To,
The Shareholders of
A. K. SPINTEX LIMITED Bhilwara
Report on the Financial Statements
We have audited the accompanyiny financial statements of A. K. SPINTEX 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 ended, and a summary of
significant accounting policies and other explanatory information
Managements Responsibility for the Financial Statements
The company 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 referred to in Section 133 of the
Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility includes the design, implementation and maintenance of adequate internal
cotrol 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 fail 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 prevision of the
Act, the accounting and auditing standards and matters which arc required to be included
in the audit report undci the provision of the Act and the Rules made thereunder
We conducted our audit in accordance with the Slanduid. 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 fr?? from material misstatemenl
An audit involves performing procrdures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors
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. 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 oveiall 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 aforesaid financial statements give the information required by the Act
in the manner so required and give a true and lair 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
U, 2015;
(b) in the case of the Profit and Loss Account, of the profit/ 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2015 ("the Older")
issued by the Central Government of India in erms of sub-section (11) Section 143 of the
Companies Act, 2013, we give in the Anncxure a statement on the matters specified in
paragraphs
3 and 4 of the Order, to the extent applicable.
2. As required by section 43(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 purposenf 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 and Cash Flow Statement dealt with
by this Report are in agreement with the books of account and records,
(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 to the extent applicable.
(e). on the basis of written representations received from the directors as or March
31. 2015 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2015, from being appointed as a director in terms of Section 164 (2) of
the Act, and
(f). with respect to the other matters to be included in the auditors report in
accordance with Rulc 11 of the Companies (Audit and auditors) Rules. 2014, in cur opinion
and to the best of our information and according to the explanations given to us
i Since the Central Government lias not issued any notification an to the rale at which
the ??ss is to be paid under section 441A of
the Companies Act, I956 nor has ii 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.
ii. As the company has not declared any dividend in the past yean & there is no
unpaid dividend, so there is no requirement of transfer of amount in Investor Education
& Protection tiind. (lliPP)
AININKXIIRF. TO THE INDEPENDENT AUDITORS’ REPORT
(Referred to in ????graphs uuder the heading of Report on Other
Legal and Regulatory Remurements of our report of even date)
On the basis of such checks of the books and records as we consider appropriate and as
per the information and explanation given to us during the course of out audit we further
report that: -
i(A) The Company has maintained proper records showing full particularx 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 periodic manner, which in our opinion is
reasonable, having regard to the size of the Company ami nature of its assets No material
discrepancies were noticed on such physical verification
ii(A) As explained to us, (he inventories have been physically verified by the
management at reasonable intervals during the year.
(B) In our opinion and according to the information and explanation given to us. the
procedures of physical verification of inventories followed by the management are
reasonable and adequate in relation to the Company and nature of its business.
(C) The Company has maintained proper records of inventories As explained to us. no
material discrepancies were noticed on physical verification of inventory as compared to
the book recore.
iii. According to the information & explanations given to us and on the
basis of our examination of the books of account, the
Company las not granted any loans, secured or unsecured, to companies, firms or other
parties listed in the register maintained under Section 189 of the Companies Act, 2013
Hence clause (iii) (a) & (b) is not applicable Lo the company as the company has not
granted any such loans
iv. In our opinion and according to the information and explanation given to us. there
is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business for
the purchase of inventories & fixed assets & for sale of goods and service During
the course of our audit no major instance of continuing failure to correct any weakness in
the internal control system has been noticed
v The companies has not accepted any loans/deposits from public, in our opinion and
according to the information anil explanation given to us the provision of section 73 and
70 of the Companies Act. 2013 and the Rules framed there under, wherever applicable, arc
being complied with. No order has been passed by company law board against the company
vi. As pci information and explanations given to us, the Central Government has not
prescribed maintenance of cost records under section 148(1) of the Companies Act for
company’s produds
a. According to the records of the company, undisputed statutory dues including
Provident Fund, Employee State Insurance, Income Tax. Wealth tax. Custom Duty. Sales Tax,
Excise duly, VAT Cess and other statutory dues have been regularly deposited with the
appropriate authorities. According to the information and explanation given to us, no
undisputed amounts payable in account of any dispute other then the disputed statutory
dues aggregating to Rs 110 55 Lac that have not been deposited on account ?f mailers pending before appropriate authorities are as under;
| Name of the Statute |
Financial year to which the matter pertains |
Nature of the dues |
Forum where dispute is pending |
Amount (Rs. in Lac) |
| Textiles Cess Act |
1997-2007 |
TC Cess |
Textile Cess Tribunal. |
46.26 |
| Central Excise Act, 1944 |
2002-2003 |
Excise Duty |
Commissioner (Appeals) |
544 |
| Entry Tax Act |
2012-2015 |
Entry Tax |
Company is disputing & challenging the liabilities based on the legal opinion
sought by the company. |
58.83 |
b. As the company has not declared any dividend in the past year & there is no
unpaid dividend, so there is no requirement of transfer of amount in Investor Education
& Protection fund (TEPT)
Viii The Company does not have any accumulated losses and has not incurred cash losses
during the financial year covered by our audit and in the immediately preceding financial
year.
ix. Based on our audit procedures and on the information and explanation given by the
management, we are of the opinion that the company has not defaulted in repayment of dues
to financial institution. Banks or debenture holders.
x. In our opinion and according to the information and the explanation given to us. the
company has not given any guarantee for loans taken by others from hanks or financial
institution.
xi Based on our audit procedures and on the information & explanations given by the
management, we report that the term loans have been applied for the purpose tor which they
were raised.
xii In our opinion and according to the information & explanations given to us, we
report that no material fraud on or by the company has been noticed or reported during the
year, nor have we been informed of such case by the management
FOR O.P. DAD & COMPANY
CHARTERED ACCOUNTANTS
[O.R. DAD] PARTNER M. NOJ5373
PLACE: BH1LWAKA
DATED: 30th MAY, 2015
+91-9892691696
