The Members of KNITWORTH EXPORTS LIMITED
We have Audited the attached Balance Sheet of M/S. KNITWORTH EXPORTS LIMITED,
as at 31st March'2009 and also Profit and Loss Account and the cash flow statement for the
year ended on that date annexed thereto. These financial statements are the
responsibility,of the Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in
India. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well are evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
1. As required by the Companies (Auditor's Report) Order' 2003 (as amended) issued by
the Central Government of India in terms of sub - section (4A) of section 227 of the
companies Act' 1956, we enclose in the Annexure a statement on the matters specified in
paragraph 4 and 5 of the said order.
2. Further to our comments in the Annexure referred to above, 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 the law have been kept by
the company so far as appears from our examination of those books.
(c) The Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with by
this report are in agreement with the books of account.
(d) In our opinion,, the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with the this report comply with the Accounting standards referred to in Sub-section
(3C) of section 211 of the companies Act 1956.
(e) On the basis of written representations received from the Directors, as on 31st
March 2009, and taken on record by the Board of Directors, we report that none of the
directors is disqualified as on 31st March 2009 from being appointed as a Director in
terms of clause (g) of sub-section (1) of section 274 of the companies Act 1956.
(f) In our opinion and to the best of our information and according to the explanations
given to us, the said accounts 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 Balance Sheet, of the state of affairs of the company as at 31st
(ii) In the case of the Profit and Loss Account of the Loss of the company for the year
ended on that date.
(iii) In the case of the Cash Flow Statement, of the Cash Flows for the year ended on
|M/S. AGRAWAL HIMATSINGKA & CO.
||(V. K. AGRAWAL)
|Kolkata -700 001
|Dated: this 1st day of September 2009
||Membership no. 53243
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 2 of our Report of even date)
1. In respect of its Fixed Assets :
a. The company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets on the basis of available information.
b. As explained to us, the fixed assets have been physically verified by the management
during the year in a phased periodical manner, which in our opinion is reasonable, having
regard to the size of the company and nature of its assets. No material discrepancies were
noticed on such physical verification.
c. In our opinion, the company has not disposed of substantial part of fixed assets
during the year and the going concern status of the company is not affected.
2. In respect of its inventories :
a. Since there was no business activity, nor any commodity was dealt in/with, it is not
required to be reported upon.
3. In respect of loans, secured or unsecured, granted or taken by the company to from
companies, firms or other parties covered in the register maintained under section 301 of
the companies Act, 1956.
a. The company has not taken/accepted unsecured loans from the parties covered in the
register maintained u/s 301 of the companies Act' 1956.
b. The company has not granted any loan to any such parties. However the company has
overdue loans/ advances given to some companies, firms and to other parties. The parties
to whom loans or advances in the natures of loans has been given by the company are not
repaying the principal and /or interest as well and in most of the cases no recovery was
made during the year and no provision for doubtful debts amounting to Rs. 1,06,49,772/-
has been made in the books.
4. 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, fixed assets and also for the sale
of goods. During the course of our audit, we have observed some major weaknesses which is
still continuing in internal controls which may be referred to in point no.6 (c) of the
notes on Accounts (SCH -13) of the company.
5. In respect of transaction covered under Section 301 of the Companies Act' 1956:
a. In our opinion and according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements, that needed to be entered
into in the register maintained under Section 301 of the Companies Act, 1956 have been so
b. In our opinion and according to the information and explanations given to us, there
are no transactions in pursuance of contracts or arrangements entered in the register
maintained under Section 301 of the Companies Act, 1956 aggregating during the year to Rs.
5,00,000/- (Rupees Five Lacs only) or more in respect of such party.
6. The company has not accepted any deposits within the meaning of section -58Aof the
companies Act' 1956, and the companies (acceptance of deposit) Rules 1975 form the public.
7. In our opinion, the internal audit system of the company is commensurate with its
size and nature of its business. .
8. The central Government has not prescribed maintenance of cost Records under Section
209 (1) of the Companies Act' 1956 for any of the products of the company for any of the
products of the company.
9. In respect of statutory dues :
a. According to the records of the company and informations and explanation given to
us, undisputed statutory dues including, P.F. & ESI, Income Tax, Sales tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues wherever
applicable have been generally regularly deposited with the appropriate authorities.
b. According to the information and explanations given to us, no undisputed amounts
payable in respect of the aforesaid dues were outstanding as at 31st March 2009
for a period of more than six months from the date of becoming payable.
10. The company has accumulated loss of Rs. 1,50,59,906/- and has incurred cash losses
of Rs.11,501/- during the financial year covered by our audit.
11. Based on the audit procedures and according to the information and explanation
given to us, we are of the opinion that the company has not taken any loan or advances
from Bank and financial institutions and no amount is due to them.
12. In our opinion and according to the information and explanation given to us, no
loans and advances have been granted by the company on the basis of security by way of
pledge of shares, debenture and other securities.
13. In our opinion, the company is not a chit fund or a nidhi/ mutual benefit
fund/society. Therefore, clauses 4(xiii) of the companies (Auditor's Report) order 2003 is
not applicable to the company.
14. Based on the records examined by us and according to information and explanations
given to us, the company has not dealt in any shares or securities or other investments
during the year. Accordingly, the provisions of clause - 4 (XIV) of the companies
(Auditors Report) order 2003 are not applicable to the company.
15. According to the information & explanation given to us the company has not
given any guarantee for loans taken by others from banks or financial institutions.
16. According to the information and explanations given to us no term loans has been
availed by the company.
17. According to the information and explanations given to us, no funds has been raised
on short term basis during the year of Audit.
18. During the year, the company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section 301 of the
Companies Act 1956.
19. According to the information & explanation given to us and records examined by
us, during the year the company has not issued any debentures hence question of creating
security or charges over the same does not arise.
20. The company has not raised any money by way of public issue during the year.
21. In our opinion and according to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the year, that causes the
financial statements to be materially misstated.
||M/S. AGRAWAL HIMATSINGKA & CO.
||(V. K. AGRAWAL)
|Kolkata -700 001
|Dated: this 1st day of September 2009