is reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedure for verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
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 301 of the Act and hence clause (iii) sub-clauses (a),
(b), (c) and (d) of para 4 not applicable.
(e) In respect of loans, secured or unsecured, taken by the Company
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act 1956, according to of
the information and explanations given to us, the Company has taken
interest free loans from 3 parties covered in register u/s 301
aggregating to Rs. 48,31,316.
(f) The terms and conditions of the loans are, in our opinion, prima
facie not prejudicial to the interests of the company.
(g) The payment of principal amount to the parties from whom loans
given by the company is regular as per the mutual understanding between
the parties.
(iv) 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 for the purchase of inventory and fixed assets and for the
sale of goods and services. Further, on the basis of our examination of
books and records of the company, carried out in accordance with the
auditing standards generally accepted in India and according to the
information and explanation given to us, we have neither come across
nor have we been informed of any continuing failure to correct major
weaknesses in the aforesaid internal control system.
(v) In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the public as
per section 73 to 76 or any other relevant provisions of the Companies
Act, 2013.
(vi) According to information and explanation given to us, the
maintenance of cost records has not been prescribed by the Central
Government sub section (1) of section 148 of the Companies Act 2013.
(vii) According to the information and explanations given to us in
respect of statutory and other dues:
(a) The Company has been regular in depositing undisputed statutory
dues, including Provident Fund, Employees' State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value
Added Tax, cess and any other statutory dues with the appropriate
authorities during the year, whenever there is delays in payment dues
are paid along with interest as per rules and regulation under
respective act except Income Tax dues for the Financial Year 2013-14 of
Rs. 1.2 crores
(b) There are no disputed dues of Sales Tax, Income Tax, Customs Duty,
Wealth Tax, Service Tax, Excise Duty, Value Added Tax, Cess and any
other statutory dues with the appropriate authorities during the year.
(viii) The Company does not have accumulated losses which are more than
50% at the end of the year. Further the company did not have cash
losses in the current financial year however incurred cash loss in the
preceding financial year.
(ix) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to financial
institutions, banks and debenture holders.
(x) According to the information and explanations given to us, the
company has not given any guarantee for loan taken by others from banks
or financial institutions.
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were, prima facie, applied by the Company during the year for
the purposes for which the loans were obtained, other than temporary
deployment pending application.
(xii) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
for S.M. Kapoor & Co.
Chartered Accountants
(Shekhar Gupta)
Partner
Membership No. 15622
Firm Regn. No. 104809 W
Place: Mumbai
Date: 6th August, 2015
|